Document:

EXHIBIT 10.2

                            STOCK PURCHASE AGREEMENT

         THIS STOCK  PURCHASE  AGREEMENT  dated  January  26,  2000 by and among
ENTRADE INC., a  Pennsylvania  corporation  ("Entrade"),  and WARREN  ROTHSTEIN,
THOMAS  SETTINERI,  and  GARY  LEVI,  individuals  (each  a  "Stockholder"  and,
together, the "Stockholders").

                                R E C I T A L S:

         WHEREAS,  each  Stockholder  owns that  number of shares of the  Common
Stock  of  ATM  Service,  Ltd.,  d/b/a  ATMCenter.com,  a New  York  corporation
("ATMCenter") set forth opposite such Stockholder's name on Exhibit l(a) hereto,
representing  in the  aggregate  15% of the  issued  and  outstanding  shares of
capital stock of ATMCenter (the "Shares"); and

         WHEREAS,  Entrade desires to acquire the Shares from the  Stockholders,
in exchange for the consideration and on the terms and subject to the conditions
set  forth  in this  Agreement,  and the  Stockholders  desire  to  effect  such
exchange.

         NOW,  THEREFORE,  in consideration of the mutual covenants and premises
and the representations, warranties and conditions contained herein, the parties
hereto, intending to be legally bound hereby, agree as follows:

         SECTION 1.  THE EXCHANGE.

                  (a) Terms of the Exchange. In reliance on the representations,
warranties  and  covenants  contained  herein  and  subject  to  the  terms  and
conditions  hereof,  on  the  Closing  Date  (as  hereinafter   defined),   each
Stockholder  shall  transfer,  convey and deliver to Entrade,  and Entrade shall
acquire  from each  Stockholder,  that number of Shares of  ATMCenter  set forth
opposite such Stockholder's name on Exhibit l(a) hereto.

                  (b)  Consideration  for the Shares.  In consideration  for the
acquisition of the Shares,  Entrade shall issue to the Stockholders an aggregate
number  of fully  paid and  non-assessable  shares  of  Entrade's  Common  Stock
("Entrade's  Stock")  equal to the greater of (i)  352,941,  or (ii) that number
determined in accordance with the following  formula:  (x) $6,000,000 divided by
(y) the average  closing share price for Entrade's  Stock traded on the New York
Stock  Exchange for the five (5) business days  preceding the Closing Date.  The
shares  of  Entrade's  Stock  issuable  to the  Stockholders  as  aforesaid  are
hereinafter  referred to as the  "Acquisition  Price." No  fractional  shares of
Entrade's  Stock  and no  scrip  or  certificates  therefor  will be  issued  in
connection with the exchange. Any Stockholder who would otherwise be entitled to
receive a fraction of a share of Entrade  Common  Stock shall  receive,  in lieu
thereof,  a check  for  cash in an  amount  equal  to such  fraction  of a share
multiplied by the average closing price per share  determined in accordance with
the foregoing provisions.

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                  (c) Payment of the Acquisition Price. On the Closing Date, the
shares of Entrade's  Stock  representing  the  Acquisition  Price (the  "Entrade
Shares")  shall be  issued in the names of and  delivered  to the  Stockholders,
allocated  among them as set forth on Exhibit  l(a) hereto,  against  receipt by
Entrade from the  Stockholders of certificates  for the Shares duly endorsed for
transfer to Entrade in accordance with Section 7(c) hereof.

         SECTION 2.  THE CLOSING.

                  The closing of the  acquisition  and  conveyance of the Shares
(the  "Closing")  shall take place at the offices of Duane,  Morris & Heckscher,
LLP, One Liberty Place, Philadelphia,  Pennsylvania,  at 10:00 a.m. (local time)
on the first business day following the day on which the last to be fulfilled or
waived of the conditions set forth in Articles 7 and 8 hereof shall be fulfilled
or waived in  accordance  therewith  or (b) at such  other time and place as the
parties may agree (the "Closing Date").

         SECTION 3.        REPRESENTATIONS AND WARRANTIES WITH RESPECT TO THE
STOCKHOLDERS.

                  Each Stockholder  hereby severally  represents and warrants to
Entrade as follows:

                  (a) Share  Ownership.  Such  Stockholder is the beneficial and
record  owner of the Shares set forth  opposite his name on Exhibit l(a) hereto,
free and clear of any claim, lien, pledge, option, charge, encumbrance, security
interest,  or other right of any third party  (collectively an "Encumbrance") of
any nature whatsoever.

                  (b) Authority.  Such  Stockholder has full power and authority
to enter into this  Agreement,  to execute  and  deliver  all other  agreements,
documents and/or instruments  contemplated to be executed by such Stockholder in
connection with this Agreement (the "Other  Stockholder  Documents") and to sell
such  Stockholder's  Shares  in  accordance  with the  terms  hereof in a manner
necessary to convey to Entrade good and  marketable  title to such Shares,  free
and clear of any Encumbrance of any nature  whatsoever and without requiring the
consent of any third party,  including,  without  limitation,  any  governmental
agency or authority.  This  Agreement and all Other  Stockholder  Documents have
been duly executed and delivered by such  Stockholder  and constitute the legal,
valid and binding  obligations  of such  Stockholder,  enforceable  against such
Stockholder in accordance with their respective terms,  except as enforceability
may be limited by  bankruptcy,  insolvency  or other  similar laws  affecting or
relating to the enforcement of creditors  rights  generally and the availability
of equitable remedies, including specific performance.

                  (c) No Violation,  Etc. Neither such  Stockholder's  execution
and delivery of this Agreement or any of the Other  Stockholder  Documents,  the
consummation of the transactions  contemplated herein or therein, nor compliance
by such  Stockholder  with any of the  provisions  hereof or thereof  will:  (i)
result in the creation of any Encumbrance upon such  Stockholder's  Shares under
any of  the  terms,  conditions  or  provisions  of any  note,  bond,  mortgage,
indenture,  deed of  trust,  license,  agreement,  or any  other  instrument  or
obligation to which such  Stockholder is a party or by which such Stockholder or
such Stockholder's Shares may be bound or affected, or (ii) violate

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any order, writ, injunction,  decree,  statute, rule or regulation applicable to
such Stockholder or such Stockholder's Shares.

                  (d) No Other  Agreements to Sell Shares.  Such Stockholder has
no understanding with or obligation, absolute or contingent, to any other person
or firm to sell or otherwise dispose of such Stockholder's Shares, to effect any
merger,  consolidation or other reorganization of ATMCenter or to enter into any
agreement with respect thereto.

                  (e)  Investment Representations. Such Stockholder is acquiring
his shares of Entrade's Stock for his own account, for investment and not with a
view to the sale, transfer, disposition or distribution thereof.

                  (f) Litigation. There is no litigation, proceeding or arbitral
action pending or, so far as is known to such  Stockholder,  threatened  against
such Stockholder  relating to such  Stockholder's  ownership or proposed sale of
the Shares.

         SECTION 4. REPRESENTATIONS AND WARRANTIES WITH RESPECT TO ATMCENTER.

                  Except  as set forth in the  disclosure  letter  delivered  to
Entrade at or prior to the execution hereof (the "ATMCenter Disclosure Letter"),
the  Stockholders,  jointly and  severally,  represent and warrant to Entrade as
follows:

                  (a) No Other Agreements to Sell Assets or Business.  ATMCenter
has no understanding  with or obligation,  absolute or contingent,  to any other
person or firm to sell any of its assets  (other  than sales of  products in the
ordinary  course  of  business),  to issue  any  capital  stock or any  security
convertible  into or  exchangeable  for capital stock,  or to effect any merger,
consolidation  or other  reorganization  or to enter  into  any  agreement  with
respect thereto.

                  (b)  Consents,  No Conflicts,  Etc.  Neither the execution and
delivery of this Agreement or the Other Stockholder Documents,  the consummation
of the  transactions  contemplated  herein or  therein,  nor  compliance  by the
Stockholders  with any of the provisions  hereof or thereof will: (i) violate or
conflict with the certificate of incorporation,  by-laws or other organizational
documents of ATMCenter,  (ii)  violate,  conflict  with,  result in a breach of,
constitute  a default  (or an event  which with the giving of notice or lapse of
time or both would constitute a default) under, or result in the acceleration of
payment or performance  under,  or  termination  of, any note,  bond,  mortgage,
indenture,  deed of  trust,  license,  agreement,  or any  other  instrument  or
obligation to which  ATMCenter is a party,  or by which  ATMCenter or any of its
assets or properties  may be bound or affected,  (iii) result in the creation of
any  Encumbrance  upon any of the Shares or any of the assets or  properties  of
ATMCenter,  (iv) violate any order, writ, injunction,  decree,  statute, rule or
regulation  applicable  to ATMCenter or any of its assets or  properties  or (v)
require  the  consent,  approval,   permission  or  other  authorization  of  or
qualification  or  filing  by or with any  court,  arbitrator  or  governmental,
administrative or self-regulatory authority.

                                       -3-

<PAGE>

                  (c)   Organization,   Good  Standing  and   Capitalization  of
ATMCenter.  ATMCenter is a corporation  duly organized,  validly existing and in
good  standing  under  the laws of the  State  of New  York.  ATMCenter  has all
requisite  corporate power to carry on its business as it is now being conducted
and  is  duly  qualified  to  do  business  as a  foreign  corporation  in  each
jurisdiction  where the failure to be  qualified  would have a material  adverse
effect on it.  ATMCenter's  authorized  capital  consists  exclusively  of 2,000
shares of Common Stock, of which 2,000 shares are issued and outstanding. All of
the  outstanding  shares of capital stock of ATMCenter have been duly authorized
and are  validly  issued,  fully paid and  nonassessable.  There are no existing
options,  warrants,  calls  or  commitments  of  any  character  whatsoever,  or
agreements  to grant  the same,  relating  to  ATMCenter's  capital  stock,  and
ATMCenter has no outstanding  securities  convertible  into or  exchangeable  or
exercisable for any shares of its capital stock or any options,  warrants, calls
or commitments of any character  whatsoever with respect to the issuance of such
convertible  securities.  ATMCenter holds no capital stock,  options,  warrants,
calls or other  equity  interests  or any  convertible  securities  in any other
enterprise.

                  (d) Financial Statements. ATMCenter has delivered to Entrade a
true and complete copy of the unaudited,  management  prepared  balance sheet of
the company dated as of November 30, 1999  (hereinafter,  the "Balance  Sheet").
The foregoing  financial  statements  fairly  present the  financial  condition,
results of operations, assets, liabilities,  changes in stockholders' equity and
cash flow of ATMCenter as of the dates and for the periods indicated.

                  (e) Absence of Undisclosed Liabilities and Obligations. Except
as and to the extent  reflected or reserved  against in the Balance Sheet or the
Exhibits thereto, as of November 30, 1999 (the "Balance Sheet Date"),  ATMCenter
had  no  material  liabilities  or  obligations   (whether  accrued,   absolute,
contingent or otherwise).

                  (f)  Absence of Certain Changes or Events.  Since the Balance
Sheet Date there has not been any:

                           (i)  change in the condition (business, financial  or
otherwise),  assets,  liabilities,   earnings  or  business  of  ATMCenter  (the
"Business"),  except for changes which have  occurred in the ordinary  course of
business and which have not,  individually or in the aggregate,  been materially
adverse to ATMCenter taken as a whole;

                           (ii)   (A)  change in the number of shares of capital
stock of ATMCenter  issued and outstanding,  (B) declaration,  setting aside, or
payment of any  dividend or other  distribution  (whether  in cash,  securities,
property or otherwise) in respect of ATMCenter's  capital stock,  or (C) payment
to any ATMCenter  stockholder or any Affiliate (as defined in Section 15 hereof)
of  any  ATMCenter  stockholder  (whether  in  cash,  securities,   property  or
otherwise)  in respect of any service fee,  management  fee or similar  overhead
charge;

                           (iii)  mortgage,  pledge   or   subjection   to   any
Encumbrance of any of ATMCenter's assets except (A) the lien of current real and
personal  property  taxes  incurred  but not yet due and payable or (B) liens or
obligations arising in the ordinary course of business securing  obligations not
yet due and payable;

                                      -4-

<PAGE>

                           (iv) material liability incurred by ATMCenter, except
liabilities  incurred in the  ordinary  course of business or which would not in
the  aggregate  have a material  adverse  effect on the  financial  condition of
ATMCenter;

                           (v)   borrowing   of  any  money  by   ATMCenter   or
guaranteeing of any indebtedness of others;

                           (vi) lending of any money or  otherwise  pledging the
credit of ATMCenter;

                           (vii) failure to operate the business of ATMCenter in
the ordinary  course so as to seek to preserve the  businesses  intact,  to keep
available to ATMCenter the services of  ATMCenter's  Personnel,  and to preserve
the goodwill of  ATMCenter's  suppliers,  customers and others  having  business
relations with them; or

                           (viii)  other  event or  condition  of any  character
which individually or in the aggregate has materially adversely affected, or any
event or condition known to ATMCenter or the Stockholders which it is reasonable
to expect will, individually or in the aggregate, materially adversely affect in
the  future,  the  condition   (business,   financial  or  otherwise),   assets,
liabilities, earnings, liquidity, prospects or business of ATMCenter.

                  (g) Tax Matters.  ATMCenter has duly filed all tax reports and
returns required to be filed by it (if any), including all United States, state,
local and  foreign  tax  returns  and  reports.  All tax  returns and reports of
ATMCenter  filed prior to the date hereof (if any) are  accurate and complete in
all material  respects and were prepared in conformity  with all applicable laws
and  regulations.  ATMCenter  has:  (i) paid in full all Taxes  (as  hereinafter
defined)  due and  owing on any such  returns  and  reports  or any  assessment,
deficiency notice,  30-day letter or similar notice received by it and (ii) made
adequate provision (by the establishment of reserves or otherwise) for all Taxes
relating  to or arising in  connection  with any period  ending on or before the
date hereof.  All Taxes which ATMCenter has been required to collect or withhold
have been duly collected or withheld and, to the extent required, have been duly
paid to the proper  taxing  authority.  ATMCenter  is not a party to any pending
action or proceeding  by any  governmental  authority for the  assessment of any
Tax, and no claim for  assessment  or  collection  of any Tax has been  asserted
against  ATMCenter that has not been paid.  There are no material Tax liens upon
any property or assets of  ATMCenter.  There are no  outstanding  agreements  or
waivers extending any statutory period of limitations  applicable to any federal
income tax return or other material tax return of ATMCenter for any period.  For
the  purposes of this  Agreement,  any United  States,  state,  local,  foreign,
income,  sales, use, transfer,  payroll,  personal property,  occupancy or other
tax, levy, impost, fee, imposition or similar charge,  together with any related
addition to tax, interest or penalty thereon, is referred to as a "Tax."

                  (h) Tangible Properties.  Except as set forth on the ATMCenter
Disclosure  Letter,  ATMCenter  has  good  and  marketable  title  to all of its
respective  properties  and assets,  real,  personal,  tangible  and  intangible
(including  those  reflected  in the  Balance  Sheet,  except  as since  sold or
otherwise  disposed  of in the  ordinary  course  of  business,  which  sale  or
disposition,  in  any  individual  case  or in  the  aggregate,  has  not  had a
materially adverse effect upon ATMCenter), free and clear of all Encumbrances of
any nature whatsoever, except for (A) the lien of taxes not yet due and

                                       -5-

<PAGE>

payable, and (B) such imperfections of title and Encumbrances, if any, as do not
materially  detract  from the value,  or  interfere  with the present use of the
properties  or the business of  ATMCenter,  or otherwise  materially  impair the
business operations of ATMCenter.

                  (i) Intellectual  Properties.  The ATMCenter Disclosure Letter
contains  accurate  lists and  summary  descriptions  of (i) all  patents of any
description and pending applications  therefor,  all registrations of trademarks
and of other marks,  all  registrations  of trade  names,  labels or other trade
rights,  all  registered  user entries,  all pending  applications  for any such
registrations or entries,  all copyright  registrations and pending applications
therefor,  all other  copyrights,  trademarks  and other marks,  trade names and
other  trade   rights  and   licenses   therefor   (collectively   "Intellectual
Properties"),  all to the extent that the foregoing  items are owned in whole or
in part  or used by the  ATMCenter;  and (B) all  computer  software  (including
without limitation,  all computer programs,  data bases and documentation) owned
in whole or in part or used by ATMCenter.  The Intellectual  Properties referred
to  above  are all  those  used in the  business  of  ATMCenter.  Other  than as
disclosed in the ATMCenter Disclosure Letter, no person has a right to receive a
royalty with respect to any of the  Intellectual  Properties  referred to above,
and ATMCenter has no licenses  granted by or to it or other  agreements to which
it is a party,  relating  in whole  or in part to any  Intellectual  Properties,
whether owned by ATMCenter or otherwise.  No other  Intellectual  Properties are
required  to permit the conduct of  ATMCenter's  business  as now  conducted  or
presently  proposed to be conducted  without conflict with the rights of others.
All of  the  patents,  trademarks,  trademark  registrations,  trade  names  and
copyrights referred to above are valid and in full force and effect. To the best
of the  knowledge of The  Stockholders,  ATMCenter is not  infringing  upon,  or
otherwise  violating,  the  rights  of  any  third  party  with  respect  to any
Intellectual  Properties.  No proceedings have been instituted against or claims
received by  ATMCenter,  nor are any  proceedings  threatened  alleging any such
violation,  nor do ATMCenter or the Stockholders know of any valid basis for any
such proceeding or claim. To ATMCenter's and the Stockholders' knowledge,  there
is no  infringement  or other  adverse  claim  against  any of the  Intellectual
Properties owned or used by ATMCenter.

                  (j)   Litigation.   There  is  neither  (i)  any   litigation,
proceeding or arbitral action pending or threatened against (A) ATMCenter or any
of its properties,  or (B) the Stockholders with respect to the Shares, nor (ii)
any  pending  or  threatened  governmental  investigation  against  any  of  the
foregoing nor (iii) any valid basis known to ATMCenter or the  Stockholders  for
any such litigation,  proceeding or investigation which, if adversely determined
could,  in any one case or in the aggregate,  have a material  adverse effect on
the business or prospects of  ATMCenter.  There are no decrees,  injunctions  or
orders of any court or  governmental  department or agency  outstanding  against
ATMCenter or against the Stockholders with respect to the Shares.

                  (k) Compliance  with Laws;  Permits.  To the best knowledge of
the  Stockholders,  ATMCenter  has  complied in all material  respects  with all
applicable  statutes,  regulations,  orders,  ordinances  and other  laws of the
United States, all state,  local and foreign  governments and other governmental
bodies and  authorities,  and  agencies of any of the  foregoing  to which it is
subject.  To the best knowledge of the Stockholders,  ATMCenter has not received
any notice to the effect that,  or otherwise  been  advised  that,  it is not in
compliance with any of such statutes,  regulations and orders, ordinances, other
laws or undertakings, and the Stockholders have no reason to anticipate that

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any past or presently existing practices, activities or circumstances are likely
to result in violations of any such regulations  which could, in any one case or
in the  aggregate,  cause a material loss or otherwise  have a material  adverse
effect on the business of ATMCenter.  To the best knowledge of the Stockholders,
ATMCenter has duly filed all reports and returns required to be filed by it with
governmental  authorities  and  obtained  all  Permits  which  are  required  in
connection  with its  business  and  operations.  To the best  knowledge  of the
Stockholders,  ATMCenter is in compliance  with all terms and  conditions of all
required Permits. To the best knowledge of the Stockholders,  all Permits are in
full force and effect,  and no proceedings for the suspension or cancellation of
any Permit is pending or threatened.

                  (l) No Brokers.  Neither  ATMCenter  nor any  Stockholder  has
entered into any agreement, arrangement or understanding with any person or firm
which will result in the obligation of ATMCenter, Entrade, or any Stockholder to
pay any finder's fee, brokerage commission or similar payment in connection with
the transactions contemplated hereby.

                  (m)   Transactions   with   Certain   Persons.   Neither   the
Stockholders, any officer or director of ATMCenter, any employee of ATMCenter or
member  of any  such  person's  immediate  family  is  presently  a party to any
material  transaction  with  ATMCenter  relating to the  business of  ATMCenter,
including,  without limitation, any contract, agreement or other arrangement (A)
providing  for the  furnishing  of services by, (B)  providing for the rental of
real or personal  property from, or (C) otherwise  requiring  payments to (other
than for services as officers,  directors  or employees of  ATMCenter)  any such
person  or  corporation,  partnership,  trust or other  entity in which any such
person has a substantial interest as a shareholder,  officer,  director, trustee
or partner.

                  (n)  Disclosure.   No   representation  or  warranty  made  by
ATMCenter  or the  Stockholders  in this  Agreement  or in any  Other  ATMCenter
Document  or Other  Stockholder  Document,  or any  Exhibit  hereto  or  thereto
contains any untrue  statement  of a material  fact or omits to state a material
fact necessary to make the statements  contained  herein or therein not false or
misleading.

         SECTION 5.        REPRESENTATIONS AND WARRANTIES OF ENTRADE .

                  Entrade hereby  represents and warrants to the Stockholders as
follows:

                  (a) Organization  and Good Standing.  Entrade is a corporation
duly  organized,  validly  existing and in good  standing  under the laws of the
Commonwealth of Pennsylvania,  and has all requisite corporate power to carry on
its business as it is now being conducted.

                  (b) Authority;  Execution and Delivery. Entrade has full power
and authority to enter into this Agreement and all other  agreements,  documents
and instruments  contemplated  to be executed by it in connection  herewith (the
"Other  Entrade  Documents").  The execution,  delivery and  performance of this
Agreement  and the  Other  Entrade  Documents  by  Entrade  have  been  duly and
effectively authorized by its Board of Directors. No other corporate proceedings
on the part of Entrade is  required to  authorize  this  Agreement  or the Other
Entrade Documents;  and this Agreement and the Other Entrade Documents have been
duly executed and delivered by Entrade, and constitute legal,

                                      -7-

<PAGE>

valid and binding obligations enforceable against Entrade in accordance with its
terms, except as enforceability thereof may be limited by bankruptcy, insolvency
or other  similar laws  affecting or relating to the  enforcement  of creditors'
rights generally and the availability of equitable remedies,  including specific
performance.

                  (c) No Brokers.  Entrade has not entered  into any  agreement,
arrangement  or  understanding  with any person or firm which will result in the
obligation of ATMCenter,  Entrade,  or any  Stockholder to pay any finder's fee,
brokerage  commission  or similar  payment in connection  with the  transactions
contemplated hereby.

                  (d)  Consents,  No Conflicts,  Etc.  Neither the execution and
delivery of this Agreement or the Other Entrade  Documents,  the consummation by
Entrade of the transactions  contemplated  herein or therein,  nor compliance by
Entrade  with any of the  provisions  hereof or  thereof  will:  (i)  violate or
conflict with any provision of its articles of  incorporation  or by-laws,  (ii)
violate  any  order,  writ,  injunction,  decree,  statute,  rule or  regulation
applicable to Entrade or any of its assets or  properties,  or (iii) require the
consent,  approval,  permission  or other  authorization  of or by or  filing or
qualification  with any court,  arbitrator or governmental,  administrative,  or
self regulatory authority.

                  (e) SEC  Documents.  Entrade has filed all forms,  reports and
documents required to be filed by it with the Securities and Exchange Commission
(the "SEC") since August 19, 1999 (collectively,  the "Entrade Reports").  As of
their respective  dates, the Entrade  Reports,  and any such reports,  forms and
other  documents  filed by Entrade with the SEC after the date of this Agreement
(i)  complied,  or will  comply,  as to form in all material  respects  with the
applicable  requirements  of the Securities Act, the Exchange Act, and the rules
and  regulations  thereunder  and (ii) did not, or will 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 made therein, in the light of
the circumstances under which they were made, not misleading. The representation
in clause (ii) of the preceding  sentence shall not apply to any misstatement or
omission in any Entrade  Report filed prior to the date of this  Agreement  that
was  superseded by a subsequent  Entrade  Report filed prior to the date of this
Agreement  that  specifically  corrected  such  misstatement  or omission in the
applicable Entrade Report.

                  (f) Absence of Undisclosed Liabilities and Obligations. Except
as and to the extent reflected or reserved against in the Entrade Reports, as of
the respective dates thereof Entrade had no liabilities or obligations  (whether
accrued, absolute, contingent or otherwise) of a nature required to be reflected
in a corporate  balance sheet  prepared in accordance  with GAAP or disclosed in
the notes thereto.

                  (g) Disclosure.  No representation or warranty made by Entrade
in this Agreement or the Other Entrade  Documents  contains any untrue statement
of a  material  fact or omits to state a  material  fact  necessary  to make the
statements contained herein or therein not false or misleading.

                                       -8-

<PAGE>

         SECTION 6.        CERTAIN COVENANTS AND AGREEMENTS.

                  (a) Access to Information  Before Closing.  Entrade may, prior
to  the  Closing  Date,  make,  or  cause  to be  made,  such  investigation  of
ATMCenter's  financial,  legal,  tax,  accounting or other condition as it deems
necessary or advisable.  The Stockholders  shall use their best efforts to cause
ATMCenter to permit Entrade and its authorized representatives,  including legal
counsel, investment bankers and independent accountants,  upon reasonable notice
to have  full  access to the  properties  and  relevant  books  and  records  of
ATMCenter at reasonable  business hours,  and to cause ATMCenter to furnish,  or
cause to be furnished,  to Entrade such  financial and operating  data and other
information  and copies of  documents  with respect to the  products,  services,
operations  and  properties  of  ATMCenter  as  Entrade  shall from time to time
request. No investigation made by Entrade or its representatives,  except to the
extent  of  actual  knowledge  by  Entrade  of any  inaccuracy  or breach of the
representations  and  warranties of the  Stockholders  contained  herein,  shall
affect any of such  representations  and  warranties  in this  Agreement  or the
liability  of  the  Stockholders   with  respect  thereto.   In  the  event  the
transactions  contemplated by this Agreement  shall not be consummated,  Entrade
will return to ATMCenter all documents, work papers and other materials obtained
from ATMCenter  relating to the  transactions  contemplated  hereby,  whether so
obtained  before  or after the  execution  hereof,  and  Entrade  will  treat in
confidence all such information.  Entrade shall have completed its due diligence
investigation of ATMCenter, including, but not limited to, financial, legal, tax
and accounting due diligence, by that date which is fourteen (14) days following
the date of this Agreement ("Review Period End Date"). If such investigation and
the information  obtained in connection  therewith has not been  satisfactory to
Entrade in its sole discretion,  Entrade shall have the option to terminate this
Agreement as provided in Section 10(a)(v) hereof.

                  (b) Further Assurances.  If at any time after the Closing Date
any further  assignments,  conveyances  or  assurances  in law are  necessary or
desirable  to vest,  perfect or  confirm  of record in Entrade  the title to the
Shares or otherwise to carry out the provisions  hereof,  the Stockholders shall
execute  and  deliver any and all proper  documents,  instruments  and powers of
attorney and  assurances in law, and do all things  necessary or proper to vest,
perfect or confirm title to the Shares in Entrade and otherwise to carry out the
provisions   hereof.  If  at  any  time  after  the  Closing  Date  any  further
assignments,  conveyances  or  assurances  in law are  necessary or desirable to
vest,  perfect or confirm of record in the Stockholders or any of them the title
to any shares of Entrade's  Stock,  the proper officers of Entrade shall execute
and deliver any and all proper documents, instruments and powers of attorney and
assurances  in law, and do all things  necessary  or proper to vest,  perfect or
confirm  title to the Entrade  Shares in the  Stockholders  to the extent of its
interests therein.

                  (c) Meeting of Entrade  Stockholders.  Entrade  shall take all
action  necessary  in  accordance  with  applicable  law  and  its  Articles  of
Incorporation and Bylaws to convene a meeting of its shareholders as promptly as
practicable  to consider  and vote upon the approval of this  Agreement  and the
issue of the  Entrade  Shares to the  Stockholders.  The Board of  Directors  of
Entrade shall recommend such approval,  and Entrade shall take all lawful action
to solicit such  approval,  including,  without  limitation,  timely mailing the
Proxy Statement/Prospectus  (hereinafter defined);  provided, however, that such
recommendation   or  solicitation  is  subject  to  any  action  (including  any
withdrawal or change of its recommendation) taken by, or upon authority of, the

                                       -9-

<PAGE>

Board of Directors  of Entrade in the exercise of its good faith  judgment as to
its fiduciary duties to its shareholders imposed by law.

                  (d) Registration Statement. Entrade and the Stockholders shall
cooperate  and promptly  prepare and Entrade  shall file with the SEC as soon as
practicable  a  Registration  Statement  on Form S-4 (the "Form  S-4") under the
Securities  Act, with respect to the Entrade  Shares,  which shall also serve as
the proxy  statement with respect to the meeting of the  shareholders of Entrade
to approve this  Agreement  (the "Proxy  Statement/Prospectus").  The respective
parties will cause the Proxy  Statement/Prospectus and the Form S-4 to comply as
to  form  in  all  material  respects  with  the  applicable  provisions  of the
Securities  Act,  the  Exchange  Act and the rules and  regulations  thereunder.
Entrade shall use all reasonable  efforts,  and the Stockholders shall cooperate
with Entrade,  to have the Form S-4 declared effective by the SEC as promptly as
practicable,  and to keep the  Form S-4  effective  as long as is  necessary  to
consummate the transactions  contemplated hereunder.  Entrade shall, as promptly
as  practicable,  provide copies of any written  comments  received from the SEC
with respect to the Form S-4 to the  Stockholders and advise the Stockholders of
any verbal comments with respect to the Form S-4 received from the SEC.  Entrade
shall use its best efforts to obtain,  prior to the  effective  date of the Form
S-4,  all  necessary  state  securities  law or "blue sky"  permits or approvals
required to carry out the  transactions  described  in this  Agreement.  Entrade
agrees that the Proxy  Statement/Prospectus  and each  amendment  or  supplement
thereto  at the  time of  mailing  thereof  and at the  time of the  meeting  of
shareholders  of Entrade,  or, in the case of the Form S-4 and each amendment or
supplement  thereto,  at the  time it is filed or  becomes  effective,  will not
include an 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; provided,
however,  that the foregoing  shall not apply to the extent that any such untrue
statement  of a material  fact or omission to state a material  fact was made by
Entrade in reliance upon and in conformity with written  information  concerning
the Stockholders  furnished to Entrade by the Stockholders  specifically for use
in the Proxy  Statement/Prospectus  or any amendment or supplement thereto.  The
Stockholders  agree that the written  information  concerning  the  Stockholders
provided by them for inclusion in the in the Proxy Statement/Prospectus and each
amendment or supplement  thereto at the time of mailing  thereof and at the time
of the  meeting  of  shareholders  of  Entrade,  or,  in  the  case  of  written
information  concerning ATMCenter or the Stockholders  provided for inclusion in
the Form S-4 or any amendment or supplement  thereto, at the time it is filed or
becomes  effective,  will not include an 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.  Entrade will advise the Stockholders promptly of the time
when the Form S-4 has become  effective or any  supplement or amendment has been
filed,  the issuance of any stop order,  the suspension of the  qualification of
Entrade's  Stock issuable in connection  with the  transactions  contemplated by
this Agreement for offering or sale in any  jurisdiction,  or any request by the
SEC for amendment of the Proxy  Statement/Prospectus or the Form S-4 or comments
thereon and responses thereto or requests by the SEC for additional information.
The  filing fee in  connection  with the filing of the Form S-4 with the SEC and
the expenses incurred in connection with printing and mailing the Form S-4 shall
be borne by Entrade.

                  (e)  Listing Application.  E ntrade shall promptly prepare and
submit to the NYSE a listing application  covering the shares of Entrade's Stock
issuable in the transactions contemplated

                                      -10-

<PAGE>

by this  Agreement,  and shall use  reasonable  efforts to obtain,  prior to the
Closing  Date,  approval for such listing of such  Entrade's  Stock,  subject to
official notice of issuance.

         SECTION 7.      CONDITIONS TO OBLIGATIONS OF ENTRADE.

                  The  obligation  of Entrade  to  consummate  the  transactions
contemplated  by this  Agreement  shall be  subject to the  fulfillment,  or the
waiver by Entrade, on or prior to the Closing Date of the following conditions:

                  (a) Stockholders' Performance.  Each of the obligations of the
Stockholders  to be  performed  on or before the Closing Date under the terms of
this  Agreement  shall have been duly  performed by the Closing Date, and on the
Closing Date, the Stockholders  shall have delivered to Entrade  certificates to
such effect.

                  (b)    Representations    and    Warranties    Correct.    The
representations  and  warranties  made by the  Stockholders  in Sections 3 and 4
hereof shall be true and correct in all material  respects when made,  and shall
be true and correct in all  material  respects on the Closing Date with the same
force and effect as if they had been made on and as of the Closing Date,  and on
the Closing Date, the Stockholders shall have delivered to Entrade  certificates
to such effect.

                  (c)  Operations in Usual Manner.  During  the period from  and
after the date of this Agreement through the Closing, ATMCenter shall have:

                           (i) continued to conduct its business in the ordinary
course;

                           (ii)  not  declared  or  paid  any  dividends  on its
capital stock or made any other  distribution  with respect  thereto or made any
payment on account of the repurchase,  redemption or retirement of any shares of
its capital stock or debt securities;

                           (iii)  not  incurred  or  guaranteed  any  additional
indebtedness for borrowed money, granted any salary increase or bonus or entered
into any long-term  contract,  other than in the ordinary course of business and
when such  transactions are not,  individually or in the aggregate,  material to
ATMCenter;

                           (iv) not amended its  certificate  of  incorporation,
by-laws or any other  organizational  document unless, and only insofar as, such
amendment  was  necessary  to carry out the  transactions  contemplated  by this
Agreement;

                           (v)  promptly  notified  Entrade in writing  upon the
discovery or receipt of notice of any event of default or any event which,  with
notice or lapse of time or both,  would constitute an event of default under any
material agreement to which ATMCenter is a party or by which any of its property
is bound or the  filing of any  material  litigation  against  ATMCenter  or the
existence of any dispute with any person that  involves a reasonable  likelihood
of such litigation being commenced;

                                      -11-

<PAGE>

                           (vi)  provided  to  Entrade  in  writing  as  soon as
available  after each  monthly  accounting  period an unaudited  balance  sheet,
statement of operation and statement of changes in financial  condition for such
monthly period and from the beginning of  ATMCenter's  fiscal year to the end of
such monthly period; and

the Stockholders shall have delivered to Entrade certificates to such effect.

                  (d)  Form  S-4  Effective.  The Form  S-4  shall  have  become
effective, and no stop order suspending effectiveness of the Form S-4 shall have
been issued, no action, suit,  proceeding or investigation by the SEC to suspend
the  effectiveness  thereof shall have been initiated and be continuing,  or, to
the knowledge of Entrade,  threatened,  and all necessary  approvals under state
securities laws relating to the issuance or trading of the Entrade's Stock to be
issued to the Stockholders in connection with the  transactions  contemplated by
this Agreement shall have been received.

                  (e) Stock Certificates.  On the Closing Date, each Stockholder
shall have delivered to Entrade a certificate or  certificates  evidencing  such
Stockholder's   Shares  free  and  clear  of  all  Encumbrances  of  any  nature
whatsoever, duly endorsed for transfer to Entrade or accompanied by stock powers
duly  executed for  transfer to Entrade and with all  requisite  documentary  or
stock transfer tax stamps affixed or paid for by such Stockholder.

                  (f)   Approvals   and   Consents.   This   Agreement  and  the
transactions described herein shall have been approved in the manner required by
applicable law or by the  applicable  regulations of any stock exchange or other
regulatory  body,  as the case may be,  and by the  holders  of the  issued  and
outstanding shares of capital stock of Entrade,  and the Stockholders shall have
obtained  or caused  ATMCenter  to have  obtained  and shall have  delivered  to
Entrade all requisite  approvals and consents  from  governmental  or regulatory
bodies or agencies,  whether federal,  state,  local or foreign,  or pursuant to
leases, mortgages, contracts, agreements, licenses or Permits, necessary for the
performance of its obligations hereunder.

                  (g) Financial Condition. On the Closing Date, there shall have
been no material adverse change in the financial condition,  business operations
or prospects, financial or otherwise, of ATMCenter since the date of the Balance
Sheet and, on the Closing Date, the Stockholders shall have delivered to Entrade
a certificate to such effect.

                  (g)  Proceedings  and  Documents.   All  corporate  and  other
proceedings  in connection  with the  transactions  contemplated  hereby and all
documents  and  instruments  incident to such  transactions  shall be reasonably
satisfactory in form and substance to Entrade and its counsel.

                  (h)  Other Closing  Documents.  The  Stockholders  shall  have
delivered to Entrade all of the following documents:

                           (i)   certified   copies   of  the   Certificate   of
Incorporation and By-Laws of ATMCenter, as in effect on the Closing Date; and

                                      -12-

<PAGE>

                           (ii)   such   other   documents   relating   to   the
transactions  contemplated  by this  Agreement  as Entrade or its counsel  shall
reasonably request.

                           (j)  Shareholders'  Agreement.  ATMCenter and each of
its  stockholders  shall have executed and delivered to Entrade a  Shareholders'
Agreement ("Shareholders' Agreement") in the form of Exhibit 7(k) hereto.

         SECTION 8.  CONDITIONS TO OBLIGATIONS OF THE STOCKHOLDERS.

                  The obligations of Stockholders to consummate the transactions
contemplated  hereby shall be subject to the  fulfillment,  or the waiver by the
Stockholders  or their  representative,  on or prior to the Closing  Date of the
following conditions:

                  (a) Entrade's Performance.  Each of the obligations of Entrade
to be performed on or before the Closing Date under the terms of this  Agreement
shall have been duly  performed by the Closing  Date,  and on the Closing  Date,
Entrade shall have delivered to the Stockholders a certificate to such effect.

                  (b)    Representations    and    Warranties    Correct.    The
representations and warranties made by Entrade in Section 5 hereof shall be true
and correct in all material respects when made, and shall be true and correct in
all  material  respects on the Closing Date with the same force and effect as if
they had been  made on and as of the  Closing  Date,  and on the  Closing  Date,
Entrade shall have delivered to the Stockholders a certificate to such effect.

                  (c)  Form  S-4  Effective.  The Form  S-4  shall  have  become
effective and no stop order suspending  effectiveness of the Form S-4 shall have
been issued, no action, suit,  proceeding or investigation by the SEC to suspend
the  effectiveness  thereof shall have been initiated and be continuing,  or, to
the knowledge of Entrade,  threatened,  and all necessary  approvals under state
securities laws relating to the issuance or trading of the Entrade's Stock to be
issued to the Stockholders in connection with the  transactions  contemplated by
this Agreement shall have been received.

                  (d)   Approvals   and   Consents.   This   Agreement  and  the
transactions described herein shall have been approved in the manner required by
applicable law or by the  applicable  regulations of any stock exchange or other
regulatory  body,  as the case may be,  and by the  holders  of the  issued  and
outstanding shares of capital stock of Entrade,  and Entrade shall have obtained
and shall have delivered to the Stockholders  all other requisite  approvals and
consents from  governmental or regulatory  bodies or agencies,  whether federal,
state,  local  or  foreign,  or  pursuant  to  leases,   mortgages,   contracts,
agreements,   licenses  or  Permits,   necessary  for  the  performance  of  its
obligations hereunder.

                  (e) Financial Condition. On the Closing Date, there shall have
been no material adverse change in the financial condition,  business operations
or  prospects,  financial or  otherwise,  of Entrade as reflected in the Entrade
Reports  and,  on  the  Closing  Date,  Entrade  shall  have  delivered  to  the
Stockholders a certificate to such effect.

                                      -13-

<PAGE>

                  (f)  Proceedings  and  Documents.   All  corporate  and  other
proceedings  in connection  with the  transactions  contemplated  hereby and all
documents  and  instruments  incident to such  transactions  shall be reasonably
satisfactory  in form and substance to the  Stockholders,  and their  respective
counsel.

                  (g)  Other Closing Documents.  Entrade shall have delivered to
the Stockholders all of the following documents:

                           (i) certified  copies of the resolutions duly adopted
by  Entrade's  Board  of  Directors  authorizing  the  execution,  delivery  and
performance of this Agreement and the Other Entrade Documents;

                           (ii)   certified   copies  of  the   Certificate   of
Incorporation and By-Laws of Entrade, as in effect on the Closing Date; and

                           (iii)   such   other   documents   relating   to  the
transactions  contemplated  by  this  Agreement  as the  Stockholders  or  their
respective counsel shall reasonably request.

                  (h)  Shareholders' Agreement.  Entrade shall have executed and
delivered to ATMCenter and each of its stockholders the Shareholders' Agreement.

         SECTION 9.        OBLIGATIONS OF PARTIES AFTER CLOSING.

                  (a)   Survival  of   Representations   and   Warranties.   All
representations,    warranties,   covenants,    stipulations,    certifications,
indemnities  and  agreements  contained  herein  or in  any  document  delivered
pursuant hereto shall survive the consummation of the transactions  described in
this Agreement.

                  (b)  Stockholders'  Agreement to Indemnify.  The  Stockholders
shall jointly and severally  indemnify and hold harmless  Entrade against and in
respect of any and all liabilities,  losses,  damages,  deficiencies,  costs, or
expenses  (including,  without  limitation,  the reasonable fees and expenses of
counsel) (collectively  "Losses") resulting from any misrepresentation or breach
of  representation  or warranty in Sections 3 or 4 hereof or certification  with
respect thereto in Section 7(b) hereof, or the  nonfulfillment of any agreement,
covenant or obligation  made by the  Stockholders in this Agreement or the Other
Stockholder  Documents  executed and delivered by the Stockholders in connection
herewith.

                  (c) Entrade's Agreement to Indemnify.  Entrade shall indemnify
and hold harmless the Stockholders  against and in respect of any and all Losses
resulting from any  misrepresentation or breach of representation or warranty in
Section 5 hereof or  certification  with respect thereto in Section 8(e) hereof,
or the  nonfulfillment of any agreement,  covenant or obligation made by Entrade
in this  Agreement or the Other  Entrade  Documents  executed  and  delivered by
Entrade in connection herewith.

                                      -14-

<PAGE>

                  (d) Claims for  Indemnification.  If any party hereto believes
it has suffered or incurred any Loss such party (the "Indemnified  Party") shall
so  notify  the  party or  parties  believed  to be  responsible  for such  Loss
(collectively,  the  "Indemnifying  Party") promptly in writing  describing such
Loss, the amount thereof,  if known, and the method of computation of such Loss,
all with reasonable  particularity  and containing a reference to the provisions
of this Agreement or any document  delivered pursuant hereto in respect of which
such  Loss  shall  have  occurred.  If any  action  at law or suit in  equity is
instituted  by or against a third party with  respect to which any party  hereto
intends to claim any liability or expense as a Loss  hereunder,  the Indemnified
Party shall promptly notify the  Indemnifying  Party of such action or suit. The
Indemnifying Party shall be entitled to participate,  at its own expense, in the
defense  or  settlement  of any  matter  for  which  indemnification  is  sought
hereunder  and the parties  agree to cooperate in any such defense or settlement
and to give each other full  access to all  information  relevant  thereto.  The
Indemnifying Party shall not be obligated to indemnify the other party hereunder
for any settlement  entered into without the Indemnifying  Party's prior written
consent, which consent shall not be unreasonably withheld or delayed.

                  (e)  Restrictions on Transfer of the Entrade Shares.  Prior to
the first  anniversary  of the Closing Date,  the  Stockholders  shall not sell,
transfer or  otherwise  dispose of (other than to pledge and borrow  against the
Entrade  Shares),  in the  aggregate,  more than the  number of  Entrade  Shares
determined as provided  hereinafter (the "Saleable Entrade Shares").  The number
of Saleable  Entrade  Shares  during the first three month period  following the
Closing Date shall be equal to one- twelfth (1/12) of the Entrade Shares,  which
number shall  increase in each  subsequent  three month period by an  additional
one-twelfth (1/12) of the Entrade Shares,  provided that the aggregate number of
Saleable  Entrade Shares shall not exceed  one-third (1/3) of the Entrade Shares
during  the one  year  period  following  the  Closing  Date.  The  Stockholders
acknowledge  that any  certificate  evidencing  the Entrade  Shares shall bear a
legend setting forth the aforesaid  restrictions on transfers.  The restrictions
provided  for herein  shall  terminate  and have no further  effect on the first
anniversary of the Closing Date,  and from and after that date the  Stockholders
shall have the right to exchange  their  certificates  representing  the Entrade
Shares for certificates  without the aforesaid legend. The Stockholders  further
acknowledge that the restrictions provided for herein are in addition to any and
all other restrictions on transfers that may be applicable to the Entrade Shares
or the  Stockholders  under federal or state  securities  laws or regulations or
under the rules of the NYSE.

                  (f) Restrictions on Entrade License Agreements. For so long as
Entrade  continues to hold at least five percent (5%) of the outstanding  shares
of ATMCenter  capital  stock,  entrade.com,  Inc. (a wholly owned  subsidiary of
Entrade), shall not enter into any license of the "entrade transaction software"
(as that term is defined  in that  certain  Software  License  Agreement  by and
between entrade.com, Inc. and ATMCenter dated as of September, 1999) with any of
the persons or entities  listed on Exhibit 9(f) hereto,  without first obtaining
ATMCenter's written consent.

         SECTION 10.  TERMINATION; EXPENSES.

         (a)  Termination. This Agreement may be terminated prior to the Closing
as follows:

                                      -15-

<PAGE>

                           (i) at any  time by the  mutual  written  consent  of
Entrade and the Stockholders;

                           (ii) by either  Entrade  or the  Stockholders  if the
approval of  Entrade's  shareholders  as required by Section 6(d) shall not have
been obtained at a meeting duly convened therefor or at any adjournment thereof,
or by the  Stockholders if the Form S-4 has not become  effective within 75 days
following the date of this Agreement (provided that, if the SEC elects to review
the Form S-4, such 75-day period shall be automatically extended to 120 days);

                           (iii)  by  Entrade   upon   written   notice  to  the
Stockholders  if a material breach of a warranty or  representation  or covenant
made by ATMCenter or any  Stockholder  shall have occurred and such breach shall
not have been  cured,  or is not  capable of being  cured,  within 30 days after
notice of the  existence  thereof  shall have been given by Entrade  (but in any
event prior to the Closing Date);

                           (iv)  by the  Stockholders  upon  written  notice  to
Entrade if a material breach of a warranty or representation or covenant made by
Entrade shall have occurred and such breach shall not have been cured, or is not
capable of being  cured,  within 30 days after notice of the  existence  thereof
shall have been given by the Stockholders (but in any event prior to the Closing
Date);

                           (v)  by   Entrade   upon   written   notice   to  the
Stockholders  on or before the Review Period End Date if Entrade's due diligence
investigation  and the  information  obtained in connection  therewith shall not
have been satisfactory to Entrade as provided in Section 7(j) hereof;

                           (vi)  by   Entrade   upon   written   notice  to  the
Stockholders  if a  materially  adverse  change  in the  business  or  financial
condition  of  ATMCenter  shall  have  occurred  or shall have  become  known to
Entrade, or if any material litigation shall be instigated or threatened against
ATMCenter, after the date hereof and on or prior to the Closing Date;

                           (vii) by the  Stockholders  upon  written  notice  to
Entrade if a materially adverse change in the business or financial condition of
Entrade shall have occurred or shall have become known to the  Stockholders,  or
if any material  litigation  shall be instigated or threatened  against Entrade,
after  the date  hereof  and on or  prior to the  Closing  Date  (provided  that
fluctuations in the public share price of Entrade's Stock, absent other material
considerations, shall not be deemed a material adverse change in its business or
financial condition);

                  (b) Expenses. Each of the parties to this Agreement shall bear
the expenses  incurred by it in connection with the  negotiation,  execution and
delivery of this Agreement and the consummation of the transactions contemplated
hereby.

                                      -16-
<PAGE>

         SECTION 11. WAIVER.

                  Any of the terms or conditions of this Agreement may be waived
at any  time and from  time to time in  writing  by the  party  entitled  to the
benefits  thereof  without  affecting  any  other  terms or  conditions  of this
Agreement.

         SECTION 12.  NOTICES, ETC.

                  All  notices,   requests,  demands  and  other  communications
hereunder  shall be in writing,  and shall be deemed to have been duly given, if
delivered  in  person  or by  courier,  telegraphed,  telexed  or  by  facsimile
transmission or mailed by certified or registered mail, postage prepaid:

         If to Stockholders:             c/o ATMCenter.com
                                         220 White Plains Road
                                         Tarrytown, NY 10591
                                         Telecopier:       (914) 631-6500

         with a copy to:                 Astor Weiss Kaplan & Rosenblum LLP
                                         200 South Broad Street, Sixth Floor
                                         Philadelphia, PA 19102
                                         Telecopier:       (215) 790-0509
                                         Attn: G. David Rosenblum, Esquire

         If to Entrade:                  Entrade Inc.
                                         500 Central Avenue
                                         Northfield, IL  60093
                                         Telecopier:       (847) 441-6959
                                         Attn: Mark Santacrose, President and
                                         Chief Operating Officer

         with a copy to:                 Duane, Morris & Heckscher, LLP
                                         One Liberty Place
                                         Philadelphia, PA 19103
                                         Telecopier:       (215) 979-1020
                                         Attention: Sheldon M. Bonovitz, Esquire

Any party may,  by  written  notice to the  other,  change the  address to which
notices to such party are to be delivered or mailed.

         SECTION 13.  ENTIRE AGREEMENT; AMENDMENT.

         This Agreement and the other agreements  referred to herein and entered
into in connection  herewith set forth the entire agreement and understanding of
the parties in respect of the transactions contemplated hereby and supersede all
prior agreements, arrangements and understandings relating to the subject matter
hereof. No representation, promise, inducement or statement of intention has

                                      -17-

<PAGE>

been made by the Stockholders or Entrade which is not embodied in this Agreement
or the other  agreements  referred  to herein  and  entered  into in  connection
herewith, the Exhibits hereto, or the written statements,  certificates or other
documents  delivered  pursuant hereto,  and neither the Stockholders nor Entrade
shall be bound by or liable for any alleged representation,  promise, inducement
or statement of intention  not so set forth.  This  Agreement  may be amended or
modified only by a written instrument executed by Entrade or the Stockholders or
by their successors and assigns.

         SECTION 14. GENERAL.

         This Agreement:  (i) shall be construed and enforced in accordance with
the laws of the  Commonwealth  of  Pennsylvania,  without  giving  effect to the
choice of law  principles  thereof;  (ii) shall  inure to the  benefit of and be
binding upon the successors and assigns of Entrade and the Stockholders, nothing
in this Agreement, expressed or implied, being intended to confer upon any other
person any rights or  remedies  hereunder;  and (iii) may be  executed in two or
more  counterparts,  each of which shall be deemed an original  but all of which
together  shall  constitute  one and the  same  instrument.  A  facsimile  of an
executed  copy of this  Agreement  shall  have the same  force and  effect as an
original  executed copy. No party may assign his or its rights hereunder without
the prior  written  consent of the other parties  hereto.  The section and other
headings  contained in this Agreement are for reference  purposes only and shall
not affect in any way the meaning or interpretation of this Agreement.

         SECTION 15.  DEFINED TERMS.

         As used in this Agreement,  the following terms shall have the meanings
set forth below:

                  ATMCenter's Personnel. As defined in Section 4(f)(vii) of this
Agreement.

                  Affiliate.  An individual,  corporation,  partnership,  trust,
joint venture or other entity or person that is in control of,  controlled by or
under common control with the applicable party.

                  Approvals.  The governmental and regulatory approvals required
prior to the consummation of the transactions contemplated in this Agreement.

                  Entrade's  Stock.  The shares of Entrade's  Common Stock to be
issued to the Stockholders under Section l(b) of this Agreement.

                  Balance Sheet Date.  November 30, 1999.

                  Business.  As defined in Section 4(f)(i) of this Agreement.

                  Closing.   The closing of the purchase and sale of the  Shares
pursuant to this Agreement.

                  Closing Date.  The date on which the Closing shall take place.

                                      -18-

<PAGE>

                  Encumbrances.   A  claim,   lien,  pledge,   option,   charge,
encumbrance, security interest or any right of any third party.

                  Losses.  As defined in Section 9(e) of this Agreement.

                  Stockholders.  The persons listed on Exhibit l(a) hereto.

                  Shares. The shares of Common Stock of ATMCenter being conveyed
and  acquired  by  Entrade  hereunder,   representing  15%  of  the  issued  and
outstanding shares of Common Stock of ATMCenter.

                  Tax.  As defined in Section 4(g) of this Agreement.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                      -19-

<PAGE>

         IN  WITNESS  WHEREOF,  the  parties  hereto  have  duly  executed  this
Agreement the day and year first above written.

                                        ENTRADE  INC.

                                        By:____________________________________
                                             Title:

                                        STOCKHOLDERS:

                                        _______________________________________
                                        WARREN ROTHSTEIN

                                        _______________________________________
                                        THOMAS SETTINERI

                                        _______________________________________
                                        GARY LEVI

                                      -20-EXHIBIT 10.3

                                                                 EXECUTION COPY

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

                              Investment Agreement

                                   dated as of

                                February 18, 2000

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

<PAGE>

                                TABLE OF CONTENTS
<TABLE>
<CAPTION>
                                                                                       Page
<S>                                                                                       <C>
ARTICLE I         The Transactions                                                        5
                  ----------------
         Section 1.1.  The Transactions to be Effected in Multiple Closings               5
                       ----------------------------------------------------
         Section 1.2.  Prior Payment; Closings                                            5
                       -----------------------
         Section 1.3.  Deliveries                                                         6
                       ----------
ARTICLE II        Representations and Warranties of the Company                           6
                  ---------------------------------------------
         Section 2.1.  Organization, Qualifications and Corporate Power                   7
                       ------------------------------------------------
         Section 2.2.  Authorization of Agreements; No Conflicts                          7
                       -----------------------------------------
         Section 2.3.  Validity                                                           8
                       --------
         Section 2.4.  Capitalization and Related Matters                                 8
                       ----------------------------------
         Section 2.5. Officers.                                                           8
                      --------
         Section 2.6. Other Agreements                                                    8
                      ----------------
         Section 2.7.  Governmental Approvals                                             9
                       ----------------------
         Section 2.8.  Business Plan                                                      9
                       -------------
         Section 2.9.  Offering of the Preferred Shares                                   9
                       --------------------------------
         Section 2.10.  Brokers or Finders                                                9
                        ------------------
ARTICLE III       Purchaser and Parent Representations and Warranties                     9
                  ---------------------------------------------------
         Section 3.1.  Investor Qualifications                                            9
                       -----------------------
         Section 3.2.  Investment.                                                       10
                       ----------
         Section 3.3.  Rule 144.                                                         10
                       --------
         Section 3.4.  No Public Market                                                  10
                       ----------------
         Section 3.5.  Access to Data                                                    10
                       --------------
         Section 3.6.  Authorization of Purchaser                                        10
                       --------------------------
         Section 3.8.  Brokers or Finders                                                11
                       ------------------
         Section 3.9.  Tax Consequences                                                  11
                       ----------------
         Section 3.10.  Company Information                                              11
                        -------------------
ARTICLE IV        Conditions to Closing                                                  12
                  ---------------------
         Section 4.1.  Conditions to Purchaser's Obligations to First Closing            12
                       ------------------------------------------------------
         Section 4.2.  Conditions to Company's Obligation to First Closing               13
                       ---------------------------------------------------
         Section 4.3.  Conditions to Purchaser's Obligation to Second Closing            14
                       ------------------------------------------------------
         Section 4.4.  Conditions to the Company's Obligation to Second Closing          14
                       --------------------------------------------------------
         Section 4.5.  Conditions to Purchaser's Obligation to Third Closing             15
                       -----------------------------------------------------
         Section 4.6.  Conditions to the Company's Obligation to Third Closing           15
                       -------------------------------------------------------
         Section 4.7.  Conditions to Purchaser's Obligation to Fourth Closing            16
                       ------------------------------------------------------
         Section 4.8.  Conditions to the Company's Obligation to Fourth Closing          16
                       --------------------------------------------------------

                                       2
<PAGE>

ARTICLE V         Reporting and Inspection                                               17
                  ------------------------
         Section 5.1.  Financial Statements and Other Information                        17
                       ------------------------------------------
         Section 5.2.  Inspection Rights                                                 18
                       -----------------
ARTICLE VI        Additional Covenants                                                   18
                  --------------------
         Section 6.1.  Board of Directors                                                18
                       ------------------

         Section 6.2.                                                                    18
         Expenses                                                                        18
         --------
         Section 6.3.  Share Plans                                                       18
                       -----------
         Section 6.4.  Annual Budget                                                     18
                       -------------
         Section 6.5.  Compensation of Directors and Executive Officers                  19
                       ------------------------------------------------
ARTICLE VII         Miscellaneous                                                        19
                    -------------
         Section 7.1.  Amendments                                                        19
                       ----------
         Section 7.2.  Survival of Representations and Warranties                        19
                       ------------------------------------------
         Section 7.3.  Successors and Assigns                                            19
                       ----------------------
         Section 7.4.  Severability                                                      19
                       ------------
         Section 7.5.  Descriptive Headings                                              19
                       --------------------
         Section 7.6.  Notices                                                           19
                       -------
         Section 7.7.  Governing Law                                                     21
                       -------------
         Section 7.8.  Exhibits and Schedules                                            21
                       ----------------------
         Section 7.9.  Final Agreement                                                   21
                       ---------------
         Section 7.10.  Execution in Counterparts                                        21
                        -------------------------
         Section 7.11.  JURISDICTION; VENUE; FORUM NON CONVENIENS                        21
                        -----------------------------------------
         Section 7.12.  WAIVER OF JURY TRIAL                                             22
                        --------------------
         Section 7.13.  Survival of Covenants                                            22
                        ---------------------
         Section 7.14.  Approval of Distribution of Parent Warrant                       22
                        ------------------------------------------
         Section 7.15.  Guarantee of Purchaser's Obligations                             23
                        ------------------------------------
</TABLE>

<PAGE>

SCHEDULES

I        Capitalization Table

II       Officers

EXHIBITS

A        Company Warrants

B        Software License Agreement

C        Instrument of Assignment of Parent Warrant

D        Parent Warrant

E        Registration Rights Agreement

F        Memorandum of Association and Articles of Association

<PAGE>

                                       23

                              INVESTMENT AGREEMENT

                  This  Investment  Agreement  (this  "Agreement")  dated  as of
February 18, 2000 is between  TradeTextile.com  Inc., a Cayman  Islands  company
(the  "Company"),  Entrade  Inc., a  Pennsylvania  corporation  ("Parent"),  and
entrade.com,  Inc., a Delaware corporation and wholly-owned subsidiary of Parent
("Purchaser").

                                     RECITAL

                  WHEREAS,  the  parties  desire  to  enter  into  a  series  of
transactions  pursuant  to which (i)  Purchaser  will  acquire  from the Company
1,011,667 (the "Purchased  Shares") Series A Convertible  Preferred Shares,  par
value U.S. $.001 per share,  of the Company (the  "Preferred  Shares"),  and the
Company Warrants (as hereinafter  defined),  (ii) the Company and Purchaser will
enter into the License  Agreement  (as  hereinafter  defined)  pursuant to which
Purchaser will transfer  certain  intellectual  property  rights to the Company,
(iii)  Purchaser  will  make  aggregate  cash  payments  to  the  Company,  U.S.
$3,500,000,  which  includes  $100,000  previously  paid  to the  Company,  (iv)
Purchaser will assign to the Company the Parent Warrant (as hereinafter defined)
and (v) the  Company  and  Purchaser  will  enter into the  Registration  Rights
Agreement (as  hereinafter  defined) (the  transactions  contemplated by clauses
(i),  (ii),  (iii),  (iv)  and  (v)  being  collectively   referred  to  as  the
"Transactions").

                                       5
<PAGE>

                  NOW,  THEREFORE,  in  consideration  of the  premises  and the
mutual covenants contained herein and other good and valuable consideration, the
receipt and  sufficiency  of which is hereby  acknowledged,  the parties  hereto
hereby agree as follows:

                                    ARTICLE I

                                The Transactions

                  Section  1.1.  The  Transactions  to be  Effected  in Multiple
Closings.  Except for the  payment of U.S.  $100,000 by Parent to the Company on
behalf  of  Purchaser,  which  was  made  on or  about  January  21,  2000,  the
Transactions  will be effected in multiple  closings  (the  "Closings"),  as set
forth in this Article I.

                  Section 1.2. Prior Payment;  Closings.  (a) The parties hereby
acknowledge  and agree that Parent has paid to the Company cash in the amount of
U.S. $100,000 prior to the date hereof and that the Company has no obligation to
return to Parent any portion thereof,  such U.S. $100,000 constituting a portion
of the U.S.  $3,500,000  contemplated  by clause  (iii) of the  recital  to this
Agreement.

                  (b) Subject to the  satisfaction  or waiver of the  conditions
set forth in Sections 4.1 and 4.2, the first  Closing  shall be held on February
18,  2000,  or such other date as may be agreed to in writing by the Company and
Purchaser (the "First Closing").  At the First Closing,  Purchaser shall (i) pay
to the Company cash in the amount of U.S. $900,000, (ii) enter into the Software
License Agreement (the "License Agreement"),  between the Company and Purchaser,
in  substantially  the form  attached  hereto  as  Exhibit B  pursuant  to which
Purchaser will transfer  certain  intellectual  property  rights to the Company,
(iii) execute the Instrument of Assignment (the "Instrument of Assignment"),  in
substantially  the form  attached  hereto  as  Exhibit C ,which  assigns  to the
Company the warrant to purchase  75,000 shares of Common  Stock,  par value U.S.
$.01 per share,  of Parent (the "Parent  Warrant") dated as of February 18, 2000
and  attached  hereto as Exhibit D and (iv) enter into the  Registration  Rights
Agreement  (the  "Registration  Rights  Agreement"),  between  the  Company  and
Purchaser,  in substantially the form attached hereto as Exhibit E. At the First
Closing, the Company shall (i) issue to Purchaser 511,667 Preferred Shares, (ii)
issue to  Purchaser  two  warrants to purchase  Preferred  Shares (the  "Company
Warrants"),  in  substantially  the forms,  attached  hereto as Exhibit  A-1 and
Exhibit  A-2,  (iii) enter into the License  Agreement,  and (iv) enter into the
Registration Rights Agreement.

                  (c) The second  Closing shall take place on the date specified
in a written notice  delivered in accordance  with Section 7.6 by the Company to
Purchaser;  provided,  however,  that, except as otherwise agreed,  such closing
date shall not be more than 2  business  days  prior to the date  Purchaser  has
received such notice;  and provided,  further,  that the closing  conditions set
forth in  Sections  4.3 and 4.4 have  been  satisfied  or  waived  (the  "Second
Closing"). At the Second Closing, Purchaser shall pay to the Company cash in the
amount  of U.S.  $500,000  and the  Company  shall  issue to  Purchaser  100,000
Preferred Shares.

                                       5
<PAGE>

                  (d) The third Closing  shall take place on the date  specified
in a written notice  delivered in accordance  with Section 7.6 by the Company to
Purchaser;  provided,  however,  that, except as otherwise agreed,  such closing
date shall not be more than 2  business  days  prior to the date  Purchaser  has
received such notice;  and provided,  further,  that the closing  conditions set
forth  in  Sections  4.5 and 4.6 have  been  satisfied  or  waived  (the  "Third
Closing"). At the Third Closing,  Purchaser shall pay to the Company cash in the
amount of U.S.  $1,000,000  and the  Company  shall issue to  Purchaser  200,000
Preferred Shares.

                  (e) The fourth  Closing shall take place on the date specified
in a written notice  delivered in accordance  with Section 7.6 by the Company to
Purchaser;  provided,  however,  that, except as otherwise agreed,  such closing
date shall not be more than 2  business  days  prior to the date  Purchaser  has
received such notice;  and provided,  further,  that the closing  conditions set
forth in  Sections  4.7 and 4.8 have  been  satisfied  or  waived  (the  "Fourth
Closing"). At the Fourth Closing, Purchaser shall pay to the Company cash in the
amount of U.S.  $1,000,000  and the  Company  shall issue to  Purchaser  200,000
Preferred Shares.

                  (f) Unless otherwise agreed by the Company and Purchaser, each
of the Closings  shall take place at 10:00 a.m.,  Chicago time, at the office of
Sidley & Austin, Bank One Plaza, 10 S. Dearborn Street, Chicago, Illinois.

                  Section 1.3.  Deliveries.  Whenever the Company is required to
issue  Preferred  Shares to  Purchaser  pursuant to this  Article I, the Company
shall  cause  appropriate  entries to be made in the  Register of Members of the
Company in respect of such  Preferred  Shares and to be  delivered  to Purchaser
certificates,  duly  executed  by the  Company  and  registered  in the  name of
Purchaser,  evidencing  such Preferred  Shares.  Unless  otherwise  specified by
Purchaser,  all Preferred  Shares to be issued at any Closing shall be evidenced
by a single certificate. Whenever after the date hereof Purchaser is required to
make a payment of cash to the Company, Purchaser shall make such payment by wire
transfer of immediately  available funds to an account which has been designated
in writing by the Company.

                                   ARTICLE II

                  Representations and Warranties of the Company

                                       6
<PAGE>

                  The Company hereby represents and warrants to Purchaser that:

                  Section 2.1. Organization, Qualifications and Corporate Power.

                  (a)  The  Company  is a  company  duly  incorporated,  validly
existing and in good standing under the laws of the Cayman Islands,  and is duly
licensed or  qualified to transact  business as a foreign  entity and is in good
standing  in each  other  jurisdiction  in  which  the  nature  of the  business
transacted  by it or the  character  of the  properties  owned or  leased  by it
requires  such  licensing or  qualification,  except where the failures to be so
licensed or qualified,  individually and in the aggregate,  could not reasonably
be  expected  to have a  material  adverse  effect on the  financial  condition,
results of operations,  business or property of the Company (a "Material Adverse
Effect"). The Company has the power and authority to own and hold its properties
and to carry on its business as now  conducted  and as proposed to be conducted.
The Company has full power and  authority  to execute,  deliver and perform this
Agreement,  the License  Agreement,  the  Registration  Rights Agreement and the
Company Warrants, and to issue and sell the Preferred Shares contemplated hereby
and under the Company  Warrants.  The Company is in  compliance  with all of the
terms and  provisions of the Company's  Memorandum  and Articles of  Association
attached hereto as Exhibit F (the "Charter").

                  (b) The  Company  does not (i) own of record or  beneficially,
directly  or  indirectly,   (A)  any  shares  of  capital  stock  or  securities
convertible  into capital  stock of any other  company or (B) any  participating
interest in any partnership,  limited liability company,  joint venture or other
non-corporate business enterprise or (ii) control,  directly or indirectly,  any
other entity.

                  Section 2.2.  Authorization of Agreements;  No Conflicts.  (a)
The execution,  delivery and performance by the Company of this  Agreement,  the
License Agreement,  the Registration  Rights Agreement and the issuance and sale
of the Preferred  Shares and the Company  Warrants (i) have been duly authorized
by all requisite  corporate  action,  (ii) will not violate (w) any provision of
law, (x) any order of any court or other agency of government,  (y) the Charter,
or (z) any provision of any  indenture,  agreement or other  instrument to which
the Company or any of its respective  properties or assets is bound,  (iii) will
not conflict with,  result in a breach of or constitute a default under any such
order, indenture, agreement or other instrument, and (iv) will not result in the
creation or imposition of any lien, charge, restriction, claim or encumbrance of
any  nature  whatsoever  upon any of the  properties  or assets of the  Company,
except  for  such  exceptions  to  clauses   (ii)(z),   (iii)  and  (iv)  which,
individually  and in the  aggregate,  could not reasonably be expected to have a
Material Adverse Effect.

                  (b) The Purchased  Shares have been duly  authorized and, when
issued in accordance with this Agreement, will be validly issued, fully paid and
nonassessable  and will be free and clear of all liens,  charges,  restrictions,
claims and encumbrances.  The Preferred Shares issuable upon the exercise of the
Company  Warrants have been duly  authorized and, when issued in accordance with
the Company Warrants,  will be validly issued,  fully paid and nonassessable and
will  be  free  and  clear  of all  liens,  charges,  restrictions,  claims  and
encumbrances. The issuance or sale of the Purchased Shares, the Company Warrants

                                       7
<PAGE>

and the Preferred Shares issuable upon the exercise of the Company Warrants, are
not, and will not be, subject to any  preemptive  right of  shareholders  of the
Company or to any right of first refusal or other right in favor of any person.

                  Section 2.3.  Validity.  This Agreement has been duly executed
and  delivered  by the  Company  and  constitutes  its legal,  valid and binding
obligation, enforceable in accordance with its terms. The License Agreement, the
Registration  Rights  Agreement  and the Company  Warrants,  when  executed  and
delivered in accordance  with this Agreement,  will constitute its legal,  valid
and binding  obligation  of the  Company,  enforceable  in  accordance  with its
respective terms.

                  Section 2.4.  Capitalization and Related Matters.  At the time
of (and after giving effect to) the First Closing,  3,000,000 Common Shares, par
value  $.001 per share,  of the  Company  (the  "Common  Shares"),  and  546,667
Preferred  Shares of the Company will be validly issued and  outstanding,  fully
paid and  nonassessable.  At the time of (and after giving  effect to) the First
Closing, the holders of record of shares and holders of subscriptions, warrants,
options,  convertible  securities,  and other  rights  (contingent  or other) to
purchase or  otherwise  acquire  shares of the  Company,  and the number of such
shares held by each, will be as set forth in the  Capitalization  Table attached
as Schedule I, other than an  agreement  with Sidley & Austin  pursuant to which
Sidley & Austin  may  elect  within  30 days of the  First  Closing  to  receive
securities  of the Company as payment for its legal fees (which  Sidley & Austin
has indicated that it does not intend to so elect).  The  designations,  powers,
preferences, rights, qualifications,  limitations and restrictions in respect of
each class of shares of the Company are as set forth in the Charter. The Company
has no obligation (contingent or other) to purchase, redeem or otherwise acquire
any of its shares or any  interest  therein or to pay any  dividend  or make any
other distribution in respect thereof. There are no voting trusts or agreements,
shareholders agreements, pledge agreements, buy-sell agreements, rights of first
refusal,  preemptive rights or proxies relating to any securities of the Company
except for this Agreement.

                  Section 2.5.  Officers.  Set forth in Schedule II is a list of
the names of the  officers of the Company as of the date hereof,  together  with
the current title or job classification of each such person.

                  Section 2.6. Other Agreements.  (a) The Company is not a party
to or otherwise  bound by any agreement,  contract,  commitment or  arrangement,
written  or oral,  involving  a  commitment  by the  Company  of more  than U.S.
$10,000.

                  (b) The Company has in all material respects performed all the
obligations required to be performed by it to date under any lease, agreement or
contract  now in effect to which  the  Company  is a party or by which it or its
property may be bound other than for such  exceptions to the  foregoing,  which,
individually and in the aggregate, would not have a Material Adverse Effect.

                                       8
<PAGE>

                  Section 2.7. Governmental  Approvals.  Subject to the accuracy
of the  representations and warranties of Purchaser set forth in Article III, no
registration  or filing with,  or consent or approval of or other action by, any
governmental  agency or  instrumentality  is or will be necessary  for the valid
execution,  delivery  and  performance  by the  Company of this  Agreement,  the
License Agreement,  the Registration Rights Agreement, the Company Warrants, the
issuance  and sale of the  Purchased  Shares or the  issuance  of the  Preferred
Shares upon the exercise of the Company Warrants.

                  Section 2.8.  Business  Plan. The  "TradeTextile.com  Business
Plan" dated  December  6, 1999 was  prepared  by  management  of the Company and
reflects management's plans as of such date for the Company's operations.

                  Section 2.9.  Offering of the  Preferred  Shares.  Neither the
Company nor any person  authorized or employed by the Company as agent,  broker,
dealer or otherwise  in  connection  with the offering or sale of the  Preferred
Shares or any security of the Company similar thereto has taken or will take any
action  (including,  without  limitation,  any  offer,  issuance  or sale of any
security of the Company under  circumstances which might require the integration
of such security with the Preferred  Shares under the Securities Act of 1933, as
amended (the  "Securities  Act") or the rules and  regulations of the Securities
and Exchange  Commission  (the  "Commission")  thereunder)  so as to subject the
offering,  issuance or sale of any of the Preferred  Shares to the  registration
provisions of the Securities Act.

                  Section 2.10.  Brokers or FindersThe Company has not incurred,
and will not incur,  directly or indirectly,  as a result of any action taken by
the Company, any liability for brokerage or finders' fees or agents' commissions
or any similar charges in connection with this Agreement.

                                   ARTICLE III

               Purchaser and Parent Representations and Warranties

                  In order to induce the  Company  to enter into this  Agreement
and issue,  sell and  deliver  the  Preferred  Shares and the  Company  Warrants
contemplated  hereby,  Purchaser  and  Parent  hereby,  jointly  and  severally,
represent and warrant as follows:

                  Section  3.1.   Investor   Qualifications.   Purchaser  is  an
"accredited"  investor  as such term is  defined  in  Regulation  D  promulgated
pursuant to the Securities Act. Purchaser,  by reason of Purchaser's business or
financial  experience,  directly or  indirectly,  is capable of  evaluating  the
merits and risks of Purchaser's  investment in the Company, and has the capacity
to protect  Purchaser's  own  interests in  connection  with the purchase of the
Preferred Shares.

                                       9
<PAGE>

                  Section  3.2.  Investment.  Purchaser  is acquiring or will be
acquiring the Preferred  Shares for investment for Purchaser's own account,  not
as a nominee  or agent,  and not with the view to, or for  resale in  connection
with, any distribution thereof. Purchaser understands that the issuance and sale
of the  Preferred  Shares has not been,  and will not be,  registered  under the
Securities  Act  by  reason  of  a  specific  exemption  from  the  registration
provisions of the Securities Act that depends upon, among other things, the bona
fide  nature of the  investment  intent  and the  accuracy  of such  Purchaser's
representations  as  expressed  herein.  Purchaser  has not been  formed for the
specific purpose of acquiring the Preferred Shares.

                  Section  3.3.  Rule  144.  Purchaser   acknowledges  that  the
Securities must be held indefinitely  unless  subsequently  registered under the
Securities Act or an exemption from such registration is available. Purchaser is
aware of the provisions of Rule 144 promulgated  under the Securities Act, which
permit limited resale of shares purchased in a private  placement subject to the
satisfaction  of  certain  conditions,  including  (except  as  limited  by Rule
144(k)),  among other  things,  the existence of a public market for the shares,
the availability of certain current public  information  about the Company,  the
resale occurring not less than one year after a party has purchased and paid for
the  security  to  be  sold,  the  sale  being  effected   through  a  "broker's
transaction" or in  transactions  directly with a "market maker" (as provided by
Rule 144(f)) and the number of shares being sold during any  three-month  period
not exceeding specified limitations.

                  Section 3.4. No Public Market.  Purchaser  understands that no
public market now exists for any of the securities  issued by the Company,  that
the Company has made no assurances  that a public market will ever exist for the
Preferred  Shares and that,  even if such a public  market exists at some future
time,  the Company may not then be  satisfying  the current  public  information
requirements of Rule 144.

                  Section 3.5. Access to Data. Purchaser has had the opportunity
to ask questions of, and receive  answers from,  representatives  of the Company
concerning the Company and the terms and conditions of this transaction, as well
as to obtain any  information  requested by Purchaser.  Any questions  raised by
Purchaser  concerning the transaction  have been answered to the satisfaction of
Purchaser.  Purchaser's  decision  to enter into the  transactions  contemplated
hereby is based in part on the answers to such questions as Purchaser has raised
concerning the  transaction  and on Purchaser's  own evaluation of the risks and
merits of the purchase and the Company's proposed business activities.

                  Section 3.6. Authorization of Purchaser.  (a) All corporate or
partnership action, if applicable,  on the part of Purchaser,  its directors and
its sole shareholder  necessary for the authorization,  execution,  delivery and
performance of this Agreement,  the License Agreement,  the Registration  Rights
Agreement and the  Instrument  of  Assignment by Purchaser has been taken.  This
Agreement,  the License  Agreement,  the  Registration  Rights Agreement and the
Instrument  of  Assignment  when  executed  and  delivered  by  Purchaser,  will

                                       10
<PAGE>

constitute  valid and legally binding  obligations of Purchaser,  enforceable in
accordance with their respective terms.

                  Section  3.7.  Authorization;  Validity  of  Parent.  (a)  All
corporate or  partnership  action,  if  applicable,  on the part of Parent,  its
directors  and its  shareholders  necessary  for the  authorization,  execution,
delivery  and  performance  of the Parent  Warrant  has been  taken.  The Parent
Warrant when executed and  contributed by Parent to Purchaser  constituted,  and
when the Parent Warrant is assigned by Purchaser to the Company  pursuant to the
Instrument  of Assignment is executed and delivered by Purchaser to the Company,
will constitute valid and legally binding obligations of Parent,  enforceable in
accordance with its respective terms.

                  (b) The  shares  of  Common  Stock  of  Parent  issuable  upon
exercise of the Parent  Warrant have been duly  authorized  and,  when issued in
accordance  with the  Parent  Warrant,  will be validly  issued,  fully paid and
nonassessable  and will be free and clear of all liens,  charges,  restrictions,
claims and  encumbrances.  The  issuance  or sale of the Parent  Warrant and the
Common Stock issuable upon exercise of the Parent Warrant, are not, and will not
be, subject to any preemptive right of shareholders of Parent or to any right of
first refusal or other right in favor of any person.

                  Section 3.8. Brokers or  FindersPurchaser  and Parent have not
incurred, and will not incur, directly or indirectly,  as a result of any action
taken by Purchaser or Parent,  any  liability  for brokerage or finders' fees or
agents' commissions or any similar charges in connection with this Agreement.

                  Section  3.9.  Tax  Consequences.  Purchaser  and Parent  have
reviewed with their own tax advisors the federal,  state,  local and foreign tax
consequences  of this  investment  and  the  transactions  contemplated  by this
Agreement.  Purchaser and Parent are relying  solely on such advisors and not on
any  statements  or  representations  of the  Company  or any of its  agents and
understands that Purchaser and Parent (and not the Company) shall be responsible
for their own tax liability that may arise as a result of this investment or the
transactions contemplated by this Agreement.

                  Section  3.10.  Company  Information.   Purchaser  and  Parent
acknowledge  that  the  Company  believes  that  the  information  disclosed  to
Purchaser  and Parent  concerning  the Company and the  information  provided to
Purchaser or Parent  pursuant to and in connection  with this  Agreement and the
transactions  contemplated  hereby,  is confidential  and/or  proprietary to the
Company  (the  "Confidential  Information").  Purchaser  and Parent agree not to
disclose  Confidential  Information  to  any  third  parties  and  to  keep  the
Confidential  Information  confidential,  using  the  same  standard  of care in
safeguarding  the  Confidential  Information  as Purchaser  and Parent employ in
protecting  their  own  proprietary   information   which  they  desire  not  to
disseminate  or  publish.  Each  of  Purchaser  and  Parent  will  instruct  its
respective directors, officers, employees, and representatives,  if any, to keep
such Confidential Information confidential.

                                       11
<PAGE>

                                   ARTICLE IV

                              Conditions to Closing

                  Section 4.1.  Conditions to  Purchaser's  Obligations to First
Closing. The obligation of Purchaser to effect the transactions  contemplated by
Section  1.2(b) to occur at the First Closing is subject to the  fulfillment  to
the  reasonable  satisfaction  of Purchaser at or prior to the First  Closing of
each of the following conditions:

                  (a)   Accuracy  of   Representations   and   Warranties.   The
representations and warranties of the Company contained in this Agreement or any
agreement,  instrument or certificate  delivered  pursuant hereto shall be true,
correct and complete on and as of the date of the First Closing, and the Company
shall have delivered to Purchaser a certificate of the Chief  Executive  Officer
of the Company, dated as of the date of the First Closing, to that effect.

                  (b)  Performance.  All  covenants,  agreements  and conditions
contained in this  Agreement to be performed or complied  with by the Company on
or prior to the date of the First Closing shall have been  performed or complied
with and the Company  shall have  delivered  to Purchaser a  certificate  of the
Chief  Executive  Officer  of the  Company,  dated as of the  date of the  First
Closing, to that effect.

                  (c) Secretary's Certificate. At the First Closing, the Company
shall have delivered to Purchaser  copies of the Charter,  and copies of each of
the following, in each case certified as of the date of the First Closing by the
Secretary of the Company:

                  (i) resolutions of the Company,  authorizing and approving, as
         appropriate,   this  Agreement,  the  License  Agreement,  the  Company
         Warrants,  the  Registration  Rights  Agreement  and  the  transactions
         contemplated  hereby  and  thereby,  and the  issuance  and sale of the
         Purchased Shares and the Preferred Shares issuable upon exercise of the
         Company Warrants; and

                  (ii) the  signatures  and  incumbency  of the  officers of the
         Company  authorized  to execute and deliver the  documents to which the
         Company is a party.

                  (d)  Consents.  At the First  Closing,  the Company shall have
delivered to Purchaser  copies of all  consents and  approvals of third  parties
required  under any  agreements or otherwise in connection  with the  execution,
delivery or  performance  by the Company of this  Agreement  or any of the other
agreements or documents contemplated hereby.

                                       12
<PAGE>

                  (e)  License  Agreement,  Company  Warrants  and  Registration
Rights  Agreement.  At the First  Closing,  the Company  shall have executed and
delivered  to  Purchaser  the License  Agreement,  the Company  Warrants and the
Registration Rights Agreement.

                  (f) Good  Standing.  At the First  Closing,  the Company shall
have delivered to Purchaser a certificate of good standing of the Company issued
as of a recent date by the Cayman Islands Registrar of Companies.

                  Section  4.2.  Conditions  to  Company's  Obligation  to First
Closing.  The obligation of the Company to effect the transactions  contemplated
by Section 1.2(b) to occur at the First Closing is subject to the fulfillment to
the reasonable  satisfaction  of the Company at or prior to the First Closing of
each of the following conditions:

                  (a)   Accuracy  of   Representations   and   Warranties.   The
representations  and  warranties  of  Purchaser  and  Parent  contained  in this
Agreement or any agreement,  instrument or certificate delivered pursuant hereto
shall be true,  correct and complete on and as of the date of the First Closing,
and  each of  Purchaser  and  Parent  shall  have  delivered  to the  Company  a
certificate of an executive  officer of Purchaser or Parent, as the case may be,
dated as of the date of the First Closing, to that effect.

                  (b)  Performance.  All  covenants,  agreements  and conditions
contained in this  Agreement to be performed or complied  with by Purchaser  and
Parent on or prior to the date of the First Closing shall have been performed or
complied  with and  Purchaser  and Parent shall have  delivered to the Company a
certificate of an executive officer of Purchaser or Parent, dated as of the date
of the First Closing, to that effect.

                  (c) Purchaser Secretary's  Certificate.  At the First Closing,
Purchaser  shall have  delivered  to the Company  copies of the  Certificate  of
Incorporation of Purchaser,  as amended, and copies of each of the following, in
each case  certified  as of the date of the First  Closing by the  Secretary  of
Purchaser:

                  (i) resolutions of Purchaser,  authorizing  and approving,  as
         appropriate,  this Agreement,  the License Agreement, the Instrument of
         Assignment,  the  Registration  Rights  Agreement and the  transactions
         contemplated hereby and thereby; and

                  (ii)  the   signatures  and  incumbency  of  the  officers  of
         Purchaser  authorized  to execute and deliver  the  documents  to which
         Purchaser is a party.

                  (d)  Parent  Secretary's  Certificate.  At the First  Closing,
Parent  shall  have   delivered  to  the  Company  copies  of  the  Articles  of
Incorporation  of Parent,  as amended,  and copies of each of the following,  in
each case  certified  as of the date of the First  Closing by the  Secretary  of
Parent:

                                       13
<PAGE>

                  (i)  resolutions  of Parent,  authorizing  and  approving,  as
         appropriate,  the  Parent  Warrant  and the  transactions  contemplated
         hereby and  thereby,  and the issuance and sale of the shares of Common
         Stock of Parent issuable upon exercise of the Parent Warrant; and

                  (ii) the  signatures  and incumbency of the officers of Parent
         authorized  to execute and deliver the  documents  to which Parent is a
         party.

                  (e)  License  Agreement,   Instrument  of  Assignment,  Parent
Warrant and Registration Rights Agreement. At the First Closing, Purchaser shall
have executed and delivered to the Company the License Agreement, the Instrument
of Assignment and the  Registration  Rights  Agreement and Purchaser  shall have
delivered to the Company the Parent Warrant.

                  (f) Good Standing. At the First Closing,  Purchaser shall have
delivered to the Company a certificate  of good standing of Purchaser  issued as
of a recent date by the Secretary of State of the State of Delaware.

                  Section 4.3.  Conditions to  Purchaser's  Obligation to Second
Closing. The obligation of Purchaser to effect the transactions  contemplated by
Section 1.2(c) to occur at the Second  Closing is subject to the  fulfillment to
the  reasonable  satisfaction  of Purchaser at or prior to the Second Closing of
the following conditions:

                  (a)   Accuracy  of   Representations   and   Warranties.   The
representations  and  warranties of the Company  contained in Sections 2.1, 2.2,
2.3 and 2.4 of this Agreement  shall be true,  correct and complete on and as of
the date of the Second Closing and the Company shall have delivered to Purchaser
a certificate of the Chief Executive  Officer of the Company,  dated the date of
the Second Closing to that effect.

                  (b)  Performance.  All  covenants,  agreements  and conditions
contained in this  Agreement to be performed or complied  with by the Company on
or prior to the date of the Second Closing shall have been performed or complied
with and the Company  shall have  delivered  to  Purchaser a  certificate  of an
executive officer of the Company, dated as of the date of the Second Closing, to
that effect.

                  (c) Key Management.  The Company shall have retained employees
to filled the  following  positions:  (i) Chief  Executive  Officer;  (ii) Chief
Technology  Officer;  (iii) Chief  Operating  Officer;  (iv)  General  Manager -
Shanghai Operations; and (v) Director of Marketing - Hong Kong Operations.

                  Section 4.4. Conditions to the Company's  Obligation to Second
Closing.  The obligation of the Company to effect the transactions  contemplated
by Section 1.2(c) to occur at the Second  Closing is subject to the  fulfillment

                                       14
<PAGE>

to the reasonable  satisfaction of the Company at or prior to the Second Closing
of the following conditions:

                  (a)   Accuracy  of   Representations   and   Warranties.   The
representations  and  warranties  of Purchaser  contained in Section 3.6 of this
Agreement  shall  be true,  correct  and  complete  on and as of the date of the
Second  Closing and Purchaser  shall have delivered to the Company a certificate
of an executive  officer of Purchaser,  dated the date of the Second  Closing to
that effect.

                  (b)  Performance.  All  covenants,  agreements  and conditions
contained in this  Agreement to be performed or complied with by Purchaser on or
prior to the date of the Second  Closing  shall have been  performed or complied
with and  Purchaser  shall have  delivered  to the Company a  certificate  of an
executive officer of Purchaser,  dated as of the date of the Second Closing,  to
that effect.

                  Section 4.5.  Conditions  to  Purchaser's  Obligation to Third
Closing. The obligation of Purchaser to effect the transactions  contemplated by
Section  1.2(d) to occur at the Third Closing is subject to the  fulfillment  to
the reasonable satisfaction of Purchaser at or prior to the Third Closing of the
following conditions:

                  (a)   Accuracy  of   Representations   and   Warranties.   The
representations  and  warranties of the Company  contained in Sections 2.1, 2.2,
2.3 and 2.4 of this Agreement  shall be true,  correct and complete on and as of
the date of the Third Closing and the Company shall have  delivered to Purchaser
a certificate of the Chief Executive  Officer of the Company,  dated the date of
the Third Closing to that effect.

                  (b)  Performance.  All  covenants,  agreements  and conditions
contained in this  Agreement to be performed or complied  with by the Company on
or prior to the date of the Third Closing shall have been  performed or complied
with and the Company  shall have  delivered  to  Purchaser a  certificate  of an
executive officer of the Company,  dated as of the date of the Third Closing, to
that effect.

                  (c) Website Operational. The Company shall have an operational
website.

                  Section 4.6.  Conditions to the Company's  Obligation to Third
Closing.  The obligation of the Company to effect the transactions  contemplated
by Section 1.2(d) to occur at the Third Closing is subject to the fulfillment to
the reasonable  satisfaction  of the Company at or prior to the Third Closing of
the following conditions:

                  (a)   Accuracy  of   Representations   and   Warranties.   The
representations  and  warranties  of Purchaser  contained in Section 3.6 of this
Agreement shall be true, correct and complete on and as of the date of the Third
Closing and Purchaser  shall have  delivered to the Company a certificate  of an

                                       15
<PAGE>

executive  officer  of  Purchaser,  dated the date of the Third  Closing to that
effect.

                  (b)  Performance.  All  covenants,  agreements  and conditions
contained in this  Agreement to be performed or complied with by Purchaser on or
prior to the date of the Third  Closing  shall have been  performed  or complied
with and  Purchaser  shall have  delivered  to the Company a  certificate  of an
executive  officer of Purchaser,  dated as of the date of the Third Closing,  to
that effect.

                  Section 4.7.  Conditions to  Purchaser's  Obligation to Fourth
Closing. The obligation of Purchaser to effect the transactions  contemplated by
Section 1.2(e) to occur at the Fourth  Closing is subject to the  fulfillment to
the  reasonable  satisfaction  of Purchaser at or prior to the Fourth Closing of
the following conditions:

                  (a)   Accuracy  of   Representations   and   Warranties.   The
representations  and  warranties of the Company  contained in Sections 2.1, 2.2,
2.3 and 2.4 of this Agreement  shall be true,  correct and complete on and as of
the date of the Fourth Closing and the Company shall have delivered to Purchaser
a certificate of the Chief Executive  Officer of the Company,  dated the date of
the Fourth Closing to that effect.

                  (b)  Performance.  All  covenants,  agreements  and conditions
contained in this  Agreement to be performed or complied  with by the Company on
or prior to the date of the Fourth Closing shall have been performed or complied
with and the Company  shall have  delivered  to  Purchaser a  certificate  of an
executive officer of the Company, dated as of the date of the Fourth Closing, to
that effect.

                  (c) First  Transaction.  The Company  shall have  processed at
least one order over its website.

                  Section 4.8. Conditions to the Company's  Obligation to Fourth
Closing.  The obligation of the Company to effect the transactions  contemplated
by Section 1.2(e) to occur at the Fourth  Closing is subject to the  fulfillment
to the reasonable  satisfaction of the Company at or prior to the Fourth Closing
of the following conditions:

                  (a)   Accuracy  of   Representations   and   Warranties.   The
representations  and  warranties  of Purchaser  contained in Section 3.6 of this
Agreement  shall  be true,  correct  and  complete  on and as of the date of the
Fourth  Closing and Purchaser  shall have delivered to the Company a certificate
of an executive  officer of Purchaser,  dated the date of the Fourth  Closing to
that effect.

                  (b)  Performance.  All  covenants,  agreements  and conditions
contained in this  Agreement to be performed or complied with by Purchaser on or
prior to the date of the Fourth  Closing  shall have been  performed or complied
with and  Purchaser  shall have  delivered  to the Company a  certificate  of an

                                       16
<PAGE>

executive officer of Purchaser,  dated as of the date of the Fourth Closing,  to
that effect.

                                    ARTICLE V

                            Reporting and Inspection

                  The Company hereby covenants and agrees:

                  Section 5.1. Financial  Statements and Other Information.  The
Company will deliver to Purchaser:

                  (a) as soon as  available  after the end of each fiscal  month
         the  Company,  and in any  event  within  30  days  thereafter,  (i) an
         unaudited  balance  sheet of the  Company as at the end of such  month;
         (ii) an unaudited statement of operations of the Company for such month
         and for the fiscal year of the  Company to the end of such  month;  and
         (iii) an  unaudited  statement  of cash flows of the  Company  for such
         month  and  for the  fiscal  year  to the  end of  such  month,  all in
         reasonable  detail,  subject to changes  resulting from normal year-end
         audit adjustments,  certified by the principal financial officer of the
         Company (the "Principal Financial Officer");

                  (b) as soon as available  after the end of each fiscal quarter
         of the  Company,  and in any event  within 45 days  thereafter,  (i) an
         unaudited  balance  sheet of the Company as at the end of such quarter;
         (ii) an  unaudited  statement  of  operations  of the  Company for such
         quarter  and for the  fiscal  year  of the  Company  to the end of such
         quarter;  and (iii) an unaudited statement of cash flows of the Company
         for such  quarter and for the fiscal  year to the end of such  quarter,
         all in  reasonable  detail,  subject to changes  resulting  from normal
         year-end  audit  adjustments,  certified  by  the  Principal  Financial
         Officer;

                  (c) as soon as available  after the end of each fiscal year of
         the Company,  and in any event within 120 days  thereafter,  a reviewed
         balance sheet of the Company,  and the related  reviewed  statements of
         operations, shareholders' equity and cash flows of the Company for such
         fiscal year (collectively,  the "Annual Statements"),  setting forth in
         each case in comparative  form the figures for the previous fiscal year
         (if any),  certified  by the  Principal  Financial  Officer;  provided,
         however,  that if Purchaser  notifies the Company that it requires such
         Annual  Statements  for such fiscal year sooner than 120 days after the
         end of such fiscal year, the Company shall cooperate with Purchaser and
         use its best efforts to provide such Annual  Statements to Purchaser by
         the date requested; and

                  (d) with reasonable  promptness,  such other data, reports and
         information as from time to time  Purchaser may reasonably  request and
         such data,  press releases,  reports and information as the Company may
         from time to time furnish to holders of its securities.

                                       17
<PAGE>

                  Section  5.2.  Inspection  Rights.  The Company will permit an
authorized  representative  of Purchaser to visit and inspect the  properties of
the  Company,  including  its books and to discuss  its  affairs,  finances  and
accounts with its officers,  all at such  reasonable  times and as often as such
person may reasonably  request,  all upon reasonable prior written notice to the
Company.

                                   ARTICLE VI

                              Additional Covenants

                  The Company hereby covenants and agrees:

                  Section 6.1. Board of Directors.  The Board of Directors shall
consist of at least one (1) member but not more than seven (7) members.

                  Section 6.2. Expenses. The Company shall bear its own expenses
incurred  on its behalf  with  respect to this  Agreement  and the  transactions
contemplated  hereby. The Company shall pay any and all reasonable legal fees of
Purchaser  and  Parent  with  respect  to this  Agreement  and the  transactions
contemplated hereby not in excess of an aggregate of $75,000.

                  Section  6.3.  Share  Plans.  The Company  shall not grant any
options,  share appreciation rights,  performance shares or units, or restricted
shares  without  the prior  approval  of a majority  of the Board of  Directors;
provided,  further,  that if the  recipient  of any such grant is a director  or
executive  officer of the Company,  such majority shall include the  affirmative
vote of at least one director  elected by the holders of the Preferred Shares (a
"Preferred Director").

                  Section  6.4.  Annual  Budget . In addition to the approval of
the Board of Directors,  the annual operating budget of the Company prepared for
each  fiscal  year of the  Company  (the  "Annual  Budget")  shall be subject to
approval  of  Purchaser.  No later than  sixty  (60) days  before the end of the
fiscal year  preceding the fiscal year for which an Annual Budget  applies,  the
Annual  Budget  shall be submitted to Purchaser  for  approval,  disapproval  or
modification.  The Company shall not make any capital expenditures  provided for
in an Annual  Budget until the subject  Annual  Budget has received the required
approval of  Purchaser;  provided,  however,  that  Purchaser  shall give prompt
notice of any such  approval,  disapproval  or  modification.  In the event that
Purchaser disapproves of such Annual Budget, the Company and Purchaser shall use
their best  efforts to make such  modification  that will  enable  Purchaser  to
approve  such Annual  Budget.  Until such  modification  has been agreed to, the
Company  shall be  permitted to make  capital  expenditures  not in excess of an
aggregate of U.S. $50,000 for such year.

                                       18
<PAGE>

                  Section 6.5. Compensation of Directors and Executive Officers.
The annual compensation package, including,  without limitation,  salary, grants
of share options,  share  appreciation  rights,  performance shares or units, or
restricted shares, and other benefits,  of each executive officer,  director and
individuals  related to each executive officer or director,  shall be subject to
approval of a majority of the Board of Directors  (which  majority shall include
the affirmative  vote of at least one Preferred  Director);  provided,  however,
that such approval shall not be required for a base salary for fiscal year ended
December 31, 2000 not in excess of U.S.$100,000  for each of the officers listed
in Schedule II. Once an annual compensation package is approved pursuant to this
Section  6.5,  any  changes,   modifications   or   amendments  to  such  annual
compensation  package  in  excess  of 10% of the  base  salary  of  such  annual
compensation  package  shall  require the approval of a majority of the Board of
Directors (which majority shall include at least one Preferred Director).

                                   ARTICLE VII

                                  Miscellaneous

                  Section 7.1.  Amendments.  This  Agreement may not be amended,
modified or supplemented  except by a written  instrument  signed by each of the
parties hereto.

                  Section 7.2. Survival of Representations  and Warranties.  All
representations and warranties  contained herein or made in writing by any party
in  connection  herewith  will  survive  the  execution  and  delivery  of  this
Agreement,  the consummation of any Closing,  and any investigation  made at any
time by or on behalf of Purchaser or Parent.

                  Section  7.3.  Successors  and  Assigns.  Except as  otherwise
expressly  provided  herein,  all  covenants  and  agreements  contained in this
Agreement  by or on behalf of any of the  parties  hereto will bind and inure to
the benefit of the  respective  successors  and  assigns of the parties  hereto,
whether so expressed or not.

                  Section 7.4. Severability.  Whenever possible,  each provision
of this  Agreement  will be  interpreted  in such manner as to be effective  and
valid under applicable law, but if any provision of this Agreement is held to be
prohibited  by  or  invalid  under   applicable  law,  such  provision  will  be
ineffective  only to the  extent  of such  prohibition  or  invalidity,  without
invalidating the remainder of this Agreement.

                  Section 7.5. Descriptive Headings. The descriptive headings of
this  Agreement  are  inserted  for  convenience  of  reference  only and do not
constitute a part of this Agreement.

                  Section  7.6.  Notices.  Any  notices  required,   desired  or
permitted  to be  given  hereunder,  shall  be  delivered  personally,  sent  by
overnight  courier or mailed,  registered  or  certified  mail,  return  receipt
requested,  to the  following  addresses (or to such other address as each party

                                       19
<PAGE>

may  specify  in  a  notice  given   hereunder)  or   transmitted  by  facsimile
transmission  (with such  transmission  promptly  confirmed by writing delivered
personally,  by overnight courier or mailed as provided in this Section 7.6) and
shall be deemed to have  been  received  on the day of  personal  delivery,  one
business day after  delivery to the overnight  courier  service,  three business
days  after  such  mailing  or,  in the  case of  facsimile  transmission,  when
received:

                  If to Purchaser:

                           entrade.com, Inc.
                           521 Fellowship Road
                           Suite 130
                           Mt. Laurel, NJ 08054
                           Attention: Ben Kafka
                           Telephone number: 847/441-6650
                           Fax number: 847/441-6959

                  with a copy in the case of a notice to Purchaser to:

                           Duane, Morris & Heckscher LLP
                           227 W. Monroe, Suite 3400
                           Chicago, Illinois 60606
                           Attention: Eric M. Fogel
                           Telephone number: 312/499-6729
                           Fax number:  312/499-6701

                  If to Parent:

                           Entrade Inc.
                           500 Central Avenue
                           Northfield, IL 60093
                           Telephone number: (847) 441-8850
                           Fax number: (847) 441-6959

                  with a copy in the case of a notice to Parent to:

                           Duane, Morris & Heckscher LLP
                           227 W. Monroe, Suite 3400
                           Chicago, Illinois 60606
                           Attention: Eric M. Fogel
                           Telephone number: 312/499-6729
                           Fax number:  312/499-6701

                                       20
<PAGE>

                  If to the Company:

                           TradeTextile.com Inc.
                           16/F., 10 Knutsford, T.S.T.
                           Kowloon, Hong Kong
                           Telephone number:  011/852/2721-1750
                           Fax number: 011/852/2311-4481

                  with a copy in the case of a notice to the Company to:

                           Sidley & Austin
                           Bank One Plaza
                           10 S. Dearborn Street
                           Chicago, Illinois 60603
                           Attention:  Frederick C. Lowinger
                           Telephone number:  312/853-7000
                           Fax number:  312/853-7036

                  Section 7.7.  Governing Law. THE VALIDITY,  MEANING AND EFFECT
OF THIS  AGREEMENT  SHALL BE DETERMINED IN ACCORDANCE  WITH THE LAWS OF ILLINOIS
APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED IN THAT STATE.

                  Section  7.8.   Exhibits  and  Schedules.   All  Exhibits  and
Schedules hereto are an integral part of this Agreement.

                  Section 7.9. Final  Agreement.  This Agreement,  together with
those documents which are exhibits hereto, constitute the final agreement of the
parties  concerning the matters  referred to herein and therein,  and supersedes
all prior and contemporaneous agreements and understandings,  including, without
limitation, the Term Sheet dated as of December 17, 1999 between the Company and
Parent.

                  Section 7.10. Execution in Counterparts. This Agreement may be
executed  in any  number of  counterparts,  each of which when so  executed  and
delivered  shall be deemed an original,  and such  counterparts  together  shall
constitute one instrument.

                  Section 7.11. JURISDICTION;  VENUE; FORUM NON CONVENIENS.  (A)
EACH OF THE COMPANY,  PURCHASER  AND PARENT  HEREBY  IRREVOCABLY  SUBMITS IN ANY
SUIT,  ACTION OR PROCEEDING  ARISING OUT OF OR RELATED TO THIS  AGREEMENT OR ANY
OTHER  INSTRUMENT,  DOCUMENT OR AGREEMENT  EXECUTED OR  DELIVERED IN  CONNECTION
HEREWITH AND THE TRANSACTIONS  CONTEMPLATED HEREBY AND THEREBY,  WHETHER ARISING
IN CONTRACT,  TORT,  EQUITY OR OTHERWISE,  TO THE EXCLUSIVE  JURISDICTION OF ANY

                                       21
<PAGE>

STATE OR FEDERAL  COURT  LOCATED IN THE STATE OF ILLINOIS AND WAIVES ANY AND ALL
OBJECTIONS TO JURISDICTION  THAT IT MAY HAVE UNDER THE LAWS OF THE UNITED STATES
OR OF ANY STATE.

                  (B) EACH OF THE  COMPANY,  PURCHASER  AND  PARENT  WAIVES  ANY
OBJECTION THAT IT MAY HAVE (INCLUDING,  WITHOUT LIMITATION, ANY OBJECTION OF THE
LAYING OF VENUE OR BASED ON FORUM NON  CONVENIENS)  TO THE LOCATION OF THE COURT
IN WHICH ANY PROCEEDING IS COMMENCED IN ACCORDANCE WITH THIS SECTION 7.11.

                  Section  7.12.  WAIVER  OF JURY  TRIAL.  EACH OF THE  COMPANY,
PURCHASER AND PARENT  WAIVES ANY RIGHT TO TRIAL BY JURY IN ANY DISPUTE,  WHETHER
SOUNDING IN CONTRACT,  TORT,  OR  OTHERWISE,  BETWEEN ANY OF THE PARTIES  HERETO
ARISING OUT OF OR RELATED TO THE TRANSACTIONS  CONTEMPLATED BY THIS AGREEMENT OR
ANY OTHER INSTRUMENT,  DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION
HEREWITH.  ANY PARTY HERETO MAY FILE AN ORIGINAL  COUNTERPART  OR A COPY OF THIS
AGREEMENT  WITH ANY COURT AS WRITTEN  EVIDENCE  OF THE  CONSENT  OF THE  PARTIES
HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY.

                  Section  7.13.  Survival of  Covenants.  The  covenants of the
Company set forth in Section  5.1(a) and Article 6 shall  terminate and be of no
further  force or effect as to  Purchaser  upon the  Company's  firm  commitment
underwritten  public  offering of its Common  Shares under the Act  resulting in
proceeds  of  at  least  U.S.   $15,000,000  (after  deduction  of  underwriters
commissions and expenses) (a "Qualified  IPO"), or upon any merger,  acquisition
or consolidation in which all or substantially all of the assets, or the capital
shares, of the Company are sold or transferred. The covenants of the Company set
forth in Article 5 (other than Section  5.1(a)) shall survive a Qualified IPO to
the  extent  such  obligations  are  consistent  with the  Company's  disclosure
obligations  under (a) the  Securities Act of 1933, as amended and the rules and
regulations promulgated thereunder,  (b) the Securities Exchange Act of 1934, as
amended  and the  rules  and  regulations  promulgated  thereunder,  and (c) the
requirements of any national  securities  exchange or automated quotation system
on which the Company's  securities are listed.  Other covenants  contained in or
made pursuant to this Agreement shall survive the execution and delivery of this
Agreement and the Closings and shall in no way be affected by any  investigation
of the subject matter thereof made by or on behalf of any of the parties.

                  Section 7.14. Approval of Distribution of Parent Warrant.  The
Purchaser hereby approves and authorizes the distribution by the Company, at any
time after the First  Closing,  of the Parent  Warrant to Yik Fan Cheung,  Allan
Chiwan Cheung and Chen Jian Xu as compensation for services  provided by them to
the Company.

                                       22
<PAGE>

                  Section 7.15.  Guarantee of  Purchaser's  Obligations.  Parent
hereby  guarantees the performance by Purchaser of its obligations under Article
IV.

                                       23
<PAGE>

                  IN WITNESS  WHEREOF,  the parties  hereto have  executed  this
Agreement as of the __ day of February, 2000.

                                        TRADETEXTILE.COM INC.

                                        By: _______________________________
                                               Name:
                                               Title:

                                        ENTRADE.COM, INC.

                                        By: _______________________________
                                               Name:
                                               Title:

                                        ENTRADE INC.

                                        By: _______________________________
                                               Name:
                                               Title:

<PAGE>

                                  SCHEDULE I TO
                              INVESTMENT AGREEMENT

                              CAPITALIZATION TABLE

Holders of Common Shares                    Number of Common Shares
------------------------                    -----------------------
Allan Chiwan Cheung                                885,000
Yik Fan Cheung                                   1,180,000
Chen Jian Xu                                       881,000
Weidong Wang                                         4,000
Woo Ping Fok                                        10,000
Steven Kaplan                                       20,000
Frederick C. Lowinger                               20,000
                                                ----------
         Total                                   3,000,000
                                                 =========

Holders of Preferred Shares                 Number of Preferred Shares
---------------------------                 --------------------------
entrade.com, Inc.                                  511,667
Woo Ping Fok                                        20,000*
Frederick C. Lowinger                               5,000*
Imad I. Qasim                                        5,000*
John P. Simon                                        5,000*
                                               -----------
         Total                                     546,667
                                               ===========

* Being sold  contemporaneously  with the First  Closing  pursuant  to  separate
subscription agreements.

<PAGE>

                                 SCHEDULE II TO
                              INVESTMENT AGREEMENT

                                    OFFICERS

Officer                                Position
-------                                --------

Yik Fan Cheung                         Chairman of the Board and Chief Operating
                                       Officer

Allan Chiwan Cheung                    Chief Executive Officer

Chen Jian Xu                           President, Chief Technology Officer and
                                       Secretary

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