Document:

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                                                                   Exhibit 10.56

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

                            STOCK PURCHASE AGREEMENT

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

                                     Among

                              ROBERT J. SIMS, JR.,

                                 WILLIAM KEPKE,

                               DIETER M. BAILLY,

                                RAYMOND T. SIMS,

                                 MARK L. SIMS,

                                   RON HEUER

                                      and

                              TRAVELBYUS.COM LTD.

                            Dated as of May 23, 2000

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                               TABLE OF CONTENTS
                               -----------------

                                   ARTICLE I

                                  DEFINITIONS

     SECTION 1.01.  Certain Defined Terms....................................  1

                                   ARTICLE II

                               PURCHASE AND SALE

     SECTION 2.01.  Purchase and Sale of the Shares..........................  8
     SECTION 2.02.  Purchase Price...........................................  8
     SECTION 2.03.  Closing..................................................  8
     SECTION 2.04.  Closing Deliveries by the Sellers........................  9
     SECTION 2.05.  Closing Deliveries by the Purchaser......................  9

                                  ARTICLE III

                         REPRESENTATIONS AND WARRANTIES

     SECTION 3.01.  Organization, Authority and Qualification of the
                    Sellers..................................................  9
     SECTION 3.02.  Organization, Authority and Qualification of the
                    Company.................................................. 10
     SECTION 3.03.  Capital Stock and Ownership of the Company............... 10
     SECTION 3.04.  Subsidiaries............................................. 11
     SECTION 3.05.  Corporate Books and Records.............................. 11
     SECTION 3.06.  No Conflict.............................................. 11
     SECTION 3.07.  Governmental Consents and Approvals...................... 11
     SECTION 3.08.  Financial Information; Books and Records................. 11
     SECTION 3.09.  Absence of Undisclosed Liabilities....................... 12
     SECTION 3.10.  Receivables.............................................. 12
     SECTION 3.11.  Inventories.............................................. 12
     SECTION 3.12.  Conduct in the Ordinary Course; Absence of Certain
                    Changes, Events and Conditions........................... 13
     SECTION 3.13.  Litigation............................................... 14
     SECTION 3.14.  Compliance with Laws..................................... 14
     SECTION 3.15.  Environmental Matters.................................... 14
     SECTION 3.16.  Material Contracts....................................... 14
     SECTION 3.17.  Intellectual Property.................................... 15
     SECTION 3.18.  Real Property............................................ 17
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                                      ii

     SECTION 3.19.  Property................................................. 17
     SECTION 3.20.  Employee Benefit Plans................................... 17
     SECTION 3.21.  Labor Matters............................................ 18
     SECTION 3.22.  Certain Interests........................................ 18
     SECTION 3.23.  Taxes.................................................... 18
     SECTION 3.24.  Accounts; Lockboxes; Safe Deposit Boxes; Powers of
                    Attorney................................................. 19
     SECTION 3.25.  Full Disclosure.......................................... 19
     SECTION 3.26.  Brokers.................................................. 20

                                   ARTICLE IV

                REPRESENTATIONS AND WARRANTIES OF THE PURCHASER

     SECTION 4.01.  Organization and Authority of the Purchaser.............. 20
     SECTION 4.02.  No Conflict.............................................. 20
     SECTION 4.03.  Governmental Consents and Approvals...................... 21
     SECTION 4.04.  Investment Purpose....................................... 21
     SECTION 4.05.  Purchaser Common Shares.................................. 21
     SECTION 4.06.  Brokers.................................................. 21

                                   ARTICLE V

                             ADDITIONAL AGREEMENTS

     SECTION 5.01.  Conduct of Business Prior to the Closing................. 22
     SECTION 5.02.  Access to Information.................................... 22
     SECTION 5.03.  Confidentiality.......................................... 22
     SECTION 5.04.  Notice of Developments................................... 23
     SECTION 5.05.  No Solicitation or Negotiation........................... 23
     SECTION 5.06.  Further Action........................................... 24

                                   ARTICLE VI

                             CONDITIONS TO CLOSING

     SECTION 6.01.  Conditions to Obligations of the Sellers................. 24
     SECTION 6.02.  Conditions to Obligations of the Purchaser............... 25

                                  ARTICLE VII

                                INDEMNIFICATION
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                                      iii

     SECTION 7.01.  Survival of Representations and Warranties............... 26
     SECTION 7.02.  Indemnification by the Sellers........................... 26
     SECTION 7.03.  Limits on Indemnification................................ 28
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                                      iv

                                  ARTICLE VIII

                             TERMINATION AND WAIVER

     SECTION 8.01.  Termination.............................................. 28
     SECTION 8.02.  Effect of Termination.................................... 29
     SECTION 8.03.  Waiver................................................... 30

                                   ARTICLE IX

                               GENERAL PROVISIONS

     SECTION 9.01.  Expenses................................................. 30
     SECTION 9.02.  Notices.................................................. 30
     SECTION 9.03.  Public Announcements..................................... 32
     SECTION 9.04.  Headings................................................. 32
     SECTION 9.05.  Severability............................................. 32
     SECTION 9.06.  Entire Agreement......................................... 32
     SECTION 9.07.  Assignment............................................... 32
     SECTION 9.08.  No Third Party Beneficiaries............................. 32
     SECTION 9.09.  Amendment................................................ 33
     SECTION 9.10.  Governing Law............................................ 33
     SECTION 9.11.  Counterparts............................................. 33
     SECTION 9.12.  Specific Performance..................................... 33

          EXHIBIT 2.02                                              Exhibit 2.02
          EXHIBIT A                                                    Exhibit A
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                                       v

DISCLOSURE SCHEDULE

               The Disclosure Schedule shall include the following Sections

          3.01    Organization, Authority and Qualification of the Sellers
          3.02    Organization and Qualification of the Company
          3.03    Capital Stock and Ownership of the Company
          3.06    No Conflict
          3.07    Governmental Consents and Approvals
          3.08    Financial Statements
          3.09    No Undisclosed Liabilities
          3.10    Receivables
          3.11    Inventories
          3.12    Conduct in the Ordinary Course; Absence of Certain Changes,
                  Events and Conditions
          3.13    Litigation
          3.14    Compliance with Laws
          3.15    Environmental Matters
          3.16    Material Contracts
          3.17    Intellectual Property
          3.18    Real Property
          3.19    Property
          3.22    Certain Interests
          3.23    Taxes
          3.24    Accounts; Lockboxes; Safe Deposit Boxes; Power of Attorney
          5.01    Conduct of Business Prior to the Closing
<PAGE>

          STOCK PURCHASE AGREEMENT, dated as of May 23, 2000, between Robert J.
Sims Jr., William Kepke, Dieter M. Bailly, Raymond T. Sims, Mark L. Sims and Ron
Heuer (each a "Seller" and collectively, the "Sellers"), and Travelbyus.com
               ------                         -------
Ltd., an Ontario, Canada corporation (the "Purchaser").
                                           ---------

                              W I T N E S S E T H:
                              -------------------

          WHEREAS, the Sellers own all the issued and outstanding shares (the

"Shares") of common stock, no par value per share (the "Common Stock"), of Epoch
-------                                                 ------------
Technology Inc., a Texas corporation (the "Company");
                                           -------

          WHEREAS, the Sellers, through the Company, are engaged in the business
as a travel services computer software designer, developer and licensor; and

          WHEREAS, the Sellers wish to sell to the Purchaser, and the Purchaser
wishes to purchase from the Sellers, the Shares and the Shareholders' Loans (as
defined below), upon the terms and subject to the conditions set forth herein;

          NOW, THEREFORE, in consideration of the premises and the mutual
agreements and covenants hereinafter set forth, the Purchaser and the Sellers
hereby agree as follows:

                                   ARTICLE I

                                  DEFINITIONS

          SECTION 1.01.  Certain Defined Terms. As used herein, the following
                         ---------------------
terms shall have the following meanings:

          "Acquisition Documents" means this Agreement, the Ancillary
           ---------------------
Agreements, and any certificate, Financial Statement, Interim Financial
Statement, report or other document delivered pursuant to this Agreement or the
transactions contemplated hereby.

          "Action" means any claim, action, suit, arbitration, inquiry,
           ------
proceeding or investigation by or before any Governmental Authority.

          "Affiliate" means, with respect to any specified Person, any other
           ---------
Person that directly, or indirectly through one or more intermediaries,
controls, is controlled by, or is under common control with, such specified
Person.

          "Agreement" or "this Agreement" means this Stock Purchase Agreement,
           ---------      --------------
dated as of May 23, 2000, between the Sellers and the Purchaser (including the
Exhibits hereto and the Disclosure Schedule) and all amendments hereto made in
accordance with the provisions of Section 11.09.
<PAGE>

                                       2

          "Ancillary Agreements" means the Consulting Agreements , the
           --------------------
Assignment Agreement, the Spousal Consents and the U.S. Purchaser's Letters.

          "Assignment Agreement" means the Assignment Agreement to be executed
           --------------------
by Robert J. Sims, Jr., William Kepke and Dieter M. Baily on the Closing Date.

          "Business Day" means any day that is not a Saturday, a Sunday or other
           ------------
day on which banks are required or authorized by Law to be closed in the
Province of Ontario.

          "CERCLA" means the Comprehensive Environmental Response, Compensation
           ------
and Liability Act of 1980, as amended through the date hereof.

          "CERCLIS" means the Comprehensive Environmental Response, Compensation
           -------
and Liability Information System, as updated through the date hereof.

          "Closing" has the meaning specified in Section 2.03.
           -------

          "Closing Balance Sheet" means the audited consolidated balance sheet
           ---------------------
(including the related notes and schedules thereto) of the Company, to be
prepared pursuant to Section 2.08(a) and to be dated as of the Closing Date.

          "Closing Date" has the meaning specified in Section 2.03.
           ------------

          "Code" means the Internal Revenue Code of 1986, as amended through the
           ----
date hereof.

          "Common Stock" has the meaning specified in the recitals to this
           ------------
Agreement.

          "Company" has the meaning specified in the recitals to this Agreement.
           -------

          "Company Software" means all Software (i) material to the operation of
           ----------------
the business of the Company, or (ii) manufactured, distributed, sold, licensed
or marketed by the Company, including but not limited to the ERA Software.

          "control" (including the terms "controlled by" and "under common
           -------                        -------------       ------------
control with"), with respect to the relationship between or among two or more
------------
Persons, means the possession, directly or indirectly or as trustee, personal
representative or executor, of the power to direct or cause the direction of the
affairs or management of a Person, whether through the ownership of voting
securities, as trustee, personal representative or executor, by contract, credit
arrangement or otherwise.

          "Disclosure Schedule" means the Disclosure Schedule attached hereto,
           -------------------
dated as of the date hereof, and forming a part of this Agreement.

          "Employment Agreement" means the employment agreement to be executed
           --------------------
by the Purchaser and each of Robert J. Sims, Jr. and William Kepke on the
Closing Date.
<PAGE>

                                       3

          "Encumbrance" means any security interest, pledge, hypothecation,
           -----------
mortgage, lien (including, without limitation, environmental and tax liens),
violation, charge, lease, license, encumbrance, servient easement, adverse
claim, reversion, reverter, preferential arrangement, restrictive covenant,
condition or restriction of any kind, including, without limitation, any
restriction on the use, voting, transfer, receipt of income or other exercise of
any attributes of ownership.

          "Environment" means surface waters, groundwaters, soil, subsurface
           -----------
strata and ambient air.

          "Environmental Claims" means any and all administrative, regulatory or
           --------------------
judicial actions, suits, demands, demand letters, claims, liens, notices of
noncompliance or violation, investigations, proceedings, consent orders or
consent agreements relating in any way to any Environmental Law or any
Environmental Permit (hereinafter "Claims"), including, without limitation, (a)
                                   ------
any and all Claims by Governmental Authorities for enforcement, cleanup,
removal, response, remedial or other actions or damages pursuant to any
applicable Environmental Law and (b) any and all Claims by any Person seeking
damages, contribution, indemnification, cost recovery, compensation or
injunctive relief resulting from Hazardous Materials or arising from alleged
injury or threat of injury to health, safety or the environment.

          "Environmental Condition" means a condition relating to or arising or
           -----------------------
resulting from a failure to comply with any applicable Environmental Law or
Environmental Permit or a Release of a Hazardous Material into the Environment.

          "Environmental Laws" means any Law, now or hereafter in effect and as
           ------------------
amended, and any judicial or administrative interpretation thereof, including
any judicial or administrative order, consent decree or judgment, relating to
the environment, health, safety or Hazardous Materials, including, without
limitation, the CERCLA; the Resource Conservation and Recovery Act, 42 U.S.C.
(S)(S) 6901 et seq.; the Hazardous Materials Transportation Act, 49 U.S.C.
            -------
(S)(S) 6901 et seq.; the Clean Water Act, 33 U.S.C. (S)(S) 1251 et seq.; the
            -------                                             -------
Toxic Substances Control Act, 15 U.S.C. (S)(S) 2601 et seq.; the Clean Air Act,
                                                    -------
42 U.S.C. (S)(S) 7401 et seq.; the Safe Drinking Water Act, 42 U.S.C. (S)(S)
                      -------
300f et seq.; the Atomic Energy Act, 42 U.S.C. (S)(S) 2011 et seq.; the Federal
     -------                                               -------
Insecticide, Fungicide and Rodenticide Act, 7 U.S.C. (S)(S) 136 et seq.; and the
                                                                -------
Federal Food, Drug and Cosmetic Act, 21 U.S.C. (S)(S) 301 et seq.
                                                          ------

          "Environmental Permits" means all permits, approvals, identification
           ---------------------
numbers, licenses and other authorizations required under any applicable
Environmental Law.

          "Financial Statements" has the meaning specified in Section
           --------------------
3.08(a)(i).

          "Finder's Fee" has the meaning specified in Section 3.26.
           ------------

          "Governmental Authority" means any Canadian federal, provincial or
           ----------------------
local or any U.S. federal, state or local or any other foreign government,
governmental, regulatory or administrative authority, agency or commission or
any court, tribunal, or judicial or arbitral
<PAGE>

                                       4

body.

          "Governmental Order" means any order, writ, judgment, injunction,
           ------------------
decree, stipulation, determination or award entered by or with any Governmental
Authority.

          "Hazardous Materials" means (a) petroleum and petroleum products,
           -------------------
radioactive materials, asbestos in any form that is or could become friable,
urea formaldehyde foam insulation, transformers or other equipment that contain
polychlorinated biphenyls and radon gas, (b) any other chemicals, materials or
substances defined as or included in the definition of "hazardous substances",
"hazardous wastes", "hazardous materials", "extremely hazardous wastes",
"restricted hazardous wastes", "toxic substances", "toxic pollutants",
"contaminants" or "pollutants", or words of similar import, under any applicable
Environmental Law, and (c) any other chemical, material or substance exposure to
which is regulated by any Governmental Authority.

          "Indebtedness" means, with respect to any Person, (a) all indebtedness
           ------------
of such Person, whether or not contingent, for borrowed money, (b) all
obligations of such Person for the deferred purchase price of property or
services, (c) all obligations of such Person evidenced by notes, bonds,
debentures or other similar instruments, (d) all indebtedness created or arising
under any conditional sale or other title retention agreement with respect to
property acquired by such Person (even though the rights and remedies of the
seller or lender under such agreement in the event of default are limited to
repossession or sale of such property), (e) all obligations of such Person as
lessee under leases that have been or should be, in accordance with U.S. GAAP,
recorded as capital leases, (f) all obligations, contingent or otherwise, of
such Person under acceptance, letter of credit or similar facilities, (g) all
obligations of such Person to purchase, redeem, retire, defease or otherwise
acquire for value any capital stock of such Person or any warrants, rights or
options to acquire such capital stock, valued, in the case of redeemable
preferred stock, at the greater of its voluntary or involuntary liquidation
preference plus accrued and unpaid dividends, (h) all Indebtedness of others
referred to in clauses (a) through (g) above guaranteed directly or indirectly
in any manner by such Person, or in effect guaranteed directly or indirectly by
such Person through an agreement (i) to pay or purchase such Indebtedness or to
advance or supply funds for the payment or purchase of such Indebtedness, (ii)
to purchase, sell or lease (as lessee or lessor) property, or to purchase or
sell services, primarily for the purpose of enabling the debtor to make payment
of such Indebtedness or to assure the holder of such Indebtedness against loss,
(iii) to supply funds to or in any other manner invest in the debtor (including
any agreement to pay for property or services irrespective of whether such
property is received or such services are rendered) or (iv) otherwise to assure
a creditor against loss, and (i) all Indebtedness referred to in clauses (a)
through (g) above secured by (or for which the holder of such Indebtedness has
an existing right, contingent or otherwise, to be secured by) any Encumbrance on
property (including, without limitation, accounts and contract rights) owned by
such Person, even though such Person has not assumed or become liable for the
payment of such Indebtedness.

          "Indemnified Party" has the meaning specified in Section 7.02(a).
           -----------------
<PAGE>

                                       5

          "Intellectual Property" means any patents, patent applications,
           ---------------------
inventions, copyrights, trade secrets, trademarks (registered or unregistered),
mask works (registered or unregistered), trade names, service marks, logos or
other marks or labels, computer software, algorithms, pending applications for
any of the foregoing, and other intellectual and proprietary rights, whether or
not subject to statutory registration or protection.

          "Interim Financial Statements" has the meaning specified in Section
           ----------------------------
3.08(a)(ii).

          "IRS" means the Internal Revenue Service of the United States.
           ---

          "Law" means any Canadian federal, provincial, local or any U.S.
           ---
federal, state or local or any other foreign statute, law, ordinance,
regulation, rule, code, order, requirement or rule of law (including, without
limitation, common law).

          "Leased Real Property" means the real property leased by the Company,
           --------------------
as tenant, together with all buildings and other structures, facilities or
improvements currently or hereafter located thereon, all fixtures, systems,
equipment and items of personal property of the Company attached or appurtenant
thereto, and all easements, licenses, rights and appurtenances relating to the
foregoing.

          "Liabilities" means any and all debts, liabilities and obligations,
           -----------
whether accrued or fixed, absolute or contingent, matured or unmatured or
determined or determinable, including, without limitation, those arising under
any Law (including, without limitation, any Environmental Law), Action or
Governmental Order and those arising under any contract, agreement, arrangement,
commitment or undertaking.

          "Loss" has the meaning specified in Section 7.02(a).
           ----

          "Material Adverse Effect" means any circumstance, change in or effect
           -----------------------
on the Company that, individually or in the aggregate with all other
circumstances, changes in or effects on the Company:  (a) is or is reasonably
likely to be, materially adverse to the business, operations, assets or
liabilities (including, without limitation, contingent liabilities), employee
relationships, customer or supplier relationships, prospects, results of
operations or the condition (financial or otherwise) of  the Company or (b) is
reasonably likely to materially adversely affect the ability of the Purchaser to
operate or conduct the business of the Company in the manner in which it is
currently operated or conducted.

          "Material Contracts" has the meaning specified in Section 3.16(a).
           ------------------

          "Permitted Encumbrances" means such of the following as to which no
           ----------------------
enforcement, collection, execution, levy or foreclosure proceeding shall have
been commenced and as to which Sellers or Purchaser is not otherwise subject to
civil or criminal liability due to its existence: (a) liens for Taxes,
assessments and governmental charges or levies not yet due and payable; (b)
Encumbrances imposed by Law, such as materialmen's, mechanics', carriers',
workmen's and repairmen's liens and other similar liens arising in the ordinary
course of business securing obligations that (i) are not overdue for a period of
more than 30 days and (ii)
<PAGE>

                                       6

are not in excess of $5,000 in the case of a single property or $50,000 in the
aggregate at any time; (c) pledges or deposits to secure obligations under
workers' compensation laws or similar legislation or to secure public or
statutory obligations; and (d) minor survey exceptions, reciprocal easement
agreements and other customary encumbrances on title to real property that (i)
were not incurred in connection with any Indebtedness, (ii) do not render title
to the property encumbered thereby unmarketable and (iii) do not, individually
or in the aggregate, materially adversely affect the value of or the use of such
property for its current and anticipated purposes.

          "Person" means any individual, partnership, firm, corporation,
           ------
association, trust, unincorporated organization or other entity, as well as any
syndicate or group that would be deemed to be a person under Section 13(d)(3) of
the Securities Exchange Act of 1934, as amended.

          "Purchase Price" has the meaning specified in Section 2.02.
           --------------

          "Purchase Price Top Up Amount" has the meaning specified in Section
           ----------------------------
2.02.

          "Purchaser" has the meaning specified in the preamble to this
           ---------
Agreement.

          "Purchaser Common Shares" means common shares without par value of the
           -----------------------
Purchaser, or, if all or substantially all of such common shares are converted
into or exchanged for other equity securities of the Purchaser, such other
equity securities.

          "Reference Balance Sheet" means the unaudited consolidated balance
           -----------------------
sheet (including the related notes and schedules thereto) of the Company, dated
as of April 30, 2000,  a copy of which is set forth in Section 3.08(a)(i) of the
Disclosure Schedule.

          "Reference Balance Sheet Date" means April 30, 2000.
           ----------------------------

          "Regulations" means the Treasury Regulations (including Temporary
           -----------
Regulations) promulgated by the United States Department of Treasury with
respect to the Code or other federal tax statutes.

          "Release" means disposing, discharging, injecting, spilling, leaking,
           -------
leaching, dumping, emitting, escaping, emptying, seeping, placing and the like
into or upon any land or water or air or otherwise entering into the
Environment.

          "Remedial Action" means all action reasonably necessary and required
           ---------------
under any applicable Environmental Law or Environmental Permit and all action
required by a Governmental Authority to (a) clean up, remove, treat or handle in
any other way Hazardous Materials in the Environment; (b) prevent the Release of
Hazardous Materials so that they do not migrate, endanger or threaten to
endanger public health or the Environment; or (c) perform remedial
investigations, feasibility studies, corrective actions, closures, and
postremedial or postclosure studies, investigations, operations, maintenance and
monitoring on, about or in any Real Property.
<PAGE>

                                       7

          "Sellers" has the meaning specified in the preamble to this Agreement.
           -------

          "Shareholders' Loans" means the Liabilities of the Company as
           -------------------
described in Section 3.22(b) of the Disclosure Schedule.

          "Shares" has the meaning specified in the recitals to this Agreement.
           ------

          "Software" means computer software, programs and databases in any
           --------
form, including Internet web sites, web content and links, source code, object
code, operating systems and specifications, data,  databases, database
management code, utilities, graphical user interfaces, menus, images, icons,
forms, methods of processing, software engines, platforms, and data formats, all
versions, updates, corrections, enhancements, and modifications thereof, and all
related documentation, developer notes, comments and annotations.

          "Spousal Consent" has the meaning specified in Section 2.04.
           ---------------

          "Subsidiaries" means any and all other corporations, partnerships,
           ------------
joint ventures, associations and other entities controlled by the Company
directly or indirectly through one or more intermediaries.

          "Tangible Personal Property" has the meaning specified in Section
           --------------------------
3.18(a).

          "Tax" or "Taxes" means any and all taxes, fees, levies, duties,
           ---      -----
tariffs, imposts, and other charges of any kind (together with any and all
interest, penalties, additions to tax and additional amounts imposed with
respect thereto) imposed by any government or taxing authority, including,
without limitation:  taxes or other charges on or with respect to income,
franchises, windfall or other profits, gross receipts, property, sales, use,
capital stock, payroll, employment, social security, workers' compensation,
unemployment compensation, or net worth; taxes or other charges in the nature of
excise, withholding, ad valorem, stamp, transfer, value added, or gains taxes;
license, registration and documentation fees; and customs' duties, tariffs, and
similar charges.

          "Third Party Claims" has the meaning specified in Section 7.02(b).
           ------------------

          "U.S. GAAP" means United States generally accepted accounting
           ---------
principles and practices in effect from time to time applied consistently
throughout the periods involved.

          "U.S. Purchaser's Letter" means the U.S. Purchaser's Letter to be
           -----------------------
executed by each of the Sellers on the Closing Date.
<PAGE>

                                       8

                                   ARTICLE II

                               PURCHASE AND SALE

          SECTION 2.01.  Purchase and Sale of the Shares and Shareholders'
                         -------------------------------------------------
Loans.  Upon the terms and subject to the conditions of this Agreement, at
-----
the Closing, the Sellers shall sell, assign, transfer, convey and deliver, or
cause to be sold, assigned, transferred, conveyed and delivered, to the
Purchaser, the Shares and the Shareholders' Loans, and the Purchaser shall
purchase the Shares and the Shareholders' Loans.

          SECTION 2.02. Purchase Price. (a) The purchase price for the Shares
                        --------------
and the Shareholders' Loans shall be U.S.$10 million (together, the "Purchase
                                                                     --------
Price") to be distributed among the Sellers at the Closing Date in accordance
-----
with Exhibit 2.02. The Purchase Price shall consist of U.S.$2 million in cash
(the "Cash Purchase Price"), of which U.S.$25,000 has been deposited with the
      -------------------
Sellers, and 3,200,000 Purchaser Common Shares at U.S.$2.50 per Purchaser Common
Share ("Common Share Purchase Price").
        ---------------------------

          (b) If on the 91st day after the Closing Date, the closing sale price
of the Purchaser Common Shares on The Toronto Stock Exchange is less than
U.S.$2.50 per Purchaser Common Share (converted based on the noon buying rate on
such date in the City of New York for cable transfers in Canadian dollars as
certified for customs purposes by the Federal Reserve Bank of New York), then
the Sellers shall be entitled to an amount (the "Purchase Price Top Up Amount")
equal to the product of (a) 3,200,000 Purchaser Common Shares and (b) the
difference of U.S.$2.50 minus the closing price of the Purchaser Common Shares
on The Toronto Stock Exchange (converted based on the noon buying rate on such
date in the City of New York for cable transfers in Canadian dollars as
certified for customs purposes by the Federal Reserve Bank of New York) on such
date. The Purchaser shall pay the Purchase Price Top Up Amount to the Sellers at
the Purchaser's option in cash or in Purchaser Common shares, valued at the
closing price on The Toronto Stock Exchange (converted based on the noon buying
rate on such date in the City of New York for cable transfers in Canadian
dollars as certified for customs purposes by the Federal Reserve Bank of New
York). If the Purchaser elects to pay the Purchase Price Top Up Amount in
Purchaser Common Shares, each Seller will be entitled that proportion of the
total Purchaser Price Top Up Amount which the number of Purchaser Common Shares
set forth next to its name in Exhibit 2.03 bears to 3,200.000.

          SECTION 2.03. Closing. Subject to the terms and conditions of this
                        -------
Agreement, the sale and purchase of the Shares and Shareholders' Loans
contemplated by this Agreement shall take place at a closing (the "Closing") to
                                                                   -------
be held at the offices of Shearman & Sterling, Commerce Court West, 199 Bay
Street, Suite 4405, Toronto, Ontario at 2:00 P.M. New York time on the later to
occur of (a) May 23, 2000 or (b) the fifth Business Day following the
satisfaction or waiver of all other conditions to the obligations of the parties
set forth in Article VI, or at such other place or at such other time or on such
other date as the Sellers and the Purchaser may mutually agree upon in writing
(the day on which the Closing takes place being the "Closing Date").
                                                     ------------
<PAGE>

                                       9

          SECTION 2.04. Closing Deliveries by the Sellers. At the Closing, the
Sellers shall deliver or cause to be delivered to the Purchaser:

          (a) stock certificates evidencing the Shares duly endorsed in blank,
     or accompanied by stock powers duly executed in blank, in form satisfactory
     to the Purchaser and with all required stock transfer tax stamps affixed;

          (b) a cross-receipt for the Purchase Price;

          (c) an executed U.S. Purchaser's Letter from each of the Sellers;

          (d)  an executed counterpart of each of the Employment Agreements;

          (e) executed spousal consents in the form as attached in Exhibit A
     (each, a "Spousal Consent") from each of the persons listed in Schedule
               ---------------
     3.01;

          (f)  an executed Assignment Agreement; and

          (g)  the certificates and other documents required to be delivered
     pursuant to Section 6.02.

          SECTION 2.05.  Closing Deliveries by the Purchaser.  At the Closing,
                         -----------------------------------
the  Purchaser shall deliver to the Sellers:

          (a) the Cash Purchase Price by wire transfer in immediately available
              funds to an account designated by the Sellers and share
              certificates for the Common Share Purchase Price;

          (b)  a cross-receipt for the Shares;

          (c)  an executed counterpart of each of the Employment Agreements; and

          (d) the certificates and other documents required to be delivered
     pursuant to Section 6.01.

                                  ARTICLE III

                         REPRESENTATIONS AND WARRANTIES

                                 OF THE SELLERS

          As an inducement to the Purchaser to enter into this Agreement, the
Sellers, jointly and severally, hereby represent and warrant to the Purchaser as
follows:

          SECTION 3.01.  Organization, Authority and Qualification of the
                         ------------------------------------------------
Sellers.  Each Seller is an individual and is competent and has all necessary
-------
power and authority to enter into
<PAGE>

                                       10

this Agreement and the Ancillary Agreements, to carry out its obligations
hereunder and thereunder and to consummate the transactions contemplated hereby
and thereby. Except as set forth in Schedule 3.01, no person has any community
property rights, by virtue of marriage or otherwise, in any of the Shares. This
Agreement has been, and upon their execution the Ancillary Agreements shall have
been, duly executed and delivered by each Seller, and (assuming due
authorization, execution and delivery by the Purchaser) this Agreement
constitutes, and upon their execution the Ancillary Agreements shall constitute,
legal, valid and binding obligations of each Seller enforceable against such
Seller in accordance with their respective terms. The Spousal Consents being
executed by the persons listed on Schedule 3.01 hereto are enforceable against
such persons in accordance with their terms.

          SECTION 3.02.  Organization, Authority and Qualification of the
                         ------------------------------------------------
Company.  The Company is a corporation duly organized, validly existing and
-------
in good standing under the laws of the State of Texas and has all necessary
power and authority to own, operate or lease the properties and assets now
owned, operated or leased by it and to carry on its business as it has been and
is currently conducted.  The Company is duly licensed or qualified to do
business and is in good standing in each jurisdiction in which the properties
owned or leased by it or the operation of its business makes such licensing or
qualification necessary or desirable, and all such jurisdictions are set forth
in Section 3.02 of the Disclosure Schedule.  All corporate actions taken by the
Company have been duly authorized, and the Company has not taken any action that
in any respect conflicts with, constitutes a default under or results in a
violation of any provision of its Certificate of Incorporation or By-laws.  True
and correct copies of the Certificate of Incorporation and By-laws of the
Company, each as in effect on the date hereof, have been delivered by the
Sellers to the Purchaser.

          SECTION 3.03. Capital Stock and Ownership of the Company. (a) The
                        ------------------------------------------
authorized capital stock of the Company consists of 200,000 shares of Common
Stock. As of the date hereof, 75,053 shares of Common Stock are issued and
outstanding, all of which are validly issued, fully paid and nonassessable. None
of the issued and outstanding shares of Common Stock was issued in violation of
any preemptive rights. There are no options, warrants, convertible securities or
other rights, agreements, arrangements or commitments of any character relating
to the Shares or obligating either any Seller or the Company to issue or sell
any Shares, or any other interest in, the Company. There are no outstanding
contractual obligations of the Company to repurchase, redeem or otherwise
acquire any shares of Common Stock or to provide funds to, or make any
investment (in the form of a loan, capital contribution or otherwise) in, any
other Person. The Shares constitute all the issued and outstanding capital stock
of the Company and are owned of record and beneficially by the Sellers, in the
amounts set forth opposite each Seller's name in Schedule 3.03(a) of the
Disclosure Schedule, free and clear of all Encumbrances. Upon consummation of
the transactions contemplated by this Agreement and registration of the Shares
in the name of the Purchaser in the stock records of the Company, the Purchaser,
assuming it shall have purchased the Shares for value in good faith and without
notice of any adverse claim, will own all the issued and outstanding capital
stock of the Company free and clear of all Encumbrances. Upon consummation of
the transactions contemplated by this Agreement, the Shares will be fully paid
and nonassessable. Except as disclosed in Section 3.03(a) of the Disclosure
Schedule, there are no voting trusts, stockholder agreements, proxies or
<PAGE>

                                       11

other agreements or understandings in effect with respect to the voting or
transfer of any of the Shares. Except for the Spousal Consents being executed
simultaneously with the execution of the Agreement, no action is or will be
required on the part of any person in order to effect the conveyance to the
Purchaser of each Seller's right, title and interest in the Shares, free and
clear of any community property interest.

          (b) The stock register of the Company accurately records:  (i) the
name and address of each Person owning Shares, and (ii) the certificate number
of each certificate evidencing shares of capital stock issued by the Company,
the number of shares evidenced by each such certificate, the date of issuance
thereof and, in the case of cancellation, the date of cancellation.

          SECTION 3.04.  Subsidiaries.  There are no Subsidiaries of the
                         ------------
Company.

          SECTION 3.05. Corporate Books and Records. The minute books of the
                        ---------------------------
Company contain accurate records of all meetings and accurately reflect all
other actions taken by the stockholders, Boards of Directors and all committees
of the Boards of Directors of the Company. Complete and accurate copies of all
such minute books and of the stock register of the Company have been provided by
the Sellers to the Purchaser.

          SECTION 3.06. No Conflict. The execution, delivery and performance of
                        -----------
this Agreement and the Ancillary Agreements by each Seller do not and will not
(a) violate, conflict with or result in the breach of any provision of the
certificate of incorporation or by-laws (or similar organizational documents) of
the Company, (b) conflict with or violate (or cause an event which could have a
Material Adverse Effect as a result of) any Law or Governmental Order applicable
to any Seller, the Company or any of their respective assets, properties or
businesses, or (c) except as set forth in Section 3.06(c) of the Disclosure
Schedule, conflict with, result in any breach of, constitute a default (or event
which with the giving of notice or lapse of time, or both, would become a
default) under, require any consent under, or give to others any rights of
termination, amendment, acceleration, suspension, revocation or cancellation of,
or result in the creation of any Encumbrance on any of the Shares or any of the
assets or properties of each Seller or the Company pursuant to, any note, bond,
mortgage or indenture, contract, agreement, lease, sublease, license, permit,
franchise or other instrument or arrangement to which any Seller or the Company
is a party or by which any of the Shares or any of such assets or properties is
bound or affected.

          SECTION 3.07. Governmental Consents and Approvals. The execution,
                        -----------------------------------
delivery and performance of this Agreement and each Ancillary Agreement by the
Sellers do not and will not require any consent, approval, authorization or
other order of, action by, filing with or notification to, any Governmental
Authority.

          SECTION 3.08. Financial Information; Books and Records. (a) True and
                        ----------------------------------------
complete copies of (i) the audited consolidated balance sheet of the Company for
each of the two fiscal years ended as of December 31, 1998, 1999, and the
related audited consolidated statements of income, retained earnings,
stockholders' equity and changes in financial position of
<PAGE>

                                       12

the Company, together with all related notes and schedules thereto,
(collectively referred to herein as the "Financial Statements") and (ii) the
                                         --------------------
unaudited consolidated balance sheet of the Company as of March 31, 2000, and
the related consolidated statements of income, retained earnings, stockholders'
equity and changes in financial position of the Company, together with all
related notes and schedules thereto (collectively referred to herein as the
"Interim Financial Statements") have been delivered by the Sellers to the
-----------------------------
Purchaser.  The Financial Statements, the Interim Financial Statements and the
Reference Balance Sheet (i) were prepared in accordance with the books of
account and other financial records of the Company, (ii) present fairly the
consolidated financial condition and results of operations of the Company as of
the dates thereof or for the periods covered thereby, (iii) have been prepared
in accordance with U.S. GAAP applied on a basis consistent with the past
practices of the Company and (iv) include all adjustments (consisting only of
normal recurring accruals) that are necessary for a fair presentation of the
consolidated financial condition of the Company and the results of the
operations of the Company as of the dates thereof or for the periods covered
thereby.

          (b) The books of account and other financial records of the Company:
(i) reflect all items of income and expense and all assets and Liabilities
required to be reflected therein in accordance with U.S. GAAP applied on a basis
consistent with the past practices of the Sellers, (ii) are in all material
respects complete and correct, and do not contain or reflect any material
inaccuracies or discrepancies and (iii) have been maintained in accordance with
good business and accounting practices.

          SECTION 3.09. Absence of Undisclosed Liabilities. There are no
                        ----------------------------------
Liabilities of the Company, other than Liabilities (i) reflected or reserved
against on the Reference Balance Sheet, (ii) disclosed in Section 3.09 of the
Disclosure Schedule or (iii) incurred since the date of this Agreement in the
ordinary course of business, consistent with past practice, of the Company and
which do not and could not have a Material Adverse Effect. Reserves are
reflected on the Reference Balance Sheet against all Liabilities of the Company
in amounts that have been established on a basis consistent with the past
practices of the Company and in accordance with U.S. GAAP.

          SECTION 3.10. Receivables. Except to the extent, if any, reserved for
                        -----------
on the Reference Balance Sheet, all accounts receivables, whether reflected on
the Reference Balance Sheet or otherwise, have arisen from, the sale or services
to Persons not affiliated with the Sellers or the Company and in the ordinary
course of business consistent with past practice and, except as reserved against
on the Reference Balance Sheet, constitute or will constitute, as the case may
be, only valid, undisputed claims of the Company not subject to valid claims of
setoff or other defenses or counterclaims other than normal cash discounts
accrued in the ordinary course of business consistent with past practice. Each
such account receivable either is (subject to the reserve for bad debts, if any,
reflected on the Reference Balance Sheet) or will be good and have been
collected or are or will be collectible, without resort to litigation or
extraordinary collection activity, within 90 days of the Closing Date.

          SECTION 3.11. Inventories. All of the inventories of the Company,
                        -----------
whether reflected on the Reference Balance Sheet or otherwise, consist of a
quality and quantity usable
<PAGE>

                                       13

and saleable in the ordinary and usual course of business, except for items of
obsolete materials and materials of below-standard quality, all of which have
been written off or written down on the Reference Balance Sheet to fair market
value or for which adequate reserves have been provided therein.  All
inventories not written off have been priced at the lower of average cost or
market.  The quantities of each type of inventory (whether raw materials, work-
in-process or finished goods) are not excessive, but are reasonable and
warranted in the present circumstances of the Company.  All work-in-process and
finished goods inventory held by the Company is free of any defect or
deficiency.  Section 3.11 of the Disclosure Schedule lists all goods, if any,
held by the Company on consignment or other goods, if any, in the possession of
the Company which goods are not owned by the Company, in each case with a
description of the terms of such consignment and the name, address and telephone
number of the owner of such property.  Section 3.11 of the Disclosure Schedule
lists all goods, if any, owned by the Company which goods have been consigned by
the Company to another Person together with a description of terms of such
consignment and the name, address and telephone number of the Person to whom
such property has been cosigned.

          SECTION 3.12.  Conduct in the Ordinary Course; Absence of Certain
                         --------------------------------------------------
Changes, Events and Conditions. Since the Reference Balance Sheet Date, except
------------------------------
as disclosed in Section 3.12 of the Disclosure Schedule, the business of the
Company has been conducted in the ordinary course and consistent with past
practice. As amplification and not limitation of the foregoing, except as
disclosed in Section 3.12 of the Disclosure Schedule, since the Reference
Balance Sheet Date, neither the Sellers nor the Company:

          (a) permitted or allowed any of the assets of the Company to be
     subjected to any Encumbrance, other than Permitted Encumbrances and
     Encumbrances that will be released at or prior to the Closing;

          (b) conducted the business of the Company outside the ordinary course
     consistent with past practice;

          (c) amended, terminated, cancelled or compromised any material claims
     of the   Company or waived any other rights of substantial value to the
     Company;

          (d) sold, transferred, leased, subleased, licensed or otherwise
     disposed of any properties or assets, real, personal or mixed (including,
     without limitation, leasehold interests and intangible property);

          (e) issued or sold any capital stock, notes, bonds or other
     securities, or any option, warrant or other right to acquire the same, of
     the Company;

          (f)  incurred any Indebtedness; or

          (g) amended, modified or consented to the termination of any Material
     Contract or the Company's rights thereunder.
<PAGE>

                                       14

          SECTION 3.13. Litigation. Except as set forth in Section 3.13 of the
                        ----------
Disclosure Schedule (which, with respect to each Action disclosed therein, sets
forth the parties, nature of the proceeding, date and method commenced, amount
of damages or other relief sought and, if applicable, paid or granted), there
are no Actions by or against the Company pending before any Governmental
Authority (or, to the best knowledge of the Company after due inquiry,
threatened to be brought by or before any Governmental Authority).

          SECTION 3.14. Compliance with Laws. (a) Except as set forth in Section
                        --------------------
3.14(a) of the Disclosure Schedule, the business of the Company has been
conducted and will continue to be conducted in accordance with all Laws and
Governmental Orders applicable to the Company or any of its properties or assets
and Company is not in violation of any such Law or Governmental Order.

          (b) Section 3.14(b) of the Disclosure Schedule sets forth a brief
description of each Governmental Order applicable to the Company or any of its
properties or assets,  and no such Governmental Order has or has had a Material
Adverse Effect.

          SECTION 3.15. Environmental Matters. Except as disclosed in Section
                        ---------------------
3.15 of the Disclosure Schedule:

          (a) The Company has complied with all applicable Environmental Laws
and has obtained all required Environmental Permits and is in compliance
therewith.  All past non-compliance with Environmental Laws or Environmental
Permits has been resolved without any pending, on-going or future obligation,
cost or liability.

          (b) The Company, nor to the Company's knowledge, any other person or
entity, has released any Hazardous Material into the Environment at any property
formerly owned or operated by the Company.

          (c) There are no Environmental Claims pending or, to the Company's
knowledge, threatened against  the Company and to the Company's knowledge there
are no circumstances that can reasonably be expected to form the basis of any
such Environmental Claim.

          (d) Neither the Execution of this Agreement nor the consummation of
the transactions contemplated herein will require any notice to or consent of
Governmental Authorities or third parties, or any investigation, remediation, or
other action related to Hazardous Material, pursuant to any applicable
Environmental Law or Environmental Permit.

          SECTION 3.16. Material Contracts. (a) Section 3.16(a) of the
                        ------------------
Disclosure Schedule lists all of the following contracts and agreements
(including, without limitation, oral and informal arrangements) of the Company
(such contracts and agreements, being "Material Contracts"):
                                       -------------------

          (i)    each contract, agreement and other arrangement, for the
     purchase of goods or for the furnishing of services to the Company;
<PAGE>

                                       15

          (ii)   each contract, agreement and other arrangement, for the sale of
     goods or for the furnishing of services by the Company;

          (iii)  all management contracts and  contracts with independent
     contractors or consultants (or similar arrangements) to which the Company
     is a party and which are not cancellable without penalty or further payment
     and without more than 30 days' notice;

          (iv)   all contracts and agreements relating to Indebtedness of the
     Company;

          (v)    all contracts and agreements that limit or purport to limit the
     ability of the Company to compete in any line of business or with any
     Person or in any geographic area or during any period of time;

          (vi)   all contracts and agreements between or among the Company, on
     one hand, and any Affiliate of the Sellers, on the other hand;

          (vii)  all license, agreements and other agreements with respect to
     any of the Intellectual Property;

          (viii) all secrecy, confidentiality and non-disclosure agreements;
     and

          (ix)   all other contracts and agreements, whether or not made in the
     ordinary course of business, which are material to the Company or the
     absence of which would have a Material Adverse Effect.

For purposes of this Section 3.16 the term "lease" shall include any and all
                                            -----
leases, subleases, sale/leaseback agreements or similar arrangements.

          (b) Except as disclosed in Section 3.16(b) of the Disclosure Schedule,
each Material Contract:  (i) is valid and binding on the parties thereto and is
in full force and effect, and (ii) upon consummation of the transactions
contemplated by this Agreement and the Ancillary Agreements, except to the
extent that any consents set forth in Section 3.06 of the Disclosure Schedule
are not obtained, shall continue in full force and effect without penalty or
other adverse consequence.  The Company is not in breach of, or default under,
any Material Contract.

          (c) Except  as disclosed in Section 3.16(c) of the Disclosure
Schedule, no other party to any Material Contract is in breach thereof or
default thereunder.

          (d) Except as disclosed in Section 3.16(d) of the Disclosure Schedule,
there is no contract, agreement or other arrangement granting any Person any
preferential right to  purchase, other than in the ordinary course of business
consistent with past practice, any of the properties or assets of the Company.

          SECTION 3.17. Intellectual Property. (a) The Company (i) owns all
                        ---------------------
right, title and interest in or has the right to use, all Intellectual Property
(other than patents, patent
<PAGE>

                                       16

applications and inventions) used in the conduct of its business as presently
conducted and (ii) has the right to use, execute, reproduce, display, perform,
modify, enhance, distribute, prepare derivative works from and sublicense,
without requirement to make royalty or other payments to any other person
(except in the case of Intellectual Property licensed by the Company from a
third party licensor where the terms of such license make provision for
royalties or other payments and salaries and sales commissions paid to employees
and sales agents in the ordinary course of the Company's business consistent
with its past practice), each such item of Intellectual Property.  Section
3.17(a) of the Company Disclosure Schedule sets forth a true and complete list
of (i) all copyright applications, copyright registrations, mask works,
trademark applications, trademark registrations, trade names, service mark
registrations and service mark applications, material unregistered marks,
patents and patent applications owned and used in the current conduct of the
Company's business, (ii) all other filings, applications, registrations or other
formal actions taken with respect to any of the foregoing pursuant to federal,
state, local and foreign law or regulations with respect to protections of
Intellectual Property, and (iii) a nonconfidential inventions disclosure of
inventions owned and used in the current conduct of the Company's business.  The
Company is not aware of any loss, cancellation, termination or expiration of any
such application, registration or other filings or formal actions, except as set
forth in Section 3.17(a) of the Company Disclosure Schedule that are owned or
controlled by the Company and any of its affiliate entities.

          (b) The operation of the business of the Company as currently
conducted or as contemplated to be conducted, the use of the Company's
Intellectual Property in connection therewith and the Company's transmission,
use, linking and other practices related to the operation of their web sites in
connection with its business, the content thereof and the advertisements
contained therein, do not conflict with, infringe, misappropriate or otherwise
violate the Intellectual Property or other proprietary rights, including rights
of privacy, publicity and endorsement, of any third party, and no Actions are
pending or threatened against the Company alleging any of the foregoing.  The
Company has not received any written or oral communications alleging that the
Company has violated any rights relating to Intellectual Property of any other
person.

          (c) The Company's Intellectual Property include all of the
Intellectual Property used in the ordinary day-to-day conduct of its business,
and there are no other items of Intellectual Property that are material to such
ordinary day-to-day conduct thereof.  The Intellectual Property are subsisting,
valid and enforceable, and have not been adjudged invalid or unenforceable in
whole or part.

          (d) No Actions have been asserted, are pending, or threatened against
the Company (i) based upon or challenging or seeking to deny or restrict the use
by the Company of any of the its Intellectual Property, or (ii) alleging that
any services provided by, processes used by, or products manufactured or sold by
the Company infringe or misappropriate any Intellectual Property right of any
third party.

          (e)  To the Company's knowledge, the Company Software is free of all
viruses, worms, trojan horses and other material known contaminants, and does
not contain any
<PAGE>

                                       17

bugs, errors, or problems of a material nature that disrupt its operation or
have an adverse impact on the operation of other software programs or operating
systems. No rights in the Company Software have been transferred to any third
party except to the customers to whom the Company has licensed such Company
Software in the ordinary course of business.

          (f) The Company has the right to use all software development tools,
library functions, compilers, and other third party software that are material
to its business or that are required to operate or modify the Company Software.

          (g)  The Company has taken reasonable steps in accordance with normal
industry practice to maintain the confidentiality of the trade secrets and other
confidential Intellectual Property used in connection with its business.  To the
knowledge of Sellers or the Company (i) there has been no misappropriation of
any material trade secrets or other material confidential Intellectual Property
used in connection with the business of the Company by any person, and (ii) no
employee, independent contractor or agent of the Company has misappropriated any
trade secrets of any other person in the course of performance as an employee,
independent contractor or agent; and (iii) no employee, independent contractor
or agent of Company is in default or breach of any term of any employment
agreement, non-disclosure agreement, assignment of invention agreement or
similar agreement or contract relating in any way to the protection, ownership,
development, use or transfer of Intellectual Property.

          SECTION 3.18.  Real Property.  The Company owns no real property.
                         -------------

          SECTION 3.19. Property (a) The Company has good, valid and marketable
                        --------
title to all the properties and assets that it purports to own (tangible and
intangible) free and clear of all Encumbrances, including all such properties
and assets reflected in the Reference Balance Sheet and all such properties and
assets purchased by the Company since the Reference Balance Sheet Date, which
subsequently acquired properties and assets (other than inventory) are listed in
Schedule 3.19 of the Disclosure Schedule. All properties and assets reflected in
the Reference Balance Sheet have a fair market or realizable value at least
equal to the value thereof as reflected therein. The rights, properties and
other assets presently owned, leased or licensed by the Company include all such
rights, properties and other assets necessary to permit the Company to conduct
its business in all material respects in the same manner as such business has
been conducted prior to the date hereof.

          (b) The Seller has the complete and unrestricted power and unqualified
right to sell, assign, transfer, convey and deliver the Shareholders' Loans to
the Purchaser without penalty or other adverse consequences.  Following the
consummation of the transactions contemplated by this Agreement and the
execution of the instruments of transfer contemplated by this Agreement, the
Purchaser will own, with good, valid and marketable title, or otherwise acquire
the Shareholders' Loans, free and clear of any Encumbrances and without
incurring any penalty or other adverse consequence.

          SECTION 3.20. Employee Benefit Plans. (a) The Company does not
                        ----------------------
sponsor,
<PAGE>

                                       18

maintain, or contribute to and has never sponsored, maintained or contributed to
any employee benefit plan, program, arrangement and contract covering any
current or former officers or employees of the Company (including, without
limitation, any "employee benefit plan", as defined in Section 3(3) or the
                 ---------------------
Employee Retirement Income Security Act of 1974, as amended ("ERISA")), whether
                                                              -----
written or oral.

          (b) The Company is not a party to any (i) employment agreement, (ii)
severance agreement, program or policy, or (iii) plan, program, agreement or
other arrangement which relates to a change in control of the Company or
provides for the acceleration of the time of payment or vesting of any benefits.

          (c) The Company does not have any actual or contingent liability under
Title IV of ERISA.

          SECTION 3.21. Labor Matters. There are no controversies pending, or,
                        -------------
to the knowledge of the Company, threatened between the Company and any of its
respective employees; (ii) the Company is not a party to any collective
bargaining agreement or other labor union contract applicable to persons
employed by the Company nor are there any activities or proceedings of any labor
union to organize any such employees; and (iii) there are no strikes, slowdown,
works stoppages or lockouts or, to the knowledge of the Company, threats of any
of the foregoing by, or with respect to, any employees of the Company.

          SECTION 3.22. Certain Interests. (a) Except as disclosed in Section
                        -----------------
3.22(a) of the Disclosure Schedule, no stockholder, officer or director of the
Company and no relative or spouse (or relative of such spouse) who resides with,
or is a dependent of the Sellers or any such stockholder, officer or director:

          (i) has any direct or indirect financial interest in any competitor,
     supplier or customer of the Company, provided, however, that the ownership
                                          --------  -------
     of securities representing no more than one percent of the outstanding
     voting power of any competitor, supplier or customer, and which are also
     listed on any national securities exchange or traded actively in the
     national over-the-counter market, shall not be deemed to be a "financial
     interest" so long as the Person owning such securities has no other
     connection or relationship with such competitor, supplier or customer;

          (ii) owns, directly or indirectly, in whole or in part, or has any
     other interest in any tangible or intangible property which the Company
     uses or has used or otherwise; or

          (iii)   has outstanding any Indebtedness to the Company.

          (b) Except as disclosed in Section 3.22(b) of the Disclosure Schedule,
the Company has no Liability or any other obligation of any nature whatsoever to
any officer, director or stockholder of the Company or to any relative or spouse
(or relative of such spouse) who resides with, or is a dependent of, any such
officer, director or stockholder.

          SECTION 3.23. Taxes. (a) All returns and reports in respect of Taxes
                        -----
required to
<PAGE>

                                       19

be filed with respect to the Company have been timely filed; (b) all Taxes
required to be shown on such returns and reports or otherwise due have been
timely paid; (c) all such returns and reports are true, correct and complete in
all material respects; (d) no adjustment relating to such returns has been
proposed formally or informally by any Tax authority and, to the best knowledge
of Sellers and the Company, no basis exists for any such adjustment; (e) there
are no pending or, to the best knowledge of Sellers and the Company, threatened
actions or proceedings for the assessment or collection of Taxes against the
Company; (f) no consent under Section 341(f) of the Code has been filed with
respect to the Company; (g) there are no tax liens on any assets of the Company;
(h) neither Seller nor any affiliate is a party to any agreement or arrangement
that would result, separately or in the aggregate, in the actual or deemed
payment by the Company of any "excess parachute payments" within the meaning of
section 280G of the Code (without regard to Section 280G(b)(4) of the Code); (i)
the Company has not been includible in any consolidated, combined or unitary
return for any taxable period for which the statute of limitations has not
expired; (j) the Company has not been a United States real property holding
corporation within the meaning of Section 897(c)(2) of the Code during the
applicable period specified in Section 897(c)(1)(A)(ii) of the Code; (k) the
Company is not doing business in or engaged in a trade or business in any
jurisdiction in which it has not filed all required income or francise tax
return; (l) the Company is not subject to any accumulated earnings tax penalty
or personal holding company tax; and (m) no power of attorney that is currently
in force has been granted with respect to any matter relating to Taxes that
could affect the Company.

          SECTION 3.24.  Accounts; Lockboxes; Safe Deposit Boxes; Powers of
                         --------------------------------------------------
Attorney.  Section 3.24 of the Disclosure Schedule is a true and complete list
--------
of (a) the names of each bank, savings and loan association, securities or
commodities broker or other financial institution in which the Company has an
account, including cash contribution accounts, and the names of all persons
authorized to draw thereon or have access thereto, and (b) the location of all
lockboxes and safe deposit boxes of the Company and the names of all Persons
authorized to draw thereon or have access thereto.  At the time of the Closing,
without the prior written consent of the Purchaser, the Company shall not have
any such account, lockbox or safe deposit box other than those listed in Section
3.24 of the Disclosure Schedule, nor shall any additional Person have been
authorized, from the date of this Agreement, to draw thereon or have access
thereto or to hold any such power of attorney relating to the Company.  Except
as disclosed in Section 3.24 of the Disclosure Schedule, the Sellers have not
commingled monies or accounts of the Company with other monies or accounts of
the Sellers or relating to its other businesses nor have the Sellers transferred
monies or accounts of the Company other than to an account of the Company.  At
the time of the Closing, all monies and accounts of the Company shall be held
by, and be accessible only to, the Company.

          SECTION 3.25. Full Disclosure. (a) The Sellers are not aware of any
                        ---------------
facts pertaining to the Sellers or, the Company which affect adversely the
Company or which are likely in the future to affect adversely the Company and
which have not been disclosed in this Agreement, the Disclosure Schedule or the
Financial Statements or otherwise disclosed to the Purchaser by the Sellers in
writing.

          (b) No representation or warranty of the Sellers in this Agreement,
nor any
<PAGE>

                                       20

statement or certificate furnished or to be furnished to the Purchaser pursuant
to this Agreement, or in connection with the transactions contemplated by this
Agreement, contains or will contain any untrue statement of a material fact, or
omits or will omit to state a material fact necessary to make the statements
contained herein or therein not misleading; nor are there any facts which should
reasonably be known to the Purchaser relating to the Shares or the Company not
disclosed herein, which might be reasonably expected to diminish the
appreciation of the Purchaser of the worth of the Company or which might be
reasonably expected to deter the Purchaser from completing the transactions
described in this Agreement.

          SECTION 3.26. Brokers. Except for Ron Heuer, no broker, finder or
                        -------
investment banker is entitled to any brokerage, finder's or other fee or
commission in connection with the transactions contemplated by this Agreement or
the Ancillary Agreements based upon arrangements made by or on behalf of the
Sellers. The Purchaser is solely responsible for the finder's fee of 80,000
Purchaser Common Shares ( the "Finder's Fee") due to Ron Heuer.
                              ---------

                                   ARTICLE IV

                         REPRESENTATIONS AND WARRANTIES
                                OF THE PURCHASER

          As an inducement to the Sellers to enter into this Agreement, the
Purchaser hereby represents and warrants to the Sellers as follows:

          SECTION 4.01. Organization and Authority of the Purchaser. The
                        -------------------------------------------
Purchaser is a corporation duly organized, validly existing and in good standing
under the laws of the Province of Ontario and has all necessary corporate power
and authority to enter into this Agreement and the Ancillary Agreements, to
carry out its obligations hereunder and thereunder and to consummate the
transactions contemplated hereby and thereby. The execution and delivery of this
Agreement and the Ancillary Agreements by the Purchaser, the performance by the
Purchaser of its obligations hereunder and thereunder and the consummation by
the Purchaser of the transactions contemplated hereby and thereby have been duly
authorized by all requisite action on the part of the Purchaser. This Agreement
has been, and upon their execution the Ancillary Agreements will be, duly
executed and delivered by the Purchaser, and (assuming due authorization,
execution and delivery by the Sellers) this Agreement constitutes, and upon
their execution the Ancillary Agreements will constitute, legal, valid and
binding obligations of the Purchaser, enforceable against the Purchaser in
accordance with their respective terms.

          SECTION 4.02. No Conflict. Except as may result from any facts or
                        -----------
circumstances relating solely to the Sellers, the execution, delivery and
performance of this Agreement and the Ancillary Agreements by the Purchaser, do
not and will not (a) violate, conflict with or result in the breach of any
provision of the Certificate of Incorporation or By-laws of the Purchaser, (b)
conflict with or violate any Law or Governmental Order applicable to the
Purchaser or (c) conflict with, or result in any breach of, constitute a default
(or event which with the giving of notice or lapse of time, or both, would
become a default) under, require any consent under, or give to others any rights
of termination, amendment, acceleration,
<PAGE>

                                       21

suspension, revocation or cancellation of, or result in the creation of any
Encumbrance on any of the assets or properties of the Purchaser pursuant to, any
note, bond, mortgage or indenture, contract, agreement, lease, sublease,
license, permit, franchise or other instrument or arrangement to which the
Purchaser is a party or by which any of such assets or properties is bound or
affected, which would have a material adverse effect on the ability of the
Purchaser to consummate the transactions contemplated by this Agreement or by
the Ancillary Agreements.

          SECTION 4.03. Governmental Consents and Approvals. Except for approval
                        -----------------------------------
by The Toronto Stock Exchange and the Winnipeg Stock Exchange, the execution,
delivery and performance of this Agreement and each Ancillary Agreement to which
it is a party by the Purchaser do not and will not require any consent,
approval, authorization or other order of, action by, filing with, or
notification to, any Governmental Authority.

          SECTION 4.04. Investment Purpose. The Purchaser is acquiring the
                        ------------------
Shares solely for the purpose of investment and not with a view to, or for offer
or sale in connection with, any distribution thereof.

          SECTION 4.05. Purchaser Common Shares. The Purchaser Common Shares
                        -----------------------
comprising the Common Share Purchase Price have been duly authorized, and when
issued and delivered to the Sellers as consideration for the Shares in
accordance with this Agreement, will be validly issued, fully paid and
nonassessable.

          SECTION 4.06. Brokers. Except for Ron Heuer, no broker, finder or
                        -------
investment banker is entitled to any brokerage, finder's or other fee or
commission in connection with the transactions contemplated by this Agreement or
the Ancillary Agreements based upon arrangements made by or on behalf of the
Purchaser. The Purchaser is solely responsible for the Finder's Fee due to Ron
Heuer. If on the 91st day after the Closing Date, the closing sale price of the
Purchaser Common Shares on The Toronto Stock Exchange is less than U.S.$2.50 per
Purchase Common Share (converted based on the noon buying rate on such date in
the City of New York for cable transfers in Canadian dollars as certified for
customs purposes by the Federal Reserve Bank of New York), then Ron Heuer shall
be entitled to an additional amount equal to the product of (a) 80,000 Purchaser
Common Shares and (b) the difference of U.S.$2.50 minus the closing price of the
Purchaser Common Shares on The Toronto Stock Exchange (converted based on the
noon buying rate on such date in the City of New York for cable transfers in
Canadian dollars as certified for customs purposes by the Federal Reserve Bank
of New York) on such date. The Purchaser shall pay such amount to Ron Heuer at
the Purchaser's option in cash or in Purchaser Common Shares, valued at the
closing price on The Toronto Stock Exchange (converted based on the noon buying
rate on such date in the City of New York for cable transfers in Canadian
dollars as certified for customs purposes by the Federal Reserve Bank of New
York) on such date.

                                   ARTICLE V

                             ADDITIONAL AGREEMENTS
<PAGE>

                                       22

          SECTION 5.01. Conduct of Business Prior to the Closing. (a) Each of
                        ----------------------------------------
the Sellers covenants and agrees that, except as described in Section 5.01(a) of
the Disclosure Schedule, between the date hereof and the time of the Closing,
the Company shall not conduct its business other than in the ordinary course and
consistent with the Company's prior practice.

          (b) Except as described in Section 5.01(b) of the Disclosure Schedule,
the Sellers covenant and agree that, prior to the Closing, without the prior
written consent of the Purchaser, neither the Sellers nor the Company will do
any of the things enumerated in the second sentence of Section 3.12 (including,
without limitation, clauses (a) through (g) thereof).

          SECTION 5.02. Access to Information. (a) From the date hereof until
                        ---------------------
the Closing, upon reasonable notice, the Sellers shall cause the Company and
each of the Company's officers, directors, employees, agents, representatives,
accountants and counsel to: (i) afford the officers, employees and authorized
agents, accountants, counsel, financing sources and representatives of the
Purchaser reasonable access, during normal business hours, to the offices,
properties, plants, other facilities, books and records of the Company and to
those officers, directors, employees, agents, accountants and counsel of the
Company who have any knowledge relating to the Company and (ii) furnish to the
officers, employees and authorized agents, accountants, counsel, financing
sources and representatives of the Purchaser such additional financial and
operating data and other information regarding the assets, properties and
goodwill of the Company (or legible copies thereof) as the Purchaser may from
time to time reasonably request.

          (b) In order to facilitate the resolution of any claims made against
or incurred by the Sellers prior to the Closing, for a period of seven years
after the Closing, the Purchaser shall (i) retain the books and records of the
Company relating to periods prior to the Closing in a manner reasonably
consistent with the prior practice of the Company and (ii) upon reasonable
notice, afford the officers, employees and authorized agents and representatives
of the Sellers reasonable access (including the right to make, at the Sellers's
expense, photocopies), during normal business hours, to such books and records.

          (c) In order to facilitate the resolution of any claims made by or
against or incurred by the Purchaser or the Company after the Closing or for any
other reasonable purpose, for a period of seven years following the Closing, the
Sellers shall (i) retain the books and records of the Sellers which relate to
the Company and its operations for periods prior to the Closing and which shall
not otherwise have been delivered to the Purchaser and (ii) upon reasonable
notice, afford the officers, employees and authorized agents and representatives
of the Purchaser or the Company reasonable access (including the right to make
photocopies, at the expense of the Purchaser), during normal business hours, to
such books and records.

          SECTION 5.03. Confidentiality. Each of the Sellers agrees to, and
                        ---------------
shall cause its agents, representatives, Affiliates, employees, officers and
directors to: (a) treat and hold as confidential (and not disclose or provide
access to any Person to) all information relating to trade secrets, processes,
patent and trademark applications, product development, price, customer and
supplier lists, pricing and marketing plans, policies and strategies, details of
client and consultant
<PAGE>

                                       23

contracts, operations methods, product development techniques, business
acquisition plans, new personnel acquisition plans and all other confidential
information with respect to the Company, (b) in the event that the Sellers or
any such agent, representative, Affiliate, employee, officer or director becomes
legally compelled to disclose any such information, provide the Purchaser with
prompt written notice of such requirement so that the Purchaser or the Company
may seek a protective order or other remedy or waive compliance with this
Section 5.03, (c) in the event that such protective order or other remedy is not
obtained, or the Purchaser waives compliance with this Section 5.03, furnish
only that portion of such confidential information which is legally required to
be provided and exercise its best efforts to obtain assurances that confidential
treatment will be accorded such information, and (d) promptly furnish (prior to,
at, or as soon as practicable following, the Closing) to the Purchaser any and
all copies (in whatever form or medium) of all such confidential information
then in the possession of the Sellers or any of its agents, representatives,
Affiliates, employees, officers and directors and, except as otherwise required
by Section 5.02(c), destroy any and all additional copies then in the possession
of the Sellers or any of its agents, representatives, Affiliates, employees,
officers and directors of such information and of any analyses, compilations,
studies or other documents prepared, in whole or in part, on the basis thereof;
provided, however, that this sentence shall not apply to any information that,
--------  -------
at the time of disclosure, is available publicly and was not disclosed in breach
of this Agreement by the Sellers, its agents, representatives, Affiliates,
employees, officers or directors; provided further that, with respect to
                                  -------- -------
Intellectual Property, specific information shall not be deemed to be within the
foregoing exception merely because it is embraced in general disclosures in the
public domain.  In addition, with respect to Intellectual Property, any
combination of features shall not be deemed to be within the foregoing exception
merely because the individual features are in the public domain unless the
combination itself and its principle of operation are in the public domain.  The
Sellers agrees and acknowledges that remedies at law for any breach of its
obligations under this Section 5.03 are inadequate and that in addition thereto
the Purchaser shall be entitled to seek equitable relief, including injunction
and specific performance, in the event of any such breach.

          SECTION 5.04. Notice of Developments. Prior to the Closing, the
                        ----------------------
Sellers shall promptly notify the Purchaser in writing of (a) all events,
circumstances, facts and occurrences arising subsequent to the date of this
Agreement which could result in any breach of a representation or warranty or
covenant of the Sellers in this Agreement or which could have the effect of
making any representation or warranty of the Sellers in this Agreement untrue or
incorrect in any respect and (b) all other material developments affecting the
assets, Liabilities, business, financial condition, operations, results of
operations, customer or supplier relations, employee relations, projections or
prospects of the Company.

          SECTION 5.05. No Solicitation or Negotiation. Each Seller agrees that
                        ------------------------------
between the date of this Agreement and the earlier of (a) the Closing and (b)
the termination of this Agreement, none of the Sellers, the Company, or any of
their respective Affiliates, officers, directors, representatives or agents will
(i) solicit, initiate, consider, encourage or accept any other proposals or
offers from any Person (A) relating to any acquisition or purchase of all or any
portion of the capital stock of the Company or assets of the Company (other than
Inventory to be sold in the ordinary course of business consistent with past
practice), (B) to enter into any
<PAGE>

                                       24

business combination with the Sellers or the Company or (C) to enter into any
other extraordinary business transaction involving or otherwise relating to the
Sellers or the Company or (ii) participate in any discussions, conversations,
negotiations and other communications regarding, or furnish to any other Person
any information with respect to, or otherwise cooperate in any way, assist or
participate in, facilitate or encourage any effort or attempt by any other
Person to seek to do any of the foregoing. The Sellers immediately shall cease
and cause to be terminated all existing discussions, conversations, negotiations
and other communications with any Persons conducted heretofore with respect to
any of the foregoing. The Sellers shall notify the Purchaser promptly if any
such proposal or offer, or any inquiry or other contact with any Person with
respect thereto, is made and shall, in any such notice to the Purchaser,
indicate in reasonable detail the identity of the Person making such proposal,
offer, inquiry or contact and the terms and conditions of such proposal, offer,
inquiry or other contact. The Sellers agrees not to, and to cause the Company,
not to, without the prior written consent of the Purchaser, release any Person
from, or waive any provision of, any confidentiality or standstill agreement to
which the Sellers, or the Company is a party.

          SECTION 5.06. Further Action. Each of the parties hereto shall use all
                        --------------
reasonable efforts to take, or cause to be taken, all appropriate action, do or
cause to be done all things necessary, proper or advisable under applicable Law,
and execute and deliver such documents and other papers, as may be required to
carry out the provisions of this Agreement and consummate and make effective the
transactions contemplated by this Agreement.

                                   ARTICLE VI

                             CONDITIONS TO CLOSING

          SECTION 6.01. Conditions to Obligations of the Sellers. The
                        ----------------------------------------
obligations of each Seller to consummate the transactions contemplated by this
Agreement shall be subject to the fulfillment, at or prior to the Closing, of
each of the following conditions:

          (a) Representations, Warranties and Covenants. The representations and
              -----------------------------------------
warranties of the Purchaser contained in this Agreement shall have been true and
correct when made and shall be true and correct in all material respects as of
the Closing, with the same force and effect as if made as of the Closing Date,
other than such representations and warranties as are made as of another date,
the covenants and agreements contained in this Agreement to be complied with by
the Purchaser on or before the Closing Date shall have been complied with in all
material respects;

          (b) No Proceeding or Litigation.  No Action shall have been commenced
              ---------------------------
     by or before any Governmental Authority against any of the Sellers or the
     Purchaser, seeking to restrain or materially and adversely alter the
     transactions contemplated by this Agreement which, in the reasonable, good
     faith determination of the Sellers, is likely to render it impossible or
     unlawful to consummate such transactions; provided, however, that the
                                               --------  -------
     provisions of this Section 6.01(b) shall not apply if the Sellers has
     directly or indirectly solicited or encouraged any such Action;
<PAGE>

                                       25

          (c) Resolutions.  The Sellers shall have received a true and complete
              -----------
     copy, certified by the Secretary or an Assistant Secretary of the
     Purchaser, of the resolutions duly and validly adopted by the Board of
     Directors of the Purchaser evidencing its authorization of the execution
     and delivery of this Agreement and the Ancillary Agreements to which it is
     a party and the consummation of the transactions contemplated hereby and
     thereby;

          (d) Incumbency Certificate.  The Sellers shall have received a
              ----------------------
     certificate of the Secretary or an Assistant Secretary of the Purchaser
     certifying the names and signatures of the officers of the Purchaser
     authorized to sign this Agreement and the Ancillary Agreements and the
     other documents to be delivered hereunder and thereunder;

          (e) Ancillary Agreements.  The Purchaser shall have executed and
              --------------------
     delivered to the Sellers each of the Ancillary Agreements to which it is a
     party.

          SECTION 6.02. Conditions to Obligations of the Purchaser. The
                        ------------------------------------------
obligations of the Purchaser to consummate the transactions contemplated by this
Agreement shall be subject to the fulfillment, at or prior to the Closing, of
each of the following conditions:

          (a) Representations, Warranties and Covenants. The representations and
              -----------------------------------------
warranties of the Sellers contained in this Agreement shall have been true and
correct when made and shall be true and correct as of the Closing Date with the
same force and effect as if made as of the Closing Date, other than such
representations and warranties as are made as of another date, the covenants and
agreements contained in this Agreement to be complied with by the Sellers on or
before the Closing Date shall have been complied with;

          (b) No Proceeding or Litigation.  No Action shall have been commenced
              ---------------------------
     or threatened by or before any Governmental Authority against any of the
     Sellers or the Purchaser, seeking to restrain or materially and adversely
     alter the transactions contemplated hereby which the Purchaser believes, in
     its sole and absolute discretion, is likely to render it impossible or
     unlawful to consummate the transactions contemplated by this Agreement or
     which could have a Material Adverse Effect or otherwise render inadvisable,
     in the sole and absolute discretion of the Purchaser, the consummation of
     the transactions contemplated by this Agreement; provided, however, that
                                                      --------  -------
     the provisions of this Section shall not apply if the Purchaser has
     solicited or encouraged any such Action;

          (c) Consents and Approvals.  The Purchaser and the Sellers shall have
              ----------------------
     received, each in form and substance satisfactory to the Purchaser in its
     sole and absolute discretion, all authorizations, consents, orders and
     approvals of all Governmental Authorities and officials and all third party
     consents and estoppel certificates which the Purchaser in its sole and
     absolute discretion deems necessary or desirable for the consummation of
     the transactions contemplated by this Agreement and the Ancillary
     Agreements, including, without limitation, all third party consents
     required under any Material Contracts;
<PAGE>

                                       26

          (d) Good Standing; Qualification to Do Business.  The Purchaser shall
              -------------------------------------------
     have received good standing certificates for the Company from the Secretary
     of State of the State of Texas and from the secretary of state in each
     other jurisdiction in which the properties owned or leased by any of the
     Company, or the operation of its business in such jurisdiction, requires
     the Company to qualify to do business as a foreign corporation, in each
     case dated as of a date not earlier than five Business Days prior to the
     Closing Date and accompanied by bring-down telegrams dated the Closing
     Date;

          (e) No Material Adverse Effect.  No event or events shall have
              --------------------------
     occurred, or be reasonably likely to occur, which, individually or in the
     aggregate, have, or could have, a Material Adverse Effect; and

          (f) Ancillary Agreements.  The Sellers shall have executed and
              --------------------
     delivered to the Purchaser each of the Ancillary Agreements to which it (or
     its spouse) is a party.

                                  ARTICLE VII

                                INDEMNIFICATION

          SECTION 7.01. Survival of Representations and Warranties. The
                        ------------------------------------------
representations and warranties of the Sellers contained in this Agreement and
the Ancillary Agreements, and all statements contained in the Acquisition
Documents, shall survive the Closing until the second anniversary of the Closing
Date, except for Section 3.23, which shall survive until the expiration of the
applicable tax statute of limitations; provided, however, that insofar as any
                                       --------  -------
claim is made by the Purchaser for the breach of any representation or warranty
of the Sellers contained herein, which claim arises out of allegations of
personal injury or property damage suffered by any third party on or prior to
the Closing Date or attributable to products or Inventory sold or shipped, or
activities or omissions that occur, on or prior to the Closing Date, such
representations and warranties shall, for purposes of such claim by the
Purchaser, survive until thirty calendar days after the expiration of the
applicable statute of limitations governing such claims. Neither the period of
survival nor the liability of the Sellers with respect to the Sellers's
representations and warranties shall be reduced by any investigation made at any
time by or on behalf of the Purchaser. If written notice of a claim has been
given prior to the expiration of the applicable representations and warranties
by the Purchaser to the Sellers, then the relevant representations and
warranties shall survive as to such claim, until such claim has been finally
resolved.

          SECTION 7.02. Indemnification by the Sellers. (a) Subject to the time
                        ------------------------------
limits set forth in Section 7.01, the Purchaser and its Affiliates, officers,
directors, employees, agents, successors and assigns (each an "Indemnified
                                                               -----------
Party") shall be indemnified and held harmless by each Seller for and against
-----
any and all Liabilities, losses, damages, claims, costs and expenses, interest,
awards, judgments and penalties (including, without limitation, attorneys' and
consultants' fees and expenses) actually suffered or incurred by them
(including, without limitation, any Action brought or otherwise initiated by any
of them) (hereinafter a "Loss"), arising out of or resulting from:
                         ----
<PAGE>

                                       27

          (i) the breach of any representation or warranty made by each Seller
     contained in the Acquisition Documents; or

          (ii) the breach of any covenant or agreement by each Seller contained
     in the Acquisition Documents; or

          (iii)  Liabilities of the Company not reflected on the Reference
     Balance Sheet, whether arising before or after the Closing Date, arising
     from or relating to the ownership or actions or inactions of the Sellers or
     the Company prior to the Closing; or

          (iv) any and all Losses suffered or incurred by the Purchaser or the
     Company by reason of or in connection with any claim or cause of action of
     any third party to the extent arising out of any action, inaction, event,
     condition, liability or obligation of each Seller occurring or existing
     prior to the Closing; or

          (v) any and all Taxes imposed upon the Company relating to the
     operation of the Company prior to the Closing Date.

To the extent that the Sellers's undertakings set forth in this Section 7.02 may
be unenforceable, the Sellers shall contribute the maximum amount that it is
permitted to contribute under applicable Law to the payment and satisfaction of
all Losses incurred by the Purchaser, the Company.

          (b) An Indemnified Party shall give each Seller notice of any matter
which an Indemnified Party has determined has given or could give rise to a
right of indemnification under this Agreement, within 60 days of such
determination, stating the amount of the Loss, if known, and method of
computation thereof, and containing a reference to the provisions of this
Agreement in respect of which such right of indemnification is claimed or
arises.  The obligations and Liabilities of each Seller under this Article VII
with respect to Losses arising from claims of any third party which are subject
to the indemnification provided for in this Article VII ("Third Party Claims")
                                                          ------------------
shall be governed by and contingent upon the following additional terms and
conditions:  if an Indemnified Party shall receive notice of any Third Party
Claim, the Indemnified Party shall give each Seller notice of such Third Party
Claim within 30 days of the receipt by the Indemnified Party of such notice;
provided, however, that the failure to provide such notice shall not release any
--------  -------
Seller from any of its obligations under this Article VII except to the extent
that such Seller is materially prejudiced by such failure and shall not relieve
any Seller from any other obligation or Liability that it may have to any
Indemnified Party otherwise than under this Article VII.  If a Seller
acknowledges in writing its obligation to indemnify the Indemnified Party
hereunder against any Losses that may result from such Third Party Claim, then
the Sellers shall be entitled to assume and control the defense of such Third
Party Claim at its expense and through counsel of its choice if it gives notice
of its intention to do so to the Indemnified Party within five days of the
receipt of such notice from the Indemnified Party; provided, however, that if
                                                   --------  -------
there exists or is reasonably likely to exist a conflict of interest that would
make it inappropriate in the judgment of the Indemnified Party in its sole and
absolute discretion, for the same counsel to represent both the Indemnified
Party and
<PAGE>

                                       28

the Sellers, then the Indemnified Party shall be entitled to retain its own
counsel, in each jurisdiction for which the Indemnified Party determines counsel
is required, at the expense of the Sellers. In the event that the Sellers
exercise the right to undertake any such defense against any such Third Party
Claim as provided above, the Indemnified Party shall cooperate with the Sellers
in such defense and make available to the Sellers, at the Sellers' expense, all
witnesses, pertinent records, materials and information in the Indemnified
Party's possession or under the Indemnified Party's control relating thereto as
is reasonably required by the Sellers. Similarly, in the event the Indemnified
Party is, directly or indirectly, conducting the defense against any such Third
Party Claim, the Sellers shall cooperate with the Indemnified Party in such
defense and make available to the Indemnified Party, at the Sellers' expense,
all such witnesses, records, materials and information in the Sellers'
possession or under the Sellers' control relating thereto as is reasonably
required by the Indemnified Party. No such Third Party Claim may be settled by
the Sellers without the prior written consent of the Indemnified Party.

          SECTION 7.03. Limits on Indemnification. Notwithstanding anything to
                        -------------------------
the contrary contained in this Agreement, the maximum amount of indemnifiable
Losses which may be recovered from a Seller arising out of or resulting from the
causes enumerated in Section 7.02 shall be an amount equal to the Purchase Price
received by such Seller.

                                  ARTICLE VIII

                             TERMINATION AND WAIVER

          SECTION 8.01. Termination. This Agreement may be terminated at any
                        -----------
time prior to the Closing:

          (a) by the Purchaser if, between the date hereof and the time
     scheduled for the Closing:  (i) an event or condition occurs that has
     resulted in or that may be expected to result in a Material Adverse Effect,
     (ii) any representation or warranty of the Sellers contained in this
     Agreement shall not have been true and correct when made, (iii) the Sellers
     shall not have complied with any covenant or agreement to be complied with
     by it and contained in this Agreement or (iv) the Company makes a general
     assignment for the benefit of creditors, or any proceeding shall be
     instituted by or against the Company seeking to adjudicate any of them a
     bankrupt or insolvent, or seeking liquidation, winding up or
     reorganization, arrangement, adjustment, protection, relief or composition
     of its debts under any Law relating to bankruptcy, insolvency or
     reorganization

          (b) by either the Purchaser or the holders of a majority of the Shares
     in the event that any Governmental Authority shall have issued an order,
     decree or ruling or taken any other action restraining, enjoining or
     otherwise prohibiting the transactions contemplated by this Agreement and
     such order, decree, ruling or other action shall have become final and
     nonappealable

          (c) by the mutual written consent of the holders of a majority of the
     Shares and the Purchaser.
<PAGE>

                                       29

          SECTION 8.02. Effect of Termination. In the event of termination of
                        ---------------------
this Agreement as provided in Section 8.01, this Agreement shall forthwith
become void and there shall be no liability on the part of either party hereto
except (i) as set forth in Sections 5.03, 8.02(b) and 9.01 and (ii) that nothing
herein shall relieve either party from liability for any each of this Agreement.
<PAGE>

                                       30

          SECTION 8.03. Waiver. The parties to this Agreement may (a) extend the
                        ------
time for the performance of any of the obligations or other acts of the other
party, (b) waive any inaccuracies in the representations and warranties of the
other party contained herein or in any document delivered by the other party
pursuant hereto or (c) waive compliance with any of the agreements or conditions
of the other party contained herein. Any such extension or waiver shall be valid
only if set forth in an instrument in writing signed by the party to be bound
thereby. Any waiver of any term or condition shall not be construed as a waiver
of any subsequent breach or a subsequent waiver of the same term or condition,
or a waiver of any other term or condition, of this Agreement. The failure of
any party to assert any of its rights hereunder shall not constitute a waiver of
any of such rights.

                                   ARTICLE IX

                               GENERAL PROVISIONS

          SECTION 9.01. Expenses. Except as otherwise specified in this
                        --------
Agreement, all costs and expenses, including, without limitation, fees and
disbursements of counsel, financial advisors and accountants, incurred in
connection with this Agreement and the transactions contemplated hereby shall be
paid by the party incurring such costs and expenses, whether or not the Closing
shall have occurred.

          SECTION 9.02. Notices. All notices, requests, claims, demands and
                        -------
other communications hereunder shall be in writing and shall be given or made
(and shall be deemed to have been duly given or made upon receipt) by delivery
in person, by courier service, by cable, by telecopy, by telegram, by telex or
by registered or certified mail (postage prepaid, return receipt requested) to
the respective parties at the following addresses (or at such other address for
a party as shall be specified in a notice given in accordance with this Section
9.02):

(a)  if to the Sellers:

               Robert J. Sims, Jr.
               3006 Cross Timbers Ln
               Garland, TX 75044
               Telecopy: (972-575-1049)
               Attention: Robert J. Sims. Jr.

               Raymond T. Sims
               6704 Beth Court
               Garland, TX 75044
               Telecopy:
               Attention:
<PAGE>

                                       31

               Dieter M. Bailly
               4190 Higuera
               Culver City, CA 90232
               Telecopy:
               Attention:

               William Kepke
               39804 Golfers Drive
               Palmdale, CA 93551
               Telecopy:
               Attention:

               Mark L. Sims
               1805 Lakeshore Cr.
               McKinney, TX 75070
               Telecopy:
               Attention:

               Ron Heuer
               2949 Falling Tree Circle
               Orlando, FL 32837
               Telecopy:
               Attention:

               with a copy to:

               Gardere & Wynne L.L.P.
               8000 Thanksgiving Tower
               1601 Elm Street
               Dallas, Texas 75201-4761
               Telecopy: (214) 999-3422
               Attention: Peter Vogel

          b)   if to the Purchaser:

               travelbyus.com Ltd.
               204-3237 King George Hwy.
               South Surrey, British Columbia
               V4P 1B7
               Telecopy: (604) 541-2400
               Attention: William Kerby
<PAGE>

                                       32

               with a copy to:

               Shearman & Sterling
               199 Bay Street, Suite 4405
               Toronto, Ontario M5L 1E8
               Telecopy: (416) 360-2958
               Attention: Bruce Czachor, Esq.

          SECTION 9.03. Public Announcements. Except as required by law, no
                        --------------------
party to this Agreement shall make, or cause to be made, any press release or
public announcement in respect of this Agreement or the transactions
contemplated hereby or otherwise communicate with any news media without the
prior written consent of the other party, and the parties shall cooperate as to
the timing and contents of any such press release or public announcement.

          SECTION 9.04. Headings. The descriptive headings contained in this
                        --------
Agreement are for convenience of reference only and shall not affect in any way
the meaning or interpretation of this Agreement.

          SECTION 9.05. Severability. If any term or other provision of this
                        ------------
Agreement is invalid, illegal or incapable of being enforced by any Law or
public policy, all other terms and provisions of this Agreement shall
nevertheless remain in full force and effect for so long as the economic or
legal substance of the transactions contemplated hereby is not affected in any
manner materially adverse to any party. Upon such determination that any term or
other provision is invalid, illegal or incapable of being enforced, the parties
hereto shall negotiate in good faith to modify this Agreement so as to effect
the original intent of the parties as closely as possible in an acceptable
manner in order that the transactions contemplated hereby are consummated as
originally contemplated to the greatest extent possible.

          SECTION 9.06. Entire Agreement. This Agreement and the Ancillary
                        ----------------
Agreements constitute the entire agreement of the parties hereto with respect to
the subject matter hereof and thereof and supersede all prior agreements and
undertakings, both written and oral, between the Sellers and the Purchaser with
respect to the subject matter hereof and thereof.

          SECTION 9.07. Assignment. This Agreement may not be assigned by
                        ----------
operation of law or otherwise without the express written consent of the Sellers
and the Purchaser (which consent may be granted or withheld in the sole
discretion of the Sellers or the Purchaser); provided, however, that the
                                             --------  -------
Purchaser may assign this Agreement to an Affiliate of the Purchaser without the
consent of the Sellers.

          SECTION 9.08. No Third Party Beneficiaries. Except for the provisions
                        ----------------------------
of Article IX relating to Indemnified Parties, this Agreement shall be binding
upon and inure solely to the benefit of the parties hereto and their permitted
assigns and nothing herein, express or implied, is intended to or shall confer
upon any other Person, including, without limitation, any union or any employee
or former employee of the Sellers, any legal or equitable right, benefit or
remedy of any nature whatsoever, including, without limitation, any rights of
employment for
<PAGE>

                                       33

any specified period, under or by reason of this Agreement.

          SECTION 9.09. Amendment. This Agreement may not be amended or modified
                        ---------
except (a) by an instrument in writing signed by, or on behalf of all of, the
Sellers and the Purchaser or (b) by a waiver in accordance with Section 8.03.

          SECTION 9.10. Governing Law. This Agreement shall be governed by, and
                        -------------
construed in accordance with, the laws of the Province of Ontario and the
federal laws of Canada applicable therein. This Agreement shall in all respects
be treated as an Ontario contract and the parties do hereby agree to attorn to
the exclusive jurisdiction of the courts of the Province of Ontario.

          SECTION 9.11. Counterparts. This Agreement may be executed in one or
                        ------------
more counterparts, and by the different parties hereto in separate counterparts,
each of which when executed shall be deemed to be an original but all of which
taken together shall constitute one and the same agreement.

          SECTION 9.12. Specific Performance. The parties hereto agree that
                        --------------------
irreparable damage would occur in the event any provision of this Agreement was
not performed in accordance with the terms hereof and that the parties shall be
entitled to specific performance of the terms hereof, in addition to any other
remedy at law or in equity without the necessity of demonstration the inadequacy
of monetary damages.
<PAGE>

          IN WITNESS WHEREOF, the Sellers and the Purchaser have caused this
Agreement to be executed as of the date first written above by their respective
officers thereunto duly authorized.

                                    /s/ Robert J. Sims, Jr.
                                    ------------------------
                                    ROBERT J. SIMS, JR.

                                    /s/  William Kepke
                                    ------------------------
                                    WILLIAM KEPKE

                                    /s/  Dieter M. Bailly
                                    ------------------------
                                    DIETER M. BAILLY

                                    /s/  Raymond T. Sims
                                    ------------------------
                                    RAYMOND T. SIMS

                                    /s/  Mark L. Sims
                                    ------------------------
                                    MARK L. SIMS

                                    /s/  Ronald H. Heuer
                                    ------------------------
                                    RON HEUER

                                    TRAVELBYUS.COM, LTD.

                                    By:  /s/  Bill Kerby
                                         -------------------
                                         Name:  Bill Kerby
                                         Title:  CEO
<PAGE>

                                  Exhibit 2.02

<TABLE>
<CAPTION>
            Name                      Cash                     Shares
            ----                      ----                     ------
<S>                                 <C>                      <C>
Robert J. Sims, Jr.                   804,378                1,200,219

William Kepke                         693,378                1,200,219

Dieter M. Bailly                      308,988                  511,638

Raymond T. Sims                        49,831                   85,273

Mark L. Sims                           24,916                   42,636

Ron Heuer                              93,509                  160,015

                  Grand Total       1,975,000                3,200,000
</TABLE>
<PAGE>

                                   Exhibit A

                                SPOUSAL CONSENT

        The undersigned represents that the undersigned is the spouse of

           --------------------------------------------------------
                                 name of spouse

     and that the undersigned is familiar with the terms of the Stock Purchase
     Agreement attached hereto.  The undersigned hereby agrees that the interest
     of the undersigned's spouse in all property which is the subject of such
     Agreement shall be irrevocably bound by the terms of such Agreement and by
     any amendment, modification, waiver or termination signed by the
     undersigned's spouse.  The undersigned further agrees that the
     undersigned's community property interest in all property which is the
     subject of such Agreement shall be irrevocably bound by the terms of such
     Agreement, and that such Agreement shall be binding on the executors,
     administrators, heirs and assigns of the undersigned.  The undersigned
     further authorizes the undersigned's spouse to amend, modify or terminate
     such Agreement, or waive any rights thereunder, and that each such
     amendment, modification, waiver or termination signed by the undersigned's
     spouse shall be binding on the community property interest of undersigned
     in all property which is the subject of such Agreement and on the
     executors, administrators, heirs and assigns of the undersigned, each as
     fully as if the undersigned had signed such amendment, modification, waiver
     or termination.

     Dated:

                                       Signed:  _____________________________<PAGE>

                                                                   Exhibit 10.57

                              TRAVELBYUS.COM LTD.

                                    - and -

                                TRAVEL24.COM AG

________________________________________________________________________________

                           SHARE EXCHANGE AGREEMENT

________________________________________________________________________________

                         Cassels Brock & Blackwell LLP
                           Scotia Plaza, Suite 2100
                              40 King Street West
                               Toronto, Ontario
                                    M5H 3C2
<PAGE>

THIS SHARE EXCHANGE AGREEMENT is made as of the 16th day of June, 2000.

BETWEEN:

          TRAVELBYUS.COM LTD. a corporation incorporated pursuant to the laws of
          the Province of Ontario

          ("Travelbyus")

          - and -

          TRAVEL24.COM AG, a corporation incorporated pursuant to the laws of
          .

          ("T24")

RECITALS:

A.   Travelbyus and T24 executed a letter of intent dated as of the 23/rd/ day
of May, 2000 (the "LOI") pursuant to which:

     (i)  Travelbyus has agreed to issue 13,800,000 common shares in its capital
          (the "Travelbyus Shares") to T24 in exchange for 1,282,594 common
          shares in the capital of T24 (the "T24 Shares"); and

     (ii) Travelbyus and T24 have agreed to use their best efforts to effect a
          full merger (the "T24 Merger") subject to requisite board of director,
          shareholder and regulatory approvals including without limitation, the
          approval of The Toronto Stock Exchange (the "TSE") and the German
          Neuer Market (the "GNM").

NOW THEREFORE THIS AGREEMENT WITNESSES that in consideration of the covenants
and agreements herein contained and for other good and valuable consideration
(the receipt and adequacy whereof is hereby acknowledged) the parties hereto
agree as follows:

                                   Article 1
                 Definitions And Principles Of Interpretation
                 --------------------------------------------

1.1  Definitions - Whenever used in this Agreement, unless there is something
inconsistent in the subject matter or context, the following words and terms
shall have the meanings set out below:
<PAGE>

                                      -2-

         "Acquisition Proposal" shall mean any reorganization, recapitalization,
         reclassification, combination, merger, consolidation, amalgamation,
         plan of arrangement, take-over bid, sale of material assets (or any
         lease, long-term supply agreement or other arrangement having the same
         economic effect as a sale), any material sale of shares or rights or
         their respective interests therein or thereto or similar transactions
         involving Travelbyus or T24, as the case may be, or any of their
         respective Subsidiaries or a proposal to do so, excluding the T24
         Merger, the Aviation Merger and the Transaction.

         "Agreement" means this Share Exchange Agreement, including all
         schedules and all instruments supplementing, amending or confirming
         this Agreement and references to "Article" or "Section" mean and refer
         to the specified Article or section of this Agreement.

         "Affiliate" shall mean any Person which, directly or indirectly,
         Controls, is Controlled by, or is under common Control with, such
         Person.

         "Applicable Laws" shall mean, with respect to any Person all Laws by
         which such Person, any of its Subsidiaries or any of their respective
         securities, material assets or properties is bound or which is
         applicable to it, any of its Subsidiaries or any of their respective
         securities, material assets or properties.

         "Aviation" shall means Aviation Group, Inc. a corporation incorporated
         pursuant to the laws of Dallas, Texas.

         "Aviation Merger" shall mean the merger pursuant to and as contemplated
         by the Aviation Arrangement Agreement.

         "Aviation Arrangement Agreement" shall mean the arrangement agreement
         dated as May 3 2000 among Aviation, Aviation Group Canada Ltd and
         Travelbyus.

         "Bankruptcy Laws" shall mean; (i) all bankruptcy, insolvency,
         reorganization, fraudulent conveyance, moratorium and other Laws of
         general application affecting the rights and remedies of creditors; and
         (ii) general principles of equity (regardless of whether enforcement is
         considered in a proceeding in equity or at law).

         "Benefit Plans" shall mean all employee benefit plans, and any related
         or separate contracts, plans, trusts, programs, policies, arrangements,
         practices, customs and understandings, in each case whether formal or
         informal, written or oral and whether maintained by or binding upon
         Travelbyus or T24, as the case may be, or any of their respective
         Subsidiaries that provide rights or benefits of economic value to their
         respective current or former employees or any current or former
         beneficiary, dependent or assignee of any such employees or former
         employees.
<PAGE>

                                      -3-

         "Business Day" shall mean any day on which commercial banks are open
         for business in Toronto, Ontario and any day other than a Saturday,
         Sunday or a day observed as a holiday in Toronto, Ontario.

         "Claims" means any claim, demand, action, suit, litigation,
         arbitration, investigation, proceeding, cause of action, damage, loss,
         cost, liability or expense, including without limitation, reasonable
         professional fees and all costs incurred in investigating or pursuing
         any of the foregoing or any proceeding relating to any of the
         foregoing.

         "Closing" means the completion of the sale to and purchase by
         Travelbyus of the Purchased Shares under this Agreement.

         "Closing Date" means the 30/th/ day of September, 2000 or such other
         date as the Parties may agree in writing as the date upon which Closing
         shall take place.

         "Closing Time" means 10:00 a.m. Toronto time on the Closing Date or
         such other time on such date as the Parties may agree in writing as the
         time at which Closing shall take place.

         "Commercial Software" shall mean packaged commercial software programs
         generally available to the public through retail computer software
         dealers or available directly from the manufacturer which have been
         licensed to Travelbyus or T24, as the case may be, or any of their
         respective Subsidiaries pursuant to End-User Licenses and which are
         used in the business of Travelbyus or T24, as the case may be, or any
         of their respective Subsidiaries but are in no way a component of or
         incorporated in or specifically required to develop or support any of
         the products and related trademarks, technology and know-how of
         Travelbyus or T24, as the case may be, or any of their respective
         Subsidiaries.

         "Commissions" shall mean the Alberta, British Columbia, Manitoba,
         Ontario and Saskatchewan Securities Commissions.

         "Consent" shall have the meaning ascribed thereto in section 3.4

         "Contract" shall mean any written or oral agreement, contract,
         instrument, indenture, bond, debenture, note, credit agreement,
         mortgage, lease, permit, concession, grant, franchise, license,
         guarantee or commitment to which a Person or any of its Subsidiaries is
         a party or by which it, any of their respective Subsidiaries or any of
         its material assets or properties is bound or which is applicable to
         it, any of their respective Subsidiaries or any of their respective
         material assets or properties.

         "Control" (including with correlative meaning, controlled by and under
         common control with) shall mean, with respect to any Person, the
         possession, directly or indirectly, of the power to direct or cause the
         direction of the management and
<PAGE>

                                      -4-

         policies of such Person, whether through the ownership of voting
         securities, by contract or otherwise.

         "Dollar" or "$" shall mean US dollars.

         "Encumbrance" shall mean any mortgage, pledge, lien, claim, charge,
         security interest, lease, conditional sale or other title retention
         agreement, easement, servitude, refusal, claim of infringement,
         condition or other restriction or encumbrance of any kind, including
         any restriction on use, voting (in the case of any security), transfer,
         receipt of income or exercise of any other attribute of ownership on
         assets.

         "End-User Licenses" shall mean End-User Licenses, under which
         Travelbyus or T24, as the case may be, or any of their respective
         Subsidiaries is the licensor and which provide for payments to
         Travelbyus or T24, as the case may be, or any of their respective
         Subsidiaries of less than $250,000.

         "Environmental Claim" shall mean any notice alleging potential
         liability (including potential liability for investigatory costs,
         cleanup costs, response or remediation costs, natural resource damages,
         property damages, personal injuries, fines or penalties) arising out
         of, based on or resulting from: (a) the presence or release of any
         Material of Environmental Concern, whether or not the Material of
         Environmental Concern is present on or has been released from property
         owned by that party or any of its Affiliates; or (b) circumstances
         forming the basis for any violation or alleged violation of any
         Environmental Law.

         "Environmental Laws" shall mean any and all Laws relating to the
         protection of public health, safety or the environment.

         "GNM" has the meaning ascribed thereto in the preambles to this
         Agreement (Neuer Markt, trading segment of the Deutsche Borse AG).

         "Governmental Entity" shall mean; (a) any German, United States,
         Canadian, multinational, foreign, federal, provincial, state, regional,
         territorial, municipal, local or other government, governmental or
         public department, central bank, court, tribunal, arbitral body,
         commission, board, bureau or agency; (b) any subdivision, agent,
         commission, board, authority or instrumentality of any of the
         foregoing; or (c) any quasi-governmental or private body exercising any
         regulatory, expropriation or taxing authority under or for the account
         of any of the foregoing. The term "Governmental Entity" shall include
         the OSC, GNM, the TSE, the Winnipeg Stock Exchange, The Canadian
         Venture Exchange and the Frankfurt Stock Exchange.

         "HSR Act" shall mean the US Hart-Scott-Rodino Antitrust Improvements
         Act of 1976, as amended.
<PAGE>

                                      -5-

         "Indebtedness" shall mean; (a) all items (except items of capital,
         shareholders' equity, surplus or retained earnings and general
         contingency reserves) that, in accordance with generally accepted
         accounting principles, would be included in determining total
         liabilities of Travelbyus or T24, as the case may be, and their
         respective Subsidiaries as of the date at which Indebtedness is to be
         determined; (b) indebtedness secured by any Encumbrance to which any
         property or asset owned or held by Travelbyus or T24, as the case may
         be, and their respective Subsidiaries is subject, whether or not the
         indebtedness secured thereby shall have been assumed; and (c)
         indebtedness of others which Travelbyus or T24, as the case may be, and
         their respective Subsidiaries have directly or indirectly guaranteed,
         endorsed (other than for collection or deposit in the ordinary course
         of business), sold or discounted with recourse (contingently or
         otherwise) or to purchase or repurchase or otherwise acquire or in
         respect of which Travelbyus or T24, as the case may be, and their
         respective Subsidiaries have agreed to supply or advance funds (whether
         by way of loan, share purchase, capital contribution or otherwise) or
         otherwise become directly or indirectly liable.

         "Laws" shall mean all laws, statutes, ordinances, regulations, rules,
         published policies and guidelines of any Governmental Entity and the
         terms and conditions of any Permit, judgment, order or decree of any
         Governmental Entity.

         "Leases" shall mean each lease, sublease, license or other agreement
         under which Travelbyus or T24, as the case may be, or any of their
         respective Subsidiaries uses, occupies or has the right to occupy any
         real property or interest therein that; (a) provides for future minimum
         payments of $10,000 or more per month (ignoring any right of
         cancellation or termination); or (b) the cancellation or termination of
         which would have a Material Adverse Effect.

         "Liabilities" shall have the meaning ascribed thereto in section 3.7.2.

         "LOI" has the meaning ascribed thereto in the preambles to this
         Agreement.

         "Material Adverse Effect" shall mean, among other things, any event,
         change or effect that is or is reasonably expected to be materially
         adverse to; (a) the financial condition, business, operations, assets,
         properties, personnel or results of operations of Travelbyus or T24, as
         the case may be, and their respective Subsidiaries taken as a whole; or
         (b) the ability of Travelbyus or T24, as the case may be, and their
         respective Subsidiaries to perform their respective obligations under
         this Agreement, or to consummate the Transaction, or any of the other
         transactions contemplated hereby. "Material Adverse Effect" shall not
         include any adverse effect resulting from changes in general economic
         conditions or conditions generally affecting the industry in which
         Travelbyus or T24, as the case may be, operates.

         "Materials of Environmental Concern" shall mean petroleum and its by-
         products, all hazardous substances and all substances or constituents
         that are regulated by or form the basis for liability under any
         Environmental Laws.
<PAGE>

                                      -6-

         "OBCA" shall mean the Business Corporations Act (Ontario).

         "OSC" shall mean the Ontario Securities Commission.

         "Parties" means Travelbyus and T24 and "Party" means any one of them.

         "Permit" shall mean any permit, concession, approval, permission,
         authorization, certificate or license from any Governmental Entity.

         "Permitted Encumbrances" shall mean; (a) liens for current taxes and
         other statutory liens and trusts not yet due and payable or that are
         being contested in good faith; (b) liens that were incurred in the
         ordinary course of business, such as carriers', warehousemen's,
         landlords' and mechanics' liens and other similar liens arising in the
         ordinary course of business; (c) liens on personal property leased
         under operating leases; (d) liens, pledges or deposits incurred or made
         in connection with workers' compensation, unemployment insurance and
         other social insurance and social security benefits or securing the
         performance of bids, tenders, leases, contracts (other than for the
         repayment of borrowed money), statutory obligations, progress payments,
         surety and appeal bonds and other obligations of like nature, in each
         case incurred in the ordinary course of business; (e) pledges of or
         liens on manufactured products as security for any drafts or bills of
         exchange drawn in connection with the importation of such manufactured
         products in the ordinary course of business; (f) liens under Article 2
         of the applicable commercial code in effect under applicable personal
         property security Laws that are special property interests in goods
         identified as goods to which a contract refers; and (g) liens under
         applicable personal property that are purchase money security
         interests, none of which are material in the aggregate or individually.

         "Person" means any individual, sole proprietorship, partnership,
         unincorporated association, unincorporated syndicate, unincorporated
         organization, trust, body corporate, governmental authority and a
         natural person in such person's capacity as trustee, executor,
         administrator or other legal representative.

         "Subsidiary" shall mean any corporation, association or other business
         entity a majority of the shares or other voting interests (by number of
         votes to the election of directors or persons holding positions with
         similar responsibilities) of which is owned by Travelbyus or T24, as
         the case may be, or any of their respective Subsidiaries.

         "T24 " means Travel24.com AG

         "T24 Advances" has the meaning ascribed thereto in section 9.1.

         "T24 Balance Sheet" shall have the meaning  ascribed thereto in section
         4.7.1.
<PAGE>

                                      -7-

         "T24 Benefit Plans" shall mean all benefit plans sponsored or
         maintained by T24 or any of its Subsidiaries or under which T24 or any
         of its Subsidiaries is obligated.

         "T24 Common Shares" shall mean, the common shares in the capital of
         T24.

         "T24 Disclosure Schedule" shall have the meaning ascribed thereto in
         Article 4.

         "T24 Insurance Contracts" shall have the meaning ascribed thereto in
         section 4.19.

         "T24 Loan Amount" has the meaning ascribed thereto in section 9.1.

         "T24 Loan Commitment" has the meaning ascribed thereto in the preambles
         to this Agreement.

         "T24 Merger" has the meaning ascribed thereto in the preambles to this
         Agreement.

         "T24 Plans" shall mean, collectively, all T24 Benefit Plans and all
         plans, programs and agreements described in subsection 4.12.

         "T24 Proprietary Rights" shall have the meaning ascribed thereto in
         section 4.17.1.

         "T24 Securities Reports" shall have the meaning ascribed thereto in
         section 4.6.

         "T24 Shares" has the meaning ascribed thereto in the preambles to this
         Agreement.

         "T24 Superior Proposal" shall have the meaning ascribed thereto in
         section 7.13.2.

         "Tax" shall mean any European, Canadian, United States, multinational,
         foreign, federal, provincial, state, regional, territorial, municipal
         and local capital, capital stock, disability, customs duties,
         employment, environmental, estimated, excise, franchise, capital gains,
         employer health, income, license, alternative or add-on minimum,
         occupation, payroll, premium, profits, windfall profits, personal
         property, real property, gross receipts, registration, gross revenue,
         sales, goods and services, severance, social security (or similar),
         stamp, transfer, turnover, unemployment, use, value added, withholding,
         net worth or other tax of any kind whatsoever including employment
         insurance and Canada Pension Plan premiums as well as any interest or
         penalty in respect thereof and any addition thereto, whether disputed
         or not.
<PAGE>

                                      -8-

         "Tax Return" shall mean any return, declaration, report, claim for
         refund or information return or statement relating to Taxes, including
         any schedule or attachment thereto and any amendment thereof.

         "Transaction" means the issuance of Travelbyus Shares in exchange for
         the T24 Shares and $5 million.

         "Travelbyus" means Travelbyus.com Ltd.

         "Travelbyus Balance Sheet" shall have the meaning ascribed thereto in
         section 3.7.1.

         "Travelbyus Benefit Plans" shall mean all benefit plans sponsored or
         maintained by Travelbyus or any of its Subsidiaries or under which
         Travelbyus or any of its Subsidiaries is obligated.

         "Travelbyus Common Shares" shall mean the common shares in the capital
         of Travelbyus.

         "Travelbyus Disclosure Schedule" shall have the meaning ascribed
         thereto in Article 3.

         "Travelbyus Insurance Contracts" shall have the meaning ascribed
         thereto in section 3.19.

         "Travelbyus Plans" shall mean, collectively, all Travelbyus Benefit
         Plans and all plans, programs or arrangements described in subsection
         3.12.

         "Travelbyus Proprietary Rights" shall have the meaning ascribed thereto
         in section 3.17.1.

         "Travelbyus Securities Reports" shall have the meaning ascribed thereto
         in section 3.6.

         "Travelbyus Shares" has the meaning ascribed thereto in the preambles
         to this Agreement

         "TSE" has the meaning ascribed thereto in the preambles to this
         Agreement.

         "United States" means the United States of America, including any state
         thereof and its territories and assigns.

         "Violation" shall mean, with respect to any provision, with or without
         the giving of notice or the lapse of time, or both; (a) any conflict
         with, violation or breach of, or default under, such provision; (b) the
         arising of any right of termination, amendment, cancellation or
         acceleration of any obligation contained in or the loss of any material
         benefit under, such provision; or (c) the arising of any
<PAGE>

                                     -9-

         Encumbrance upon any of the properties or assets of the Person or any
         of its Subsidiaries subject to the provision.
<PAGE>

                                     -10-

1.2  Certain Rules of Interpretation - In this Agreement and the Schedules:

     (a)  Time - time is of the essence in the performance of the Parties'
          respective obligations.

     (b)  Currency - unless otherwise specified, all references to money amounts
          are to United States currency.

     (c)  Headings - the descriptive headings of Articles and sections are
          inserted solely for convenience of reference and are not intended as
          complete or accurate descriptions of the content of such Articles or
          sections.

     (d)  Singular, etc. - the use of words in the singular or plural or with a
          particular gender shall not limit the scope or exclude the application
          of any provision of this Agreement to such person or persons or
          circumstances as the context otherwise permits.

     (e)  Consent - whenever a provision of this Agreement requires an approval
          or consent by a Party and notification of such approval or consent is
          not delivered within the applicable time limit, unless otherwise
          specified, the Party whose consent or approval is required shall be
          conclusively deemed to have withheld its approval or consent.

     (f)  Calculation of Time - unless otherwise specified, time periods within
          or following which any payment is to be made or act is to be done
          shall be calculated by excluding the day on which the period commences
          and by including the day on which the period ends and by extending the
          period to the next Business Day following if the last day of the
          period is not a Business Day.

     (g)  Business Day - whenever any payment is to be made or action to be
          taken under this Agreement is required to be made or taken on a day
          other than a Business Day, such payment shall be made or action shall
          be taken on the next Business Day following such day.

1.3  Knowledge - In this Agreement, any reference to the knowledge of a Party
shall mean to the best of the knowledge, information and belief of the Party
after reviewing all relevant records and making due inquiries.

1.4  Entire Agreement - This Agreement together with the other agreements and
documents to be delivered pursuant to this Agreement constitute the entire
agreement among the Parties pertaining to the subject matter hereof and
supersede all prior agreements, understandings, negotiations and discussions,
whether oral or written, of the Parties (including without limitation, the LOI)
and there are no warranties, representations or other agreements among the
Parties in connection with the Transaction except as specifically set forth in
this Agreement and any document delivered pursuant to this Agreement. No
supplement, modification, waiver or
<PAGE>

                                     -11-

termination of this Agreement shall be binding unless executed in writing by the
Parties to be bound thereby.

1.5  Applicable Law and Attornment - This Agreement shall be construed in
accordance with the laws of the Province of Ontario and the federal laws of
Canada applicable therein and shall be treated in all respects as an Ontario
contract.

1.6  Accounting Principles - In this Agreement all references to generally
accepted accounting principles means to principles recommended, from time to
time, with respect to Travelbyus, by the Canadian Institute of Chartered
Accountants and with respect to T24, by . and all accounting terms not otherwise
defined in this Agreement have the meanings assigned thereto in accordance with
Canadian generally accepted accounting principles with respect to Travelbyus and
in accordance with German generally accepted accounting principles with respect
to T24.

1.7  Tender - Any tender of documents or money under this Agreement may be made
upon the Parties or their respective counsel and money may be tendered by
official bank draft drawn upon a bank or by negotiable cheque payable in United
States funds and certified by a bank or trust Travelbyus or with the consent of
the Party entitled to payment by wire transfer of immediately available funds to
the account specified by that Party.

1.8  Disclosure - The Parties acknowledge that any information, matter,
circumstance, agreement, document or other thing disclosed in any Schedule to
this Agreement shall be deemed to be disclosed in every other Schedule for
purposes of the representations and warranties of the Parties.

                                   Article 2
                             Exchange Transaction
                             --------------------

2.1  Exchange Transaction- Subject to the terms and conditions herein, the
Parties shall effect the following transactions:

     (a)  At the Closing Time, Travelbyus shall issue to T24 the Travelbyus
          Shares and shall deliver a certificate therefor to T24 registered in
          the name of T24 which certificate shall include a legend restricting
          the transfer of the Travelbyus Shares for a period of one year; and

     (b)  T24 shall issue to Travelbyus the T24 Shares and shall deliver a
          global share certificate to Clearstream Banking AG and such global
          share certificate shall not be transferable for a period of one year;

2.2  Place of Closing - The Closing shall take place at the Closing Time at the
offices of Cassels Brock & Blackwell LLP, Barristers and Solicitors, 40 King
Street East, Suite 2100, Toronto, Ontario M5H 3C2 or at such other place as may
be agreed upon by T24 and Travelbyus.
<PAGE>

                                     -12-

                                   Article 3
                 Representations And Warranties Of Travelbyus

Travelbyus represents and warrants to T24 that the statements in this Article 3
are true and correct, except as set forth in the disclosure schedule delivered
by Travelbyus to T24 on the date hereof (the "Travelbyus Disclosure Schedule").
The Travelbyus Disclosure Schedule shall be arranged in sections and paragraphs
corresponding to the numbered and lettered sections and paragraphs in this
Article 3. The disclosure in any section or paragraph of the Travelbyus
Disclosure Schedule shall qualify other sections and paragraphs in this Article
3 only to the extent that it is reasonably apparent from a reading of such
disclosure that it also qualifies or applies to such other sections or
paragraphs.

3.1    Corporate Status of Travelbyus and its Subsidiaries - Each of Travelbyus
and its Subsidiaries is a corporation duly organized, validly existing and in
good standing under the Laws of its jurisdiction of incorporation, with the
requisite corporate or organizational power and authority to carry on its
business as currently being conducted and to own, lease and operate the
properties currently owned, leased and operated by it. Each of Travelbyus and
its Subsidiaries is duly qualified or licensed to do business and is in good
standing as an extra-provincial or foreign corporation or organization
authorized to do business in all jurisdictions in which the character of the
properties owned or held under lease by it or the nature of the business
transacted by it makes such qualification or licensing necessary, except in
jurisdictions in which the failure to be so qualified or licensed would not
result in a Material Adverse Effect. Section 3.1 of the Travelbyus Disclosure
Schedule sets forth a complete list of Travelbyus' Subsidiaries, their
jurisdictions of incorporation and a complete list of each jurisdiction in which
each of Travelbyus and its Subsidiaries is duly qualified and in good standing
to do business.

3.2    Articles of Incorporation, By-Laws, Directors and Officers - Travelbyus
has delivered to T24 true and complete copies of the Articles of Incorporation
and By-laws of Travelbyus, including all amendments thereto, as in effect on the
date hereof. Each of the minute books of Travelbyus and its Subsidiaries made
available to T24 and/or its agents contains accurate records of all meetings and
consents in lieu of meetings of the Board of Directors of Travelbyus or its
Subsidiaries, as the case may be (and any committees thereof) and of its
securityholders (or other equity holders having rights to vote or consent) since
the date of incorporation and such records accurately reflect all transactions
referred to in such minutes and consents. Section 3.2 of the Travelbyus
Disclosure Schedule sets forth a list of the directors and officers of
Travelbyus and its Subsidiaries and the respective offices held by them.

3.3    Authority for Agreement; Noncontravention

3.3.1. Authority - Travelbyus has all requisite corporate power and authority to
enter into this Agreement and to issue the Travelbyus Shares. The execution and
delivery by
<PAGE>

                                     -13-

Travelbyus of this Agreement and the consummation by Travelbyus of the
Transaction have been duly and validly authorized by the Board of Directors of
Travelbyus. No other corporate proceedings on the part of Travelbyus are
necessary to authorize the execution and delivery by Travelbyus of this
Agreement and the consummation by Travelbyus of the Transaction. This Agreement
has been duly executed and delivered by Travelbyus and constitutes a valid and
binding obligation of Travelbyus, enforceable against Travelbyus in accordance
with its terms, subject to the qualifications that enforcement of the rights and
remedies created hereby are subject to Bankruptcy Laws.

3.3.2. No Conflict - None of the execution and delivery by Travelbyus of this
Agreement, the performance by Travelbyus of its obligations hereunder and the
consummation by Travelbyus of the Transaction will cause a Violation of any
term, condition or provision of the Articles of Incorporation or By-Laws of
Travelbyus or any of its Subsidiaries or any contract, judgment, decree or order
to which Travelbyus or any of its Subsidiaries is a party or by which it, any of
its Subsidiaries or any of their respective material assets or properties is
bound or to the knowledge of Travelbyus, any Applicable Laws, other than such
Violations which individually or in the aggregate would not result in a Material
Adverse Effect.

3.4.   Governmental Consents - No consent, approval, order or authorization of
or registration or filing with or declaration or notice to any Governmental
Entity (the "Consents"), is required to be obtained by Travelbyus or any of its
Subsidiaries in connection with the execution and delivery by Travelbyus of this
Agreement or the performance by Travelbyus of its obligations hereunder or
thereby except any approvals required in accordance with the rules of the TSE
and the Winnipeg Stock Exchange and such filings and notices as may be necessary
under the Investment Canada Act.

3.5.   Capitalization

3.5.1. Authorized Share Capital of Travelbyus -. The authorized and issued share
capital of Travelbyus is as set forth in section 3.5.1 of the Travelbyus
Disclosure Schedule. All of the issued Travelbyus Common Shares have been duly
authorized and validly issued and are fully paid and nonassessable. None of the
issued Travelbyus Common Shares was issued in violation of the terms of any
agreement or other understanding binding upon Travelbyus. All of the issued
Travelbyus Common Shares were issued in compliance with all applicable charter
documents of Travelbyus and all Applicable Laws. There are and have been no
preemptive rights with respect to the issuance of Travelbyus Common Shares.

3.5.2. Options and Convertible Securities of Travelbyus - Section 3.5.2 of the
Travelbyus Disclosure Schedule sets forth a complete list of; (a) each stock
option plan, stock purchase plan and each other plan, arrangement or agreement
under which Travelbyus or any of its Subsidiaries has reserved shares or any
securities or obligations convertible into or exercisable or exchangeable for
any shares, to any employee, director, consultant, service provider or other
Person (collectively, the "Travelbyus Plans"); and (b) the number of shares,
securities or obligations reserved for issuance under such plan, arrangement or
agreement. Save and except as provided
<PAGE>

                                     -14-

in section 3.5.2 of Travelbyus' Disclosure Schedule all such plans, arrangements
and agreements are in compliance with all Applicable Laws and have been approved
by the TSE. Except as set forth in section 3.5.2 of the Travelbyus Disclosure
Schedule, there are no outstanding subscriptions, options, warrants or
conversion rights or other rights, securities, agreements, calls or commitments
(contingent or otherwise) that obligate Travelbyus to issue, sell, deliver or
otherwise dispose of shares or any securities or obligations convertible into or
exercisable or exchangeable for any shares. None of the execution and delivery
by Travelbyus of this Agreement, the performance by Travelbyus of its
obligations hereunder and the consummation by Travelbyus of the Transaction and
any other event that occurred on or prior to the date hereof will accelerate the
vesting under any item set forth in section 3.5.2 of the Travelbyus Disclosure
Schedule. Save and except as provided in section 3.5.2 of Travelbyus' Disclosure
Schedule, there are no voting trusts or other agreements or understandings to
which Travelbyus or to the knowledge of Travelbyus, any securityholder of
Travelbyus is a party with respect to the voting of Travelbyus Common Shares.
Except as set forth in section 3.5.2 of the Travelbyus Disclosure Schedule,
Travelbyus is not a party to or bound by any outstanding restrictions, puts,
options or other obligations, agreements or commitments to repurchase, redeem or
otherwise acquire any outstanding Travelbyus Common Shares or other equity
securities of Travelbyus.

3.5.3.  Subsidiaries - Section 3.5.3 of the Travelbyus Disclosure Schedule sets
forth the authorized and issued shares of each of Travelbyus' Subsidiaries. All
of the issued shares of each of Travelbyus' Subsidiaries have been duly
authorized and validly issued and are fully paid and nonassessable. None of the
issued securities of any of Travelbyus' Subsidiaries was issued in violation of
the terms of any agreement or other understanding binding upon the issuing
Subsidiary and all of such issued securities were issued in compliance with all
applicable charter documents of the issuing Subsidiary and all Applicable Laws.
There are no outstanding subscriptions, options, warrants or conversion rights
or other rights, securities, agreements, calls or commitments (contingent or
otherwise) that obligate any of Travelbyus' Subsidiaries to issue, sell, deliver
or otherwise dispose of shares or any securities or obligations convertible into
or exercisable or exchangeable for any shares. There are and have been no
preemptive rights with respect to the issuance of securities of any of
Travelbyus' Subsidiaries. Travelbyus owns beneficially and of record all of the
outstanding securities of each of its Subsidiaries, free and clear of all
Encumbrances save and except as set forth in section 3.5.3 of the Travelbyus
Disclosure Schedule. Other than Travelbyus' Subsidiaries, Travelbyus does not
own, directly or indirectly, any shares or other equity interest or securities
in any Person.

3.6.    Securities Reports; Financial Statements - Travelbyus has timely filed
all forms, reports and documents (including prospectuses, offering memoranda and
TSE filing statements) with the Commissions and the TSE required to be filed by
it pursuant to Applicable Laws (collectively, the "Travelbyus Securities
Reports"). As of their respective dates, Travelbyus Securities Reports complied
in all material respects with Applicable Laws and did not contain any untrue
statement of a material fact or omit to state 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. The
<PAGE>

                                     -15-

financial statements (including any related notes) of Travelbyus included in
Travelbyus Securities Reports complied in all material respects with applicable
accounting requirements and with Applicable Laws, were prepared in conformity
with Canadian generally accepted accounting principles applied on a consistent
basis (except as otherwise stated in the financial statements) and present
fairly the consolidated financial position, results of operations, shareholders'
equity, liabilities (contingent or otherwise) and cash flows, as the case may
be, of Travelbyus and its consolidated Subsidiaries as of the dates and for the
periods indicated, subject, in the case of unaudited interim financial
statements to; (i) the absence of certain notes thereto; and (ii) normal year-
end audit adjustments.

3.7.    Absence of Material Adverse Changes and Undisclosed Liabilities

3.7.1.  Changes - Since the date of the most recent consolidated balance sheet
filed by Travelbyus with the Commissions (the "Travelbyus Balance Sheet"),
Travelbyus has not experienced a Material Adverse Effect. Without limiting the
generality of the foregoing, except as set forth in section 3.7.1 of the
Travelbyus Disclosure Schedule, since the date of the Travelbyus Balance Sheet
neither Travelbyus nor any of its Subsidiaries has:

        (a)  sold, leased, transferred or assigned any of its assets, tangible
             or intangible, other than in the ordinary course of business;

        (b)  accelerated, terminated, modified or canceled any contract, lease,
             sublease, license or sublicense (or series of related contracts,
             leases, subleases, licenses and sublicenses) involving more than
             $100,000;

        (c)  cancelled, compromised, waived or released any right or claim (or
             series of related rights and claims) either involving more than
             $100,000 or outside the ordinary course of business;

        (d)  experienced material damage, destruction or loss (whether or not
             covered by insurance) to its material property (other than ordinary
             wear and tear not caused by neglect);

        (e)  created or suffered to exist any Encumbrance (other than Permitted
             Encumbrances) upon any of the assets, tangible or intangible, of
             Travelbyus or any Subsidiary;

        (f)  issued, sold, delivered or otherwise disposed of any shares or any
             securities or obligations convertible into or exercisable or
             exchangeable for any shares of Travelbyus or any of its
             Subsidiaries or undergone any reorganization, recapitalization,
             reclassification, stock split or reverse stock split;
<PAGE>

                                     -16-

        (g)  accelerated, amended, repriced or changed the period of
             exercisability of any outstanding security or authorized cash
             payments in exchange for any options granted under any of
             Travelbyus Plans;

        (h)  declared, set aside or paid any dividend or distribution with
             respect to its shares (whether in cash or in kind) or directly or
             indirectly redeemed, purchased or otherwise acquired any of its
             shares;

        (i)  entered into financial arrangements for the benefit of any
             director, officer or securityholder of Travelbyus other than in
             connection with such Person's employment by Travelbyus in the
             ordinary course of its business and consistent with past practice;

        (j)  made or committed to make any capital expenditures or entered into
             any other material transaction outside the ordinary course of
             business or involving an expenditure in excess of $100,000;

        (k)  amended or modified in any respect any employment contract or
             arrangement or any profit sharing, bonus, incentive compensation,
             severance, employee benefit or multi-employer plans;

        (l)  entered into any employment agreement or collective bargaining
             agreement or increased the compensation of any of its employees
             other than in the ordinary course of its business and consistent
             with past practice; or

        (m)  committed (orally or in writing) to do any of the foregoing.

3.7.2.  Liabilities - Except for liabilities and obligations; (i) set forth in
Travelbyus Securities Reports; or (ii) set forth in section 3.7.2 of the
Travelbyus Disclosure Schedule; neither Travelbyus nor any of its Subsidiaries
has any Liabilities required by generally accepted accounting principles to be
set forth on a consolidated balance sheet of Travelbyus or in the notes thereto
and which, individually or in the aggregate, could be reasonably expected to
have a Material Adverse Effect.

3.8.    Litigation and Audits - Except as set forth in section 3.8 of the
Travelbyus Disclosure Schedule, there is no investigation or inquiry by any
Governmental Entity with respect to Travelbyus or any of its Subsidiaries
pending or to the knowledge of Travelbyus threatened, nor has any Governmental
Entity indicated to Travelbyus or any of its Subsidiaries an intention to
conduct the same. Except as set forth in section 3.8 of the Travelbyus
Disclosure Schedule, there is no claim, action, suit, arbitration or proceeding
pending or to the knowledge of Travelbyus threatened against or involving
Travelbyus, any of its Subsidiaries or any of their respective assets or
properties, at law or in equity or before any arbitrator or Governmental Entity,
which if determined adversely to Travelbyus or any Subsidiary could result in a
Material Adverse Effect. There are no judgments, decrees, injunctions, orders or
rulings of any Governmental
<PAGE>

                                     -17-

Entity or arbitrator outstanding against Travelbyus or any of its Subsidiaries,
which if existed, would result in a Material Adverse Effect.

3.9.    Compliance with Applicable Law, Articles of Incorporation and By-Laws -
Each of Travelbyus and its Subsidiaries has all requisite Permits necessary to
carry on its respective business as currently being conducted and to own, lease
and operate the respective properties currently owned, leased and operated by it
in the manner currently owned, leased and operated, except where the failure to
have such Permits would not result in a Material Adverse Effect. There are no
proceedings pending or to the knowledge of Travelbyus threatened, which might
result in the revocation, cancellation, suspension or adverse modification of
any such Permit. The business of Travelbyus and its Subsidiaries has not been
conducted in Violation of Applicable Laws, except for Violations which
individually or in the aggregate would not result in a Material Adverse Effect.
Neither Travelbyus nor any of its Subsidiaries is in Violation of nor has any
event occurred that has resulted or will result in a Violation of any term,
condition or provision of the Articles of Incorporation or By-Laws of Travelbyus
and its Subsidiaries.

3.10.   Books and Records; Accounting Matters - The books, records and accounts
of Travelbyus and its Subsidiaries: (a) have been maintained in accordance with
good business practices; (b) are stated in reasonable detail and accurately and
fairly reflect in all material respects the transactions and dispositions of the
respective assets of Travelbyus and its Subsidiaries; and (c) accurately and
fairly reflect in all material respects the basis for the Travelbyus Balance
Sheet. Travelbyus has devised and maintains a system of internal accounting
controls sufficient to provide reasonable assurances that; (i) transactions are
executed in accordance with management's general or specific authorizations; and
(ii) transactions are recorded as necessary; (a) to permit preparation of
accurate financial statements in conformity with Canadian generally accepted
accounting principles or any other criteria applicable to such statements; and
(b) to maintain accountability for assets. There has been no change in
Travelbyus' accounting policies or the methods of making accounting estimates or
changes in estimates that are material to Travelbyus' financial statements
except as described in the notes thereto.

3.11.   Tax Matters

3.11.1. Filing of Returns - Each of Travelbyus and its Subsidiaries has prepared
and timely filed with all appropriate Governmental Entities all Tax Returns that
it was required to file. All such Tax Returns were correct and complete in all
material respects. Neither Travelbyus nor any of its Subsidiaries currently is
the beneficiary of any extension of time within which to file any Tax Return
other than extensions for which Travelbyus or any of its Subsidiaries has filed
a request which request has resulted in the automatic granting of such
extension. No Governmental Entity in any jurisdiction in which any of Travelbyus
and any of its Subsidiaries does not file Tax Returns has ever claimed that
Travelbyus or any of its Subsidiaries is or may be subject to taxation by that
jurisdiction.
<PAGE>

                                     -18-

3.11.2.  Payment of Taxes - All Taxes payable or owed by Travelbyus and its
Subsidiaries (whether or not shown on any Tax Return) have been paid when due.
In the case of Taxes accruing on or before the date hereof that are not due on
or before the date hereof, Travelbyus has made adequate provision in its books
and records and financial statements for such payment. There are no security
interests on any assets of Travelbyus or any of its Subsidiaries that arose in
connection with any failure (or alleged failure) to pay any Tax.

3.11.3.  Withholding - Each of Travelbyus and its Subsidiaries has withheld from
every payment made to each of its current or former employees, officers,
directors, shareholders, independent contractors, creditors, non-residents and
other Persons all amounts required by Applicable Law to be withheld and, where
required, has remitted such amounts within the applicable periods to the
appropriate Governmental Entity.

3.11.4.  Assessments - Neither Travelbyus nor any of its Subsidiaries expects
any authority to assess any additional Taxes in excess of tax reserves provided
for in Travelbyus' financial statements against Travelbyus or any of its
Subsidiaries for any period for which Tax Returns have been filed. No Tax Return
of Travelbyus or any of its Subsidiaries has been audited or currently is the
subject of audit. No Governmental Authority has raised any dispute or claim
concerning any Tax liability of Travelbyus or any of its Subsidiaries. Neither
Travelbyus nor any of its Subsidiaries has waived any statute of limitations
with respect to Taxes or has agreed to any extension of time with respect to a
Tax assessment or deficiency.

3.11.5.  Access to Returns - Travelbyus has provided T24 with a copy of or
access to all Canadian and other federal, provincial, state and local income and
capital Tax returns filed by Travelbyus and its Subsidiaries after September 30,
1999. Travelbyus has provided T24 with a copy of or access to all assessments,
extensions and waivers resulting from any examinations or audits of Travelbyus
or any of its Subsidiaries by a Governmental Entity in respect of Taxes and all
such assessments and related penalties and interest have been paid in full
unless being contested in good faith by Travelbyus or any of its Subsidiaries
and described in section 3.11 of the Travelbyus Disclosure Schedule.

3.12.    Employee Benefit Plans
<PAGE>

                                     -19-

3.12.1.  List of Plans - Section 3.12 of the Travelbyus Disclosure Schedule sets
forth a complete list of all Travelbyus Benefit Plans. Travelbyus has delivered
to T24; (a) accurate and complete copies of all Travelbyus Benefit Plan
documents and all other material documents relating thereto, including (if
applicable) all summary plan descriptions, summary annual reports and insurance
contracts; (b) accurate and complete detailed summaries of all unwritten
Travelbyus Benefit Plans; (c) accurate and complete copies of the most recent
financial statements and actuarial reports with respect to all Travelbyus
Benefit Plans for which financial statements or actuarial reports are required
or have been prepared; (d) accurate and complete copies of all information
returns and annual reports for all Travelbyus Benefit Plans (for which
information returns or annual reports are required or have been prepared)
prepared within the last three years; (e) all material professional opinions
relating to Travelbyus Benefit Plans; and (f) accurate and complete copies of
material correspondence with all regulatory authorities.

3.12.2.  Claims - There are no pending or to the knowledge of Travelbyus
threatened claims by or on behalf of any Travelbyus Benefit Plans or by or on
behalf of any individual participants or beneficiaries of any Travelbyus Benefit
Plans alleging any breach of fiduciary duty on the part of Travelbyus or any of
its Subsidiaries or any of their respective officers, directors, employees or
agents under any Applicable Laws or claiming benefit payments (other than those
made in the ordinary operation of such Travelbyus Benefit Plans) nor to the
knowledge of Travelbyus is there any basis therefor that if existed would cause
a Material Adverse Effect.

3.12.3.  Contributions - Travelbyus and each of its Subsidiaries has timely made
all required contributions under Travelbyus Benefit Plans.

3.12.4.  Travelbyus Benefit Plans - All of Travelbyus Benefit Plans in which
employees of Travelbyus and each of its Subsidiaries participate or are eligible
to participate are and have been established, registered, qualified, invested
and administered in all respects in accordance with all laws, regulations,
orders or other legislative, administrative or judicial promulgations applicable
to Travelbyus Benefit Plans. With respect to Travelbyus Benefit Plans having
special Tax status, no fact or circumstance exists that could adversely affect
the intended Tax status of such Travelbyus Benefit Plan. All obligations
regarding Travelbyus Benefit Plans have been satisfied and there are no actions,
outstanding defaults or violations by any party to any Travelbyus Benefit Plan
that could subject Travelbyus or any of its Subsidiaries to any material penalty
or Tax and no Tax, penalty or fee is owing or eligible under or in respect of
any Travelbyus Benefit Plan. Neither Travelbyus nor its applicable Subsidiary,
subject to the limitations or conditions set forth in other provisions hereof,
may unilaterally amend, modify, vary, revoke or terminate, in whole or in part,
any Travelbyus Benefit Plan maintained by it or may take contribution holidays
under or withdraw surplus from such Travelbyus Benefit Plans, subject only to
approvals required by Applicable Laws. Subject to Applicable Laws and all
limitations and conditions in other provisions hereof, Travelbyus or its
applicable Subsidiaries may amend, revise or merge any Travelbyus Benefit Plan
or transfer or merge the assets or liabilities of any Travelbyus Benefit Plan
with any other
<PAGE>

                                     -20-

arrangement, plan or fund. No Travelbyus Benefit Plan nor any related trust or
other funding medium thereunder is subject to any pending investigation,
examination or other proceeding, action or claim initiated by any Governmental
Entity or by any other party (other than routine claims for benefits) and there
exists no state of facts which after notice or lapse of time or both could
reasonably be expected to give rise to any such investigation, examination or
other proceeding, action or claim or to affect the registration of any
Travelbyus Benefit Plan required to be registered. All contributions or premiums
required to be made by Travelbyus or any of its Subsidiaries under the terms of
a Travelbyus Benefit Plan or by Applicable Laws have been made in a timely
fashion in accordance with Applicable Laws and the terms of a Travelbyus Benefit
Plan, and neither Travelbyus nor any of its Subsidiaries has and, as of the
Effective Time, will have any Liability (other than Liabilities accruing after
the Effective Time) with respect to any of Travelbyus Benefit Plans.
Contributions or premiums will be paid by Travelbyus and its Subsidiaries on an
accrual basis for the period up to the Effective Time even though not otherwise
required to be made until a later date. No amendments have been made to any
Travelbyus Benefit Plan and no improvements to any Travelbyus Benefit Plan have
been promised. No statement, either written or oral, has been made by or on
behalf of Travelbyus or its Subsidiaries that was not in accordance with the
terms of Travelbyus Benefit Plans which would have a Material Adverse Effect.
There have been no withdrawals, applications or transfers of assets from any
Travelbyus Benefit Plan or the trusts or other funding media relating thereto in
violation of Applicable Laws or the terms of Travelbyus Benefit Plans and
neither Travelbyus nor any of its Subsidiaries or any agent thereof has been
negligent, or in breach of any fiduciary obligation, with respect to the
administration of Travelbyus Benefit Plans. Each Travelbyus Benefit Plan is
fully funded or fully insured on both an ongoing and solvency basis. All
employee data necessary to administer each Travelbyus Benefit Plan has been
provided to T24 and is true and correct. No insurance policy or other contract
or agreement affecting Travelbyus Benefit Plans requires or permits a
retroactive increase in premiums or payments due thereunder. The level of
insurance reserves under each insured Travelbyus Benefit Plan is reasonable and
sufficient to provide for all incurred claims. No Travelbyus Benefit Plan
provides benefits to retired employees or to the beneficiaries or dependants of
retired employees. No Travelbyus Benefit Plan is a plan or arrangement to which
more than one employer that is not Travelbyus nor any of its Subsidiaries is
required or permitted to contribute and no Travelbyus Benefit Plan is a multi-
employer plan.

3.13.    Employment-Related Matters - Neither Travelbyus nor any of its
Subsidiaries is a party to any collective bargaining agreement or other contract
or agreement with any labor organization or other representative of any of the
employees of Travelbyus or any of its Subsidiaries nor are any of such contracts
or agreements pending or contemplated. There is no labor strike, dispute,
slowdown, work stoppage or lockout that is pending or to the knowledge of
Travelbyus, threatened against or otherwise affecting Travelbyus or any of its
Subsidiaries and neither Travelbyus nor any of its Subsidiaries has experienced
the same. Except as set forth in section 3.13 of the Travelbyus Disclosure
Schedule neither Travelbyus nor any of its Subsidiaries has closed any plant or
facility, effectuated any layoffs of employees or implemented any early
retirement or separation program at any time from or after December 31, 1999 nor
<PAGE>

                                     -21-

has Travelbyus or any of its Subsidiaries planned or announced any such action
or program for the future with respect to which Travelbyus or any of its
Subsidiaries may have any liability. All salaries, wages, vacation pay, bonuses,
commissions and other compensation payable by Travelbyus or any of its
Subsidiaries to their respective employees before the date hereof have been paid
or accrued in all material respects as of the date hereof. No Person has
asserted any claim or to the knowledge of Travelbyus, has any reasonable basis
to assert any valid claim against Travelbyus or any of its Subsidiaries that
either the continued employment by or association with Travelbyus or any of its
Subsidiaries of any of the current officers or employees of or consultants to
Travelbyus or any of its Subsidiaries contravenes any agreements or Applicable
Laws relating to unfair competition, trade secrets or proprietary information.
Closing will not result in the payment, vesting or acceleration of any benefit,
payment or amount under any of Travelbyus Benefit Plans.

3.14.    Environmental

3.14.1.  Environmental Laws - Travelbyus and its Subsidiaries are in compliance
in all material respects with all applicable Environmental Laws. Neither
Travelbyus nor any of its Subsidiaries has received any communication that
alleges that Travelbyus or any of its Subsidiaries was or is not in compliance
in all respects with or has any liability under any applicable Environmental
Law. To the knowledge of Travelbyus there are no circumstances that may prevent
or interfere with compliance in the future with all applicable Environmental
Laws.

3.14.2.  Environmental Claims - There is no Environmental Claim pending or to
the knowledge of Travelbyus, threatened against or involving Travelbyus or any
of its Subsidiaries or against any Person whose liability for any Environmental
Claim Travelbyus or any of its Subsidiaries has or may have retained or assumed
either contractually or by operation of law that if existed, would cause a
Material Adverse Effect.

3.15.    Assets Other Than Real Property

3.15.1.  Title - Travelbyus and its Subsidiaries have good and marketable title
to all of the tangible assets shown on the Travelbyus Balance Sheet, in each
case, free and clear of any Encumbrances except; (a) assets disposed of since
the date of the Travelbyus Balance Sheet in the ordinary course of business and
in a manner consistent with past practice and not material in amount; (b)
Encumbrances reflected in the Travelbyus Balance Sheet or otherwise in the most
recent consolidated financial statements filed by Travelbyus with the
Commissions; (c) Permitted Encumbrances; and (d) Encumbrances set forth in
section 3.15 of the Travelbyus Disclosure Schedule. None of such Encumbrances in
sections (a) through (d) individually or in the aggregate, would result in a
Material Adverse Effect.

3.15.2.  Condition - Except as set forth in section 3.15.2 of the Travelbyus
Disclosure Schedule, all receivables shown on the Travelbyus Balance Sheet and
all receivables accrued by Travelbyus and its Subsidiaries since the date of the
Travelbyus Balance
<PAGE>

                                     -22-

Sheet have been collected or are collectible in the aggregate amount shown. All
material plant, equipment and personal property owned by Travelbyus and its
Subsidiaries and regularly used in their respective business are in good
operating condition and repair, ordinary wear and tear excepted.

3.16.   Real Property

3.16.1. Travelbyus Real Property - Neither Travelbyus nor its Subsidiaries own
any real property.

3.16.2. Travelbyus Leases - Section 3.16.2 of the Travelbyus Disclosure Schedule
lists all of the Leases of Travelbyus and its Subsidiaries. Travelbyus has
delivered to T24 complete copies of the Leases and all material amendments
thereto (which are identified in section 3.16.2 of the Travelbyus Disclosure
Schedule). Travelbyus Leases grant to Travelbyus or its Subsidiaries leasehold
estates free and clear of all Encumbrances except Permitted Encumbrances.
Travelbyus Leases are in full force and effect and are binding and enforceable
against each of the parties thereto in accordance with their respective terms.
Neither Travelbyus nor any of its Subsidiaries nor to the knowledge of
Travelbyus, any other party to a Travelbyus Lease is in material Violation of
any Travelbyus Lease nor are there any facts or circumstances that would
reasonably indicate that Travelbyus or any of its Subsidiaries is likely to be
in material Violation of any Travelbyus Lease. Section 3.16.2 of the Travelbyus
Disclosure Schedule correctly identifies each Travelbyus Lease that requires the
consent of any Person in connection with the transactions contemplated hereby.
No material construction, alteration or other leasehold improvement work with
respect to the real property covered by any of Travelbyus Leases remains to be
paid for or to be performed by Travelbyus or any of its Subsidiaries.

3.16.3. Condition - All buildings, structures and fixtures or parts thereof used
by Travelbyus or any of its Subsidiaries in the conduct of their respective
business are in good operating condition and repair, ordinary wear and tear
excepted and are insured with all coverages that are usual and customary for
similar properties and similar businesses and that pursuant to the terms of
Travelbyus Leases, are required to be insured by third parties.

3.17.   Intellectual Property

3.17.1. Right to Intellectual Property - Except as set forth in section 3.17.1
of the Travelbyus Disclosure Schedule, Travelbyus and its Subsidiaries own or
have perpetual, fully paid, worldwide rights to use all patents, industrial
designs, trademarks, trade names, service marks, copyrights and any applications
therefor, maskworks, net lists, schematics, technology, websites, domain names,
inventions, know-how, trade secrets, algorithms, computer software programs or
applications (in both source code and object code form) and tangible or
intangible proprietary information or material that are used in the business of
Travelbyus and its Subsidiaries (the "Travelbyus Proprietary Rights"), free and
clear of any and all Encumbrances. To the knowledge of Travelbyus, there is no
reason why Travelbyus and its Subsidiaries will not be able to
<PAGE>

                                     -23-

continue to own or have perpetual, fully paid, worldwide rights to use all
Travelbyus Proprietary Rights necessary for the lawful conduct of their
respective business as currently conducted and as currently proposed to be
conducted without any infringement or conflict with the rights of others. Except
as set forth in section 3.17.1 of the Travelbyus Disclosure Schedule all of the
rights of Travelbyus and its Subsidiaries in and to Travelbyus Proprietary
Rights are freely assignable in the name of Travelbyus or one of its
Subsidiaries including the right to create derivatives and Travelbyus and its
Subsidiaries are under no obligation to obtain any approval or consent for use
of any of Travelbyus Proprietary Rights.

3.17.2. List of Travelbyus Proprietary Rights - Section 3.17.2 of the Travelbyus
Disclosure Schedule sets forth a complete list of Travelbyus Proprietary Rights
specifying, where applicable, the jurisdictions in which each of Travelbyus
Proprietary Rights has been issued or registered or in which an application for
such issuance or registration has been filed including the respective
registration or application numbers and the names of all registered owners and
inventors, as applicable. Except as set forth in section 3.17.2 of the
Travelbyus Disclosure Schedule, none of the products of Travelbyus and its
Subsidiaries as currently marketed or supported have been registered for patent
protection or for copyright protection in any jurisdiction nor has Travelbyus or
any of its Subsidiaries been requested to make any such registration.

3.17.3. Royalties - Except as set forth in section 3.17.3 of the Travelbyus
Disclosure Schedule neither Travelbyus nor any of its Subsidiaries is obligated
to pay any royalties or other compensation to any Person in respect of its
ownership, use or license of any of their respective Travelbyus Proprietary
Rights.

3.17.4. Licenses - Section 3.17.4 of the Travelbyus Disclosure Schedule sets
forth a complete list of all material licenses, sublicenses and other agreements
to which Travelbyus or any of its Subsidiaries is a party and pursuant to which
Travelbyus or any of its Subsidiaries is authorized to use any Travelbyus
Proprietary Right (excluding End-User Licenses). Travelbyus Proprietary Rights
include all trademarks, trade names, service marks, trade secrets, websites and
domain names and software and all patent rights and industrial design rights
that are necessary for Travelbyus and its Subsidiaries to satisfy and perform
such licenses, sublicenses and agreements. None of Travelbyus, any of its
Subsidiaries and the other contracting parties thereto is in violation of any
license, sublicense or agreement included in such list except for violations
that do not materially impair the rights of Travelbyus or its Subsidiaries under
such license, sublicense or agreement, except as would not have a Material
Adverse Effect. Such licenses, sublicenses and agreements are in full force and
effect and are binding and enforceable against each of the parties thereto in
accordance with their respective terms. The execution and delivery by Travelbyus
of this Agreement, the performance by Travelbyus of its obligations hereunder
and the consummation by Travelbyus of the Transaction will not cause Travelbyus
or any of its Subsidiaries to be in violation or in default under any material
license, sublicense or agreement nor will entitle any other party to any such
license, sublicense or agreement to terminate or modify such license, sublicense
or agreement.
<PAGE>

                                     -24-

3.17.5. Status of Registrations - All of Travelbyus Proprietary Rights set forth
in section 3.17.2 of the Travelbyus Disclosure Schedule as having been issued
by, registered with or filed with any patent or trademark office have been duly
so issued, registered or filed, as the case may be and have been properly
maintained and renewed in accordance with all Applicable Laws. Travelbyus and
each of its Subsidiaries have diligently protected their respective Travelbyus
Proprietary Rights and have diligently maintained the confidentiality of their
trade secrets, know-how and other confidential Travelbyus Proprietary Rights. To
the knowledge of Travelbyus there have been no acts or omissions by Travelbyus
or any of its Subsidiaries the result of which has been or would be to
compromise the rights of Travelbyus or any of its Subsidiaries to apply for or
enforce appropriate legal protection of Travelbyus Proprietary Rights.

3.17.6. No Conflict - Except as set forth in section 3.17.6 of the Travelbyus
Disclosure Schedule, no claims with respect to Travelbyus Proprietary Rights are
pending, have been asserted or to the knowledge of Travelbyus are threatened by
any Person nor to the knowledge of Travelbyus are there any valid grounds for
any bona fide claims; (a) to the effect that the development, sale, licensing or
use of any of the products of Travelbyus and its Subsidiaries as now developed,
sold, licensed or used or as proposed for development, sale, licensing or use by
Travelbyus and its Subsidiaries infringes on any patent, industrial design,
trademark, trade name, service mark, copyright, trade secret, website or domain
name or other proprietary right of any Person; (b) against the use by Travelbyus
or any of its Subsidiaries of any patents, industrial designs, trademarks, trade
names, service marks, copyrights, website or domain name and any applications
therefor, maskworks, net lists, schematics, technology, know-how, trade secrets,
algorithms, computer software programs or applications and tangible or
intangible proprietary information or material used in the business of
Travelbyus and its Subsidiaries as currently conducted or as proposed to be
conducted; or (c) challenging the ownership by Travelbyus or any of its
subsidiaries of the validity of any registration for any application relating to
or the effectiveness of any of Travelbyus Proprietary Rights. To the knowledge
of Travelbyus there is no unauthorized use, infringement or misappropriation of
any of Travelbyus Proprietary Rights by any third Person including without
limitation, any current or former employee of Travelbyus or any of its
Subsidiaries. No Travelbyus Proprietary Right or product of Travelbyus or any of
its Subsidiaries is subject to any outstanding decree, order, judgment or
stipulation restricting in any manner the use or licensing thereof by Travelbyus
or any of its Subsidiaries.

3.17.7. Employee Agreements - To the knowledge of Travelbyus, no employee,
officer or consultant of Travelbyus or any of its Subsidiaries is in violation
of any term of any employment or consulting contract, proprietary information
and inventions agreement, non-competition agreement or any other contract or
agreement relating to the relationship of any such employee, officer or
consultant with Travelbyus or any of its Subsidiaries.

3.18.   Agreements, Contracts and Commitments
<PAGE>

                                     -25-

3.18.1. Travelbyus Agreements - Except as set forth in section 3.18 of the
Travelbyus Disclosure Schedule neither Travelbyus nor any of its Subsidiaries is
a party to or has:

        (a)  any pension, profit sharing, retirement, deferred compensation,
             welfare, legal services, medical, dental or other employee benefit
             or health insurance plans, life insurance or other death benefit
             plans, disability, stock option, stock purchase, stock
             compensation, bonus, vacation pay, severance pay or other similar
             plans, programs or agreements or material personnel policy which is
             not set forth in section 3.12 of the Travelbyus Disclosure Schedule
             (other than normal policies regarding holidays, vacations and
             salary continuation during short absences for illnesses or other
             reasons);

        (b)  any employment agreement which provides for a payment which, if
             paid pro rata on a monthly basis, would exceed $5,000 per month, or
             any employment agreement which is binding on Travelbyus for a
             period in excess of one year, with any present employee, officer,
             director or consultant (or former employees, officers, directors or
             consultants to the extent there remain at the date hereof
             obligations to be performed by Travelbyus or any of its
             Subsidiaries);

        (c)  any agreement for personal services or employment that upon
             termination requires any payments greater than those that would
             otherwise be imposed by Applicable Law;

        (d)  any agreement of guarantee or indemnification;

        (e)  any agreement or commitment containing a covenant limiting or
             purporting to limit the freedom of Travelbyus or any of its
             Subsidiaries; (i) to compete with any Person in any geographic
             area; (ii) to engage in any line of business; or (iii) to hire or
             solicit any individual for employment or consulting services;

        (f)  any lease, other than the Leases, under which Travelbyus or any of
             its Subsidiaries is a lessee or lessor that involves payments of
             $100,000 or more per annum or is material to the conduct of the
             business of Travelbyus or any of its Subsidiaries;

        (g)  any joint venture or profit-sharing agreement;

        (h)  except for trade indebtedness incurred in the ordinary course of
             business and reflected on the Travelbyus Balance Sheet, any loan or
             credit agreements providing for the extension of credit to
             Travelbyus or any instrument evidencing or related in any way to
             indebtedness incurred in the acquisition of companies or other
             entities or indebtedness for borrowed money by way of direct loan,
             sale of debt securities, purchase
<PAGE>

                                     -26-

             money obligation, conditional sale, lease, guarantee or otherwise
             that individually is in the amount of $100,000 or more;

        (i)  any agreement or arrangement with any third Person to develop any
             intellectual property or other asset expected to be used or
             currently used or useful in the business of Travelbyus or any of
             its Subsidiaries;

        (j)  any agreement or arrangement for Travelbyus or any of its
             Subsidiaries to develop any intellectual property or other asset
             for any third Person;

        (k)  any agreement or arrangement providing for the payment of any
             commission based on sales other than in the ordinary course of
             business and consistent with past practice;

        (l)  any agreement for the sale or license by or to Travelbyus or any of
             its Subsidiaries of materials, products, services or supplies that
             involves future payments to Travelbyus or any of its Subsidiaries
             of more than $100,000;

        (m)  any agreement for the purchase by Travelbyus or any of its
             Subsidiaries of any materials, equipment, services or supplies that
             either; (i) involves a binding commitment by Travelbyus or such
             Subsidiary to make future payments in excess of $100,000 and cannot
             be terminated by Travelbyus or such Subsidiary without penalty upon
             less than three months' notice; or (ii) was not entered into in the
             ordinary course of business;

        (n)  any agreement or commitment for the acquisition, construction or
             sale of fixed assets owned or to be owned by Travelbyus or any of
             its Subsidiaries that involves future payments by it of more than
             $100,000;

        (o)  any agreement or commitment to which present or former directors or
             officers (or members of their immediate families) or Affiliates (or
             directors or officers of an Affiliate) are also parties;

        (p)  any agreement not described above (ignoring solely for this purpose
             any dollar amount thresholds in those descriptions) involving the
             payment or receipt by Travelbyus or any of its Subsidiaries of more
             than $100,000, other than the Leases; or

        (q)  any agreement not described above that was not made in the ordinary
             course of business and that is material to the financial condition,
             business, operations, assets, results of operations or prospects of
             Travelbyus and its Subsidiaries taken as a whole.

3.18.2. Validity, Violation and Consent - The contracts, including those listed
in section 3.18 of the Travelbyus Disclosure Schedule are valid and in full
force and effect.
<PAGE>

                                     -27-

Neither Travelbyus nor any of its Subsidiaries is in Violation of any term,
condition or provision of any Contract to which Travelbyus or any of its
Subsidiaries is a party or by which it, any of its Subsidiaries or any of their
respective material assets or properties is bound or which is applicable to it,
any of its Subsidiaries or any of their respective material assets or properties
except for such Violations which, individually or in the aggregate, would not
result in a Material Adverse Effect. Section 3.18.2 of the Travelbyus Disclosure
Schedule identifies each Contract that requires the consent of a third Person in
connection with the Transaction.

3.19.   Insurance Contracts - Section 3.19 of the Travelbyus Disclosure Schedule
lists all material contracts of insurance and indemnity (other than those
identified as such in other sections of the Travelbyus Disclosure Schedule) in
force at the date hereof with respect to Travelbyus and its Subsidiaries. Such
contracts of insurance and indemnity and those identified as such in other
sections of the Travelbyus Disclosure Schedule (collectively, the "Travelbyus
Insurance Contracts") insure against such risks and are in such amounts as are
reasonable and appropriate considering Travelbyus and its Subsidiaries and their
respective property, business and operations. Except as set forth in section
3.19 of the Travelbyus Disclosure Schedule, all of Travelbyus Insurance
Contracts are in full force and effect with no default thereunder by Travelbyus
or any of its Subsidiaries which could permit the insurer to deny payment of
claims thereunder. The execution and delivery by Travelbyus of this Agreement
and the other agreements contemplated hereby, the performance by Travelbyus of
its obligations hereunder and thereunder and the consummation by Travelbyus of
the other transactions contemplated hereby and thereby will not cause Travelbyus
or any of its Subsidiaries to be in Violation of any Travelbyus Insurance
Contracts nor entitle any other party thereto to terminate or modify a
Travelbyus Insurance Contract. Neither Travelbyus nor any of its Subsidiaries
has received notice from any of their respective insurance carriers that any
insurance premiums will be materially increased in the future or that any
insurance coverage provided under Travelbyus Insurance Contracts will not be
available in the future on substantially the same terms as now in effect.
Neither Travelbyus nor any of its Subsidiaries has received nor has given a
notice of cancellation with respect to any of Travelbyus Insurance Contracts.

3.20    Banking Relationships - Section 3.20 of the Travelbyus Disclosure
Schedule sets forth the names and locations of all banks and trust companies in
which Travelbyus or any of its Subsidiaries has accounts, lines of credit or
safety deposit boxes.

3.21    Suppliers, Distributors and Customers - The relationships of Travelbyus
and its Subsidiaries with their respective suppliers, distributors and customers
are satisfactory commercial working relationships. Except as set forth in
section 3.21 of the Travelbyus Disclosure Schedule since the date of the
Travelbyus Balance Sheet no material supplier, distributor or customer of
Travelbyus or any of its Subsidiaries has cancelled or otherwise adversely
modified its relationship with Travelbyus or any of its Subsidiaries and to the
knowledge of Travelbyus no supplier, distributor or customer of Travelbyus or
any of its Subsidiaries has any intention to do so and to the knowledge of
Travelbyus none of the execution and delivery by Travelbyus of this Agreement,
the
<PAGE>

                                     -28-

performance by Travelbyus of its obligations hereunder and the consummation by
Travelbyus of the Transaction will materially adversely affect any such
relationship.

3.22.  Products - Each product sold, leased, licensed or delivered by Travelbyus
or any of its Subsidiaries has been in material conformity with all applicable
contractual commitments.

3.23.  No Broker's or Finder's Fees - Except for Wellington West Capital Inc.,
none of Travelbyus, any of its Subsidiaries and their respective directors,
officers, employees and agents has employed any broker, finder, financial
advisor or intermediary or has paid or incurred any liability for any fee or
commission to any broker, finder, financial advisor or intermediary in
connection with this Agreement, the Arrangement or any other transaction
contemplated hereby. Travelbyus has made available to T24 a complete and correct
copy of any engagement letter or other agreement or arrangement between
Wellington West Capital Inc. on the one hand and Travelbyus on the other hand.

3.24.  Full Disclosure - This Agreement does not contain any untrue statement of
a material fact or omit to state a material fact necessary to make the
statements contained herein and therein not false or misleading. To the
knowledge of Travelbyus there is no fact existing on the date hereof that
Travelbyus has not disclosed to T24 in writing that could result in a Material
Adverse Effect.

                                   ARTICLE 4
                     REPRESENTATIONS AND WARRANTIES OF T24

T24 represents and warrants to Travelbyus that the statements in this Article 4
are true and correct except as set forth in the disclosure schedule delivered by
T24 to Travelbyus on the date hereof (the "T24 Disclosure Schedule"). The T24
Disclosure Schedule shall be arranged in sections and paragraphs corresponding
to the numbered and lettered sections and paragraphs in this Article 4. The
disclosure in any section or paragraph of T24 Disclosure Schedule shall qualify
other sections and paragraphs in this Article 4 only to the extent that it is
reasonably apparent from a reading of such disclosure that it also qualifies or
applies to such other sections or paragraphs.

4.1.   Corporate Status of T24 and its Subsidiaries - Each of T24 and its
Subsidiaries is a corporation duly organized, validly existing and in good
standing under the Laws of its jurisdiction of incorporation with the requisite
corporate power and authority to carry on its business as currently being
conducted and to own, lease and operate the properties currently owned, leased
and operated by it. Each of T24 and its Subsidiaries is duly qualified or
licensed to do business and is in good standing as a foreign corporation
authorized to do business in all jurisdictions in which the character of the
properties owned or held under lease by it or the nature of the business
transacted by it makes such qualification or licensing necessary, except in
jurisdictions in which the failure to be so qualified or licensed would not
result in a Material Adverse Effect.
<PAGE>

                                     -29-

Section 4.1 of the T24 Disclosure Schedule sets forth a complete list of T24's
Subsidiaries, their jurisdictions of incorporation and a complete list of each
jurisdiction in which each of T24 and its Subsidiaries is duly qualified and in
good standing to do business.

4.2.    Articles of Association, Directors and Officers - T24 has delivered to
Travelbyus true and complete copies of the Articles of Association of T24 as in
effect on the date hereof. Each of the minute books of T24 and its Subsidiaries
made available to Travelbyus contains accurate records of all meetings and
written consents of the Board of Directors and Supervisory Board of T24 or its
Subsidiaries, as the case may be (and any committees thereof) and of its
securityholders (or other equity holders having rights to vote or consent) since
the date of incorporation and such records accurately reflect all transactions
referred to in such minutes and consents. Section 4.2 of the T24 Disclosure
Schedule sets forth a list of the managing directors and supervisory board
members of T24 and its Subsidiaries.

4.3.    Authority for Agreement; Noncontravention

4.3.1.   Authority\ - T24 has all requisite corporate power and authority to
enter into this Agreement and to consummate the Transaction including without
limitation the making of the T24 Loan Commitment. The execution and delivery by
T24 of this Agreement and the consummation by T24 of the Transaction including
without limitation the making of the T24 Loan Commitment have been duly and
validly authorized by the Board of Directors and Supervisory Board of T24. No
other corporate approvals on the part of T24 are necessary to authorize the
execution and delivery by T24 of this Agreement and the consummation by T24 of
the Transaction including without limitation the making of the T24 Loan
Commitment. This Agreement has been duly executed and delivered by T24 and
constitutes a valid and binding obligation of T24, enforceable against T24 in
accordance with its terms, subject to the qualifications that enforcement of the
rights and remedies created hereby are subject to Bankruptcy Laws.

4.3.2.  No Conflict - None of the execution and delivery by T24 of this
Agreement, the performance by T24 of its obligations hereunder and the
consummation by T24 of the Transaction including without limitation the making
of the T24 Loan Commitment will cause a Violation of any term, condition or
provision of the Articles of Association of T24 or any of its Subsidiaries or
any contract, judgement, decree or order to which T24 or any of its Subsidiaries
is a party or by which it, any of its Subsidiaries or any of their respective
material assets or properties is bound or to the knowledge of T24, any
Applicable Laws, other than such Violations which individually or in the
aggregate would not result in a Material Adverse Effect.

4.4.    Governmental Consents - No Consent is required to be obtained by T24 or
any of its Subsidiaries in connection with the execution and delivery by T24 of
this Agreement, the performance by T24 of its obligations hereunder and the
consummation of the Transaction including without limitation the making of the
T24 Loan Commitment except any approvals required under applicable federal or
state securities Laws and the
<PAGE>

                                     -30-

rules of the GNM except for the consents of the GNM and Commerz bank which are
necessary for the issuance of the shares.

4.5.    Capitalization

4.5.1.  Authorized Share Capital of T24 - The authorized and issued share
capital of T24 is as set forth in section 4.5.1 of the T24 Disclosure Schedule.
All of the issued T24 Common Shares have been duly authorized and validly issued
and are fully paid and nonassessable except with respect to 3,150,000 shares
which are expected to be fully paid on or about June 30, 2000. None of the
issued T24 Common Shares was issued in violation of the terms of any agreement
or other understanding binding upon T24. All of the issued T24 Common Shares
were issued in compliance with all applicable charter documents of T24 and all
Applicable Laws. There are and have been no preemptive rights with respect to
the issuance of T24 Common Shares.

4.5.2.  Options and Convertible Securities of T24 - Section 4.5.2 of the T24
Disclosure Schedule sets forth a complete list of: (a) each stock option plan,
stock purchase plan and each other plan, arrangement or agreement under which
T24 or any of its Subsidiaries has reserved shares or any securities or
obligations convertible into or exercisable or exchangeable for any shares, to
any employee, director, consultant, service provider or other Person
(collectively, the "T24 Plans"); and (b) the number of shares, securities or
obligations reserved for issuance under such plan, arrangement or agreement. All
such plans, arrangements and agreements are in compliance with all Applicable
Laws. Except as set forth in section 4.5.2 of the T24 Disclosure Schedule, there
are no outstanding subscriptions, options, warrants or conversion rights or
other rights, securities, agreements, calls or commitments (contingent or
otherwise) that obligate T24 to issue, sell, deliver or otherwise dispose of
shares or any securities or obligations convertible into or exercisable or
exchangeable for any shares. None of the execution and delivery by T24 of this
Agreement, the performance by T24 of its obligations hereunder and thereunder
and the consummation by T24 of the Transaction including without limitation the
making of the T24 Loan Commitment and any other event that occurred on or prior
to the date hereof will accelerate the vesting under any item set forth in
section 4.5.2 of the T24 Disclosure Schedule. There are no voting trusts or
other agreements or understandings to which T24 or to the knowledge of T24, any
securityholder of T24 is a party with respect to the voting of the T24 Common
Shares except as set forth in section 4.5.2 of the T24 Disclosure Schedule.
Except as set forth in section 4.5.2 of the T24 Disclosure Schedule, T24 is not
a party to or bound by any outstanding restrictions, puts, options or other
obligations, agreements or commitments to repurchase, redeem or otherwise
acquire any outstanding T24 Common Stock or other equity securities of T24.

4.5.3.  Subsidiaries - Section 4.5.3 of the T24 Disclosure Schedule sets forth
the authorized and issued shares of each of T24's Subsidiaries. All of the
issued shares of each of T24's Subsidiaries have been duly authorized and
validly issued and are fully paid and nonassessable. None of the issued
securities of any of T24's Subsidiaries was issued in violation of the terms of
any agreement or other understanding binding upon the issuing Subsidiary and all
of such issued securities were issued in compliance
<PAGE>

                                     -31-

with all applicable charter documents of the issuing Subsidiary and all
Applicable Laws. There are no outstanding subscriptions, options, warrants or
conversion rights or other rights, securities, agreements, calls or commitments
(contingent or otherwise) that obligate any of T24's Subsidiaries to issue,
sell, deliver or otherwise dispose of shares or any securities or obligations
convertible into or exercisable or exchangeable for any shares. There are and
have been no preemptive rights with respect to the issuance of securities of any
of T24's Subsidiaries. T24 owns beneficially and of record all of the
outstanding securities of each of its Subsidiaries, free and clear of all
Encumbrances save and except as set forth in section 4.5.3 of the T24 Disclosure
Schedule. Other than T24's Subsidiaries, T24 does not own, directly or
indirectly, any shares or other equity interests or securities in any Person.

4.6.    Securities Reports; Financial Statements - T24 has filed all forms,
reports and documents with the Deutsche Borse AG and the GNM (including
prospectuses, offering memoranda and filing statements) required to be filed by
it pursuant to Applicable Laws (collectively, the "T24 Securities Reports"). T24
has delivered or made available to Travelbyus true and complete copies of; (a)
its . for the fiscal years ended .; (b) all proxy statements relating to T24's
meetings of shareholders (whether annual or special) held since .; (c) all
reporting of T24 filed by T24 with the Deutsche Borse AG since January 1, 1998;
and (d) all amendments and supplements to all such forms, reports and documents
filed by T24 with Deutsche Borse AG. As of their respective dates, the T24
Securities Reports complied in all material respects with Applicable Laws and
did not contain any untrue statement of a material fact or omit to state 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. The financial statements (including any related notes) of T24
included in the T24 Securities Reports complied in all material respects with
applicable accounting requirements and with Applicable Laws, were prepared in
conformity with Germany generally accepted accounting principles applied on a
consistent basis (except as otherwise stated in the financial statements) and
present fairly the consolidated financial position, results of operations,
shareholders' equity, liabilities (contingent or otherwise) and cash flows, as
the case may be, of T24 and its consolidated Subsidiaries as of the dates and
for the periods indicated, subject, in the case of unaudited interim financial
statements to; (i) the absence of certain notes thereto; and (ii) normal year-
end audit adjustments.

4.7.    Absence of Material Adverse Changes and Undisclosed Liabilities

4.7.1.  Changes - Since the date of the most recent consolidated balance sheet
drawn up by T24 as of December 31, 1999 (the "T24 Balance Sheet"), T24 has not
experienced a Material Adverse Effect. Without limiting the generality of the
foregoing, except as set forth in section 4.7.1 of the T24 Disclosure Schedule,
since the date of the T24 Balance Sheet neither T24 nor any of its Subsidiaries
has:

        (a)   sold, leased, transferred or assigned any of its assets, tangible
              or intangible, other than in the ordinary course of business;
<PAGE>

                                     -32-

         (b)      accelerated, terminated, modified or canceled any contract,
                  lease, sublease, license or sublicense (or series of related
                  contracts, leases, subleases, licenses and sublicenses)
                  involving more than $100,000;

         (c)      cancelled, compromised, waived or released any right or claim
                  (or series of related rights and claims) either involving more
                  than $100,000 or outside the ordinary course of business;

         (d)      experienced material damage, destruction or loss (whether or
                  not covered by insurance) to its material property (other than
                  ordinary wear and tear not caused by neglect);

         (e)      created or suffered to exist any Encumbrance (other than
                  Permitted Encumbrances) upon any of the assets, tangible or
                  intangible, of T24 or any Subsidiary;

         (f)      issued, sold, delivered or otherwise disposed of any shares or
                  any securities or obligations convertible into or exercisable
                  or exchangeable for any shares of T24 or any of its
                  Subsidiaries or undergone any reorganization,
                  recapitalization, reclassification, stock split or reverse
                  stock split except for the issuance of shares as set forth in
                  section 4.7.1(f) of the T24 Disclosure Schedule;

         (g)      accelerated, amended, repriced or changed the period of
                  exercisability of any outstanding security or authorized cash
                  payments in exchange for any options granted under any of the
                  T24 Plans;

         (h)      declared, set aside or paid any dividend or distribution with
                  respect to its shares (whether in cash or in kind) or directly
                  or indirectly redeemed, purchased or otherwise acquired any of
                  its shares;

         (i)      entered into financial arrangements for the benefit of any
                  director, officer or securityholder of T24 other than in
                  connection with such Person's employment by T24 in the
                  ordinary course of its business and consistent with past
                  practice (however, the annual remuneration of the Managing
                  Directors has been adjusted by a resolution of the Supervisory
                  Board);

         (j)      made or committed to make any capital expenditures or entered
                  into any other material transaction outside the ordinary
                  course of business or involving an expenditure in excess of
                  $100,000 except as set forth in section 4.7.1(j) of the T24
                  Disclosure Schedule;

         (k)      amended or modified in any respect any employment contract or
                  arrangement or any profit sharing, bonus, incentive
                  compensation, severance, employee benefit or multi-employer
                  plans except to comply with Applicable Laws (however, annual
                  remuneration of the Managing Directors has been adjusted by a
                  resolution of the Supervisory Board);
<PAGE>

                                     -33-

        (l)   entered into any employment agreement or collective bargaining
              agreement or increased the compensation of any of its employees
              other than in the ordinary course of its business and consistent
              with past practice; or

        (m)   committed (orally or in writing) to do any of the foregoing.

4.7.2.  Liabilities - Except for liabilities and obligations set forth in; (i)
the T24 Securities Reports; or (ii) section 4.7.2 of the T24 Disclosure
Schedule, neither T24 nor any of its Subsidiaries has any Liabilities required
by Germany generally accepted accounting principles to be set forth on a
consolidated balance sheet of T24 or in the notes thereto and which,
individually or in the aggregate, could be reasonably expected to have a
Material Adverse Effect.

4.8.    Litigation and Audits - Except as set forth in section 4.8 of the T24
Disclosure Schedule, there is no investigation or inquiry by any Governmental
Entity with respect to T24 or any of its Subsidiaries pending or to the
knowledge of T24 threatened, nor has any Governmental Entity indicated to T24 or
any of its Subsidiaries an intention to conduct the same. Except as set forth in
section 4.8 of the T24 Disclosure Schedule, there is no claim, action, suit,
arbitration or proceeding pending or to the knowledge of T24, threatened against
or involving T24, any of its Subsidiaries or any of their respective assets or
properties, at law or in equity or before any arbitrator or Governmental Entity,
which if determined adversely to T24 or any Subsidiary could result in a
Material Adverse Effect. There are no judgments, decrees, injunctions, orders or
rulings of any Governmental Entity or arbitrator outstanding against T24 or any
of its Subsidiaries, which if existed, would result in a Material Adverse
Effect.

4.9.    Compliance with Applicable Law and Articles of Association - Each of T24
and its Subsidiaries has all requisite Permits necessary to carry on its
respective business as currently being conducted and to own, lease and operate
the respective properties currently owned, leased and operated by it in the
manner currently owned, leased and operated, except where the failure to have
such Permits would not result in a Material Adverse Effect. There are no
proceedings pending or to the knowledge of T24 threatened, which might result in
the revocation, cancellation, suspension or adverse modification of any such
Permit. The business of T24 and its Subsidiaries has not been conducted in
Violation of Applicable Laws, except for Violations which individually or in the
aggregate would not result in a Material Adverse Effect. Neither T24 nor any of
its Subsidiaries is in Violation of nor has any event occurred that has resulted
or will result in any Violation of any term, condition or provision of the
Articles of Association of T24 and its Subsidiaries.

4.10.   Books and Records; Accounting Matters - The books, records and accounts
of T24 and its Subsidiaries: (a) have been maintained in accordance with good
business practices; (b) are stated in reasonable detail and accurately and
fairly reflect in all material respects the transactions and dispositions of the
respective assets of T24 and its Subsidiaries; and (c) accurately and fairly
reflect in all material respects the basis for the
<PAGE>

                                     -34-

T24 Balance Sheet. T24 has devised and maintains a system of internal accounting
controls sufficient to provide reasonable assurances that: (i) transactions are
executed in accordance with management's general or specific authorizations;
(ii) transactions are recorded as necessary: (a) to permit preparation of
accurate financial statements in conformity with Germany generally accepted
accounting principles or any other criteria applicable to such statements; and
(b) to maintain accountability for assets. For the business year 1999, T24 has
changed its consolidated accounting from German accounting principles to US
generally accepted accounting principles.

4.11.   Tax Matters

4.11.1. Filing of Returns - Each of T24 and its Subsidiaries has prepared and
timely filed with all appropriate Governmental Entities all Tax Returns that it
was required to file. All such Tax Returns were correct and complete in all
material respects. Neither T24 nor any of its Subsidiaries currently is the
beneficiary of any extension of time within which to file any Tax Return other
than extensions for which T24 or any of its Subsidiaries has filed a request
which request has resulted in the automatic granting of such extension. No
Governmental Entity in any jurisdiction in which T24 and any of its Subsidiaries
does not file Tax Returns has ever claimed that T24 or any of its Subsidiaries
is or may be subject to taxation by that jurisdiction.

4.11.2. Payment of Taxes - All Taxes payable or owed by T24 and its Subsidiaries
(whether or not shown on any Tax Return) have been paid when due, and all Taxes
due. In the case of Taxes accruing on or before the date hereof that are not due
on or before the date hereof, T24 has made adequate provision in its books and
records and financial statements for such payment. There are no security
interests on any assets of T24 or any of its Subsidiaries that arose in
connection with any failure (or alleged failure) to pay any Tax.

4.11.3. Withholding - Each of T24 and its Subsidiaries has withheld from
payments made to each of its current or former employees, officers, directors,
shareholders, independent contractors, creditors, non-residents and other
Persons all amounts required by Applicable Laws to be withheld and, where
required, has remitted such amounts within the applicable periods to the
appropriate Governmental Entity.

4.11.4. Assessments - Neither T24 nor any of its Subsidiaries expects any
authority to assess any additional Taxes in excess of tax reserves provided for
in T24's financial statements against T24 or any of its Subsidiaries for any
period for which Tax Returns have been filed. No Tax Return of T24 or any of its
Subsidiaries has been audited or currently is the subject of audit. No
Governmental Authority has raised any dispute or claim concerning any Tax
liability of T24 or any of its Subsidiaries. Neither T24 nor any of its
Subsidiaries has waived any statute of limitations with respect to Taxes or has
agreed to any extension of time with respect to a Tax assessment or deficiency.

4.11.5. Access to Returns - T24 has provided Travelbyus with a copy of or access
to all German and other state and local income and capital Tax returns filed by
T24 and its Subsidiaries after.. T24 has provided Travelbyus with a copy of or
access to all
<PAGE>

                                     -35-

assessments, extensions and waivers resulting from any examinations or audits of
T24 or any of its Subsidiaries by a Governmental Entity in respect of Taxes, and
all such assessments and related penalties and interest have been paid in full
unless being contested in good faith by T24 or any of its Subsidiaries and
described in section 4.11 of the T24 Disclosure Schedule.

4.12.   Employee Benefit Plans - Except for the Employee Stock Purchase Plan
described under section 4.5.2., there are no Employee Benefit Plans.

4.13.   Employment-Related Matters - Neither T24 nor any of its Subsidiaries is
a party to any collective bargaining agreement or other contract or agreement
with any labor organization or other representative of any of the employees of
T24 or any of its Subsidiaries nor are any of such contracts or agreements
pending or contemplated except as set forth in section 4.13 of the T24
Disclosure Schedule. There is no labor strike, dispute, slowdown, work stoppage
or lockout that is pending or to the knowledge of T24, threatened against or
otherwise affecting T24 and neither T24 nor any of its Subsidiaries has ever
experienced same. Except as set forth in section 4.13 of the T24 Disclosure
Schedule neither T24 nor any of its Subsidiaries has closed any plant or
facility, effectuated any layoffs of employees or implemented any early
retirement or separation program at any time nor has T24 or any of its
Subsidiaries planned or announced any such action or program for the future with
respect to which T24 or any of its Subsidiaries may have any liability. All
salaries, wages, vacation pay, bonuses, commissions and other compensation
payable by T24 or any of its Subsidiaries to their respective employees before
the date hereof have been paid or accrued in all material respects as of the
date hereof. No Person has asserted any claim or to the knowledge of T24 has any
reasonable basis to assert any valid claim against T24 or any of its
Subsidiaries that either the continued employment by or association with T24 or
any of its Subsidiaries of any of the current officers or employees of or
consultants to T24 or any of its Subsidiaries contravenes any agreements or
Applicable Laws relating to unfair competition, trade secrets or proprietary
information. Closing will not result in the payment, vesting, or acceleration of
any benefit, payment or amount under any of the T24 Benefit Plans.

4.14.   Environmental

4.14.1. Environmental Laws - T24 and its Subsidiaries are in compliance in all
material respects with all applicable Environmental Laws. Neither T24 nor any of
its Subsidiaries has received any communication that alleges that T24 or any of
its Subsidiaries was or is not in compliance in all respects with or has any
liability under any applicable Environmental Law. To the knowledge of T24, there
are no circumstances that may prevent or interfere with compliance in the future
with all applicable Environmental Laws.

4.14.2. Environmental Claims - There is no Environmental Claim pending or to the
knowledge of T24 threatened against or involving T24 or any of its Subsidiaries
or against any Person whose liability for any Environmental Claim T24 or any of
its
<PAGE>

                                     -36-

Subsidiaries has or may have retained or assumed either contractually or by
operation of law that, if existed, would cause a Material Adverse Effect.

4.15.   Assets Other Than Real Property

4.15.1. Title - T24 and its Subsidiaries have good and defensible title to all
of the tangible assets shown on the T24 Balance Sheet, in each case, free and
clear of any Encumbrances except; (a) assets disposed of since the date of the
T24 Balance Sheet in the ordinary course of business and in a manner consistent
with past practice and not material in amount; (b) Encumbrances reflected in the
T24 Balance Sheet or otherwise in the most recent consolidated financial
statements as of December 31, 1999; (c) Permitted Encumbrances; (d) Encumbrances
set forth in section 4.15 of the T24 Disclosure Schedule; and (e) Encumbrances
in the ordinary course of business which are customary in the trade.

4.15.2. Condition - Except as set forth in section 4.15.2 of the T24 Disclosure
Schedule, all receivables shown on the T24 Balance Sheet and all receivables
accrued by T24 and its Subsidiaries since the date of the T24 Balance Sheet have
been collected or are collectible in the aggregate amount shown or have been
written off as irrevocable. All material plant, equipment and personal property
owned by T24 and its Subsidiaries and regularly used in their respective
business are in good operating condition and repair, ordinary wear and tear
excepted.

4.16.   Real Property

4.16.1. T24 Real Property - Except as set forth on section 4.16.1 of the T24
Disclosure Schedule, neither T24 nor its Subsidiaries own any real property.

4.16.2. T24 Leases - Section 4.16.2 of the T24 Disclosure Schedule lists all of
the Leases of T24 and its Subsidiaries. T24 has delivered or made available to
Travelbyus complete copies of the Leases and all material amendments thereto
(which are identified in section 4.16.2 of the T24 Disclosure Schedule). The T24
Leases grant to T24 or its Subsidiaries leasehold estates free and clear of all
Encumbrances except Permitted Encumbrances. The T24 Leases are in full force and
effect and are binding and enforceable against each of the parties thereto in
accordance with their respective terms. Neither T24 nor any of its Subsidiaries
nor to the knowledge of T24, any other party to a T24 Lease is in material
Violation of any T24 Lease nor are there any facts or circumstances that would
reasonably indicate that T24 or any of its Subsidiaries is likely to be in
material Violation of any T24 Lease. Section 4.16.2 of the T24 Disclosure
Schedule correctly identifies each T24 Lease that requires the consent of any
Person in connection with the transactions contemplated hereby. No material
construction, alteration or other leasehold improvement work with respect to the
real property covered by any of the T24 Leases remains to be paid for or to be
performed by T24 or any of its Subsidiaries.

4.16.3. Condition - All buildings, structures and fixtures or parts thereof used
by T24 or any of its Subsidiaries in the conduct of their respective business
are in good operating
<PAGE>

                                     -37-

condition and repair, ordinary wear and tear excepted and are insured with all
coverages that are usual and customary for similar properties and similar
businesses and that, pursuant to the terms of the T24 Leases, are required to be
insured by third parties.

4.17.   Intellectual Property

4.17.1. Right to Intellectual Property - Except as set forth in section 4.17.1
of the T24 Disclosure Schedule, T24 and its Subsidiaries own or have, subject to
statutory restrictions, rights to use all patents, industrial designs,
trademarks, trade names, service marks, copyrights and any applications
therefor, maskworks, net lists, schematics, technology, websites, domain names,
inventions, know-how, trade secrets, algorithms, computer software programs or
applications (in both source code and object code form) and tangible or
intangible proprietary information or material that are used in the business of
T24 and its Subsidiaries (the "T24 Proprietary Rights"), free and clear of any
and all Encumbrances. To the knowledge of T24, there is no reason why T24 and
its Subsidiaries will not be able to continue to own or have, subject to
statutory restrictions, unlimited rights to use all T24 Proprietary Rights
necessary for the lawful conduct of their respective business as currently
conducted and as currently proposed to be conducted without any infringement or
conflict with the rights of others. Except as set forth in section 4.17.1 of the
T24 Disclosure Schedule, all of the rights of T24 and its Subsidiaries in and to
the T24 Proprietary Rights are freely assignable in the name of T24 or one of
its Subsidiaries including the right to create derivatives and T24 and its
Subsidiaries are under no obligation to obtain any approval or consent for use
of any of the T24 Proprietary Rights.

4.17.2. List of T24 Proprietary Rights - Section 4.17.2 of the T24 Disclosure
Schedule sets forth a complete list of the T24 Proprietary Rights specifying,
where applicable, the jurisdictions in which each of the T24 Proprietary Rights
has been issued or registered or in which an application for such issuance or
registration has been filed including the respective registration or application
numbers and the names of all registered owners and inventors, as applicable.
None of the products of T24 and its Subsidiaries as currently marketed or
supported have been registered for patent protection or for copyright protection
in any jurisdiction nor has T24 or any of its Subsidiaries been requested to
make any such registration.

4.17.3. Royalties - Except as set forth in section 4.17.3 of the T24 Disclosure
Schedule, neither T24 nor any of its Subsidiaries is obligated to pay any
royalties or other compensation to any Person in respect of its ownership, use
or license of any of their respective T24 Proprietary Rights.

4.17.4. Licenses - Section 4.17.4 of the T24 Disclosure Schedule sets forth a
complete list of all material licenses, sublicenses and other agreements to
which T24 or any of its Subsidiaries is a party and pursuant to which T24 or any
of its Subsidiaries is authorized to use any T24 Proprietary Right (excluding
End-User Licenses). The T24 Proprietary Rights include all trademarks, trade
names, service marks, trade secrets, websites and domain names and software and
all patent rights and industrial design rights that are
<PAGE>

                                     -38-

necessary for T24 and its Subsidiaries to satisfy and perform such licenses,
sublicenses and agreements. None of T24, any of its Subsidiaries and the other
contracting parties thereto is in violation of any license, sublicense or
agreement included in such list except for violations that do not materially
impair the rights of T24 or its Subsidiaries under such license, sublicense or
agreement, except as would not have a Material Adverse Effect. Such licenses,
sublicenses and agreements are in full force and effect and are binding and
enforceable against each of the parties thereto in accordance with their
respective terms. The execution and delivery by T24 of this Agreement, the
performance by T24 of its obligations hereunder and the consummation by T24 of
the Transaction including without limitation the making of the T24 Loan
Commitment will not cause T24 or any of its Subsidiaries to be in violation or
in default under any such license, sublicense or agreement nor will entitle any
other party to any material license, sublicense or agreement to terminate or
modify such license, sublicense or agreement.

4.17.5. Status of Registrations - All of the T24 Proprietary Rights set forth in
section 4.17.2 of the T24 Disclosure Schedule as having been issued by,
registered with or filed with any patent or trademark office have been duly so
issued, registered or filed, as the case may be and have been properly
maintained and renewed in accordance with all Applicable Laws. T24 and each of
its Subsidiaries have diligently protected their respective T24 Proprietary
Rights and have diligently maintained the confidentiality of their trade
secrets, know-how and other confidential T24 Proprietary Rights. To the
knowledge of T24 there have been no acts or omissions by T24 or any of its
Subsidiaries the result of which has been or would be to compromise the rights
of T24 or any of its Subsidiaries to apply for or enforce appropriate legal
protection of the T24 Proprietary Rights except as set forth in section 4.17.5
of the T24 Disclosure Schedule.

4.17.6. No Conflict - Except as set forth in section 4.17.6 of the T24
Disclosure Schedule, no claims with respect to the T24 Proprietary Rights are
pending, have been asserted or to the knowledge of T24 are threatened by any
Person nor to the knowledge of T24 are there any valid grounds for any bona fide
claims; (a) to the effect that the development, sale, licensing or use of any of
the products of T24 and its Subsidiaries as now developed, sold, licensed or
used or as proposed for development, sale, licensing or use by T24 and its
Subsidiaries infringes on any patent, industrial design, trademark, trade name,
service mark, copyright, trade secret, website or domain name or other
proprietary right of any Person; (b) against the use by T24 or any of its
Subsidiaries of any patents, industrial designs, trademarks, trade names,
service marks, copyrights, website or domain name and any applications therefor,
maskworks, net lists, schematics, technology, know-how, trade secrets,
algorithms, computer software programs or applications and tangible or
intangible proprietary information or material used in the business of T24 and
its Subsidiaries as currently conducted or as proposed to be conducted; or (c)
challenging the ownership by T24 or any of its Subsidiaries of the validity of
any registration for any application relating to or the effectiveness of any of
the T24 Proprietary Rights. To the knowledge of T24 there is no unauthorized
use, infringement or misappropriation of any of the T24 Proprietary Rights by
any third Person, including without limitation, any current or former employee
of T24 or any of its Subsidiaries. No T24 Proprietary Right or product of T24 or
any of its Subsidiaries is
<PAGE>

                                     -39-

subject to any outstanding decree, order, judgment or stipulation restricting in
any manner the use or licensing thereof by T24 or any of its Subsidiaries.

4.17.7. Employee Agreements - To the knowledge of T24, no employee, officer or
consultant of T24 or any of its Subsidiaries is in violation of any term of any
employment or consulting contract, proprietary information and inventions
agreement, non-competition agreement or any other contract or agreement relating
to the relationship of any such employee, officer or consultant with T24 or any
of its Subsidiaries.

4.18.   Agreements, Contracts and Commitments

4.18.1. T24 Agreements - Except as set forth in section 4.18 of the T24
Disclosure Schedule, neither T24 nor any of its Subsidiaries is a party to or
has:

        (a)    any pension, profit sharing, retirement, deferred compensation,
               welfare, legal services, medical, dental or other employee
               benefit or health insurance plans, life insurance or other death
               benefit plans, disability, stock option, stock purchase, stock
               compensation, bonus, vacation pay, severance pay or other similar
               plans, programs or agreements or material personnel policy which
               is not already set forth in section 4.12 of the T24 Disclosure
               Schedule (other than normal policies regarding holidays,
               vacations and salary continuation during short absences for
               illnesses or other reasons);

        (b)    any employment agreement which provides for a payment which, if
               paid pro rata on a monthly basis, would exceed $5,000 per month,
               or any employment agreement which is binding on T24 for a period
               in excess of one year, with any present employee, officer,
               director or consultant (or former employees, officers, directors
               or consultants to the extent there remain at the date hereof
               obligations to be performed by T24 or any of its Subsidiaries);

        (c)    any agreement for personal services or employment that upon
               termination requires any payments greater than those that would
               otherwise be imposed by Applicable Law;

        (d)    any agreement of guarantee or indemnification;

        (e)    any agreement or commitment containing a covenant limiting or
               purporting to limit the freedom of T24 or any of its
               Subsidiaries; (i) to compete with any Person in any geographic
               area; (ii) to engage in any line of business; or (iii) to hire or
               solicit any individual for employment or consulting services;

        (f)    any lease, other than the Leases, under which T24 or any of its
               Subsidiaries is a lessee or lessor that involves payments of
               $100,000 or
<PAGE>

                                     -40-

               more per annum or is material to the conduct of the business of
               T24 or any of its Subsidiaries;

         (g)   any joint venture or profit-sharing agreement;

         (h)   except for trade indebtedness incurred in the ordinary course of
               business and reflected on the T24 Balance Sheet, any loan or
               credit agreements providing for the extension of credit to T24 or
               any instrument evidencing or related in any way to indebtedness
               incurred in the acquisition of companies or other entities or
               indebtedness for borrowed money by way of direct loan, sale of
               debt securities, purchase money obligation, conditional sale,
               lease, guarantee or otherwise that individually is in the amount
               of $100,000 or more;

         (i)   any agreement or arrangement with any third Person to develop any
               intellectual property or other asset expected to be used or
               currently used or useful in the business of T24 or any of its
               Subsidiaries;

         (j)   any agreement or arrangement for T24 or any of its Subsidiaries
               to develop any intellectual property or other asset for any third
               Person;

         (k)   any agreement or arrangement providing for the payment of any
               commission based on sales other than in the ordinary course of
               business and consistent with past practice;

         (l)   any agreement for the sale or license by or to T24 or any of its
               Subsidiaries of materials, products, services or supplies that
               involves future payments to T24 or any of its Subsidiaries of
               more than $100,000;

         (m)   any agreement for the purchase by T24 or any of its Subsidiaries
               of any materials, equipment, services or supplies that either:
               (i) involves a binding commitment by T24 or such Subsidiary to
               make future payments in excess of $100,000 and cannot be
               terminated by T24 or such Subsidiary without penalty upon less
               than three months' notice; or (ii) was not entered into in the
               ordinary course of business;

         (n)   any agreement or commitment for the acquisition, construction or
               sale of fixed assets owned or to be owned by T24 or any of its
               Subsidiaries that involves future payments by it of more than
               $100,000;

         (o)   any agreement or commitment to which present or former directors
               or officers (or members of their immediate families) or
               Affiliates (or directors or officers of an Affiliate) are also
               parties;

         (p)   any agreement not described above (ignoring solely for this
               purpose any dollar amount thresholds in those descriptions)
               involving the payment or
<PAGE>

                                     -41-

              receipt by T24 or any of its Subsidiaries of more than $100,000,
              other than the Leases; or

        (q)   any agreement not described above that was not made in the
              ordinary course of business and that is material to the financial
              condition, business, operations, assets, results of operations or
              prospects of T24 and its Subsidiaries taken as a whole.

4.18.2. Validity, Violation and Consent - The Contracts listed in section 4.18
of the T24 Disclosure Schedule are valid and in full force and effect. Neither
T24 nor any of its Subsidiaries is in Violation of any term, condition or
provision of any Contract to which T24 or any of its Subsidiaries is a party or
by which it, any of its Subsidiaries or any of their respective material assets
or properties is bound or which is applicable to it, any of its Subsidiaries or
any of their respective material assets or properties, except for such
Violations which, individually or in the aggregate, would not result in a
Material Adverse Effect. Section 4.18.2 of the T24 Disclosure Schedule
identifies each Contract that requires the consent of a third Person in
connection with the Transaction including without limitation the making of the
T24 Loan Commitment.

4.19.   Insurance Contracts - Section 4.19 of the T24 Disclosure Schedule lists
all material contracts of insurance and indemnity in force at the date hereof
with respect to T24 and its Subsidiaries. Such contracts of insurance and
indemnity (collectively, the "T24 Insurance Contracts") insure against such
risks and are in such amounts as are reasonable and appropriate considering T24
and its Subsidiaries and their respective property, business and operations.
Except as set forth in section 4.19 of the T24 Disclosure Schedule, all of the
T24 Insurance Contracts are in full force and effect with no default thereunder
by T24 or any of its Subsidiaries which could permit the insurer to deny payment
of claims thereunder. The execution and delivery by T24 of this Agreement, the
performance by T24 of its obligations hereunder and the consummation by T24 of
the Transactions including without limitation the making of the T24 Loan
Commitment and thereby will not cause T24 or any of its Subsidiaries to be in
Violation of any T24 Insurance Contracts nor entitle any other party thereto to
terminate or modify a T24 Insurance Contract. Neither T24 nor any of its
Subsidiaries has received notice from any of their respective insurance carriers
that any insurance premiums will be materially increased in the future or that
any insurance coverage provided under the T24 Insurance Contracts will not be
available in the future on substantially the same terms as now in effect.
Neither T24 nor any of its Subsidiaries has received or has given a notice of
cancellation with respect to any of the T24 Insurance Contracts.

4.20.   Banking Relationships - Section 4.20 of the T24 Disclosure Schedule sets
forth the names and locations of all banks and trust companies in which T24 or
any of its Subsidiaries has accounts, lines of credit or safety deposit boxes.

4.21.   Suppliers, Distributors and Customers - The relationships of T24 and its
Subsidiaries with their respective suppliers, distributors and customers are
satisfactory commercial working relationships. Except as set forth in section
4.21 of the T24 Disclosure Schedule, since the date of the T24 Balance Sheet, no
material supplier,
<PAGE>

                                     -42-

distributor or customer of T24 or any of its Subsidiaries has cancelled or
otherwise adversely modified its relationship with T24 or any of its
Subsidiaries, and to the knowledge of T24, no supplier, distributor or customer
of T24 or any of its Subsidiaries has any intention to do so. To the knowledge
of T24, none of the execution and delivery by T24 of this Agreement, the
performance by T24 of its obligations hereunder and the consummation by T24 of
the Transaction including without limitation the making of the T24 Loan
Commitment will materially adversely affect any such relationship.

4.22. Products - Each product sold, leased, licensed or delivered by T24 or any
of its Subsidiaries has been in material conformity with all applicable
contractual commitments.

4.23. No Broker's or Finder's Fees - None of T24, any of its Subsidiaries and
their respective directors, officers, employees and agents has employed any
broker, finder, financial advisor or intermediary or has paid or incurred any
liability for any fee or commission to any broker, finder, financial advisor or
intermediary in connection with this Agreement except for contracts with Von
Weichs and Partner GmbH and CMF AG.

4.24. Full Disclosure - This Agreement does not contain any untrue statement of
a material fact or omit to state a material fact necessary to make the
statements contained herein not false or misleading. To the knowledge of T24
there is no fact existing on the date hereof that T24 has not disclosed to
Travelbyus in writing that could result in a Material Adverse Effect.

                                   Article 5
                              Non-Waiver; Survial
                              -------------------

5.1   Non-Waiver - No investigations made by or on behalf of Travelbyus or T24
at any time shall have the effect of waiving, diminishing the scope of or
otherwise affecting any representation or warranty made by the Travelbyus or
T24, as applicable, in or pursuant to this Agreement. No waiver of any condition
or other provision, in whole or in part, shall constitute a waiver of any other
condition or provision (whether or not similar) nor shall such waiver constitute
a continuing waiver unless otherwise expressly provided. However, the
circumstances set forth in the Travelbyus and the T24 Disclosure Schedules are,
to the extent they have been duly disclosed, deemed known to the respective
other Party; the Agreement is concluded with imputed knowledge of such
circumstances and therefore no claims may be raised in this respect.

5.2   Nature and Survival - All representations, warranties and covenants
contained in this Agreement on the part of each of the Parties shall survive the
Closing, the execution and delivery under this Agreement of any share or
security transfer instruments or other documents of title to any of the
Travelbyus Shares and/or T24 Shares, except that:

      (i)  any claim for intentional misrepresentation or fraud may be brought
           at any time within the applicable statute of limitations;
<PAGE>

                                     -43-

     (ii)  the representations and warranties set out in sections 3.1 to 3.4 and
           4.1 to 4.4 shall survive and continue in full force and effect within
           the applicable statute of limitations without limitation of time;

     (iii) representations and warranties as to environmental matters shall
           survive for a period of 10 years from the Closing Date;

     (iv)  representations and warranties concerning Tax matters shall survive
           for a period of 90 days after the relevant authorities shall no
           longer be entitled to assess liability for Tax against the
           Corporation for any particular taxation year ended on or prior to the
           Closing Date; and

     (v)   all other representations and warranties shall survive for a period
           of three years from the Closing Date.

                                   Article 6
                      Conditions Precedent Of Travelbyus
                      ----------------------------------

The obligation of Travelbyus to complete the issuance of Travelbyus Shares under
this Agreement shall be subject to the satisfaction of or compliance with, at or
before the Closing Time, each of the following conditions precedent (each of
which is acknowledged to be inserted for the exclusive benefit of Travelbyus and
may be waived by Travelbyus in whole or in part):

6.1  Truth and Accuracy of Representations and Warranties of T24 at the Closing
Time - All of the representations and warranties of T24 made in or pursuant to
this Agreement shall be true and correct as at the Closing Time.

6.2  Performance of Obligations - T24 shall have performed or complied with, in
all respects, its obligations, covenants and agreements under this Agreement.

6.3  Receipt of Closing Documentation - All documentation relating to the due
authorization and completion of the issuance of the T24 Shares under this
Agreement and all actions and proceedings taken on or prior to Closing in
connection with the performance by T24 of its obligations under this Agreement,
shall be satisfactory to Travelbyus, acting reasonably and Travelbyus shall have
received copies of all such documentation or other evidence as Travelbyus may
reasonably request in order to establish the consummation of the Transaction and
the taking of all corporate proceedings in connection therewith in compliance
with these conditions, in form (as to certification and otherwise) and substance
satisfactory to Travelbyus, acting reasonably.

6.4  Opinion of Counsel for T24 - Travelbyus shall have received an opinion
dated the Closing Date from counsel to T24 with respect to T24 and this
Agreement on terms and conditions satisfactory to Travelbyus and its counsel.
Travelbyus shall have
<PAGE>

                                     -44-

received all schedules, appendices and attachments mentioned in this Agreement
from T24 within 20 days after the date hereof for due diligence review until
Closing.

6.5  Consents, Authorizations and Registrations - All consents, approvals,
orders and authorizations of any Person or Governmental Authority (or
registrations, declarations, filings or recordings with any such Governmental
Authorities) required in connection with the completion of the Transaction, the
execution of this Agreement, Closing or the performance of any of the terms and
conditions of this Agreement shall have been obtained at or before the Closing
Time.

6.6  No Injunction - There shall be no injunction or restraining order issued
preventing and no pending or threatened Claim, judicial or administrative or
investigation against any Party by any Governmental Authority, for the purpose
of enjoining or preventing the consummation of the Transaction or otherwise
claiming that this Agreement or the consummation thereof is improper or would
give rise to proceedings under any statute or rule of law.

6.7  Substantial Damage - No substantial damage by fire or other hazard to the
assets of T24 shall have occurred prior to the Closing Time.

If any of the foregoing conditions in this Article have not been fulfilled by
Closing, Travelbyus may terminate this Agreement by notice in writing to T24, in
which event Travelbyus is released from all obligations under this Agreement and
unless Travelbyus can show that the condition relied upon could reasonably have
been performed by T24, T24 is also released from all obligations under this
Agreement. Travelbyus may waive compliance with any condition in whole or in
part if it sees fit to do so without prejudice to its rights of termination in
the event of non-fulfilment of any other condition, in whole or in part, or to
its rights to recover damages for the breach of any representation, warranty,
covenant or condition contained in this Agreement.

                                   Article 7
                          Conditions Precedent Of T24
                          ---------------------------

The obligation of T24 to complete the issuance of the T24 Shares under this
Agreement shall be subject to the satisfaction of or compliance with, at or
before the Closing Time, each of the following conditions precedent (each of
which is acknowledged to be inserted for the exclusive benefit of T24 and may be
waived by T24 in whole or in part).

7.1  Truth and Accuracy of Representations and Warranties of Travelbyus at
Closing Time - All of the representations and warranties of Travelbyus made in
or pursuant to this Agreement shall be true and correct as at the Closing Time.

7.2  Performance of Obligations - Travelbyus shall have performed or complied
with, in all respects, all its obligations, covenants and agreements under this
Agreement.
<PAGE>

                                     -45-

7.3  Receipt of Closing Documentation - All documentation relating to the due
authorization and completion of the issuance of the Travelbyus Shares under this
Agreement and all actions and proceedings taken on or prior to Closing in
connection with the performance by Travelbyus of its obligations under this
Agreement, shall be satisfactory to T24, acting reasonably and T24 shall have
received copies of all such documentation or other evidence as T24 may
reasonably require in order to establish the consummation of the Transaction and
the taking of all corporate proceedings in connection therewith in compliance
with these conditions, in form (as to certification and otherwise) and substance
satisfactory to T24, acting reasonably.

7.4  Receipt of Schedules - T24 shall have received all schedules, appendices
and attachments mentioned in this Agreement from Travelbyus within 20 days after
the date hereof for due diligence review until Closing.

7.5  Consents, Authorizations and Registrations - All consents, approvals,
orders and authorizations of any Person or Governmental Authority (or
registrations, declarations, filings or recordings with any such Governmental
Authorities) required in connection with the completion of the Transaction, the
execution of this Agreement, Closing or the performance of any of the terms and
conditions of this Agreement shall have been obtained at or before the Closing
Time.

If any of the foregoing conditions in this Article have not been fulfilled by
Closing, T24 may terminate this Agreement by notice in writing to Travelbyus in
which event T24 is released from all obligations under this Agreement and unless
T24 can show that the condition relied upon could reasonably have been performed
by Travelbyus, Travelbyus is also released from all obligations under this
Agreement. T24 may waive compliance with any condition in whole or in part if it
sees fit to do so, without prejudice to its rights of termination in the event
of non-fulfilment of any other condition in whole or in part or to their rights
to recover damages for the breach of any representation, warranty, covenant or
condition contained in this Agreement.

                                   Article 8
                                Indemnification
                                ---------------

8.1  Indemnification by T24. - T24 agrees to indemnify and save harmless
Travelbyus without duplication on an after-tax basis from and against all Losses
suffered or incurred by Travelbyus as a result of or arising directly or
indirectly out of or in connection with:

     (a)   any breach by T24 of or any inaccuracy of any of the representations
           and warranties of T24 set out in this Agreement (provided that the
           indemnity provided for in this section 8.1A(a) shall not apply in the
           case of a breach or inaccuracy of any representation or warranty
           unless Travelbyus shall have provided notice to T24 in accordance
           with this Article 9 on or prior to the expiration of such
           representation and warranty as provided in section 6.2);
<PAGE>

                                     -46-

     (b)  any breach or non-performance by T24 of any covenants to be performed
          by T24 under this Agreement;

     (c)  any liability arising by reason of a breach of the provisions of
          section 10.2.

8.2  Indemnification by Travelbyus - Travelbyus agrees to indemnify and save
harmless T24 without duplication on an after-tax basis from and against all
Losses suffered or incurred as a result of or arising directly or indirectly out
of or in connection with:

     (a)  any breach by Travelbyus of or any inaccuracy of any of the
          representations and warranties of Travelbyus set out in this Agreement
          provided that the indemnity provided for in this section 8.2(a) shall
          not apply in the case of a breach or inaccuracy of any representation
          or warranty unless T24 shall have provided notice to Travelbyus in
          accordance with this Article 9 on or prior to the expiration of such
          representation and warranty as provided in section 6.2);

     (b)  any breach or non performance by Travelbyus of any covenants to be
          performed by Travelbyus under this Agreement; and

     (c)  any liability arising by reason of a breach of the provisions of
          section 11.2.

8.3  Notification of and Participation in Claims - No claim for indemnification
will arise until notice thereof is given to T24 or Travelbyus , as the case may
be. Such notice shall be sent within a reasonable time following the
determination by Travelbyus or T24, as applicable, that a claim for indemnity
exists. If any legal proceedings shall be instituted or any claim or demand is
asserted by any third Person in respect of which T24 or Travelbyus , as
applicable, may have an obligation to indemnify Travelbyus , or T24, as the case
may be, Travelbyus or T24, as the case may be, shall give or cause to be given
to T24 or Travelbyus , as the case may be, written notice thereof and such Party
shall have the right, at its option and expense, to be present at the defence of
such proceedings, claim or demand, but not to control the defence, negotiation
or settlement thereof, which control shall at all times rest with Travelbyus or
T24, as the case may be, unless T24 or Travelbyus , as the case may be,
irrevocably acknowledges full and complete responsibility for indemnification of
Travelbyus or T24, as the case may be, in which case T24 or Travelbyus , as the
case may be, may assume such control through counsel of its choice provided
however that no settlement shall be entered into without Travelbyus 's written
consent or the Vendor's written consent, as the case may be, which shall not be
unreasonably withheld. The Parties shall co-operate fully with each other in
connection with the defence, negotiation or settlement of any such third Person
legal proceeding, claim or demand by reason of a breach of the provisions of
section 11.2.

8.4  De Minimis Threshold - Travelbyus and T24 shall be liable for claims for
indemnification only in the event that the aggregate amount of such claims
exceeds US$1,000,000 (United Sates Dollar one million), respectively. In case
the aggregate
<PAGE>

                                     -47-

amount of such damages exceeds the aforementioned threshold, Travelbyus and T24,
respectively, shall be liable for the entire amount of the claims.

8.5  Limitation of Remedies - The claims for indemnification and resulting
remedies shall not include the claim to rescind or cancel or in any other way
withdraw from this Agreement. Otherwise, the rights and remedies of Travelbyus
and T24 arising out of a breach of misrepresentations, warranties or covenants
under this Agreement shall not be limited, unless such limitation is
specifically provided for.

                                   Article 9
                            Post Closing Covenants
                            ----------------------

9.1  Board Appointments - Travelbyus and T24 covenant and agree, that as
provided in the LOI, each party has appointed three observers to each other's
board of directors, namely Bill Kerby, John Fenyes and Richard L. Morgen in the
case of the nominees of Travelbyus and Marc Maslatun, Knut Wehner and Bertram
von Plettenberg in the case of T24. All of such observers or their respective
duly appointed successors shall be entitled to receive notice of and attend at
(but not be heard at) all meetings of the board of directors of such other
party, such provision to continue until the earlier of completion of the T24
Merger and December 31, 2000.

9.3  Exchange of Information and Resources - Travelbyus and T24 covenant and
agree to fully exchange information of their respective businesses and financial
plans and to exchange mutual resources including without limitation, technology,
supplier contracts and tourist flows on a most preferred basis. Travelbyus and
T24 will co-ordinate their respective businesses and financial plans and will
establish a pro-forma common business and financial plan as soon as possible on
the assumption of a 'virtually merged entity" as a basis for the T24 Merger.
Each of Travelbyus and T24 agree to notify the other party with respect to
significant transactions.

9.4  T24 Merger - Travelbyus and T24 covenant and agree that from and after
Closing they shall use their respective best efforts to; (i) negotiate and
settle the terms and conditions of the T24 Merger, including without limitation,
the share exchange ratio forming a part thereof (the "T24 Share Exchange Ratio")
; (ii) each retain separate investment banking advisors in order to provide a
fairness opinion with respect to the T24 Share Exchange Ratio; (iii) negotiate,
settle, execute and deliver a form of agreement to provide for the T24 Merger
(the "T24 Merger Agreement") which agreement will contain mutual covenants,
representations and warranties; (iv) procure all requisite court and regulatory
approvals in connection with the T24 Merger and the T24 Merger Agreement,
including without limitation, the approval of the TSE and the GNM; (v) procure
all requisite board approvals in connection with the T24 Merger and the T24
Merger Agreement; and (vi) procure all requisite shareholder approvals in
connection with the T24 Merger and the T24 Merger Agreement and in connection
therewith to co-operate with each other with respect to all information
(business-related and otherwise) to be contained in any and all related proxy-
solicitation materials to be forwarded to shareholders in connection with a
joint meeting or joint meetings to be held
<PAGE>

                                     -48-

to consider and approve, among other things, the T24 Merger and the T24 Merger
Agreement and to procure all requisite regulatory approvals in connection
therewith.

                                  Article 10
                                    General
                                    -------

10.1 Public Notices - All public notices to third Persons and all other
publicity concerning the Transaction shall be jointly planned and co-ordinated
by Travelbyus and T24 and no Party shall act unilaterally in this regard without
the prior approval of the other Party, such approval not to be unreasonably
withheld except where required to do so by law or by the applicable regulations
or policies of any regulatory agency of competent jurisdiction or any stock
exchange in circumstances where prior consultation with the other Party is not
practicable.

10.2 Expenses - Each of the Parties shall pay their respective legal, accounting
and other professional advisory fees, costs and expenses incurred in connection
with the Transaction and the preparation, execution and delivery of this
Agreement and all documents and instruments executed pursuant to this Agreement
and any other costs and expenses incurred by the Party including any fees and
expenses of any broker or investment advisor in connection with the issuance of
Travelbyus Shares and/or the T24 Shares.

10.3 Notices - Any notice or other writing required or permitted to be given
under this Agreement or for the purposes of this Agreement (in this section
referred to as a "Notice") shall be in writing and shall be sufficiently given
if delivered, or if transmitted by facsimile or other form of recorded
communication tested prior to transmission to such Party:

     (a)  to Travelbyus at:      .
                                 .

          with a copy to:        .
                                 .

          Attention:             .
          Fax No.:               .

     (b)  to T24  at:            .

          Attention:             .
          Fax No.:               .
<PAGE>

                                     -49-

          with a copy to:      .

          Attention:           .
          Fax No.:             .

or at such other address as the Party to whom such Notice is to be given shall
have last notified the Party giving the same in the manner provided in this
section. Any Notice delivered to the Party to whom it is addressed as provided
above shall be deemed to have been given and received on the day it is so
delivered at such address, provided that if such day is not a Business Day then
the Notice shall be deemed to have been given and received on the next Business
Day. Any Notice transmitted by facsimile or other form of recorded communication
shall be deemed given and received on the first Business Day after its
transmission.

10.4 Assignment - Neither this Agreement nor any benefits or burdens under this
Agreement shall be assignable by any Party without the prior written consent of
each of the other Parties. Subject to the foregoing, this Agreement shall enure
to the benefit of and be binding upon the Parties and their respective
successors (including any successor by reason of amalgamation of any Party) and
permitted assigns.

10.5 Further Assurances - The Parties shall, with reasonable diligence, do all
such things and provide all such reasonable assurances as may be required to
consummate the Transaction and each Party shall provide such further documents
or instruments required by any other Party as may be reasonably necessary or
desirable to effect the purpose of this Agreement and carry out its provisions,
whether before or after the Closing.

10.6 Counterparts and Facsimile - This Agreement may be executed by the Parties
in separate counterparts and by facsimile each of which when so executed and
delivered shall be an original, but all such counterparts shall together
constitute one and the same instrument.
<PAGE>

                                     -50-

IN WITNESS WHEREOF the Parties have duly executed this Agreement.

                                        TRAVELBYUS.COM LTD.

                                        Per: /s/  Bill Kerby
                                             --------------------

                                        TRAVEL24.COM AG

                                        Per: /s/  Knut Wehner
                                             --------------------
                                             /s/  Andre Derksen
                                             --------------------

         This Share Exchange Agreement including Appendices A, B E-C may only be
rescinded in case of gross mis-representation on either side discovered within
the 20 day review period as mentioned in paragraph 6.4

         This Agreement is further subject to review by both parties' legal
counsel until 5 p.m., Tuesday, June 20, 2000, Toronto time to ensure it properly
reflects the intention of the LOI dated May 23, 2000-09-05

/i/  BK, KW, AD
<PAGE>

                                     -51-

                              TRAVELBYUS.COM LTD.
                         204-3237 King George Highway
                         White Rock, British Columbia
                                    V4P 1B7

July 11, 2000
Travel24.comAG
Altheimer Eck 2
D-80331 Munchen

Dear Sirs:

RE:  Letter of Intent dated as of May 23, 2000
     -----------------------------------------

Reference is made to the above noted letter of intent (the "LOI") and the US$3
million convertible, callable, redeemable, secured debenture dated as of June
16, 2000 (the "Debenture") executed pursuant to the LOI.

By our respective execution of this letter, we do hereby agree that, as provided
in the LOI, the rate of interest in the Debenture shall be deemed to be US$LIBOR
plus 1 percent per annum, payable quarterly in arrears and calculated based on
the LIBOR rate in effect on the first day of such quarter.

Additionally, we do hereby agree that the share exchange agreement (the
"Agreement") executed by Travelbyus and T24 and dated as of June 16, 2000, shall
be deemed to include the following information (which was accidentally omitted
from the Agreement):

1.   Jurisdiction of Incorporation of T24:  Munich.

2.   Section 1.6:  US-GAAP.

3.   Section 4.6:  See contractual documentation June 20, 2000.

4.   Section 4.11.5:    31.12.1999.

5.   Section 10. 3 (a) notice to Travelbyus at the address set forth above with
     a copy to Cassels Brock & Blackwell LLP Scotia Plaza, Suite 2100, 40 King
     Street West, Toronto, Ontario M5H 3C2 Attention: John H. Craig, Facsimile
     Number (416) 360-8877.

6.   Section 10.3 (b) notice to T24 and its counsel:
     Hearmann, Hemmerlrath & Partner
     Maximilianstrasse 35
     B0539 Munich
     Germany
     Attn: Dr. Matthias Schueppen
<PAGE>

                                     -52-

Yours truly,

TRAVELBYUS.COM LTD.

Per: /s/ John Craig
     --------------
Agreed to and accepted to this 17/th/ day of July, 2000.

TRAVEL24.COMAG

Per: /s/  Knut Wehner
     ----------------

/s/ Marc Maslaton (CEO)
----------------------

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