Document:

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                                                                    Exhibit 10.2

                            STOCK PURCHASE AGREEMENT

                                  by and among

                             Brokat Infosystems AG,

                    Transaction Software Technologies, Inc.,

                                       and

                               The Shareholders of
                     Transaction Software Technologies, Inc
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                                TABLE OF CONTENTS

<TABLE>

<S>                                                                                                             <C>
I. DEFINITIONS................................................................................................- 1 -

II. PURCHASE AND SALE OF SHARES...............................................................................- 6 -
         A.       Basic Transaction...........................................................................- 6 -
         B.       Payments to the Shareholders................................................................- 6 -
         C.       The Closing.................................................................................- 7 -
         D.       Deliveries at Closing.......................................................................- 7 -

III. REPRESENTATIONS AND WARRANTIES
         CONCERNING THE TRANSACTION...........................................................................- 8 -
         A. Representations and Warranties of the Shareholders
                   ...........................................................................................- 8 -
                  1. Authorization of Transaction.............................................................- 8 -
                  2. Non-contravention........................................................................- 8 -
                  3. Good Title...............................................................................- 8 -
                  4. Brokers' Fees............................................................................- 9 -
                  5. Capitalization...........................................................................- 9 -
         B. Representations and Warranties of Brokat.........................................................- 10 -
                  1. Authorization of Transaction............................................................- 10 -
                  2. Non-contravention.......................................................................- 10 -

IV. REPRESENTATIONS AND WARRANTIES
         CONCERNING TST AND ITS SUBSIDIARIES.................................................................- 11 -
         A. Shareholders and TST.............................................................................- 11 -
                  1. Organization, Qualification, and
                     Corporate Power.........................................................................- 11 -
                  2. Events Subsequent to the Most Recent
                     Fiscal Year End.........................................................................- 11 -
                  3. Undisclosed Liabilities.................................................................- 13 -
                  4. Intellectual Property...................................................................- 13 -
                  5. Certain Business Relationships With
                     TST and Its Subsidiaries................................................................- 15 -
                  6. Tax Matters.............................................................................- 16 -
                  7. Disclosure..............................................................................- 16 -
         B. TST.  ...........................................................................................- 16 -
                  1. Non-contravention.......................................................................- 16 -
                  2. Title to Assets.........................................................................- 17 -
                  3. Subsidiaries............................................................................- 17 -
                  4. Financial Statements....................................................................- 18 -
                  5. Legal Compliance........................................................................- 18 -
                  6. Tax Matters.............................................................................- 18 -
                  7. Tangible Assets.........................................................................- 20 -
                  8. Contracts...............................................................................- 20 -
                  9. Notes and Accounts Receivable...........................................................- 21 -
                  10. Powers of Attorney.....................................................................- 22 -
                  11. Insurance..............................................................................- 22 -
                  12. Litigation.............................................................................- 23 -
                  13. Product Warranty.......................................................................- 23 -
                  14. Product Liability......................................................................- 23 -
</TABLE>

                                      - a -
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<TABLE>
<S>               <C>                                                                                          <C>
                  15. Employees..............................................................................- 23 -
                  16. Year 2000..............................................................................- 24 -
                  17. Employee Benefits......................................................................- 24 -
                  18. Guaranties.............................................................................- 27 -
                  19. Environment, Health, and Safety Matters................................................- 27 -
                  20. Disclosure.............................................................................- 28 -

V. Pre-Closing Covenants.....................................................................................- 28 -
         A. General..........................................................................................- 29 -
         B. Notices and Consents.............................................................................- 29 -
         C. Operation of Business............................................................................- 29 -
         D. Preservation of Business.........................................................................- 29 -
         E. Full Access......................................................................................- 30 -
         F. Notice of Developments...........................................................................- 30 -
         G. Exclusivity......................................................................................- 30 -
         H. Confidentiality..................................................................................- 31 -
         I. Confidentiality Agreements.......................................................................- 31 -
         J. MASI Fee.........................................................................................- 31 -

VI. Post-Closing Covenants...................................................................................- 31 -
         A. General..........................................................................................- 32 -
         B. Covenant Not to Compete..........................................................................- 33 -

VII. Conditions to Obligation to Close.......................................................................- 34 -
         A. Conditions to Obligation of Brokat...............................................................- 34 -
         B. Conditions to Obligation of the Shareholders
            and TST..........................................................................................- 35 -

VIII. Remedies for Breaches of This Agreement................................................................- 36 -
         A. Survival of Representations and Warranties.......................................................- 36 -
         B. Indemnification Provisions for Benefit of Brokat.................................................- 37 -
         C. Matters Involving Third Parties..................................................................- 38 -

IX. Tax Matters..............................................................................................- 39 -
         A. Cooperation......................................................................................- 39 -
         B. Mitigation of Tax Liability......................................................................- 39 -
         C. Code (S)(S)6043..................................................................................- 39 -

X. Termination...............................................................................................- 40 -
         A. Termination of Agreement.........................................................................- 40 -
         B. Effect of Termination............................................................................- 40 -

XI. Miscellaneous............................................................................................- 41 -
         A. Press Releases and Public Announcements..........................................................- 41 -
         B. No Third-Party Beneficiaries.....................................................................- 41 -
         C. Entire Agreement.................................................................................- 41 -
         D. Succession and Assignment........................................................................- 41 -
         E. Counterparts.....................................................................................- 42 -
         F. Headings.........................................................................................- 42 -
         G. Notices..........................................................................................- 42 -
         H. Governing Law and Jurisdiction...................................................................- 43 -
</TABLE>

                                      - b -
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<TABLE>
<S>                                                                                                            <C>
         I. Amendments and Waivers...........................................................................- 43 -
         J. Severability.....................................................................................- 43 -
         K. Expenses.........................................................................................- 43 -
         L. Construction.....................................................................................- 44 -
         M. Incorporation of Exhibits, Annexes, and Schedules................................................- 44 -
</TABLE>

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<PAGE>

                            STOCK PURCHASE AGREEMENT

THIS AGREEMENT, made this seventh day of May, 1999, by and among BROKAT
INFOSYSTEMS AG, a corporation of Germany ("Brokat"); TRANSACTION SOFTWARE
TECHNOLOGIES, INC., a corporation of the State of Georgia, U.S.A. ("TST"); DR.
EDWARD J. GAINER III, an individual ("Gainer")(also sometimes referred to in
related documents as "Edward Joseph Gainer"); BILL D. DRAKE, an individual
("Drake"); DENNIS M. SATING, an individual ("Sating"); NEIL UNDERWOOD, an
individual ("Underwood"), (Gainer, Drake, Sating and Underwood are hereinafter
referred to collectively as "Individual Shareholders";  ELIZABETH ANDERSON
DWORSCHAK, AS SPECIAL INDEPENDENT TRUSTEE OF THE BILL D. AND ROSEMARY DRAKE
CHARITABLE REMAINDER TRUST, DATED APRIL 13, 1999, (the "Drake Trust"); MARGARET
ELIZABETH GAINER AND EDWARD J. GAINER IV, AS CO-TRUSTEES OF THE EDWARD JOSEPH
GAINER III IRREVOCABLE FAMILY TRUST, DATED APRIL 18, 1999 (the "Gainer Trust");
and  EDWARD JOSEPH GAINER AND JAMES A GAINER, AS CO-TRUSTEES OF THE MARGARET
ELIZABETH GAINER IRREVOCABLE FAMILY TRUST, DATED APRIL 18, 1999 (The "2/nd/
Gainer Trust") (The Drake Trust, the Gainer Trust and the 2/nd/ Gainer Trust"
are hereinafter referred to collectively as the "Trust Shareholders".) The
Individual Shareholders and the Trust Shareholders are referred to collectively
herein as the "Shareholders",  and Brokat, TST and the Shareholders are referred
to herein individually as a "Party" or collectively as the "Parties"),

WITNESSETH THAT:

WHEREAS, Brokat wishes to acquire 100% of the issued and outstanding capital
stock of TST; and

WHEREAS, The Shareholders own 100% of the issued and outstanding capital stock
of TST and are willing to sell the same to Brokat; and

WHEREAS, The parties desire that the Closing (hereinafter defined) of the sale
of TST take place, subject to the terms and conditions described herein, on or
before May 10, 1999;

NOW THEREFORE, in consideration of the mutual covenants described herein, and
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged by the parties, the parties have agreed as follows:

                                 I. DEFINITIONS

                                     - 1 -
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     "Adverse Consequences" means all actions, suits, proceedings, hearings,
investigations, charges, complaints, claims, demands, injunctions, judgments,
orders, decrees, rulings, damages, dues, penalties, fines, costs, reasonable
amounts paid in settlement, liabilities, obligations, taxes, liens, losses,
expenses, and fees, including court costs and reasonable attorneys' fees and
expenses.

     "Affiliate" has the meaning set forth in Rule 12b-2 of the regulations
promulgated under the Securities Exchange Act.

     "Affiliated Group" means any affiliated group within the meaning of Code
(S)1504(a).

     "Basis" means any past or present fact, situation, circumstance, status,
condition, activity, practice, plan, occurrence, event, incident, action,
failure to act, or transaction that forms or could form the basis for any
specified consequence.

     "Closing" has the meaning set forth in (S)II.C.,  below.

     "Closing Date" has the meaning set forth in (S)II.C., below.

     "COBRA" means the requirements of Part 6 of Subtitle B of Title I of ERISA
and Code (S)4980B.

     "Code" means the Internal Revenue Code of 1986, as amended.

     "Confidential Information" means any information without regard to form,
which is not commonly known by or available to the public and which information
derives economic value, actual or potential, from not being generally known to,
and not being readily ascertainable by proper means by, other Persons who can
obtain economic value from its disclosure or use.

     "Employee Benefit Plan" means any (a) non-qualified deferred compensation
or retirement plan or arrangement, (b) qualified defined contribution retirement
plan or arrangement which is an Employee Pension Benefit Plan, (c) qualified
defined benefit retirement plan or arrangement which is an Employee Pension
Benefit Plan (including any Multiemployer Plan), or (d) Employee Welfare Benefit
Plan.

     "Employee Pension Benefit Plan" has the meaning set forth in ERISA (S)3(2).

     "Employee Welfare Benefit Plan" has the meaning set forth in ERISA (S)3(1).

     "Environmental, Health, and Safety Requirements" shall mean all applicable
federal, state, local and foreign statutes, regulations, ordinances and similar
provisions having the force or

                                     - 2 -
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effect of law, and all judicial and administrative orders and determinations,
concerning public health and safety, worker health and safety, and pollution or
protection of the environment, including without limitation all those relating
to the presence, use, production, generation, handling, transportation,
treatment, storage, disposal, distribution, labeling, testing, processing,
discharge, release, threatened release, control, or cleanup of any hazardous
materials, substances or wastes, chemical substances or mixtures, pesticides,
pollutants, contaminants, toxic chemicals, petroleum products or byproducts,
asbestos, polychlorinated biphenyls, noise or radiation.

     "ERISA" means the Employee Retirement Income Security Act of 1974, as
amended.

     "ERISA Affiliate" means each entity which is treated as a single employer
with Seller for purposes of Code (S)414.

     "Fiduciary" has the meaning set forth in ERISA (S)3(21).

     "Financial Statement" has the meaning set forth in (S)IV.F., below.

     "GAAP" means United States generally accepted accounting principles as in
effect from time to time, consistently applied throughout the relevant period.

     "Hart-Scott-Rodino Act" means the Hart-Scott-Rodino Antitrust Improvements
Act of 1976, as amended.

     "Income Tax" means any federal, state, local, or foreign income tax,
including any interest, penalty, or addition thereto, whether disputed or not.

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

     "Indemnifying Party" has the meaning set forth in (S)VIII.B.1., below.

     "Intellectual Property" means (a) all inventions (whether patentable or
unpatentable and whether or not reduced to practice), all improvements thereto,
and all patents, patent applications, and patent disclosures, together with all
reissuances, continuations, continuations-in-part, revisions, extensions, and
reexaminations thereof; (b) all trademarks, service marks, trade dress, logos,
trade names, and corporate names, together with all translations, adaptations,
derivations, and combinations thereof and including all goodwill associated
therewith, and all applications,

                                     - 3 -
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registrations, and renewals in connection therewith; (c) all copyrightable
works, all copyrights, and all applications, registrations, and renewals in
connection therewith; (d) all mask works and all applications, registrations,
and renewals in connection therewith; (e) all trade secrets and confidential
business information (including ideas, research and development, know-how,
formulas, compositions, manufacturing and production processes and techniques,
technical data, designs, drawings, specifications, supplier lists, and cost
information; (f) customer lists, price lists, and business and marketing plans
and proposals; (g)all computer software (including data and related
documentation); and (h) all other proprietary rights therein, and (h) all copies
and tangible embodiments thereof (in whatever form or medium).

     "Knowledge" means actual knowledge.

     "Letter of Intent" means that certain Letter of Intent dated March 19,
1999, by and among Brokat, TST and the Individual Shareholders.

     "Most Recent Balance Sheet" means the balance sheet contained within the
Most Recent Financial Statements.

     "Most Recent Financial Statements" has the meaning set forth in (S)IV.G.,
below.

     "Most Recent Fiscal Month End" has the meaning set forth in (S)IV.B.4.,
below.

     "Most Recent Fiscal Year End" has the meaning set forth in (S)IV.G., below.

     "Multiemployer Plan" has the meaning set forth in ERISA (S)3(37).

     "Ordinary Course of Business" means the ordinary course of business
consistent with past custom and practice (including with respect to quantity and
frequency).

     "Party" has the meaning set forth in the preface above.

     "PBGC" means the Pension Benefit Guaranty Corporation.

     "Person" means an individual, a partnership, a corporation, a limited
liability company, an association, a joint stock company, a trust, a joint
venture, an unincorporated organization, or a governmental entity (or any
department, agency, or political subdivision thereof).

                                     - 4 -
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     "Prohibited Transaction" has the meaning set forth in ERISA (S)406 and Code
(S)4975.

     "Reportable Event" has the meaning set forth in ERISA (S)4043.

     "Representatives" means, collectively, any director(s), officer(s),
employee(s), agent(s), consultant(s), attorney(s), accountant(s),
representative(s) and adviser(s) of a Party.

     "Securities Act" means the Securities Act of 1933, as amended.

     "Securities Exchange Act" means the Securities Exchange Act of 1934, as
amended.

     "Security Interest" means any mortgage, pledge, lien, encumbrance, charge,
or other security interest, other than (a) mechanic's, materialmen's, and
similar liens, (b) liens for taxes not yet due and payable or for taxes that the
taxpayer is contesting in good faith through appropriate proceedings, (c)
purchase money liens and liens securing rental payments under capital lease
arrangements, and (d) other liens arising in the Ordinary Course of Business and
not incurred in connection with the borrowing of money.

     "Subsidiary(ies)" means TranSoft Services, Inc.,(a Georgia corporation) a
wholly-owned subsidiary of TST; and Internet Treasury Services, Inc., (a Georgia
corporation) a wholly-owned subsidiary of TST.

     "TST" has the meaning set forth in the preface above.

     "TST Share" means any issued and outstanding share (including treasury
stock) of the common capital stock (voting or non-voting) of TST.

     "Third Party Claim" has the meaning set forth in (S)VIII.C., below.

                        II. PURCHASE AND SALE OF SHARES

A.  Basic Transaction

The basic transaction consists of the acquisition by Brokat of 100% of the TST
Shares in  consideration of the payment by Brokat to the Shareholders of US$
18,674,000.00 (Eighteen Million Six Hundred Seventy-Four Thousand United States
Dollars).  TST Shares sold pursuant to this Stock Purchase Agreement will be
offered without registration with the U.S. Securities and Exchange Commission or
any U.S. State Securities Administrator.

                                     - 5 -
<PAGE>

B.  Payments to the Shareholders

1.   At Closing, an aggregate amount of $16,874,000.00 (Sixteen Million Eight
     Hundred Seventy-Four Thousand United States Dollars shall be paid to the
     order of each of the Shareholders in the following amounts:

     a. Gainer: $5,764,650.81

     b. Drake: $2,271,786.84

     c. Sating: $2,505,793.47

     d. Underwood: $168,710.17

     e. Drake Trust: $3,408,011.71

     f. Gainer Trust: $1,377,523.50

     g. 2nd Gainer Trust: $1,377,523.50

2.   Twelve months after Closing, the aggregate amount of $900,000.00 (Nine
     Hundred Thousand United States Dollars) shall be paid to the order of each
     of the Shareholders in the following amounts:

     a. Gainer: $307,466.26

     b. Drake: $121,169.14

     c. Sating: $133,650.24

     d. Underwood: $8,998.41

     e. Drake Trust: $181,771.40

     f. Gainer Trust: $73,472.27

     g. 2nd Gainer Trust: $73,472.27

3.   Twenty-four months after Closing, the aggregate amount of $900,000.00 (Nine
     Hundred Thousand United States Dollars) shall be paid to the order of each
     of the Shareholders in the following amounts:

     a. Gainer: $307,466.26

     b. Drake: $121,169.14

                                     - 6 -
<PAGE>

     c. Sating: $133,650.24

     d. Underwood: $8,998.41

     e. Drake Trust: $181,771.40

     f. Gainer Trust: $73,472.27

     g. 2nd Gainer Trust: $73,472.27

C.  The Closing

The closing of the transactions contemplated by this Agreement (the "Closing")
shall take place at the offices of Rooks, Pitts & Poust, Chicago, Illinois,
commencing at ____.m. local time on May ___, 1999, or such other date as Brokat
and the Shareholders may mutually determine (the "Closing Date"); provided,
however, that the Closing Date shall be no later than May 10, 1999.

D.  Deliveries at Closing

     1. Deliveries of the Shareholders and TST

          At the Closing a) the Shareholders and TST will deliver to Brokat the
          various certificates, instruments, and documents referred to in
          (S)VII.A., below, and b) each of the Shareholders will deliver to
          Brokat stock certificates representing all of his TST Shares, endorsed
          in blank or accompanied by duly executed assignment documents.

     2. Deliveries of Brokat

          At the Closing  Brokat will deliver to the Shareholders the various
          payments (by wire transfer of immediately available funds as
          instructed by the Shareholders), instruments, and documents referred
          to in (S)VII.B., below.

                      III. REPRESENTATIONS AND WARRANTIES
                           CONCERNING THE TRANSACTION

A.  Representations and Warranties of the Shareholders.  Each Shareholder
hereby represents and warrants to Brokat solely for himself (unless otherwise
specifically noted to the contrary) that the statements contained in this
(S)III.A. are correct and complete as of the date of this Agreement and will be
correct and complete as of the Closing Date (as though made then and as though
the Closing Date were substituted for the date of this Agreement throughout this
(S)III.A) subject only to the exceptions described in

                                     - 7 -
<PAGE>

the attached Disclosure Schedule. The representations and warranties made by
each Shareholder shall be deemed to be representations and warranties only as to
such Shareholder, unless specifically noted to the contrary.

1.   Authorization of Transaction.  The Shareholder has full power and authority
     to execute and deliver this Agreement and to perform his obligations
     hereunder.  This Agreement constitutes the valid and legally binding
     obligation of the Shareholder, enforceable in accordance with its terms and
     conditions.

2.   Non-contravention.  Neither the execution and the delivery of this
     Agreement, nor the consummation of the transactions contemplated hereby,
     will

      a. violate any constitution, statute, regulation, rule, injunction,
         judgment, order, decree, ruling, charge, or other restriction of any
         government, governmental agency, or court to which the Shareholder is
         subject, or

      b. conflict with, result in a breach of, constitute a default under,
         result in the acceleration of, create in any party the right to
         accelerate, terminate, modify, or cancel, or require any notice under
         any duty (fiduciary or otherwise), agreement, contract, lease, license,
         instrument, or arrangement to which the Shareholder is a party or by
         which he is bound or to which any of his assets is subject.

 3.  Good Title.  The Shareholders, in the aggregate, own 100% of the issued and
     outstanding stock of TST.  Each of the Shareholders has good and marketable
     title to and holds of record and owns beneficially the number of TST Shares
     set forth next to his or its name in Exhibit A, free and clear of any
     restrictions on transfer (other than any restrictions under the Securities
     Act and state securities laws), taxes, Security Interests, options,
     warrants, purchase rights, contracts, commitments, equities, claims,
     demands, or any other arrangement or duty (fiduciary or otherwise)
     restricting his right to sell, transfer and assign TST shares pursuant to
     this Agreement. None of the  Shareholders is a party to any option,
     warrant, purchase right, or other contract or commitment that could require
     the Shareholders to sell, transfer, or otherwise dispose of any capital
     stock of TST (other than pursuant to this Agreement).  None of the
     Shareholders is a party to any voting trust, proxy, or other agreement or
     understanding with respect to the voting of any capital stock of TST.  No
     Shareholder needs to give any notice to, make any filing with, or obtain
     any authorization, consent, or approval of any government or governmental
     agency the failure of which to do or obtain could restrict or prevent the
     Shareholder's right or ability to transfer and assign his TST Shares to
     Brokat

                                     - 8 -
<PAGE>

     pursuant to this Agreement. There are no outstanding or authorized options,
     warrants, purchase rights, subscription rights, conversion rights, or other
     contracts or commitments that could require TST to issue, sell, or
     otherwise cause to become outstanding any of its capital stock (other than
     pursuant to this Agreement) such that the TST Shares purchased under this
     Agreement might amount to less than 100% of the issued and outstanding
     capital stock of TST. The representations and warranties made in this
     (S)III.A.3. are made jointly and severally as to all Shareholders by the
     Individual Shareholders, and separately, for themselves only, by each of
     the Trust Shareholders.

4.   Brokers' Fees. The Shareholder does not have any liability or obligation to
     pay any fees or commissions to any broker, finder, or agent with respect to
     the transactions contemplated by this Agreement for which Brokat could
     become liable or obligated.

5.   Capitalization. The entire authorized capital stock of TST consists of
     100,000 voting TST Shares, of which 600 shares are issued and outstanding
     and no shares are held in treasury; and 900,000 non-voting shares, of which
     101,218 shares are issued and outstanding and no shares are held in
     treasury. All of the issued and outstanding TST Shares have been duly
     authorized, are validly issued, fully paid, and non-assessable. There are
     no voting trusts, proxies, or other agreements or understandings with
     respect to the voting of the capital stock of TST.

B. Representations and Warranties of Brokat.  Brokat represents and warrants
to the Shareholders that the statements contained in this (S)III.B. are correct
and complete as of the date of this Agreement and will be correct and complete
as of the Closing Date (as though made then and as though the Closing Date were
substituted for the date of this Agreement throughout (S)III.B.) Subject only to
the exceptions described in the attached Disclosure Schedule.

1.   Authorization of Transaction. Brokat has full power and authority
     (including full corporate power and authority) to execute and deliver this
     Agreement and has taken all required and appropriate corporate action,
     including approval of the execution, delivery and performance of this
     Agreement. This Agreement constitutes the valid and legally binding
     obligation of Brokat, enforceable in accordance with its terms and
     conditions. Brokat need not give any notice to, make any filing with, or
     obtain any authorization, consent, or approval of any government or
     governmental agency in order to consummate the transactions contemplated by
     this Agreement.

                                     - 9 -
<PAGE>

 2.  Non-contravention.  Neither the execution and the delivery of this
     Agreement, nor the consummation of the transactions contemplated hereby,
     will

     a. violate any constitution, statute, regulation, rule, injunction,
     judgment, order, decree, ruling, charge, or other restriction of any
     government, governmental agency, or court to which Brokat is subject, or

     b. conflict with, result in a breach of, constitute a default under, result
     in the acceleration of, create in any party the right to accelerate,
     terminate, modify, or cancel, or require any notice under any duty
     (fiduciary or otherwise), agreement, contract, lease, license, instrument,
     or arrangement to which Brokat is a party or by which it is bound or to
     which any of its assets is subject.

3.   Brokat does not have any liability or obligation to pay any fees or
     commissions to any broker, finder, or agent with respect to the
     transactions contemplated by this Agreement for which Shareholders could
     become liable or obligated.

                       IV. REPRESENTATIONS AND WARRANTIES
                      CONCERNING TST AND ITS SUBSIDIARIES

A.  Shareholders and TST.  The Shareholders, each for himself and not jointly
and severally,  and TST represent and warrant to Brokat that the following
statements are correct and complete as of the date of this Agreement and will be
correct and complete as of the Closing Date (as though made then and as though
the Closing Date were substituted for the date of this Agreement throughout this
Article IV.A.) subject only to the exceptions described in the attached
Disclosure Schedule:

1.   Organization, Qualification, and Corporate Power. Each of TST and its
     Subsidiaries is a corporation duly organized, validly existing, and in good
     standing under the laws of the jurisdiction of its incorporation. Each of
     TST and its Subsidiaries has full corporate power and authority to carry on
     the businesses in which it is engaged and to own and use the properties
     owned and used by it. Exhibit B lists the directors and officers of each of
     TST and its Subsidiaries, and the states in which each of TST and its
     Subsidiaries is authorized to conduct business and in good standing.

2.   Events Subsequent to the Most Recent Fiscal Year End. To the Knowledge of
     the Shareholders and TST, since the Most Recent Fiscal Year End, there has
     not been any material adverse change in the business, financial condition,
     operations, or results of operations of TST and its Subsidiaries taken as a

                                     - 10 -
<PAGE>

     whole, and, without limiting the generality of the foregoing, to the
     Knowledge of the Shareholders and TST, since that date:

     a.   neither TST nor any of its Subsidiaries has sold, leased, transferred,
          or assigned any material assets, tangible or intangible, except in the
          Ordinary Course of Business;

     b.   neither TST nor any of its Subsidiaries has entered into any material
          agreement, contract, lease, or license except in the Ordinary Course
          of Business, provided, however, that TST's broker's contract with
          MASI, Ltd., payments already made thereunder, and payment by TST to
          MASI, Ltd., of the remaining balance due thereunder in an amount not
          to exceed $326,000.00 (Three Hundred Twenty-Six Thousand United States
          Dollars) prior to Closing shall not be deemed a breach of this
          representation and warranty;

     c.   neither TST nor any of its Subsidiaries has accelerated, terminated,
          made material modifications to, or canceled any material agreement,
          contract, lease, or license to which either TST or any of its
          Subsidiaries is a party or by which either of them is bound;

     d.   neither TST nor any of its Subsidiaries has imposed any Security
          Interest upon any of its assets, tangible or intangible;

     e.   neither TST nor any of its Subsidiaries has made any material capital
          expenditures except in the Ordinary Course of Business;

     f.   neither TST nor any of its Subsidiaries has made any material capital
          investment in, or any material loan to, any other Person except in the
          Ordinary Course of Business;

     g.   TST and any of its Subsidiaries have not created, incurred, assumed,
          or guaranteed more than $200,000.00 in aggregate indebtedness for
          borrowed money and capitalized lease obligations;

     h.   neither TST nor any of its Subsidiaries has granted any license or
          sub- license of any material rights under or with respect to any
          Intellectual Property, except in the Ordinary Course of Business;

     i.   there has been no change made or authorized in the charter or bylaws
          of TST or any of its Subsidiaries;

                                     - 11 -
<PAGE>

     j.   neither TST nor any of its Subsidiaries has issued, sold, or otherwise
          disposed of any of its capital stock, or granted any options,
          warrants, or other rights to purchase or obtain (including upon
          conversion, exchange, or exercise) any of its capital stock, or
          otherwise amended or altered the rights of its voting stock;

     k.   neither TST nor any of its Subsidiaries has declared, set aside, or
          paid any dividend or made any distribution with respect to its capital
          stock (whether in cash or in kind) or redeemed, purchased, or
          otherwise acquired any of its capital stock;

     l.   neither TST nor any of its Subsidiaries has experienced any material
          damage, destruction, or loss (whether or not covered by insurance) to
          its property;

     m.   neither TST nor any of its Subsidiaries has made any loan to, or
          entered into any other transaction with, any of its directors,
          officers, and employees except in the Ordinary Course of Business;

     n.   neither TST nor any of its Subsidiaries has entered into employment
          contract or collective bargaining agreement, written or oral, or
          modified the terms of any existing such contract or agreement;

     o.   neither TST nor any of its Subsidiaries has granted any increase in
          the base compensation of any of its directors, officers, and employees
          except in the Ordinary Course of Business;

     p.   neither TST nor any of its Subsidiaries has adopted, amended,
          modified, or terminated any bonus, profit-sharing, incentive,
          severance, or other plan, contract, or commitment for the benefit of
          any of its directors, officers, and employees (or taken any such
          action with respect to any other Employee Benefit Plan);

     q.   neither TST nor any of its Subsidiaries has made any other material
          change in employment terms for any of its directors, officers, and
          employees except in the Ordinary Course of Business;

     r.   neither TST nor any of its Subsidiaries has reacquired shares of its
          voting common stock in anticipation of any transaction(s) contemplated
          in this Agreement;

     s.   neither TST nor any of its Subsidiaries has acquired any of the
          capital stock of Brokat; and

                                     - 12 -
<PAGE>

     t.   neither TST nor any of its Subsidiaries has committed to any of the
          foregoing.

 3.  Undisclosed Liabilities.  To the  Knowledge of Shareholders  and TST,
     neither TST nor any of its Subsidiaries has any material liability (whether
     asserted or unasserted, whether absolute or contingent, whether accrued or
     unaccrued, whether liquidated or unliquidated, and whether due or to become
     due, including any liability for taxes), except for (i) liabilities set
     forth on the face of the Most Recent Balance Sheet and (ii) liabilities
     which have arisen after the Most Recent Fiscal Month End in the Ordinary
     Course of Business.

 4.  Intellectual Property.

     a. To the  Knowledge of the Shareholders and TST neither TST nor any of its
     Subsidiaries has ever received any charge, complaint, claim, demand, or
     notice alleging any interference, infringement, misappropriation, or
     violation of any rights of Intellectual Property rights of third parties in
     any material respect(including any claim that any of TST and its
     Subsidiaries must license or refrain from using any Intellectual Property
     rights of any third party).  To the Knowledge of  the Shareholders, no
     third party has interfered with, infringed upon, misappropriated, or
     violated any material Intellectual Property rights of any of TST and its
     Subsidiaries in any material respect.

     b. To the Knowledge of Shareholders and TST, Exhibit C identifies each
     patent, copyright or registration which has been issued to either TST or
     any of its Subsidiaries with respect to any of its Intellectual Property;
     identifies each pending patent or copyright application or application for
     registration which either TST or any of its Subsidiaries has made with
     respect to any of its Intellectual Property; identifies each material
     license, agreement, or other permission which either TST or any of its
     Subsidiaries has granted to any third party with respect to any of its
     Intellectual Property (together with any exceptions); and identifies each
     and every other item of Intellectual Property, whether or not patented (or
     pending), copyrighted (or applied for), registered (or applied for)
     necessary or useful to the business of TST or any of its Subsidiaries as
     presently conducted or as planned or projected in projections delivered to
     Brokat.  TST has delivered to Brokat correct and complete copies of all
     such patents, registrations, applications, licenses, agreements, and
     permissions (as amended to date). Exhibit C also identifies each material
     trade or service name or mark, and unregistered trade or service name or
     mark used by TST or any of its Subsidiaries in connection with any of their
     businesses.  With respect to each item of Intellectual

                                     - 13 -
<PAGE>

     Property required to be identified in Exhibit C, to the Knowledge of the
     Shareholders and TST:

     i.   TST and its Subsidiaries possess all right, title, and interest in and
          to the item, free and clear of any Security Interest, license, or
          other restriction;

     ii.  the item is not subject to any outstanding injunction, judgment,
          order, decree, ruling, or charge;

     iii. no action, suit, proceeding, hearing, investigation, charge,
          complaint, claim, or demand is pending or is threatened which
          challenges the legality, validity, enforceability, use, or ownership
          of the item; and

     iv.  Except in the Ordinary Course of Business, neither TST nor any of its
          Subsidiaries has ever agreed to indemnify any Person for or against
          any interference, infringement, misappropriation, or other conflict
          with respect to the item.

c. To the Knowledge of Shareholders and TST, Exhibit D identifies each material
          item of Intellectual Property that any third party owns and that TST
          or any of its Subsidiaries uses pursuant to license, sublicense,
          agreement, or permission.  TST has delivered to Brokat correct and
          complete copies of all such licenses, sublicenses, agreements, and
          permissions (as amended to date).  With respect to each item of
          Intellectual Property required to be identified in Exhibit D, to the
          Knowledge of the Shareholders and TST:

     i.   the license, sublicense, agreement, or permission covering the item is
          legal, valid, binding, enforceable, and in full force and effect in
          all material respects;

     ii.  TST and its Subsidiaries are not and no other party to the license,
          sublicense, agreement, or permission is in material breach or default,
          and no event has occurred which with notice or lapse of time would
          constitute a material breach or default or permit termination,
          modification, or acceleration thereunder;

     iii. no party to the license, sublicense, agreement, or permission has
          repudiated any material provision thereof; and

     iv.  neither TST nor any of its Subsidiaries has granted any sublicense or
          similar right with respect to the license, sublicense, agreement, or
          permission, except to customers as necessary in the Ordinary Course of
          Business.

                                     - 14 -
<PAGE>

 5.  Certain Business Relationships With TST and Its Subsidiaries. None of the
     Shareholders and their Affiliates has been involved in any material
     business arrangement or relationship with TST or any of its Subsidiaries
     (other than as officer, director or employee) within the past 12 months,
     and none of the Shareholders and their Affiliates owns any material asset,
     tangible or intangible, which is used in the business of TST or any of its
     Subsidiaries.

 6.  Tax Matters.  To the  Knowledge of Shareholders and TST, the tax returns
     heretofore filed by TST and its Subsidiaries did not and do not materially
     understate TST's income or materially overstate expenses.

 7.  Disclosure.  The representations and warranties contained in this (S)IV.A.
     do not contain any untrue statement of a material fact or omit to state any
     material fact necessary in order to make the statements and information
     contained in this (S)IV.A. not misleading. This representation and warranty
     is limited to the Knowledge of the Shareholders with respect to any
     representations and warranties above which are made to the Knowledge of the
     Shareholders.

B.   TST.  TST represents and warrants to Brokat that the following statements
are correct and complete as of the date of this Agreement and will be correct
and complete as of the Closing Date (as though made then and as though the
Closing Date were substituted for the date of this Agreement throughout this
Article IV) subject only to the exceptions described in the attached Disclosure
Schedule:

 1.  Non-contravention.  Neither the execution and the delivery of this
     Agreement, nor the consummation of the transactions contemplated hereby,
     will (i) violate any constitution, statute, regulation, rule, injunction,
     judgment, order, decree, ruling, charge, or other restriction of any
     government, governmental agency, or court to which any of TST or any of its
     Subsidiaries is subject or any provision of the charter or bylaws of any of
     TST or any of its Subsidiaries or (ii) conflict with, result in a breach
     of, constitute a default under, result in the acceleration of, create in
     any party the right to accelerate, terminate, modify, or cancel, or require
     any notice under any agreement, contract, lease, license, instrument, or
     other arrangement to which any of TST or any of its Subsidiaries is a party
     or by which it is bound or to which any of its assets is subject (or result
     in the imposition of any Security Interest upon any of its assets), except
     where the violation, conflict, breach, default, acceleration, termination,
     modification, cancellation, failure to give notice, or Security Interest
     would not have a material adverse effect on the business, financial
     condition,

                                     - 15 -
<PAGE>

     operations, or results of operations of TST and its Subsidiaries or on the
     ability of the Parties to consummate the transactions contemplated by this
     Agreement. Neither TST nor any of its Subsidiaries needs to give any notice
     to, make any filing with, or obtain any authorization, consent, or approval
     of any government or governmental agency in order for the Parties to
     consummate the transactions contemplated by this Agreement, except where
     the failure to give notice, to file, or to obtain any authorization,
     consent, or approval would not have a material adverse effect on the
     business, financial condition, operations, or results of operations of TST
     or any of its Subsidiaries or on the ability of the Parties to consummate
     the transactions contemplated by this Agreement.

 2.  Title to Assets.  TST and its Subsidiaries have good and marketable title
     to, or a valid leasehold interest in, the properties and assets used by
     them, located on their premises, or shown on the Most Recent Balance Sheet
     or acquired after the date thereof, free and clear of all Security
     Interests, except for properties and assets disposed of in the Ordinary
     Course of Business since the date of the Most Recent Balance Sheet.

 3.  Subsidiaries. Exhibit E sets forth for each of its Subsidiaries (i) its
     name and jurisdiction of incorporation, (ii) the number of shares of
     authorized capital stock of each class of its capital stock, (iii) the
     number of issued and outstanding shares of each class of its capital stock,
     the names of the holders thereof, and the number of shares held by each
     such holder, and (iv) the number of shares of its capital stock held in
     treasury.  All of the issued and outstanding shares of capital stock of
     Subsidiaries of TST have been duly authorized and are validly issued, fully
     paid, and non-assessable.  TST holds of record and owns beneficially all of
     the outstanding shares of its Subsidiaries, free and clear of any
     restrictions on transfer (other than restrictions under the Securities Act
     and state securities laws), taxes, Security Interests, options, warrants,
     purchase rights, contracts, commitments, equities, claims, and demands.
     There are no outstanding or authorized options, warrants, purchase rights,
     subscription rights, conversion rights, exchange rights, or other contracts
     or commitments that could require any of TST and its Subsidiaries to sell,
     transfer, or otherwise dispose of any capital stock of its Subsidiaries or
     that could require any of its Subsidiaries to issue, sell, or otherwise
     cause to become outstanding any of its own capital stock.  There are no
     outstanding stock appreciation, phantom stock, profit participation, or
     similar rights with respect to any of its Subsidiaries.  There are no
     voting trusts, proxies, or other agreements or understandings with respect
     to the voting of any

                                     - 16 -
<PAGE>

     capital stock of any of its Subsidiaries. None of TST and its Subsidiaries
     controls directly or indirectly or has any direct or indirect equity
     participation in any corporation, partnership, trust, or other business
     association.

 4.  Financial Statements.  Attached hereto as Exhibit F are the following
     financial statements (collectively the "Financial Statements"): (i) audited
     consolidated balance sheets and statements of income, changes in
     stockholders' equity, and cash flow as of and for the fiscal year ended
     September 30, 1998 (the "Most Recent Fiscal Year End"), for TST and its
     Subsidiaries, and (ii) unaudited consolidated balance sheets and statements
     of income, changes in stockholders' equity, and cash flow as of and for the
     period ended March 31, 1999(the "Most Recent Fiscal Month End"),(the "Most
     Recent Financial Statements").

     The Financial Statements (including the notes thereto) have been prepared
     in accordance with GAAP applied on a consistent basis throughout the
     periods covered thereby and present fairly the financial condition and the
     results of operations of TST and its Subsidiaries on a consolidated basis
     for such periods; provided, however, that the Most Recent Financial
     Statements are subject to normal year-end adjustments (which will not be
     material individually or in the aggregate) and may be required to reflect a
     change of accounting method from "cash basis" accounting to "accrual
     method" accounting, and lack footnotes and other presentation items.

5.   Legal Compliance. Each of TST and its Subsidiaries has complied in all
     material respects with all applicable laws (including rules, regulations,
     codes, plans, injunctions, judgments, orders, decrees, rulings, and charges
     thereunder) of federal, state, local, and foreign governments (and all
     agencies thereof), and no action, suit, proceeding, hearing, investigation,
     charge, complaint, claim, demand, or notice has been filed or commenced
     against any of them alleging any failure so to comply, except where the
     failure to comply would not have a material adverse effect on the business,
     financial condition, operations, results of operations, or future prospects
     of TST and any of its Subsidiaries.

6.   Tax Matters.

     a.   Each of TST and any of its Subsidiaries has filed all Income Tax
          Returns and other tax returns that it was required to file. To TST's
          Knowledge such Income Tax Returns and other tax returns were correct
          and complete in all material respects. All taxes owed by either of TST
          and any of its Subsidiaries (shown on any Income Tax Return or other
          tax return) have been paid. Neither TST

                                     - 17 -
<PAGE>

          nor any of its Subsidiaries currently is the beneficiary of any
          extension of time within which to file any Income Tax Return or other
          tax return.

     b.   To TST's Knowledge there is no material dispute or claim concerning
          any tax liability of any of TST and any of its Subsidiaries claimed or
          raised by any authority in writing.

     c.   TST has delivered to Brokat correct and complete copies of all
          federal, state and local (if any) income tax returns, examination
          reports, and statements of deficiencies assessed against, or agreed to
          by either TST or any of its Subsidiaries since October 1, 1995.
          Neither TST nor any of its Subsidiaries has waived any statute of
          limitations in respect of income taxes or agreed to any extension of
          time with respect to an income tax assessment or deficiency.

     d.   Neither TST nor any of its Subsidiaries has filed a consent under Code
          (S)341(f) concerning collapsible corporations. Neither TST nor any of
          its Subsidiaries has made any material payments, is obligated to make
          any material payments, or is a party to any agreement that under
          certain circumstances could obligate it to make any material payments
          that will not be deductible under Code (S)280G. Neither TST nor any of
          its Subsidiaries has been a United States real property holding
          corporation within the meaning of Code (S)897(c)(2) during the
          applicable period specified in Code (S)897(c)(1)(A)(ii). Neither TST
          nor any of its Subsidiaries is a party to any tax allocation or
          sharing agreement. Neither TST nor any of its Subsidiaries

          i.   has been a member of an Affiliated Group filing a consolidated
               federal income tax return (other than a group the common parent
               of which was TST) or

          ii.  has any liability for the taxes of any Person (other than TST and
               its Subsidiaries) under Reg. (S)1.1502-6 (or any similar
               provision of state, local, or foreign law), as a transferee or
               successor, by contract, or otherwise.

     e.   The unpaid income taxes of TST and its Subsidiaries (A) did not, as of
          the Most Recent Fiscal Month End, exceed by any material amount the
          reserve for income tax liability (rather than any reserve for deferred
          taxes established to reflect timing differences between book and tax
          income) set forth on the face of the Most Recent Balance Sheet and (B)
          will not exceed by any material amount that reserve as adjusted for
          operations and transactions

                                     - 18 -
<PAGE>

          through the Closing Date in accordance with the past custom and
          practice of TST and its Subsidiaries in filing their income tax
          returns.

7.   Tangible Assets. To TST's Knowledge the machinery, equipment, and other
     tangible assets that TST and its Subsidiaries own and lease are free from
     material defects (patent and latent), have been maintained in accordance
     with normal industry practice, and are in good operating condition and
     repair (subject to normal wear and tear).

8.   Contracts. Exhibit G lists the following contracts and other agreements to
     which any of TST and any of its Subsidiaries is a party:

     a.   any agreement (or group of related agreements) for the lease of
          personal property to or from any Person providing for lease payments
          in excess of $200,000.00 per annum;

     b.   any agreement (or group of related agreements) for the purchase or
          sale of raw materials, commodities, supplies, products, or other
          personal property, or for the furnishing or receipt of services, the
          performance of which will extend over a period of more than one year
          or involve consideration in excess of $500,000.00;

     c.   any agreement concerning a partnership or joint venture;

     d.   any agreement (or group of related agreements) under which it has
          created, incurred, assumed, or guaranteed any indebtedness for
          borrowed money, or any capitalized lease obligation, in excess of
          $200,000.00 or under which it has imposed a Security Interest on any
          of its assets, tangible or intangible;

     e.   any material agreement concerning confidentiality or noncompetition;

     f.   any material agreement with any of the Shareholders and their
          Affiliates (other than TST and its Subsidiaries);

     g.   any profit sharing, stock option, stock purchase, stock appreciation,
          deferred compensation, severance, or other material plan or
          arrangement for the benefit of its current or former directors,
          officers, and employees;

     h.   any collective bargaining agreement;

     i.   any agreement for the employment of any individual on a full-time,
          part-time, consulting, or other basis

                                     - 19 -
<PAGE>

          providing annual compensation in excess of $150,000.00 or providing
          material severance benefits;

     j.   any agreement under which it has advanced or loaned any amount to any
          of its directors, officers, and employees except in the Ordinary
          Course of Business;

     k.   any agreement under which the consequences of a default or termination
          could have a material adverse effect on the business, financial
          condition, operations, results of operations, or future prospects of
          TST and any of its Subsidiaries; or

     l.   any other agreement (or group of related agreements) the performance
          of which involves consideration in excess of $500,000.00.

TST has delivered to Brokat a correct and complete copy of each written
agreement(as amended to date)listed in Exhibit G and a written summary setting
forth the material terms and conditions of each oral agreement referred to in
Exhibit G.  With respect to each such agreement:

     aa.  the agreement is legal, valid, binding, enforceable, and in full force
          and effect in all material respects;

     bb.  TST and its Subsidiaries are not, and to the Knowledge of TST no party
          is in material breach or default, and no event has occurred which with
          notice or lapse of time would constitute a material breach or default,
          or permit termination, modification, or acceleration, under the
          agreement; and

     cc.  no party has repudiated any material provision of the agreement.

 9.  Notes and Accounts Receivable.  All notes and accounts receivable of TST
     and its Subsidiaries are reflected properly on their books and records, and
     to TST's Knowledge, are valid receivables subject to no set-offs or
     counterclaims, are current and collectible, and will be collected in
     accordance with their terms at their recorded amounts, subject only to the
     reserve for bad debts set forth in the Most Recent Balance Sheet as
     adjusted for operations and transactions through the Closing Date in
     accordance with the past custom and practice of TST and its Subsidiaries.

 10. Powers of Attorney.  To the Knowledge of TST and any of its Subsidiaries,
     there are no material outstanding powers of attorney executed on behalf of
     any of TST and any of its Subsidiaries.

                                     - 20 -
<PAGE>

 11. Insurance.  Exhibit H sets forth the following information with respect to
     each material insurance policy (including policies providing property,
     casualty, liability, and workers compensation coverage and bond and surety
     arrangements) with respect to which TST or any of its Subsidiaries is a
     party, a named insured, or otherwise the beneficiary of coverage:

     a.   the name, address, and telephone number of the agent;

     b.   the name of the insurer, the name of the policyholder, and the name of
          each covered insured;

     c.   the policy number and the period of coverage;

     d.   the coverage (including an indication of whether the coverage is on a
          claims made, occurrence, or other basis) and amount (including a
          description of how deductibles and ceilings are calculated and
          operate) of coverage; and

     e.   a description of any retroactive premium adjustments or other material
          loss- sharing arrangements.

     With respect to each such insurance policy: to TST's Knowledge, the policy
     is legal, valid, binding, enforceable, and in full force and effect in all
     material respects; neither TST nor any of its Subsidiaries nor any other
     party to the policy is in material breach or default (including with
     respect to the payment of premiums or the giving of notices), and no event
     has occurred which, with notice or the lapse of time, would constitute such
     a material breach or default, or permit termination, modification, or
     acceleration, under the policy; and no party to the policy has repudiated
     any material provision thereof.  Exhibit H describes any material self-
     insurance arrangements affecting TST or any of its Subsidiaries.

12.  Litigation. Exhibit I sets forth each instance in which either TST or any
     of its Subsidiaries is subject to any outstanding injunction, judgment,
     order, decree, ruling, or charge, or is a party or, to the Knowledge of TST
     and any of its Subsidiaries, is threatened to be made a party to any
     action, suit, proceeding, hearing, or investigation of, in, or before any
     court or quasi-judicial or administrative agency of any federal, state,
     local, or foreign jurisdiction or before any arbitrator.

13.  Product Warranty. TST and its Subsidiaries do not sell or lease software
     products to customers, but rather licenses software products to their
     customers. To the Knowledge of TST, substantially all of the products
     licensed and delivered by TST and its Subsidiaries have conformed in all
     material

                                     - 21 -
<PAGE>

     respects with all applicable contractual commitments and any express and
     implied warranties offered, or such products have been corrected to conform
     to such warranties, and neither TST nor any of its Subsidiaries has any
     material liability (, whether asserted or unasserted, whether absolute or
     contingent, whether accrued or unaccrued, whether liquidated or
     unliquidated, and whether due or to become due) for replacement or repair
     thereof or other damages in connection therewith, other than the obligation
     to revise any software programs to conform to warranties under licenses or
     applicable maintenance agreements. Exhibit J includes copies of the
     standard terms and conditions of license for TST and any of its
     Subsidiaries (containing applicable guaranty, warranty, and indemnity
     provisions). Notwithstanding that most licenses of products by TST and its
     Subsidiaries are pursuant to individually negotiated variations on the
     standard terms and conditions, all of them exclude any liability of TST or
     its Subsidiaries for incidental and consequential damages.

14.  Product Liability Neither TST nor any of its Subsidiaries has any material
     liability (whether asserted or unasserted, whether absolute or contingent,
     whether accrued or unaccrued, whether liquidated or unliquidated, and
     whether due or to become due) arising out of any injury to individuals or
     property as a result of the ownership, possession, or use of any product
     manufactured, sold, leased, or delivered by any of TST or any of its
     Subsidiaries.

15.  Employees. To the Knowledge of TST and its Subsidiaries, no executive, key
     employee, or significant group of employees plans to terminate employment
     with any of TST or any of its Subsidiaries during the 12 months following
     the date hereof. Neither TST nor any of its Subsidiaries is a party to or
     bound by any collective bargaining agreement, nor has any of them
     experienced any strike or material grievance, claim of unfair labor
     practices, or other collective bargaining dispute within the past three
     years. To the Knowledge of TST neither TST nor any of its Subsidiaries has
     committed any material unfair labor practice. Neither TST nor any of its
     Subsidiaries has any Knowledge of any organizational effort presently being
     made or threatened by or on behalf of any labor union with respect to
     employees of any of TST or any of its Subsidiaries.

16.  Year 2000. To TST's Knowledge, each software product sold, licensed or
     otherwise assigned by TST and any of its Subsidiaries in its business
     (collectively, the "Software") will accurately process date data
     (including, but not limited to, calculating, comparing and sequencing)
     from, into and between the twentieth and twenty-first centuries, including,
     without limitation, leap year calculations, without a decrease in the
     functionality of the Software. To TST's Knowledge,

                                     - 22 -
<PAGE>

     after substantial and prudent testing, the Software is designed to
     correctly process dates that are in the range from January 1, 1980 through
     December 31, 2079, and will operate while processing such dates without
     error relating to date data, specifically including any error relating to,
     or the product of, date data which represents or references different
     centuries or more than one century. Without limiting the generality of the
     foregoing, the Software (a) will not abnormally end or provide invalid or
     incorrect results as a result of date data, specifically including date
     data which represents or references different centuries or more than one
     century; (b) has been designed to ensure year 2000 compatibility,
     including, but not limited to, date data century recognition, calculations
     which accommodate same century and multi- century formulas and date values,
     and date data interface values that reflect the century; (c) will manage
     and manipulate data involving dates, including single century formulas and
     multi-century formulas, and will not cause an abnormally ending scenario
     within the application or generate incorrect values or invalid results
     involving such dates; and (d) provides that all date-related data interface
     functionalities include the indication of century.

17.  Employee Benefits.

     a.   Exhibit K lists each Employee Benefit Plan that either TST or any of
          its Subsidiaries maintains or to which either TST or any of its
          Subsidiaries contributes or has any obligation to contribute.

          i. To TST's Knowledge, each such Employee Benefit Plan (and each
          related trust, insurance contract, or fund) complies in form and in
          operation in all material respects with the applicable requirements of
          ERISA, the Code, and other applicable laws.

          ii. All required reports and descriptions (including Form 5500 Annual
          Reports, summary annual reports, PBGC-l's, and summary plan
          descriptions) have been timely filed and distributed appropriately
          with respect to each such Employee Benefit Plan.  The requirements of
          COBRA have been met in all material respects with respect to each such
          Employee Benefit Plan which is an Employee Welfare Benefit Plan.

          iii. All contributions (including all employer contributions and
          employee salary reduction contributions) which are due have been paid
          to each such Employee Benefit Plan which is an Employee Pension
          Benefit Plan and all contributions for any period ending on or before
          the Closing Date which are not yet due have

                                     - 23 -
<PAGE>

          been paid to each such Employee Pension Benefit Plan or accrued in
          accordance with the past custom and practice of TST and its
          Subsidiaries. All premiums or other payments for all periods ending on
          or before the Closing Date have been paid with respect to each such
          Employee Benefit Plan which is an Employee Welfare Benefit Plan.

          iv. Each such Employee Benefit Plan which is an Employee Pension
          Benefit Plan meets the requirements of a "qualified plan" under Code
          (S)401(a), has received, within the last two years, a favorable
          determination letter from the Internal Revenue Service that it is a
          "qualified plan," and to TST's Knowledge there are no facts or
          circumstances that could result in the revocation of such
          determination letter.

          v. The market value of assets under each such Employee Benefit Plan
          which is an Employee Pension Benefit Plan (other than any
          Multiemployer Plan) equals or exceeds the present value of all vested
          and nonvested liabilities thereunder determined in accordance with
          PBGC methods, factors, and assumptions applicable to an Employee
          Pension Benefit Plan terminating on the date for determination.

          vi. TST has delivered to Brokat correct and complete copies of the
          plan documents and summary plan descriptions, the most recent
          determination letter received from the Internal Revenue Service, the
          most recent Form 5500 Annual Report, and all related trust agreements,
          insurance contracts, and other funding agreements which implement each
          such Employee Benefit Plan.

     b.   With respect to each Employee Benefit Plan that any of TST, any of its
          Subsidiaries, and any ERISA Affiliate maintains or ever has maintained
          or to which any of them contributes, ever has contributed, or ever has
          been required to contribute:

          i. No such Employee Benefit Plan which is an Employee Pension Benefit
          Plan (other than any Multiemployer Plan) has been completely or
          partially terminated or been the subject of a Reportable Event as to
          which notices would be required to be filed with the PBGC.  No
          proceeding by the PBGC to terminate any such Employee Pension Benefit
          Plan (other than any Multiemployer Plan) has been instituted or, to
          the Knowledge of TST, threatened.

          ii. There have been no Prohibited Transactions with respect to any
          such Employee Benefit Plan.  No Fiduciary

                                     - 24 -
<PAGE>

          has any liability for material breach of fiduciary duty or any other
          material failure to act or comply in connection with the
          administration or investment of the assets of any such Employee
          Benefit Plan. No action, suit, proceeding, hearing, or investigation
          with respect to the administration or the investment of the assets of
          any such Employee Benefit Plan (other than routine claims for
          benefits) is pending or, to the Knowledge of TST, threatened.

          iii. To TST's Knowledge, neither TST nor any of its Subsidiaries has
          incurred any material liability (whether asserted or unasserted,
          whether absolute or contingent, whether accrued or unaccrued, whether
          liquidated or unliquidated, and whether due or to become due) to the
          PBGC (other than PBGC premium payments) or otherwise under Title IV of
          ERISA (including any withdrawal liability as defined in ERISA (S)4201)
          or under the Code with respect to any such Employee Benefit Plan which
          is an Employee Pension Benefit Plan.

     c.   Neither TST, nor any of its Subsidiaries, nor the other members of any
          Controlled Group that includes TST and any of its Subsidiaries
          contributes to, ever has contributed to, or, to TST's Knowledge, ever
          has been required to contribute to any Multiemployer Plan or has any
          material liability whether asserted or unasserted, whether absolute or
          contingent, whether accrued or unaccrued, whether liquidated or
          unliquidated, and whether due or to become due), including any
          withdrawal liability (as defined in ERISA (S)4201), under any
          Multiemployer Plan.

     d.   Neither TST nor any of its Subsidiaries maintains or ever has
          maintained or contributes, ever has contributed, or, to TST's
          Knowledge, ever has been required to contribute to any Employee
          Welfare Benefit Plan providing medical, health, or life insurance or
          other welfare-type benefits for current or future retired or
          terminated employees, their spouses, or their dependents (other than
          in accordance with COBRA).

 18. Guaranties. Neither TST nor any of its Subsidiaries is a guarantor or
     otherwise is responsible for any liability or obligation (including
     indebtedness) of any other Person.

 19. Environment, Health, and Safety Matters.

     a. To TST's Knowledge, each of TST, its Subsidiaries, and their respective
     predecessors and Affiliates has complied and is in compliance, in each case
     in all material respects, with all Environmental, Health, and Safety
     Requirements.

                                     - 25 -
<PAGE>

     b. To TST's Knowledge, without limiting the generality of the foregoing,
     each of TST, any of its Subsidiaries, and their respective Affiliates, has
     obtained, has complied, and is in compliance with, in each case in all
     material respects, all material permits, licenses and other authorizations
     that are required pursuant to Environmental, Health, and Safety
     Requirements for the occupation of its facilities and the operation of its
     business; a list of all such material permits, licenses and other
     authorizations is set forth on the attached "Environmental and Safety
     Permits Schedule."

     c. To TST's Knowledge, none of TST, any of its Subsidiaries, or their
     respective Affiliates has received any written or oral notice, report or
     other information regarding any actual or alleged material violation of
     Environmental, Health, and Safety Requirements, or any material liabilities
     or potential material liabilities (whether accrued, absolute, contingent,
     unliquidated or otherwise), including any material investigatory, remedial
     or corrective obligations, relating to any of them or its facilities
     arising under Environmental, Health, and Safety Requirements.

     d. Except as set forth on the attached "Environmental and Safety Matters
     Schedule", to TST's Knowledge, none of the following exists at any property
     or facility operated by TST or any of its Subsidiaries: (1) underground
     storage tanks, (2) asbestos-containing material in any friable and damaged
     form or condition, (3) materials or equipment containing polychlorinated
     biphenyls, or (4) landfills, surface impoundments, or disposal areas.

     e. To TST' Knowledge, none of TST, any of its Subsidiaries, or any of their
     respective predecessors or Affiliates has treated, stored, disposed of,
     arranged for or permitted the disposal of, transported, handled, or
     released any substance, including without limitation any hazardous
     substance, or owned or operated any property or facility (and no such
     property or facility is contaminated by any such substance) in a manner
     that has given or would give rise to material liabilities, including any
     material liability for response costs, corrective action costs, personal
     injury, property damage, natural resources damages or attorney fees,
     pursuant to the Comprehensive Environmental Response, Compensation and
     Liability Act of 1980, as amended ("CERCLA") or the Solid Waste Disposal
     Act, as amended ("SWDA") or any other Environmental, Health, and Safety
     Requirements.

     f. Neither this Agreement nor the consummation of the transaction that is
     the subject of this Agreement will result in any material obligations for
     site investigation or cleanup, or notification to or consent of government
     agencies or third

                                     - 26 -
<PAGE>

     parties, pursuant to any of the so-called "transaction- triggered" or
     "responsible property transfer" Environmental, Health, and Safety
     Requirements.

 20. Disclosure.  To TST's Knowledge the representations and warranties
     contained in this (S)IV.B. do not contain any untrue statement of a
     material fact or omit to state any material fact necessary in order to make
     the statements and information contained in this (S)IV.B. not misleading.

                            V. Pre-Closing Covenants

The Parties agree as follows with respect to the period between the execution of
this Agreement and the Closing.

A. General. Each of the Parties will use his or its reasonable best efforts to
take all action and to do all things necessary, proper, or advisable in order to
consummate and make effective the transactions contemplated by this Agreement
(including satisfaction, but not waiver, of the closing conditions set forth in
Article VII below).

B. Notices and Consents. TST shall give any notices to third parties, and shall
obtain any third party consents that Brokat reasonably may request in connection
with any exceptions (noted in the Disclosure Schedule attached hereto) to the
representations and warranties described in Article IV., above. Each of the
Parties will (and the Shareholders will cause TST and its Subsidiaries to) give
any notices to, make any filings with, and use its reasonable best efforts to
obtain any authorizations, consents, and approvals of governments and
governmental agencies in connection with the matters referred to in (S)III.A.2.,
(S)III.B.2., and (S)IV.C. above. Without limiting the generality of the
foregoing, each of the Parties will file (and the Shareholders will cause each
of TST and its Subsidiaries to file) any Notification and Report Forms and
related material that he or it may be required to file with the Federal Trade
Commission and the Antitrust Division of the United States Department of Justice
under the Hart-Scott-Rodino Act, will use his or its reasonable best efforts to
obtain a waiver from the applicable waiting period, and will make any further
filings pursuant thereto that may be necessary, proper, or advisable in
connection therewith.

C. Operation of Business. TST and any of its Subsidiaries shall not engage in
any practice, take any action, or enter into any transaction except in the
Ordinary Course of Business. Without limiting the generality of the foregoing,
TST and any of its Subsidiaries shall not, except in the Ordinary Course of
Business

1.   declare, set aside, or pay any dividend or make any distribution with
     respect to its capital stock, or

                                     - 27 -
<PAGE>

2.   redeem, purchase, or otherwise acquire any of its capital stock, or

3.   otherwise engage in any practice, take any action, or enter into any
     transaction of the sort described in (S)IV.G., above.

D. Preservation of Business. TST and its Subsidiaries shall use reasonable best
efforts to keep their business and properties substantially intact, including
present operations, physical facilities, working conditions, and relationships
with lessors, licensors, suppliers, customers, and employees.

E. Full Access. Each of the Shareholders shall permit, and TST and its
Subsidiaries shall permit, representatives of Brokat to have full access at all
reasonable times, and in a manner so as not to interfere with the normal
business operations of TST and its Subsidiaries, to all premises, properties,
personnel, books, records (including tax records), contracts, and documents of
or pertaining to TST and its Subsidiaries. Brokat will treat and hold as such
any Confidential Information it receives from any of the Shareholders, TST, and
its Subsidiaries in the course of the reviews contemplated by this (S)V.E., will
not use any of the Confidential Information except in connection with this
Agreement, and, if this Agreement is terminated for any reason whatsoever, will
return to the Shareholders, TST, and its Subsidiaries all tangible embodiments
(and all copies) of the Confidential Information which are in its possession.

F. Notice of Developments. TST will give prompt written notice to Brokat of any
material adverse development causing a breach of any of the representations and
warranties in Article IV., above. Each Party will give prompt written notice to
the others of any material adverse development causing a breach of any of his or
its own representations and warranties in Article III above. No disclosure by
any Party pursuant to this (S)V.F., however, shall be deemed to amend or
supplement the Exhibits to this Agreement or to prevent or cure any
misrepresentation, breach of warranty, or breach of covenant.

G. Exclusivity.  None of the Shareholders will (and the Shareholders will not
cause or permit TST or any of its Subsidiaries to) (i) solicit, initiate, or
encourage the submission of any proposal or offer from any Person relating to
the acquisition of any capital stock or other voting securities, or any
substantial portion of the assets, of any of TST and any of its Subsidiaries
(including any acquisition structured as a merger, consolidation, or share
exchange) or (ii) participate in any discussions or negotiations regarding,
furnish any information with respect to, assist or participate in, or facilitate
in any other manner any effort or attempt by any Person to do or seek any of the
foregoing.  None of the Shareholders will vote their TST Shares in

                                     - 28 -
<PAGE>

favor of any such acquisition structured as a merger, consolidation, or share
exchange. The Shareholders shall promptly notify Brokat of any inquiry or
proposal received by the Shareholders or TST with respect to any such
acquisition and shall furnish Brokat with a copy of any written information
relating thereto. In the event that Shareholders or TST breach the provisions of
this (P)V.G. and subsequently close(s) a transaction for the sale of a majority
of the capital stock of TST, or all or substantially all of the material assets
of TST (whether through direct purchase, merger, consolidation or otherwise)
with a person or entity (or an affiliate of such person or entity) that was
involved in said breach of this (S)V.G. then, upon the closing of such
transaction, the Shareholders shall on a pro rata basis pay to Brokat a fee
equal to 3.5% of the value of the shares or assets (as the case may be) to be
exchanged in this transaction. The foregoing shall be the exclusive remedy, and
in lieu of all other remedies at law or in equity, of Brokat for breach of the
provisions of this (S)V.G.

H. Confidentiality. Each Party agrees that all Confidential Information
pertaining to the other Party or parties and furnished, or to be furnished, by
or on behalf of such other Party or parties (i) will be kept in strict
confidence by each Party and its Representatives, (ii) if the transactions
contemplated in this Agreement are not consummated, such Confidential
Information shall not be used in competition with either Party or for any
purpose other than evaluating the transaction, and (iii) such information shall
not be disclosed to any person other than each Party's Representatives who need
to know such information for the purpose of evaluating the transaction or for
other relationships between the parties and their subsidiaries. If such
information is disclosed to any Representative of either Party, that person or
entity shall be informed at the time of such disclosure of the confidential
nature of the information and of his or its obligations with respect thereto. If
for any reason the transaction is not consummated, each Party will return to the
other Party all documents and materials containing or reflecting Confidential
Information and will not retain any copies, summaries, extracts, or other
reproductions thereof, except information relating the ongoing business
relationship of the Parties.

I. Confidentiality Agreements. Brokat shall provide to TST and its Subsidiaries
samples of the confidentiality agreements for officers and employees presently
used by Brokat in its own organization. TST and its Subsidiaries shall confer
with Brokat regarding the best approach to be made to officers and employees of
TST and its Subsidiaries for the purpose of securing their execution of
confidentiality agreements. Brokat, TST and TST's Subsidiaries recognize that
this endeavor shall be made in such a way as to minimize disruption to the
business of TST and its Subsidiaries.

                                     - 29 -
<PAGE>

J. MASI Fee. TST shall pay the broker fee owed to MASI in the amount of
$326,000.

                          VI. Post-Closing Covenants.

With respect to the period following the Closing:

A.   General.

1.   In case at any time after the Closing any further action is necessary to
     carry out the purposes of this Agreement, each of the Parties will take
     such further action (including the execution and delivery of such further
     instruments and documents) as any other Party reasonably may request, all
     at the sole cost and expense of the requesting Party (unless the requesting
     Party is entitled to indemnification therefor under Article VIII, below).

2.   The Shareholders acknowledge and agree that from and after the Closing
     Brokat will be entitled to possession of all documents, books, records
     (including tax records), agreements, and financial data of any sort
     relating to TST and its Subsidiaries.

3.   None of the Shareholders will take any action that is designed or intended
     to have the effect of discouraging any lessor, licensor, customer,
     supplier, or other business associate of TST and any of its Subsidiaries
     from maintaining the same business relationships with TST and any of its
     Subsidiaries after the Closing as it maintained with TST and any of its
     Subsidiaries prior to the Closing.

4.   Each of the Shareholders will treat and hold as such all of the information
     deemed confidential under this Agreement ("Confidential Information"),
     refrain from using any of the Confidential Information except in connection
     with this Agreement or future employment with TST, Brokat or an affiliate
     of either of them, and deliver promptly to Brokat or destroy, at the
     request and option of Brokat, all tangible embodiments (and all copies) of
     the Confidential Information which are in his possession.  In the event
     that any of the Shareholders is requested or required (by oral question or
     request for information or documents in any legal proceeding,
     interrogatory, subpoena, civil investigative demand, or similar process) to
     disclose any Confidential Information, that Shareholder will notify Brokat
     promptly of the request or requirement so that Brokat may seek an
     appropriate protective order or waive compliance with the provisions of
     this subsection.  If, in the absence of a protective order or the receipt
     of a waiver hereunder, any of the Shareholders is, on the advice of
     counsel, compelled to disclose any Confidential

                                     - 30 -
<PAGE>

     Information to any tribunal or else stand liable for contempt, that
     Shareholder may disclose the Confidential Information to the tribunal;
     provided, however, that the disclosing Shareholder shall use his or its
     reasonable best efforts to obtain, at the reasonable request of Brokat, an
     order or other assurance that confidential treatment will be accorded to
     such portion of the Confidential Information required to be disclosed as
     Brokat shall designate.

B.   Covenant Not to Compete.  For a period of two years from and after the
Closing Date, Gainer, Drake or Sating (hereinafter in this (S)VI.B. referred to
as "Sellers:) will not,  (except with the express written consent of TST or
Brokat) directly or indirectly, whether for the Seller's own behalf or on behalf
of any person, firm, partnership, association, corporation or business
organization, entity or enterprise, in any way do or attempt to do any of the
following:

1.   solicit, contact, call upon, communicate with, or attempt to communicate
     with, in any way directly or indirectly, for the purpose of attempting to
     provide services or goods competitive with those of TST or Brokat, any
     client or prospective client of TST or Brokat, with whom the Seller has had
     personal contact within a period of two years prior to the Closing.  A
     client, for the purposes of this (S)VI.B., means any person, corporation,
     or other enterprise with whom TST or Brokat has entered into an agreement
     for services or goods within the two-year period prior to the Closing.  A
     prospective client, for purposes of this (S)VI.B., means any one to whom a
     proposal for services or goods was made within the two year period prior to
     the Closing.  The Seller understands and agrees that the market for TST's
     and Brokat's products and services is worldwide, that TST and Brokat
     conducts their business in competition with enterprises located throughout
     the world and that the geographical scope of this provision is fair and
     reasonable;

2.   contact, hire or attempt to persuade any agents, employees, or officers of
     TST or Brokat to terminate their relationship with TST or Brokat or do any
     act that may result in the impairment of the relationship between TST or
     Brokat or any of their respective agents, employees or officers; or

3.   dissuade any client from seeking services or goods from TST.

If the final judgment of a court of competent jurisdiction declares that any
term or provision of this (S)VI.B. is invalid or unenforceable, the Parties
agree that the court making the determination of invalidity or unenforceability
shall have the power to reduce the scope, duration, or area of the term or
provision, to delete specific words or phrases, or to replace any

                                     - 31 -
<PAGE>

invalid or unenforceable term or provision with a term or provision that is
valid and enforceable and that comes closest to expressing the intention of the
invalid or unenforceable term or provision, and this Agreement shall be
enforceable as so modified after the expiration of the time within which the
judgment may be appealed.

C. Personal Guaranties.  Within 10 business days after the Closing, TST and
Brokat shall have taken the necessary steps to relieve the Individual
Shareholders of personal guaranties  on a TST line of credit and other
liabilities of TST with a present aggregate outstanding balance of approximately
$60,000.00 (Sixty Thousand United States Dollars) which they have made on behalf
of TST as principal debtor.  The Individual Shareholders shall deliver to
Brokat, at or before the Closing, documentation evidencing such guaranties and
the amount thereof. From and after the Closing, Brokat agrees to indemnify and
hold the Individual Shareholders from and against any and all liability under
the mentioned guaranties.

                     VII. Conditions to Obligation to Close

A.   Conditions to Obligation of Brokat.  The obligation of Brokat to consummate
the transactions to be performed by it in connection with the Closing is subject
to satisfaction of the following conditions:

1.   the representations and warranties set forth in (S)III.A. and Article IV.,
     above shall be true and correct in all material respects at and as of the
     Closing Date;

2.   the Shareholders and TST shall have performed and complied with all of
     their covenants hereunder in all material respects through the Closing;

3.   TST and its Subsidiaries shall have procured all of the material third
     party consents specified in (S)V.B. above;

4.   no action, suit, or proceeding shall be pending before any court or quasi-
     judicial or administrative agency of any federal, state, local, or foreign
     jurisdiction or before any arbitrator wherein an unfavorable injunction,
     judgment, order, decree, ruling, or charge would (A) prevent consummation
     of any of the transactions contemplated by this Agreement, (B) cause any of
     the transactions contemplated by this Agreement to be rescinded following
     consummation, (C) affect adversely the right of Brokat to own TST Shares
     and to control TST and its Subsidiaries, or (D) affect materially and
     adversely the right of any of TST and its Subsidiaries to own its assets
     and to operate its businesses (and no such injunction, judgment, order,
     decree, ruling, or charge shall be in effect);

                                     - 32 -
<PAGE>

5.   the Shareholders shall have delivered to Brokat a certificate to the effect
     that each of the conditions specified above in (S)VII.A.1.-4. is satisfied
     in all respects;

6.   all applicable waiting periods (and any extensions thereof) under the Hart-
     Scott-Rodino Act shall have expired or otherwise been terminated and the
     Parties, TST, and its Subsidiaries shall have received all other material
     authorizations, consents, and approvals of governments and governmental
     agencies referred to in (S)III.A.2., (S)III.B.1., and (S)IV.B.1., above;

7.   all actions to be taken by the Shareholders, TST and any of its
     Subsidiaries in connection with consummation of the transactions
     contemplated herein and all certificates, opinions, instruments, and other
     documents required to effect the transactions contemplated hereby will be
     reasonably satisfactory in form and substance to Brokat;

8.   all U.S. federal and state securities law requirements have been satisfied;
     and

9.   receipt by Brokat of written resignations of all directors and officers of
TST and its Subsidiaries who are Shareholders.

Brokat may waive any condition specified in this (S)VII.A. if it executes a
writing so stating at or prior to the Closing.

B. Conditions to Obligation of the Shareholders and TST. The obligation of the
Shareholders and TST to consummate the transactions to be performed by them in
connection with the Closing is subject to satisfaction of the following
conditions:

1.   the representations and warranties set forth in (S)III.B. above shall be
     true and correct in all material respects at and as of the Closing Date;

2.   Brokat shall have performed and complied with all of its covenants
     hereunder in all material respects through the Closing;

3.   no action, suit, or proceeding shall be pending before any court or quasi-
     judicial or administrative agency of any federal, state, local, or foreign
     jurisdiction or before any arbitrator wherein an unfavorable injunction,
     judgment, order, decree, ruling, or charge would (A) prevent consummation
     of any of the transactions contemplated by this Agreement or (B) cause any
     of the transactions contemplated by this Agreement to be rescinded
     following consummation (and no such injunction, judgment, order, decree,
     ruling, or charge shall be in effect);

                                     - 33 -
<PAGE>

4.   Brokat shall have delivered to the Shareholders a certificate to the effect
     that each of the conditions specified above in (S)VII.B. 1.-  3. is
     satisfied in all respects;

5.   all applicable waiting periods (and any extensions thereof) under the Hart-
     Scott-Rodino Act shall have expired or otherwise been terminated and
     Brokat, TST, and  Subsidiaries shall have received all other material
     authorizations, consents, and approvals of governments and governmental
     agencies referred to in (S)III.B.1., above;

6.   employment agreements shall have been executed between Brokat and certain
     key executives of TST, namely, Edward J. Gainer III, Bill D. Drake, Dennis
     M. Sating, and Neil Underwood, to be employed with TST, Brokat or an
     affiliate of them.

7.   all actions to be taken by Brokat in connection with consummation of the
     transactions contemplated hereby will be reasonably satisfactory in form
     and substance to the Shareholders.

The Shareholders may waive any condition specified in this (S)VII.B. if they
execute a writing so stating at or prior to the Closing.

      VIII. Remedies for Breaches of This Agreement.

A. Survival of Representations and Warranties.

1.   The representations and warranties of the Shareholders, TST, and Brokat
     contained in (S)III. (other than (S)III.A.3. above) shall not survive the
     Closing hereunder; excepting, however, that the representations and
     warranties contained in (S)III.A.3., above, shall survive the Closing
     hereunder (even if Brokat knew or had reason to know of any
     misrepresentation or breach of warranty at the time of Closing) and
     continue in full force and effect for a period of one year thereafter.

2.   The representations and warranties contained in (S)IV.A. shall survive the
     Closing hereunder (even if Brokat knew or had reason to know of any
     misrepresentation or breach of warranty at the time of Closing) as follows:

     a. (S)IV.A.2. shall survive for 6 months after the Closing; and

     b. the remaining representations and warranties in (S)IV.A. shall survive
     for 12 months after the Closing.

B.   Indemnification Provisions for Benefit of Brokat.

1.   In the event any of the Shareholders breaches any of their representations,
     warranties, and covenants contained in (S)III.A.3., above, and, provided
     that Brokat makes a written

                                     - 34 -
<PAGE>

     claim for indemnification against any of the Shareholders within the
     applicable survival period, then (a) each of the Individual Shareholders
     agrees, jointly and severally, and (b) each of the Trust Shareholders
     agrees, separately for itself, to indemnify Brokat from and against the
     entirety of any Adverse Consequences Brokat may suffer through and after
     the date of the claim for indemnification (including any Adverse
     Consequences Brokat may suffer after the end the applicable survival
     period) resulting from, arising out of, relating to, in the nature of, or
     caused by the breach, but not more than the total consideration paid to the
     Shareholders pursuant to this Agreement. Brokat's remedies shall include,
     without limitation thereto, rescission and restitution. The Parties shall
     make appropriate adjustments for tax consequences and insurance coverage
     and take into account the time cost of money in determining Adverse
     Consequences for purposes of this Article VIII. Brokat shall have a right
     of offset for any amount due it hereunder by reason of indemnification
     against any sums, if any, owed and not yet due by Brokat to the
     Shareholders pursuant to Sections (S)(S)II.B.2. & 3. The amount of offset
     with respect to each Trustee Shareholder shall be limited to the amount, if
     any, still payable by Brokat to such Trustee Shareholder.

2.   In the event any of the Shareholders breaches any of their representations,
     warranties, and covenants contained in (S)IV.A. above, and, provided that
     Brokat makes a written claim for indemnification against any of the
     Shareholders within the applicable survival period, then each of the
     Shareholders agrees, separately for himself only, to indemnify Brokat from
     and against any Adverse Consequences Brokat may suffer through and after
     the date of the claim for indemnification (including any Adverse
     Consequences Brokat may suffer after the end the applicable survival
     period) resulting from, arising out of, relating to, in the nature of, or
     caused by the breach.  The indemnification in this (S)VIII.B.2. shall cover
     Adverse Consequences only after they shall have aggregated $750,000.00, and
     shall be limited to a total indemnification of $1,450,000.00. Brokat shall
     have a right of offset for any amount due it hereunder by reason of
     indemnification against any sums, if any, owed and not yet due by Brokat to
     the Shareholders pursuant to Sections (S)(S)II.B.2. & 3. The amount of
     offset with respect to each Trustee Shareholder shall be limited to the
     amount, if any, still payable by Brokat to such Trustee Shareholder. The
     Parties shall make appropriate adjustments for tax consequences and
     insurance coverage and take into account the time cost of money in
     determining Adverse Consequences for purposes of this Article VIII.

C.   Matters Involving Third Parties.

                                     - 35 -
<PAGE>

1.   If any third party shall notify Brokat with respect to any matter (a "Third
     Party Claim") which may give rise to a claim for indemnification against
     any other Party (the "Indemnifying Party") under this Article VIII, then
     Brokat shall promptly notify each Indemnifying Party thereof in writing;
     provided, however, that no delay on the part of Brokat in notifying any
     Indemnifying Party shall relieve the Indemnifying Party from any obligation
     hereunder unless (and then solely to the extent) the Indemnifying Party is
     thereby materially prejudiced.

2.   Any Indemnifying Party will have the right to assume the defense of the
     Third Party Claim with counsel of his choice reasonably satisfactory to
     Brokat at any time within 15 days after Brokat has been given notice of the
     Third Party Claim; provided, however, that the Indemnifying Party must
     conduct the defense of the Third Party Claim actively and diligently
     thereafter in order to preserve his rights in this regard; and provided
     further that Brokat may retain separate co-counsel at its sole cost and
     expense and observe, consul and cooperate in the defense of the Third Party
     Claim.

3.   So long as the Indemnifying Party has assumed and is conducting the defense
     of the Third Party Claim in accordance with (S)VIII.B.2., above, (A) the
     Indemnifying Party will not consent to the entry of any judgment or enter
     into any settlement with respect to the Third Party Claim without the prior
     written consent of Brokat (not to be withheld unreasonably) unless the
     judgment or proposed settlement involves only the payment of money damages
     by one or more of the Indemnifying Parties and does not impose an
     injunction or other equitable relief upon the Brokat and (B) Brokat will
     not consent to the entry of any judgment or enter into any settlement with
     respect to the Third Party Claim without the prior written consent of the
     Indemnifying Party (not to be withheld unreasonably).

4.   In the event the Indemnifying Parties do not assume and conduct the defense
     of the Third Party Claim in accordance with (S)VIII.B.2., (A) Brokat may
     defend against, and consent to the entry of any judgment or enter into any
     settlement with respect to, the Third Party Claim in any manner Brokat
     reasonably may deem appropriate (and Brokat need not consult with, or
     obtain any consent from, any Indemnifying Party in connection therewith)
     and (B) the Indemnifying Parties will remain responsible for any Adverse
     Consequences Brokat may suffer resulting from, arising out of, relating to,
     in the nature of, or caused by the Third Party Claim to the fullest extent
     provided in this Article VIII.

                                IX. Tax Matters.

                                     - 36 -
<PAGE>

A. Cooperation. Brokat, TST, Subsidiaries and Shareholders shall cooperate
fully, as and to the extent reasonably requested by the other Party, in
connection with the filing of tax returns pursuant to this Section and any
audit, litigation or other proceeding with respect to taxes. Such cooperation
shall include the retention and (upon the other Party's request) the provision
of records and information which are reasonably relevant to any such audit,
litigation or other proceeding and making employees available on a mutually
convenient basis to provide additional information and explanation of any
material provided hereunder. TST and its Subsidiaries and Shareholders agree (A)
to retain all of its or his respective books and records with respect to tax
matters pertinent to TST and any of its Subsidiaries relating to any taxable
period beginning before the Closing Date until the expiration of the statute of
limitations (and, to the extent notified by Brokat or Shareholders, any
extensions thereof) of the respective taxable periods, and to abide by all
record retention agreements entered into with any taxing authority, and (B) to
give the other Party reasonable written notice prior to transferring, destroying
or discarding any such books and records and, if the other Party so requests,
TST and its Subsidiaries or Shareholders, as the case may be, shall allow the
other Party to take possession of such books and records.

B. Mitigation of Tax Liability. Brokat and Shareholders further agree, upon
request, to use their best efforts to obtain any certificate or other document
from any governmental authority or any other Person as may be necessary to
mitigate, reduce or eliminate any tax that could be imposed (including, but not
limited to, with respect to the transactions contemplated hereby).

C. Code (S)6043. Brokat and Shareholders further agree, upon request, to provide
the other Party with all information that either Party may be required to report
pursuant to (S)6043 of the Code and all Treasury Department Regulations
promulgated thereunder.

                                X. Termination.

A. Termination of Agreement. Certain of the Parties may terminate this Agreement
as provided below:

1.   Brokat and the Shareholders may terminate this Agreement by mutual written
     consent at any time prior to the Closing;

2.   Brokat may terminate this Agreement by giving written notice to the
     Shareholders at any time prior to the Closing (A) in the event any of the
     Shareholders or TST has breached any material representation, warranty, or
     covenant contained in this Agreement in any material respect, the Buyer has
     notified the Requisite Shareholders of the breach, and the breach has

                                     - 37 -
<PAGE>

     continued without cure for a period of 15 after the notice of breach or (B)
     if the Closing shall not have occurred on or before May 10, 1999, by reason
     of the failure of any condition precedent under (S)VII.A. hereof (unless
     the failure results primarily from Brokat itself breaching any
     representation, warranty, or covenant contained in this Agreement); and

3.   The representative designated by the Shareholders may terminate this
     Agreement by giving written notice to Brokat at any time prior to the
     Closing (A) in the event Brokat has breached any material representation,
     warranty, or covenant contained in this Agreement in any material respect,
     any of the Shareholders has notified Brokat of the breach, and the breach
     has continued without cure for a period of 15 days after the notice of
     breach or (B) if the Closing shall not have occurred on or before April 30,
     l999, by reason of the failure of any condition precedent under (S)VII.B.
     hereof (unless the failure results primarily from any of the Shareholders
     themselves or TST breaching any representation, warranty, or covenant
     contained in this Agreement).

B. Effect of Termination. If any Party terminates this Agreement pursuant to
(S)X.A., above, all rights and obligations of the Parties hereunder shall
terminate without any liability of any Party to any other Party (except for any
liability of any Party then in breach); provided, however, that the
confidentiality provisions contained in (S)V.H. above, shall survive
termination.

Additionally, if the parties fail to achieve Closing under this Agreement,
except in the event failure to achieve the Closing shall have been caused by any
of the Shareholders or of TST, Brokat and TST shall execute and deliver:

1.   That certain Minority Equity Investment Agreement attached to the Letter of
     Intent as Exhibit A thereto;

2.   That certain inventory Finance Loan Agreement attached to the Letter of
     Intent as Exhibit B thereto; and

3.   That certain Promissory Note attached to the Letter of Intent as Exhibit C
     thereto.

                               XI. Miscellaneous.

A. Press Releases and Public Announcements. No Party shall issue any press
release or make any public announcement relating to the subject matter without
the prior written approval of Brokat and Gainer; provided, however, that any
Party may make any public disclosure it believes in good faith is required by
applicable law or any listing or trading agreement concerning its publicly-
traded securities (in which case the disclosing Party will use its

                                     - 38 -
<PAGE>

reasonable efforts to advise the other Parties prior to making the disclosure).

B. No Third-Party Beneficiaries. This Agreement shall not confer any rights or
remedies upon any Person other than the Parties and their respective successors
and permitted assigns.

C. Entire Agreement. This Agreement (including the documents referred to herein)
constitutes the entire agreement among the Parties and supersedes any prior
understandings, agreements, or representations by or among the Parties, written
or oral, to the extent they related in any way to the subject matter hereof.

D. Succession and Assignment. This Agreement shall be binding upon and inure to
the benefit of the Parties named herein and their respective successors and
permitted assigns. No Party may assign either this Agreement or any of his or
its rights, interests, or obligations hereunder without the prior written
approval of Brokat and the Shareholders; provided, however, that Brokat may (i)
assign any or all of its rights and interests hereunder to one or more of its
Affiliates and (ii) designate one or more of its Affiliates to perform its
obligations hereunder (in any or all of which cases Brokat nonetheless shall
remain responsible for the performance of all of its obligations hereunder).

E. Counterparts. This Agreement may be executed in one or more counterparts,
each of which shall be deemed an original but all of which together will
constitute one and the same instrument.

F. Headings. The section headings contained in this Agreement are inserted for
convenience only and shall not affect in any way the meaning or interpretation
of this Agreement.

G. Notices. All notices, requests, demands, claims, and other communications
hereunder will be in writing. Any notice, request, demand, claim, or other
communication hereunder shall be deemed duly given if (and then two business
days after) it is sent by registered or certified mail, return receipt
requested, postage prepaid, and addressed to the intended recipient as set forth
below:

     If to the Shareholders:  Edward Gainer
                              5268 Wyntercreek Way
                              Dunwoody, GA 30338

               Copy to:       Kathleen A. Finefrock, Esq.
                              Schwartz & Freeman
                              401 N. Michigan Avenue, Suite 1900
                              Chicago, IL 60611

                                     - 39 -
<PAGE>

     If to TST:               Transaction Software Technologies, Inc.
                              600 Pinnacle Court, Suite 655
                              Norcross, GA 30071

     If to Brokat:  Brokat Infosystems, Inc.
                    3480 Preston Ridge Road, Suite 200
                    Alpharetta, GA 30005-8891
                    Attn: ________________

               Copy to:  Harry N. Arger
                         Jeffrey M. Dalebroux
                         Rooks, Pitts and Poust
                         10 S. Wacker Drive, Suite 2300
                         Chicago, IL 60606

Any Party may send any notice, request, demand, claim, or other communication
hereunder to the intended recipient at the address set forth above using any
other means (including personal delivery, expedited courier, messenger service,
telecopy, telex, ordinary mail, or electronic mail), but no such notice,
request, demand, claim, or other communication shall be deemed to have been duly
given unless and until it actually is received by the intended recipient.  Any
Party may change the address to which notices, requests, demands, claims, and
other communications hereunder are to be delivered by giving the other Parties
notice in the manner herein set forth.

H. Governing Law and Jurisdiction. This Agreement shall be governed by and
construed in accordance with the domestic laws of the State of Georgia without
giving effect to any choice or conflict of law provision or rule (whether of the
State of Georgia or any other jurisdiction) that would cause the application of
the laws of any jurisdiction other than the State of Georgia. The Parties
consent to the non-exclusive jurisdiction of any federal or state court sitting
in Atlanta, Georgia. Each Party hereby waives to the extent permitted by law
personal service of any and all process and consents that all such service of
process shall be made by certified or registered mail directed to the party at
the address designated in this Agreement for notices, and service so made shall
be deemed to be completed upon actual receipt thereof. Each party hereby waives
any objection which such Party may have based on improper venue or forum non
conveniens to the conduct of any proceeding instituted hereunder and waives any
right it may have to transfer or change the venue of any litigation brought in
accordance with this (S)XI.H.

I. Amendments and Waivers. No amendment of any provision of this Agreement shall
be valid unless the same shall be in writing and signed by Brokat and the
Shareholders. No waiver by any Party of any default, misrepresentation, or
breach of warranty or covenant

                                     - 40 -
<PAGE>

hereunder, whether intentional or not, shall be deemed to extend to any prior or
subsequent default, misrepresentation, or breach of warranty or covenant
hereunder or affect in any way any rights arising by virtue of any prior or
subsequent such occurrence.

J. Severability. Any term or provision of this Agreement that is invalid or
unenforceable in any situation in any jurisdiction shall not affect the validity
or enforceability of the remaining terms and provisions hereof or the validity
or enforceability of the offending term or provision in any other situation or
in any other jurisdiction.

K. Expenses. Each of the Parties, TST, and its Subsidiaries will bear his or its
own costs and expenses (including legal fees and expenses) incurred in
connection with this Agreement and the transactions contemplated hereby. Brokat
agrees that TST will bear the Shareholders' reasonable costs, fees and expenses,
including any of their legal, accounting, and business and financial consultant
fees and expenses, in connection with the transactions contemplated by this
Agreement.

L. Construction. The Parties have participated jointly in the negotiation and
drafting of this Agreement. In the event an ambiguity or question of intent or
interpretation arises, this Agreement shall be construed as if drafted jointly
by the Parties and no presumption or burden of proof shall arise favoring or
disfavoring any Party by virtue of the authorship of any of the provisions of
this Agreement. Any reference to any federal, state, local, or foreign statute
or law shall be deemed also to refer to all rules and regulations promulgated
thereunder, unless the context requires otherwise. The word "including" shall
mean including without limitation.

M. Incorporation of Exhibits, Annexes, and Schedules. The Exhibits, Annexes, and
Schedules identified in this Agreement are incorporated herein by reference and
made a part hereof.

                                     *****

                             SIGNATURE PAGES FOLLOW

                                     - 41 -
<PAGE>

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

BROKAT INFOSYSTEMS AG

By:    __________________________
Name:  __________________________
Title: __________________________

By:    __________________________
Name:  __________________________
Title: __________________________

TRANSACTION SOFTWARE TECHNOLOGIES, INC.

By:    __________________________
Name:  __________________________
Title: __________________________

SHAREHOLDERS

_______________________________
Dr. Edward J. Gainer III, individually

_______________________________
Bill D. Drake, individually

_______________________________
Dennis M. Sating, individually

_______________________________
Neil Underwood, individually

_______________________________
ELIZABETH ANDERSON DWORSCHAK,
AS SPECIAL INDEPENDENT TRUSTEE OF THE BILL D. AND ROSEMARY DRAKE CHARITABLE
REMAINDER TRUST, DATED APRIL 13, 1999

                                     - 42 -
<PAGE>

_____________________________________________________________
MARGARET ELIZABETH GAINER AND EDWARD J. GAINER IV, AS CO-TRUSTEES
OF THE EDWARD JOSEPH GAINER III IRREVOCABLE FAMILY TRUST
DATED APRIL 18, 1999

____________________________________________________________
EDWARD JOSEPH GAINER AND JAMES A GAINER, AS CO-TRUSTEES OF THE MARGARET
ELIZABETH GAINER IRREVOCABLE FAMILY TRUST, DATED APRIL 18, 1999

                                     - 43 -<PAGE>

                                                                    EXHIBIT 10.3

                                  Translation

             Agreement on Subscription and Contribution of Capital

                                 by and between

BROKAT Aktiengesellschaft, Stuttgart

- hereinafter referred to as "BROKAT"

                                      and

1.  Dr. Andreas von Aufschnaiter

2.  Jozsef Bugovics

3.  Dr. Christoph Bulfon

4.  Andreas Kinsky

5.  Philipp A. Schoeller

6.  Dr. Nikolaus von Seemann

7.  SBF Sachsische Beteiligungsfond GmbH

8.  Roman E. Kainz

9.  GCI Management GmbH

- hereinafter referred to as "ME Shareholders" -

                                    Recitals

  1. BROKAT is a stock corporation recorded in the Register of Companies of the
     Local Court of Stuttgart under no. HRB 19292. The capital stock amounts to
     DM 40,860,665 (in words: Deutschmarks forty million eight hundred and sixty
     thousand six hundred and sixty-five) and is sub-divided into 8,172,133
     shares of no par value.
<PAGE>

                                      -2-

     The shares of BROKAT have been admitted to trading on the regulated market
     since 16 September 1998 when trading commenced at the Neuer Markt of the
     Frankfurt Stock Exchange. Listing commenced at the Neuer Markt on 17
     September 1998.

     BROKAT develops and markets software and hardware solutions in particular
     for the safe transfer of data in heterogeneous inter-company data networks
     and intra-company data networks. The corporate enterprise has developed
     positively during the course of the past few years and has attained the
     position of market leader in the market segment it services in Germany.
     BROKAT is endeavoring to expand the competitive position attained both
     nationally and internationally.

  2. MeTechnology Europe GmbH (hereinafter referred to as "ME") is a company
     recorded in the Register of Companies of the Local Court of Leipzig under
     no. HRB 14868. The capital stock of ME amounts to DM 150,000 (in words:
     Deutschmarks one hundred and fifty thousand) and is sub-divided into the
     following shares:

     One share with a par value of DM 3,700
     One share with a par value of DM 3,800
     One share with a par value of DM 7,500
     One share with a par value of DM 15,000
     One share with a par value of DM 25,000
     One share with a par value of DM 12,500
     One share with a par value of DM 24,000
     One share with a par value of DM 6,000
     One share with a par value of DM 7,500
     One share with a par value of DM 7,500
     One share with a par value of DM 6,000
     One share with a par value of DM 21,000
     One share with a par value of DM 5,000
     One share with a par value of DM 5,000
     One share with a par value of DM 500
     Sum total of shares:          DM 150,000

     - hereinafter collectively referred to as "ME Shares"
<PAGE>

                                      -3-

     All shares in ME are held by ME Technology Aktiengesellschaft, Bienitz
     (hereinafter "ME AG") which is thus sole shareholder in ME.

     The capital stock of ME AG amounts to DM 1 million and is sub-divided into
     200,000 shares. The sole shareholders in ME AG are:

     (1)  Dr. Andreas von Aufschnaiter            holding  10,000  shares
     (2)  Jozsef Bugovics                         holding  30,000  shares
     (3)  Dr. Christoph Bulfon                    holding  40,000  shares
     (4)  Philipp A. Schoeller                    holding  36,000  shares
     (5)  Andreas Kinsky                          holding   6,000  shares
     (6)  Dr. Nikolaus Seemann Ritter
          von Treuenwart                          holding  50,000  shares
     (7)  SBF Sachsische
          Beteiligungsfond GmbH                   holding  10,000  shares
     (8)  Roman E. Kainz                          holding  10,000  shares
     (9)  GCI Management GmbH                     holding   8,000  shares

     The foregoing shares in ME AG are hereinafter referred to as "ME Shares"

  3. ME also develops and markets software and hardware solutions for processing
     transactions in electronic networks. The business activity of ME focuses
     principally on the banking sector. ME is currently undergoing a phase of
     intense growth and also anticipates increasing demand and a high degree of
     acceptance for its products and services.

  4. ME AG and BROKAT intend to merge in order to obtain synergy benefits. The
     capital stock of BROKAT is to be increased for this purpose and the ME
     Shares are to be taken over during the course of the capital increase
     against a non-cash contribution by BROKAT.

     The Management Board of BROKAT appointed the firm of auditors and tax
     consultants Bansbach Schubel Brosztl & Partner GmbH Wirtschaftsprufungs-
     gesellschaft
<PAGE>

                                      -4-

     Steuerberatungsgesellschaft, Stuttgart (hereinafter referred to as "BSB")
     to assess the value of the ME Shares and the number of new BROKAT Shares
     appropriate to the corporate value of BROKAT. On the basis of this
     expertise produced by BSB, BROKAT and the ME Shareholders mutually agreed
     to increase the capital stock of BROKAT by DM 3,887,290 from the amount of
     DM 40,860,665 pertaining hitherto to DM 44,747,955 by issuing 777,458
     individual share certificates to the ME Shareholders against the
     contribution of the ME Shares.

Now wherefore the parties hereto hereby enter into the following Agreement on
Subscription and Contribution of Capital.

                                     (S) 1
              Authorized Capital, Resolution on Increasing Capital

  1. Pursuant to the resolution adopted by the extraordinary shareholders'
     meeting of BROKAT on 17 August 1998 (item 4 on the agenda) the Management
     Board of the company is authorized to increase with the approval of the
     Supervisory Board the capital stock in the period prior to 30 June 2003
     through the issue of new shares in return for cash and non-cash
     contributions one or more times by a total of up to DM 16,064,265
     (Authorized Capital I). The Management Board is further authorized to
     decide on any exclusion of subscription rights of the shareholders with the
     approval of the Supervisory Board. The Authorized Capital I was recorded in
     the entry of the company in the Commercial Register on 15 September 1998.
     The foregoing authorization was first exercised in accordance with a
     resolution of the Management Board of 01 October 1998 and the stock capital
     of the company increased by exploiting the authorized capital by DM 700,000
     and increasing the capital stock from DM 40,160,665 (in words: Deutschmarks
     forty million one hundred and sixty thousand six hundred and sixty-five) to
     DM 40,860,665 (in words: Deutschmarks forty million eight hundred and sixty
     thousand six hundred and sixty-five) through the issue of 140,000 new
     bearer shares of no par value with a calculated share in the capital stock
     of DM 5.00 each. The execution of the capital
<PAGE>

                                      -5-

     increase was recorded in the Company's entry in the Commercial Register on
     27 October 1998.

  2. For the purpose of taking over the ME Shares by means of a capital increase
     against non-cash contribution in accordance with the terms of the record
     appended hereto as Schedule EV 1, the Management Board of BROKAT shall
                        -------------
     adopt the following resolution on further increasing the capital stock of
     BROKAT from the Authorized Capital I:

       (1) The capital stock of the Company in an amount of DM 40,860,665 (in
           words: Deutschmarks forty million eight hundred and sixty thousand
           six hundred and sixty-five) sub-divided into 8,172,133 shares of no
           par value shall be increased by exploiting the authorized capital by
           means of non-cash contributions of DM 3,887,290, increasing the
           capital stock to DM 44,747,955 (in words: Deutschmarks forty-four
           million seven hundred and forty-seven thousand nine hundred and
           fifty-five) by issuing 777,458 new bearer shares of no par value
           (hereinafter also referred to as "BROKAT Shares") with a calculated
           share in the capital stock of DM 5.00 each.

       (2) The new shares shall participate in profits with effect from 01
           January 1999.

       (3) The statutory subscription right of the shareholders shall be
           excluded. The new shares shall be subscribed to and taken over by the
           ME Shareholders as follows:

           (1) Dr. Andreas von Aufschnaiter [_Address]   38,874  shares

           (2) Jozsef Bugovics              [_Address]  116,618  shares

           (3) Dr. Christoph Bulfon         [_Address]  155,491  shares

           (4) Philipp A. Schoeller         [_Address]  139,943  shares

           (5) Andreas Kinsky               [_Address]   23,324  shares

           (6) Dr. Nikolaus Seemann Ritter
<PAGE>

                                      -6-

               von Treuenwart               [_Address]  194,364  shares

           (7) SBF Sachsische
               Beteiligungsfond GmbH        [_Address]   38,873  shares

           (8) Roman E. Kainz               [_Address]   38,873  shares

           (9) GCI Management GmbH          [_Address]   31,098  shares

          Total                                         777,458  shares

       (4) The non-cash contributions shall be effected by transferring to the
           company the ME Shares and thus the entire capital stock of
           MeTechnology AG, recorded in the Commercial Register of the Local
           Court of Leipzig under no. HRB 14687, as follows:

           (1) Dr. Andreas von Aufschnaiter     10,000  ME Shares

           (2) Jozsef Bugovics                  30,000  ME Shares

           (3) Dr. Christoph Bulfon             40,000  ME Shares

           (4) Philipp A. Schoeller             36,000  ME Shares

           (5) Andreas Kinsky                    6,000  ME Shares

           (6) Dr. Nikolaus Seemann Ritter
               von Treuenwart                   50,000  ME Shares

           (8) SBF Sachsische
               Beteiligungsfond GmbH            10,000  ME Shares

           (8) Roman E. Kainz                   10,000  ME Shares

           (9) GCI Management GmbH               8,000  ME Shares

          The contribution of the ME Shares by the ME Shareholders shall be
          commercially effective as from the date of transfer to the company and
          have a right to participate in profits as from 1 January 1999.
<PAGE>

                                      -7-

          Paragraphs (1) to (4) above shall hereinafter be referred to as
          "Resolution on Capital Increase"

                                     (S) 2
                 Subscription and Takeover Obligation, Warranty

       1. The ME Shareholders hereby undertake to

          (1) take over the BROKAT Shares in accordance with the terms of the
              subscription slip appended hereto as Schedule EV 2,
                                                   -------------

          (2) and to transfer the ME Shares to BROKAT for the purpose of
              performance of and final compliance with the contribution
              obligation undertaken therein by means of non-cash contribution.

       2. The ME Shareholders provide a warranty with respect to the ME Shares
          in accordance with the terms of the Warranty Agreement appended as
          Schedule EV 3 which was signed on 17 May 1999 (hereinafter referred to
          -------------
          as "Warranty Agreement"). The assertion by BROKAT of any or further
          claims other than the claims provided for in this Agreement and in the
          Contribution and Warranty Agreement irrespective of the legal ground
          therefor shall be excluded.

                                     (S) 3
                                  Contribution

     1. The ME Shareholders hereby transfer the ME Shares to BROKAT.

     2. The ME Shares shall be transferred with effect from the effective date
        hereof pursuant to (S) 5.
<PAGE>

                                      -8-

     3. The profit accruing on the ME Shares shall be due to BROKAT with effect
        from 1 January 1999.

                                     (S) 4
                                 Consideration

     1. In consideration of the ME Shareholders' contributing the ME Shares
        pursuant to (S) 2 paragraph 1, BROKAT shall grant to the ME Shareholders
        BROKAT shares free of charge in accordance with the terms of the
        Resolution on Capital Increase.

     2. The BROKAT Shares to be issued to the ME Shareholders are with profits
        with effect from 1 January 1999. BROKAT shall apply for and keep
        pending the BROKAT Shares' admission to trading on the regulated market
        when trading commences at the Neuer Markt of the Frankfurt Stock
        Exchange by 7 July 1999 at the latest.

     3. The ME Shareholders have taken note of the sales prospectus dated 7
        September 1998 published by BROKAT in September 1998. BROKAT warrants
        that the information contained in this sales prospectus is complete and
        correct in accordance with the provisions of the law on prospectus
        liability, insofar as not in conflict with overriding, mandatory
        legislation, in particular provisions of the Corporation Act on raising
        and maintaining capital. ME Shareholders are precluded from asserting
        any or further claims on account of the BROKAT Shares irrespective of
        the legal ground therefor.

                                     (S) 5
                              Condition Precedent

     This Agreement shall become effective as soon as the Management Board of
     BROKAT has adopted the legally valid Resolution on Capital Increase.
<PAGE>

                                      -9-

                                     (S) 6
                                Final Provisions

     1. Each of the parties hereto shall bear the costs arising to that party,
        in particular the costs of its advisers, itself.

     2. Alterations and modifications to this Agreement including any such
        alterations and modifications to this clause itself must be made in
        writing to be legally valid, save as where a more stringent form is
        imposed by law; in such a case this more stringent form must be complied
        with.

     3. If any provisions contained herein should be ineffective or
        unenforceable, this shall not affect the validity of the remaining
        provisions hereof. This shall also apply if it should transpire that
        this Agreement contains a gap. A reasonable ruling shall be deemed to
        replace the ineffective or unenforceable provisions or to complete the
        gap which forms the closest equivalent to the intention of the parties
        or which they would have intended in accordance with the spirit and
        purpose of this Agreement if they had considered the issue when the
        Agreement was entered into or when a provision was included at a later
        date.

     Frankfurt am Main/Munich/Stuttgart, 20/21 May 1999

     On behalf of BROKAT by virtue of a power of attorney conferred orally and
     promising to submit a written authority [handwritten]: power of attorney at
     a later time:

     [signed]
     Dr. Peter Ladwig
<PAGE>

                                      -10-

     On behalf of

     a)  Vendors nos. 1, 2, 4 to 6 and 9 by virtue of a power of attorney
         conferred and promising to submit the written authority of those
         persons represented at a later time and on his own behalf and

     b)

     c)  On behalf of SBF Sachsische Beteiligungsfond GmbH by virtue of a
         telefax copy of a power of attorney as appended hereto:

     [signed]
     Dr. Christoph Bulfon

     On behalf of Mr. Roman E. Kainz by virtue of a telefax copy of a power of
     attorney as appended hereto:

     Dr. Hermann Schlindwein
<PAGE>

                                  Translation

                                    BYLAWS

                                      of

                     BROKAT Infosystems Aktiengesellschaft

                                   Stuttgart
<PAGE>

                                       2

                                      I.
                              General Provisions

                                     (S) 1
                  Corporate Name, Registered Office, Duration

(1)  The Company shall bear the corporate name:

                    BROKAT Infosystems Aktiengesellschaft."

(2)  The Company shall have its registered office in Stuttgart.

(3)  The Company is hereby established for an indefinite period of time.

                                     (S) 2
                               Corporate Purpose

(1)  The corporate purpose of the Company shall encompass:

     (a)  the development and sale of software and hardware solutions;

     (b)  consulting on the application and use of software and hardware
          solutions for secure data transmission in heterogeneous internal
          company-wide networks and intra-company networks;

     (c)  the acquisition and sale of software and hardware solutions, whether
          directly or indirectly, by taking shares in or acquiring companies
          whose corporate purpose consists of the activities mentioned under
          item a) or b) above.

(2)  The Company may conduct all transactions which are suited directly or
     indirectly to promote the corporate purpose. The Company may form, acquire,
     take shares in and manage the business of companies of the same or similar
     type.

(3)  The Company may establish branch offices within Germany and abroad. Such
     branch offices may bear a corporate name which varies in whole or in part
     from the corporate name of the principal office.
<PAGE>

                                       3

                                     (S) 3
                                Financial Year

The financial year of the Company shall run from 01 July of a calendar year to
30 June of the following calendar year.

                                      II.
                           Capital Stock and Shares

                                     (S) 4
                                 Capital Stock

(1)  The Company's capital stock shall amount to DM 44,747,955 (in words: forty-
     four million seven hundred and forty-seven thousand nine hundred and fifty-
     five deutschmarks) and shall be divided into 8,949,591 no-par-value shares.

(2)  The Management Board shall be authorized to increase with the approval of
     the Supervisory Board the capital stock in the period prior to 30 June 2003
     through the issue of new shares in return for cash and non-cash
     contributions one or more times by a total of up to DM 11,476,975
     (Authorized Capital I). The Management Board shall decide on any exclusion
     of subscription rights with the approval of the Supervisory Board. The
     Supervisory Board shall be authorized to modify the wording of the Bylaws
     in accordance with the scope of the capital increase from authorized
     capital.

(3)  The Management Board shall be authorized to increase with the approval of
     the Supervisory Board the capital stock in the period prior to 30 June 2003
     through the issue of new shares in return for cash and non-cash
     contributions one or more times by a total of up to DM 4,016,065.00
     (Authorized Capital II). The full scope of shareholders' subscription
     rights may be excluded provided that the issue price of the new shares on
     the date of the final determination of the issue price is not materially
     below the market price of shares of the same class which were previously
     listed on the stock exchange. The Supervisory Board shall be authorized to
     modify the wording of the Bylaws in accordance with the scope of the
     capital increase from authorized capital.

(4)  The capital stock shall be conditionally increased by up to DM 4,016,065
     through the issue of up to 803,213 shares. The conditional capital increase
     shall serve to grant
<PAGE>

                                       4

options to Management Board members and employees of BROKAT Infosystems AG as
well as to members of the management and employees of affiliated companies in
accordance with the resolutions of the shareholders adopted at the General
Meeting of 03 September 1998. The conditional capital increase shall be carried
out to the extent that the holders of option rights avail themselves of their
rights. The new shares shall entitle their holders to dividends from the start
of the financial year in which the new shares arise through the exercise of the
option rights.

                                     (S) 5
                       Common Provisions for All Shares

(1)  In the event of a capital increase, the entitlement to dividends associated
     with new shares may be determined at variance with Section 60, paragraph
     (2), sentence 3 of the Corporation Act.

(2)  The Management Board shall decide with the approval of the Supervisory
     Board on provisions regarding the issue, form and content of share
     certificates and dividend and renewal certificates.

(3)  No claim shall exist to representation of shares by certificates. With the
     approval of the Supervisory Board, the Management Board may limit or
     exclude the representation of shares by certificates. In the event a
     shareholder requests that shares be represented by certificates at variance
     therewith, such shareholder must bear the costs of the share certificates.

(4)  Shares shall be bearer shares.

                                     III.
                             The Management Board

                                     (S) 6
                           Management Board Members

The Management Board of the Company shall consist of one or more persons.
Without prejudice to any mandatory legal provisions, the Supervisory Board shall
determine the number of members of the Management Board. Alternate Management
Board members may be
<PAGE>

                                       5

appointed. The Supervisory Board may appoint a chairperson and one or more vice
chairpersons of the Management Board.

                                     (S) 7
                            Power of Representation

In the event only one Management Board member has been appointed, such member
shall represent the Company alone. In the event several Management Board members
have been appointed, the Company shall be represented by two Management Board
members jointly or by one Management Board member acting jointly with a holder
of commercial powers of attorney [Prokurist]. The Supervisory Board may delegate
to one, several or all Management Board members the power to represent the
Company alone. The Supervisory Board may empower Management Board members
generally or in any specific case to conclude legal transactions simultaneously
on behalf of the Company and as a representative of a company affiliated with
the Company in the terms of Section 15 of the Corporation Act.

                                     (S) 8
                                  Management

The Management Board shall conduct the business of the Company in accordance
with the provisions of law, these Bylaws and the rules of procedure of the
Management Board to be issued by the Supervisory Board.

                                      IV.
                             The Supervisory Board

                                     (S) 9
                           Supervisory Board Members

(1)  The Supervisory Board shall consist of 6 (six) members.

(2)  The election shall be made for the longest term permissible in accordance
     with Sections 30 and 102 of the Corporation Act, unless the shareholders in
     General Meeting determine a shorter term of office during the election.
     Supervisory Board members may be re-elected.
<PAGE>

                                       6

(3)  In the event any member elected by the shareholders in General Meeting
     withdraws from the Supervisory Board prior to the expiration of his or her
     term of office, a new election shall be held for such member at the next
     General Meeting of shareholders, unless an alternate member has moved up
     for the withdrawn member. The term of office of the newly elected member or
     of any alternate member who has moved up shall be for the residual term of
     office of the withdrawn member.

(4)  The shareholders in General Meeting may elect alternate members for the
     Supervisory Board members to be elected by the shareholders in the event
     Supervisory Board members withdraw prior to the expiration of their term of
     office.

(5)  After the close of each financial year, the Supervisory Board members shall
     receive fair remuneration which shall be determined by resolutions of the
     shareholders in General Meeting. Such determination shall apply until the
     shareholders resolve otherwise in General Meeting.

(6)  The Company shall reimburse the Supervisory Board members for their
     outlays. Outlays shall also include any turnover tax incurred on
     remuneration, provided the member of the Supervisory Board is entitled to
     invoice turnover tax separately and has exercised such right.

                                    (S) 10
                                  Resignation

Each member of the Supervisory Board may resign from his or her office upon
giving one month's notice effective from the end of any month by way of a
declaration to be addressed to the chairperson of the Supervisory Board or to
the Management Board.

                                    (S) 11
                                     Chair

(1)  The Supervisory Board shall elect a chairperson and one or more vice
     chairpersons for the term of office of the person elected as a Supervisory
     Board member. The election shall be made at a meeting directly following
     the General Meeting at which the members to be newly elected by the
     shareholders are elected. No special invitation to such meeting shall be
     required. In the event the chairperson or one of the elected vice
     chairpersons withdraws from his or her office during the course of his or
     her term of
<PAGE>

                                       7

office, the Supervisory Board must immediately hold a new election for the
withdrawn member.

(2)  Declarations of intent of the Supervisory Board and the committees thereof
     shall be issued in the name of the Supervisory Board by the chairperson
     thereof. Only the Supervisory Board chairperson shall be authorized to take
     delivery of declarations addressed to the Supervisory Board.

                                    (S) 12
                   Convocation of Supervisory Board Meetings

The meetings of the Supervisory Board shall be convoked in writing or by telefax
by the chairperson observing a notice period of two weeks. The individual items
on the agenda must be specified in the invitation. In case of urgency, the
notice period may be reduced and the convocation may be made by telephone or e-
mail.

                                    (S) 13
                                  Resolutions

(1)  Resolutions of the Supervisory Board shall be adopted at meetings.
     Resolutions of the Supervisory Board may only be adopted in writing, by
     telephone, telefax or e-mail provided that no member of the Supervisory
     Board objects to such procedure.

(2)  A quorum of the Supervisory Board shall be constituted when half of the
     members of which the Supervisory Board consists as a whole participate in
     the vote personally or through written ballot. A member shall also
     participate in the vote when such member abstains from voting.

(3)  Unless a larger majority is determined by these Bylaws, the resolutions of
     the Supervisory Board shall require a simple majority of the votes cast. In
     the event of a parity of votes, the vote of the Supervisory Board
     chairperson shall be decisive; with regard to elections, ties shall be
     decided by drawing lots.

     The chairperson shall chair the meetings of the Supervisory Board. The
     chairperson shall determine the order in which the items on the agenda are
     to be discussed as well as the type and order of the voting. These
     provisions shall apply accordingly to votes in writing, by telephone,
     telefax or e-mail.
<PAGE>

                                       8

(4)  Minutes must be kept of the meetings of the Supervisory Board; such minutes
     must be signed by the chairperson of the Supervisory Board. The Supervisory
     Board chairperson must sign the minutes to be kept on resolutions adopted
     in writing or by telephone or e-mail.

                                    (S) 14
                            Modification of Bylaws

The Supervisory Board shall be authorized to adopt any modifications of these
Bylaws which only affect the wording hereof.
<PAGE>

                                       9

                                      V.
                        General Shareholders' Meetings

                                    (S) 15
                           Place of General Meetings

General Shareholders' Meetings of the Company shall take place at the Company's
registered office or at the location of a German stock exchange.

                                    (S) 16
                                  Convocation

General Shareholders' Meetings shall be convoked by the Management Board. The
convocation must be published in business newspapers, specifying the agenda, at
least one month before the final deposit date ((S) 17(1) hereof), whereby the
convocation date and the deposit date shall not be counted thereby.

                                    (S) 17
                               Deposit of Shares

(1)  Only shareholders who deposit their shares prior to the end of normal
     business hours by the fifth business day prior to the meeting date at the
     latest with the Company, a German notary public or a bank for central
     deposit of securities or with the other agents designated in the
     convocation to the General Meeting and leave their shares there until the
     conclusion of the General Meeting shall be entitled to participate in
     General Meetings and exercise voting rights. In the event the final day of
     the period falls on a Saturday, Sunday or a state-recognized holiday at the
     place of deposit, the respectively preceding business day shall replace
     such day.

(2)  In the event shares are deposited with a German notary public of with a
     bank for central deposit of securities, the confirmation to be issued
     thereby must be submitted to the Company cashier on the first business day
     after the expiration of the deposit period at the latest.
<PAGE>

                                      10

(3)  Deposit with a depositary shall be satisfied by the shares being frozen at
     a bank with the consent of the depositary on the latter's behalf until the
     conclusion of the General meeting.
<PAGE>

                                      11

(4)  Insofar as no share certificates have been issued, the Management Board
     shall determine in the invitation to the General Meeting the conditions
     under which the shareholders may exercise their voting and motion rights at
     the General Meeting.

(5)  Saturday shall not be considered a business day under the terms of the
     above provisions.

                                    (S) 18
                                 Chair, Voting

(1)  The chairperson of the Supervisory Board, a vice chairperson, or any other
     member determined by the Supervisory Board shall chair General
     Shareholders' Meetings. In the event no member of the Supervisory Board
     assumes the chair, the person to chair the meeting shall be elected under
     the direction of the oldest shareholder present.

(2)  The chairperson of the Meeting may determine an order for the discussion of
     the items on the agenda which varies from the announced agenda. Such person
     may furthermore determine the type and form of the voting.

(3)  Unless a larger majority is mandatory as prescribed by law or these Bylaws,
     the resolutions of shareholders at General Meetings shall be adopted by a
     simple majority of the votes cast. Insofar as the Corporation Act further
     prescribes a majority of the capital stock represented during the vote in
     order to adopt resolutions, the simple majority of the capital represented
     shall be sufficient, unless a larger capital majority is mandatory as
     prescribed by law.

                                    (S) 19
                                 Voting Rights

Each share shall grant the holder one vote. The voting right shall commence upon
the full payment of the contribution.
<PAGE>

                                      12

                                      VI.
                          Appropriation of Net Income

                                    (S) 20
                             Transfer to Reserves

In the event the Management and Supervisory Boards approve the annual financial
statements, up to half of the net income may be transferred to other revenue
reserves. The Management and Supervisory Boards shall moreover be empowered to
transfer up to a further one quarter of the net income to other revenue reserves
in accordance with Section 58(2) of the Corporation Act.

                                     VII.
                               Final Provisions

                                    (S) 21
                              Formation Expenses

The Company shall bear the formation expenses up to an amount of DM 160,000.

                                    (S) 22
                                    Notices

Notices of the Company shall be made in the Bundesanzeiger [German Federal
Gazette] and, insofar as such is necessary based on the admission of the
Company's shares to any German or foreign stock exchange, also in a national
daily newspaper (official stock exchange bulletin).

***
<PAGE>

                                  Translation

             Agreement on Subscription and Contribution of Capital

                                by and between

BROKAT Aktiengesellschaft, Stuttgart

- hereinafter referred to as "BROKAT"

and

1.   Dr. Andreas von Aufschnaiter

2.   Jozsef Bugovics

3.   Dr. Christoph Bulfon

4.   Andreas Kinsky

5.   Philipp A. Schoeller

6.   Dr. Nikolaus von Seemann

7.   SBF Sachsische Beteiligungsfond GmbH

8.   Roman E. Kainz

9.   GCI Management GmbH

- hereinafter referred to as "ME Shareholders" -

                                   Recitals
<PAGE>

                                     -14-

1.   BROKAT is a company limited by shares recorded in the Register of Companies
     of the Local Court of Stuttgart under no. HRB 19292. The capital stock
     amounts to DM 40,860,665 (in words: Deutschmarks forty million eight
     hundred and sixty thousand six hundred and sixty-five) and is sub-divided
     into 8,172,133 shares of no par value.

     The first listing of the BROKAT shares on the regulated market at the Neuer
     Markt of the Frankfurt Stock Exchange was on 16 September 1998. Listing
     commenced at the Neuer Markt on 17 September 1998.

     BROKAT develops and markets software and hardware solutions in particular
     for the secure transfer of data in heterogeneous inter-company data
     networks and intra-company data networks. The corporate enterprise has
     developed positively during the course of the past few years and has
     attained the position of market leader in the market segment it services in
     Germany. BROKAT is endeavoring to expand the competitive position attained
     both nationally and internationally.

2.   MeTechnology Europe GmbH (hereinafter referred to as "ME") is a company
     recorded in the Register of Companies of the Local Court of Leipzig under
     no. HRB 14868. The capital stock of ME amounts to DM 150,000 (in words:
     Deutschmarks one hundred and fifty thousand) and is sub-divided into the
     following shares:

     One share with a par value of DM 3,700
     One share with a par value of DM 3,800
     One share with a par value of DM 7,500
     One share with a par value of DM 15,000
     One share with a par value of DM 25,000
     One share with a par value of DM 12,500
     One share with a par value of DM 24,000
     One share with a par value of DM 6,000
     One share with a par value of DM 7,500
     One share with a par value of DM 7,500
     One share with a par value of DM 6,000
     One share with a par value of DM 21,000
     One share with a par value of DM 5,000
     One share with a par value of DM 5,000
     One share with a par value of DM 500
     Sum total of shares:    DM 150,000

     - hereinafter collectively referred to as "ME Shares"

     All shares in ME are held by ME Technology Aktiengesellschaft, Bienitz
     (hereinafter "ME AG") which is thus sole shareholder in ME.
<PAGE>

                                     -15-

     The capital stock of ME AG amounts to DM 1 million and is sub-divided into
     200,000 shares. The sole shareholders in ME AG are:

(1)  Dr. Andreas von Aufschnaiter holding    10,000  shares
(2)  Jozsef Bugovics                holding  30,000  shares
(3)  Dr. Christoph Bulfon           holding  40,000  shares
(4)  Philipp A. Schoeller           holding  36,000  shares
(5)  Andreas Kinsky                 holding   6,000  shares
(6)  Dr. Nikolaus Seemann Ritter
     von Treuenwart                 holding  50,000  shares
(7)  SBF Sachsische
     Beteiligungsfond GmbH          holding  10,000  shares
(8)  Roman E. Kainz                 holding  10,000  shares
(9)  GCI Management GmbH            holding   8,000  shares

     The foregoing shares in ME AG are hereinafter referred to as "ME Shares"

3.   ME also develops and markets software and hardware solutions for processing
     transactions in electronic networks. The business activity of ME focuses
     principally on the banking sector. ME is currently undergoing a phase of
     intense growth and also anticipates increasing demand and a high degree of
     acceptance for its products and services.

4.   ME AG and BROKAT intend to merge in order to obtain synergy benefits. The
     capital stock of BROKAT is to be increased for this purpose and the ME
     Shares are to be taken over during the course of the capital increase
     against a non-cash contribution by BROKAT.

     The Management Board of BROKAT appointed the firm of auditors and tax
     consultants Bansbach Schubel Brosztl & Partner GmbH Wirtschaftsprufungs-
     gesellschaft Steuerberatungsgesellschaft, Stuttgart (hereinafter referred
     to as "BSB") to assess the value of the ME Shares and the number of new
     BROKAT Shares appropriate to the corporate value of BROKAT. On the basis of
     this expertise produced by BSB, BROKAT and the ME Shareholders mutually
     agreed to increase the capital stock of BROKAT by DM 3,887,290 from the
     amount of DM 40,860,665 pertaining hitherto to DM 44,747,955 by issuing
     777,458 individual share certificates to the ME Shareholders against the
     contribution of the ME Shares.

Now wherefore the parties hereto hereby enter into the following Agreement on
Subscription and Contribution of Capital.

                                     (S) 1
             Authorized Capital, Resolution on Increasing Capital

<PAGE>

                                     -16-

1.   Pursuant to the resolution adopted by the extraordinary shareholders'
     meeting of BROKAT on 17 August 1998 (item 4 on the agenda) the Management
     Board of the company is authorized to increase with the approval of the
     Supervisory Board the capital stock in the period prior to 30 June 2003
     through the issue of new shares in return for cash and non-cash
     contributions one or more times by a total of up to DM 16,064,265
     (Authorized Capital I). The Management Board is further authorized to
     decide on any exclusion of subscription rights of the shareholders with the
     approval of the Supervisory Board. The Authorized Capital I was recorded in
     the entry of the company in the Commercial Register on 15 September 1998.
     The foregoing authorization was first exercised in accordance with a
     resolution of the Management Board of 01 October 1998 and the stock capital
     of the company increased by exploiting the authorized capital by DM 700,000
     and increasing the capital stock from DM 40,160,665 (in words: Deutschmarks
     forty million one hundred and sixty thousand six hundred and sixty-five) to
     DM 40,860,665 (in words: Deutschmarks forty million eight hundred and sixty
     thousand six hundred and sixty-five) through the issue of 140,000 new
     bearer shares of no par value with a calculated share in the capital stock
     of DM 5.00 each. The execution of the capital increase was recorded in the
     Company's entry in the Commercial Register on 27 October 1998.

2.   For the purpose of taking over the ME Shares by means of a capital increase
     against non-cash contribution in accordance with the terms of the record
     appended hereto as Schedule EV 1, the Management Board of BROKAT shall
                        -------------
     adopt the following resolution on further increasing the capital stock of
     BROKAT from the Authorized Capital I:
<PAGE>

                                     -17-

     (1)  The capital stock of the Company in an amount of DM 40,860,665 (in
          words: Deutschmarks forty million eight hundred and sixty thousand six
          hundred and sixty-five) sub-divided into 8,172,133 shares of no par
          value shall be increased by exploiting the authorized capital by means
          of non-cash contributions of
          DM 3,887,290, increasing the capital stock to DM 44,747,955 (in words:
          Deutschmarks forty-four million seven hundred and forty-seven thousand
          nine hundred and fifty-five) by issuing 777,458 new bearer shares of
          no par value (hereinafter also referred to as "BROKAT Shares") with a
          calculated share in the capital stock of DM 5.00 each.

     (2)  The new shares shall participate in profits with effect from 01
          January 1999.

     (3)  The statutory subscription right of the shareholders shall be
          excluded. The new shares shall be subscribed to and taken over by the
          ME Shareholders as follows:

         (1)    Dr. Andreas von Aufschnaiter  [_Address]   38,874  shares

         (2)    Jozsef Bugovics               [_Address]  116,618  shares

         (3)    Dr. Christoph Bulfon          [_Address]  155,491  shares

         (4)    Philipp A. Schoeller          [_Address]  139,943  shares

         (5)    Andreas Kinsky                [_Address]   23,324  shares

         (6)    Dr. Nikolaus Seemann Ritter
                von Treuenwart                [_Address]  194,364  shares

         (7)    SBF Sachsische
                Beteiligungsfond GmbH         [_Address]   38,873  shares

         (8)    Roman E. Kainz                [_Address]   38,873  shares

         (9)    GCI Management GmbH           [_Address]   31,098  shares

         Total                                            777,458  shares

     (4) The non-cash contributions shall be effected by transferring to the
         company the ME Shares and thus the entire capital stock of MeTechnology
         AG, recorded in the Commercial Register of the Local Court of Leipzig
         under no. HRB 14687, as follows:
<PAGE>

                                     -18-

         (1)    Dr. Andreas von Aufschnaiter  10,000  ME Shares

         (2)    Jozsef Bugovics               30,000  ME Shares

         (3)    Dr. Christoph Bulfon          40,000  ME Shares

         (4)    Philipp A. Schoeller          36,000  ME Shares

         (5)    Andreas Kinsky                 6,000  ME Shares

         (6)    Dr. Nikolaus Seemann Ritter
                von Treuenwart                50,000  ME Shares

         (7)    SBF Sachsische
                Beteiligungsfond GmbH         10,000  ME Shares

         (8)    Roman E. Kainz                10,000  ME Shares

         (9)    GCI Management GmbH            8,000  ME Shares

         The contribution of the ME Shares by the ME Shareholders shall be
         commercially effective as from the date of transfer to the company and
         have a right to participate in profits as from 01 January 1999.

                Paragraphs (1) to (4) above shall hereinafter be referred to as
                                               "Resolution on Capital Increase"

                                     (S) 2
                Subscription and Takeover Obligation, Warranty

1.   The ME Shareholders hereby undertake to

     (1) take over the BROKAT Shares in accordance with the terms of the
         subscription slip appended hereto as Schedule EV 2,
                                              -------------

     (2) and to transfer the ME Shares to BROKAT for the purpose of performance
         of and final compliance with the contribution obligation undertaken
         therein by means of non-cash contribution.

2.   The ME Shareholders provide a warranty with respect to the ME Shares in
     accordance with the terms of the Warranty Agreement appended as Schedule EV
                                                                     -----------
     3 which was signed on 17 May 1999 (hereinafter referred to as "Warranty
     -
     Agreement"). The assertion by BROKAT of any or further claims other than
     the
<PAGE>

                                     -19-

     claims provided for in this Agreement and in the Contribution and Warranty
     Agreement irrespective of the legal ground therefor shall be excluded.

                                     (S) 3
                                 Contribution

1.   The ME Shareholders hereby transfer the ME Shares to BROKAT.

2.   The ME Shares shall be transferred with effect from the effective date
     hereof pursuant to (S) 5.

3.   The profit accruing on the ME Shares shall be due to BROKAT with effect
     from 01 January 1999.

                                     (S) 4
                                 Consideration

1.   In consideration of the ME Shareholders' contributing the ME Shares
     pursuant to (S) 2 paragraph 1, BROKAT shall grant to the ME Shareholders
     BROKAT shares free of charge in accordance with the terms of the Resolution
     on Capital Increase.

2.   The BROKAT Shares to be issued to the ME Shareholders are with profits with
     effect from 01 January 1999. BROKAT shall apply for and keep pending the
     first listing of the BROKAT Shares on the regulated market at the Neuer
     Markt of the Frankfurt Stock Exchange by 7 July 1999 at the latest.

3.   The ME Shareholders have taken note of the sales prospectus dated 07
     September 1998 published by BROKAT in September 1998. BROKAT warrants that
     the information contained in this sales prospectus is complete and correct
     in accordance with the provisions of the law on prospectus liability,
     insofar as not in conflict with overriding, mandatory legislation, in
     particular provisions of the Corporation Act on raising and maintaining
     capital. ME Shareholders are precluded from asserting any or further claims
     on account of the BROKAT Shares irrespective of the legal ground therefor.

                                     (S) 5
                              Condition Precedent

This Agreement shall become effective as soon as the Management Board of BROKAT
has adopted the legally valid Resolution on Capital Increase.

                                     (S) 6
                               Final Provisions

<PAGE>

                                     -20-

1.   Each of the parties hereto shall bear the costs arising to that party, in
     particular the costs of its advisers, itself.

2.   Alterations and modifications to this Agreement including any such
     alterations and modifications to this clause itself must be made in writing
     to be legally valid, save as where a more stringent form is imposed by law;
     in such a case this more stringent form must be complied with.

3.   If any provisions contained herein should be ineffective or unenforceable,
     this shall not affect the validity of the remaining provisions hereof. This
     shall also apply if it should transpire that this Agreement contains a gap.
     A reasonable ruling shall be deemed to replace the ineffective or
     unenforceable provisions or to complete the gap which forms the closest
     equivalent to the intention of the parties or which they would have
     intended in accordance with the spirit and purpose of this Agreement if
     they had considered the issue when the Agreement was entered into or when a
     provision was included at a later date.

Frankfurt am Main/Munich/Stuttgart, 20/21 May 1999

On behalf of BROKAT by virtue of a power of attorney conferred orally and
promising to submit a written [handwritten]: power of attorney at a
later time:

[signed]
Dr. Peter Ladwig

On behalf of

a)   Vendors nos. 1, 2, 4 to 6 and 9 by virtue of a power of attorney conferred
     and promising to submit the written authority of those persons represented
     at a later time and on his own behalf and

b)   On behalf of SBF Sachsische Beteiligungsfond GmbH by virtue of a telefax
     copy of a power of attorney as appended hereto:

[signed]
Dr. Christoph Bulfon

On behalf of Mr. Roman E. Kainz by virtue of a telefax copy of a power of
attorney as appended hereto:

Dr. Hermann Schlindwein
<PAGE>

                                  Translation
                                                                   Schedule GV 1

                                    Minutes

  of the Meeting of the Management Board of BROKAT Infosystems AG, Stuttgart

                              held on 20 May 1999

In attendance:

1.   Dr. Boris Anderer
2.   .Michael Janssen
3.   Stefan Rover
4.   Achim Schlumpberger
5.   Michael Schumacher

I.   Preliminary Comments

1.   In accordance with the resolution passed at the extraordinary Shareholders'
     Meeting of BROKAT Infosystems AG (hereinafter referred to as "BROKAT" or
     the "Company") held on 17 August 1998 (agenda item 4), the Management Board
     of the Company is authorized to increase with the approval of the
     Supervisory Board the capital stock in the period prior to 30 June 2003
     through the issue of new shares in return for cash or non-cash
     contributions one or more times by a total of up to DM 16,064,265
     (Authorized Capital I). The Management Board is further authorized to
     exclude any subscription rights of the shareholders with the approval of
     the Supervisory Board. The Authorized Capital I was recorded in the entry
     for the Company in the Commercial Register on 15 September 1998.

2.   The foregoing authorization was first exercised in accordance with a
     resolution of the Management Board of 01 October 1998 and the capital stock
     of the Company increased by exploiting the authorized capital by DM 700,000
     and increasing the capital stock from DM 40,160,665 (in words: Deutschmarks
     forty million one hundred and sixty thousand six hundred and sixty-five) to
     DM 40,860,665 (in words: Deutschmarks forty million eight hundred and sixty
     thousand six hundred
<PAGE>

                                       2

     and sixty-five) through the issue of 140,000 new bearer shares of no par
     value with a calculated share in the capital stock of DM 5.00 each.

     The subscription right of the shareholders was excluded and the new
     shares taken over by the Frankfurt am Main branch of Paribas, for the
     account of the consortium leader. The execution of the capital increase was
     recorded in the Company's entry in the Commercial Register on 27 October
     1998.

3.   MeTechnology Europe GmbH (hereinafter referred to as "ME") is a company
     recorded in the Register of Companies of the Local Court of Leipzig under
     no. HRB 14868. The capital stock of ME amounts to DM 150,000 (in words:
     Deutschmarks one hundred and fifty thousand) and is sub-divided into the
     following shares:

     One share with a par value of DM 3,700
     One share with a par value of DM 3,800
     One share with a par value of DM 7,500
     One share with a par value of DM 15,000
     One share with a par value of DM 25,000
     One share with a par value of DM 12,500
     One share with a par value of DM 24,000
     One share with a par value of DM 6,000
     One share with a par value of DM 7,500
     One share with a par value of DM 7,500
     One share with a par value of DM 6,000
     One share with a par value of DM 21,000
     One share with a par value of DM 5,000
     One share with a par value of DM 5,000
     One share with a par value of DM 500
     Sum total of shares:        DM 150,000

     All shares in ME are held by ME Technology AG, recorded under no. HRB 14687
     in the Commercial Register of the Local Court of Leipzig  (hereinafter "ME
     AG") which is thus sole shareholder in ME. The capital stock of ME AG
     amounts to DM 1 million and is sub-divided into 200,000 shares (hereinafter
     "ME Shares"). The sole shareholders in ME AG are:

     (1)  Dr. Andreas von Aufschnaiter holding     10,000          ME Shares
<PAGE>

                                       3

     (2)  Jozsef Bugovics                         holding  30,000  ME Shares
     (3)  Dr. Christoph Bulfon                    holding  40,000  ME Shares
     (4)  Philipp A. Schoeller                    holding  36,000  ME Shares
     (5)  Andreas Kinsky                          holding   6,000  ME Shares
     (6)  Dr. Nikolaus Seemann Ritter
          von Treuenwart                          holding  50,000  ME Shares
     (7)  SBF Sachsische
          Beteiligungsfond GmbH                   holding  10,000  ME Shares
     (8)  Roman E. Kainz                          holding  10,000  ME Shares
     (9)  GCI Management GmbH                     holding   8,000  ME Shares

     Nos. (1) through (9) are hereinafter collectively referred to as "ME
     Shareholders".

4.   BROKAT intends to take over the ME Shares by means of an increase in the
     capital stock against non-cash contribution. The capital stock of BROKAT is
     to be increased for this purpose and ME AG merged into BROKAT.

The Management Board of BROKAT appointed the firm of auditors and tax
     consultants Bansbach Schubel Brosztl & Partner GmbH Wirtschaftsprufungs-
     gesellschaft Steuerberatungsgesellschaft, Stuttgart (hereinafter referred
     to as "BSB") to assess the value of the ME Shares and the number of new
     BROKAT Shares appropriate to the corporate value of BROKAT. On the basis of
     this expertise, BROKAT and the ME Shareholders mutually agreed in the
     Agreement on Subscription and Contribution of Capital dated 20 May 1999 to
     increase the capital stock of BROKAT by DM 3,887,290 from the amount of DM
     40,860,665 pertaining hitherto to DM 44,747,955 by issuing 777,458
     individual share certificates to the ME Shareholders against the
     contribution of the ME Shares. The foregoing increase in the capital stock
     of BROKAT is to be effected from the Authorized Capital I. Pursuant to the
     terms of the Agreement on Subscription and Contribution of Capital this
     shall become effective as soon as the Management Board resolves to increase
     the capital stock.

Now wherefore the Management Board of BROKAT adopts the following resolution to
meet the condition set forth in the Agreement on Subscription and Contribution
of Capital:

II.  Increasing the Capital Stock of BROKAT

We, the entire members of the Management Board of BROKAT Infosystems AG, hereby
unanimously resolve to further exploit the Authorized Capital I as follows:
<PAGE>

                                       4

1.   The capital stock of the Company in an amount of DM 40,860,665 (in words:
     Deutschmarks forty million eight hundred and sixty thousand six hundred and
     sixty-five) sub-divided into 8,172,133 shares of no par value shall be
     increased by exploiting the Authorized Capital I by means of non-cash
     contributions of DM 3,887,290, increasing the capital stock to DM
     44,747,955 (in words: Deutschmarks forty-four million seven hundred and
     forty-seven thousand nine hundred and fifty-five) by issuing 777,458 new
     bearer shares of no par value with a calculated share in the capital stock
     of DM 5.00 each.

2.   The new shares shall participate in profits with effect from 01 January
     1999.

3.   The statutory subscription right of the shareholders shall be excluded. The
     new shares shall be subscribed and taken over by the ME Shareholders as
     follows:

     (1)  Dr. Andreas von Aufschnaiter
          Metzstr. 18/Rgb., 81668 Munich                38,874     shares

     (2)  Jozsef Bugovics
          Ringstr. 33, 04430 Dolzig/Leipzig             116,618    shares

     (3)  Dr. Christoph Bulfon
          Widenmayerstr. 12, 80538 Munich               155,491    shares

     (4)  Philipp A. Schoeller
          Rodelweg 12, 82067 Ebenhausen                 139,943    shares

     (5)  Andreas Kinsky
          Ismaninger Strasse 73, 81675 Munich,          23,324     shares

     (6)  Dr. Nikolaus Seemann Ritter von Treuenwart
          Furst-Johann-Str. 5, FL-9497 Triesen,
          Lichtenstein                                  194,364    shares

     (7)  SBF Sachsische Beteiligungsfond GmbH
          Lohrstr. 16, 04105 Leipzig                     38,873    shares

     (8)  Roman E. Kainz
          Ziegelweg 2, CH-6052 Hergiswil, Switzerland
                                                         38,873    shares

<PAGE>

                                       5

     (9)  GCI Management GmbH
          Brienner Str. 10, 80333 Munich                  31,098   shares

     Total                                               777,458   shares

4.   The non-cash contributions shall be effected by transferring to the Company
     the ME Shares and thus the entire capital stock of MeTechnology AG,
     recorded in the Commercial Register of the Local Court of Leipzig under no.
     HRB 14687, as follows:

     (1)    Dr. Andreas von Aufschnaiter   10,000  ME Shares

     (2)    Jozsef Bugovics                30,000  ME Shares

     (3)    Dr. Christoph Bulfon           40,000  ME Shares

     (4)    Philipp A. Schoeller           36,000  ME Shares

     (5)    Andreas Kinsky                  6,000  ME Shares

     (6)    Dr. Nikolaus Seemann Ritter
            von Treuenwart                 50,000  ME Shares

     (7)    SBF Sachsische
            Beteiligungsfond GmbH          10,000  ME Shares

     (8)    Roman E. Kainz                 10,000  ME Shares

     (9)    GCI Management GmbH             8,000  ME Shares

The contribution of the ME Shares by the ME Shareholders shall be effective as
     from the date of transfer to the Company and have a right to participate in
     profits as from 01 January 1999. Insofar as the value of the ME Shares
     exceeds the arithmetical proportion of the new shares in the capital stock,
     the amount of any such surplus up to a maximum amount of DM 151,604,310.00
     shall be allocated to the capital reserves of the Company (Section 272,
     paragraph 2, item 1 German Commercial Code [HGB]).

III.  Approval by the Supervisory Board, Modification of the Bylaws
<PAGE>

                                       6

The Supervisory Board of the Company approved the exploitation of the Authorized
     Capital I in the aforementioned resolution and the exclusion of the
     subscription right of the shareholders in the resolution of 20 May 1999.

The Supervisory Board further resolved that, in accordance with the authority
     conferred upon it in the resolution adopted by the Shareholders' Meeting of
     17 August 1998 (agenda item 4), the Bylaws of the Company be modified in
     accordance with the extent to which the Authorized Capital is being
     exploited and the wording of Article 4, paragraphs 1 and 2 be amended
     accordingly.
<PAGE>

                                       7

Stuttgart, 20 May 1999

____________________________              ____________________________
Dr. Boris Anderer                         Michael Janssen

____________________________              ____________________________
Stefan Rover                              Achim Schlumpberger

____________________________
Michael Schumacher
<PAGE>

                                  Translation
                                                                 Schedule GV 2.1

                            Cancellation Agreement

                                by and between

                          Private Equity Bridge Ltd.

                                                            (hereinafter: "PEB")

                                      and

                        MeTechnology Aktiengesellschaft

                                                          (hereinafter: "ME AG")

1.  1. By virtue of agreements entered into in November 1998 convertible loan
    stock amounting to an aggregate nominal amount of DM 3,500,000 exists
    between the contracting parties and other parties (hereinafter: "Convertible
    Loan Stock").

2.  2. The contracting parties hereby mutually agree to cancel the Convertible
    Loan Stock, whereby such cancellation shall only become effective if ME AG
    places PEB in the position in which PEB would be in, had it held a
    participating interest of 3.5% in the capital stock of ME AG at the time
    this Agreement is executed (hereinafter "Equalization Obligation"). PEB
    acknowledges that the Equalization Obligation may also be performed by PEB's
    obtaining an equivalent number of shares in BROKAT Infosystems AG.

3.  Upon performance of the Equalization Obligation PEB shall waive all rights
    ensuing from the Convertible Loan Stock and from all agreements entered into
    with ME AG in connection therewith, in particular the conversion right, the
    right to repayment of the amount of the convertible loan including any
    ancillary benefits and its control, information and approval rights.
<PAGE>

                                       2

Place:  Frankfurt,
Date:  ..............

 ......................                                 .........................
PEB                                                    ME AG

 ...................................................
For the Shareholders in accordance with the
Master Agreement of November 1998
<PAGE>

                                  Translation
                                                                 Schedule GV 2.2

                            Cancellation Agreement

                                by and between

MeTechnology Europe GmbH, Dolzig

                                                        (hereinafter: "ME GmbH")

                                      and

Sachsische Beteiligungsfonds GmbH, Leipzig

                                                        (hereinafter: "SB GmbH")

1.   A dormant participation exists between the parties by virtue of an
     agreement dated 2/6 December 1996 (Supplement dated May 1998).

2.   The contracting parties hereby mutually agree to cancel the dormant
     participation against payment of an amount of DM 9,950,000 (hereinafter:
     "Compensation") by ME GmbH or by a third party.

3.   The cancellation of the dormant participation shall become effective upon
     payment of the Compensation in full. Upon payment of the Compensation all
     of the claims to which SB GmbH is entitled under the terms of the dormant
     participation, excluding current claims up until the date of payment of the
     Compensation, shall be deemed met.

4.   SB GmbH hereby confirms the waiver already given in writing to all control
     and information rights to which it is entitled under the terms of the
     dormant participation and to all and any reservations for its approval in
     its favor on the basis of the dormant participation.
<PAGE>

                                       2

Place:  Leipzig                            Frankfurt,
Date:  ..................                  ..................................

 .............................              ..................................
Sachsische Beteiligungsfonds GmbH          MeTechnology Europe GmbH
<PAGE>

                                                                   Schedule GV 3

Negative List (Non-Competition)

NetLife
Datadesign AG
FICS
EDIFY
Neon
Netdynamics
BEA
Security First
Factum
Ikoss Van
<PAGE>

                                  Translation

                                                                   Schedule GV 4

                     Agreement on Contribution of Capital

                                by and between

1.   Dr. Andreas von Aufschnaiter

2.   Jozsef Bugovics

3.   Dr. Christoph Bulfon

4.   Andreas Kinsky

5.   Philipp A. Schoeller

6.   Dr. Nikolaus von Seemann

7.   SBF Sachsische Beteiligungsfond GmbH

8.   Roman E. Kainz, Ziegelweg 2, CH 6052 Hergiswil, Switzerland

9.   GCI Management GmbH

                        (hereinafter collectively referred to as "Shareholders")

                                      and

MeTechnology AG

                                            (hereinafter referred to as "ME AG")

                                      and

MeTechnology GmbH

                                          (hereinafter referred to as "ME GmbH")
<PAGE>

                                       2

1.   Legal Relationships

1.   By virtue of an agreement dated 13/16 November 1998 Private Equity Bridge
     Ltd. (hereinafter "PEB") holds convertible loan stock in BE AG in an
     aggregate nominal amount of DM 3,500,000 (hereinafter "Convertible Loan
     Stock"). ME AG has entered into a Cancellation Agreement with PEB with
     respect to the cancellation of the Convertible Loan Stock in which it
     undertakes to compensate the cancellation of the Convertible Loan Stock by
     means of an equalization settlement (hereinafter "PEB Equalization
     Obligation") and PEB has waived its rights from the convertible loan
     stock.

2.   The following rights are held with respect to ME GmbH:

     a)  a dormant participation is held by Sachsische Beteiligungsfonds GmbH
         (hereinafter "SB GmbH") by virtue of an agreement dated 2/6 December
         1996 (with a supplement from May 1998)

     b)  a credit agreement with GSM Industriebeteilugungen GmbH for a nominal
         amount of DM 3,500,000.

2.   Contributions by ME AG

SB GmbH has entered into a cancellation agreement with ME GmbH with respect to
     the dormant participation. Under the terms thereof SB GmbH is prepared to
     withdraw from the dormant participation against payment of DM 9,500,000
     plus current performance due up until the date of payment of the
     aforementioned amount (DM 9,500,000 plus current performance hereinafter:
     "Cancellation Amount"). ME AG hereby makes a contribution to the GmbH in
     such a way that ME AG

    a)  indemnifies ME GmbH with respect to claims under the Cancellation
         Agreement with SB GmbH (payment of the Cancellation Amount)
         (hereinafter "Indemnification Obligation") and

----------------
/1/  Translator's note: The words in italic are not contained in the German
     text. Obviously some wording has been omitted in the German and this has
     been added from the context of the agreement.
<PAGE>

                                       3

    b)  takes over the credit agreement entered into with GSM
         Industriebeteiligungen GmbH.

3.   Contributions by the Shareholders

The Shareholders hereby make contributions to ME AG in such a way as to take
     over and assume:

a)     the PEB Equalization Obligation

b)     the Indemnification Obligation

c)     The credit agreement with GSM transferred to ME AG

whilst indemnifying ME AG in this respect.
<PAGE>

                                       4

4.   No further liability of the Shareholders

     The Shareholders' obligations to make contributions have been met by taking
     over and assuming the obligations and the credit agreement set forth in
     item 3. ME AG has no further claims against the Shareholders.
<PAGE>

                                                                 EXHIBIT 10.3(c)

                                  Translation

List A. 1.8

Dormant participations
snd similar agreements

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------

     Beneficiary         Sum total of           Date of agreement             Comment
                         participation
                             in DM
-------------------------------------------------------------------------------------------------
<S>                                              <C>                      <C>
          1.
 SBF-Sachsenbank Fond      9,950,000.00        December 1996 with     Dormant participation.
GmbH, Leipzig                                   Supplement May 98       Expiration December
                                                                        2001. Obligations
                                                                      under the agreement to
                                                                       be assumed by Vendors
                                                                      (c.f. (S) 5 Warranty
                                                                            Agreement)
-------------------------------------------------------------------------------------------------

          2.                                                          Subordinated loan. Due
         GSM               3,530,000.00            February 96            February 2006.
Industriebeteiligungen                                                Obligations under the
    GmbH, Munich                                                          agreement to be
                                                                       assumed by Vendors
                                                                       (c.f. (S) 5 Warranty
                                                                           Agreement)

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

          3.               3,500,000.00            November 98           Convertible loan
Private Equity Bridge                                                   stock. Obligations
     Invest Ltd.                                                      under the agreement to
                                                                      be assumed by Vendors
                                                                       (c.f. (S) 5 Warranty
                                                                        Agreement)

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

<PAGE>

                                                                  Schedule A 1.9

MeTechnology Europe GmbH, Bienitz
Balance Sheet as per 31 December 1998
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------
ASSETS                                                               31.12.1998              31.12.1997
                                                                             DM                   DM
----------------------------------------------------------------------------------------------------------

A.                       Fixed and financial assets
---------------------------------------------------
<S>                     <C>                                        <C>                    <C>
I.                      Intangible assets

                        Software                                      93,762.00                 0.00
                                                         -------------------------------------------

II.                     Tangible assets
1.                      Buildings on third party land                 29,987.00                 0.00
2.                      Other equipment, fixtures,
                        furniture and office equipment               832,175.00                 0.00
                                                         -------------------------------------------
                                                                     862,162.00                 0.00
                                                         -------------------------------------------

III.                    Financial assets
                        Shares in affiliated undertakings                291.90           700,000.00
                                                         -------------------------------------------
                                                                     956,215.90           700,000.00
                                                         -------------------------------------------

B.                      Revolving assets
----------------------------------------

I.                      Inventories
1.                      Raw materials and supplies                    46,667.07                 0.00
2.                      Work in progress                             457,757.98                 0.00
                                                         -------------------------------------------
                                                                     504,425.05                 0.00
                                                         -------------------------------------------

II.                     Accounts receivable and
                        other assets
1.                      Accounts receivable (trade)                4,387,361.17                 0.00
                        - with residual term in excess of 1 year:
                        DM 0.00 (97: DM 0.00)
2.                      Other assets                                 285,914.31             3,291.48
                        - with residual term in excess of 1 year:
                        DM 111,525.11 (97: DM 0.00)
                                                         -------------------------------------------

                                                                   4,673,275.48             3,291.48
                                                         -------------------------------------------

III.                    Cash on hand and on deposit
                        at other banks                               753,645.82           145,950.11
                                                         -------------------------------------------
                                                                   5,931,346.35           145,241.59
                                                         -------------------------------------------

C.                      Prepaid expenses and deferred
-----------------------------------------------------
                        charges                                        9,860.90                 0.00
                        -------                          -------------------------------------------
</TABLE>

<PAGE>

D.   Shortfall not covered by capital stock
-------------------------------------------
<TABLE>
                                                          <S>                          <C>
                                                                   9,868,832.34                 0.00
                                                         -------------------------------------------
                                                                  16,766,255.49           849,241.59
                                                         -------------------------------------------

</TABLE>
<PAGE>

                                                                      Schedule 1
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------
LIABILITIES                                                                           31.12.1998         31.12.1997
                                                                                              DM                 DM
----------------------------------------------------------------------------------------------------------------------

 A.                   Capital stock
-----------------------------------
<S>                 <C>                                                         <C>                  <C>
 I.                   Subscribed capital                                              150,000.00          150,000.00
 II.                  Capital reserves                                              4,000,000.00        1,000,000.00
 II.                  Losses covered by capital stock                            -  4,150,000.00       -  311,827.41
                                                                          ------------------------------------------

                                                                                            0.00          838,172.59
                                                                          ------------------------------------------

 B.                   Contribution by dormant shareholders
----------------------------------------------------------
                      and subordinate loans
                      ---------------------

 a)                   Contribution by dormant shareholders                          9,950,000.00                0.00
 2.                   Subordinate loans                                             3,530,000.00                0.00
                                                                          ------------------------------------------
                                                                                   13,480,000.00                0.00

 C.                   Reserves
------------------------------

                      Other reserves                                                  669,838.00            3,200.00
                                                                          ------------------------------------------

 D.                   Liabilities
---------------------------------
 1.                   Due to banks                                                    750,000.00            6,852.97
 2.                   Advances from customers                                          65,000.00                0.00
 3.                   Accounts payable                                                802,337.63            1,016.03
 4.                   Due to affiliated companies                                     500,291.90                0.00
 5.                   Other liabilities                                               460,362.62                0.00
 a)                   including taxes DM 105.50 (97: DM 0.00)
 b)                   including social security DM 284.00 (97: DM 0.00)
                                                                          ------------------------------------------

                                                                                   2,577,992.15             7,869.00
                                                                          ------------------------------------------

 E.                   Prepaid expenses and deferred
---------------------------------------------------
                      charges                                                         38,425.34                 0.00
                      -------                                             ------------------------------------------

                                                                                  16,766,255.49           849,241.59
                                                                          ------------------------------------------

</TABLE>
<PAGE>

                                                                      Schedule 2

MeTechnology Europe GmbH, Bienitz
Income Statement for the period 1 January through 31 December 1998

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------
                                                                               1998             Previous Year
---------------------------------------------------------------------------------------------------------------
<S>                                                                   <C>                      <C>
1.  Sales revenues                                                               6,264,996.20              0.00
---------------------------------------------------------------------------------------------------------------
2.  Increase in work in progress                                                   355,398.94              0.00
---------------------------------------------------------------------------------------------------------------
3.  Other operating income                                                         221,863.91            460.00
---------------------------------------------------------------------------------------------------------------
4.  Cost of materials
a)  Cost of raw materials, consumables and supplies and of
       purchased materials                                                         237,866.42              0.00
b)   Cost of purchased services                                                    406,716.00              0.00
---------------------------------------------------------------------------------------------------------------
5.  Personnel expenses
b)  Wages and salaries                                                           5,480,898.54              0.00
c)  Social security and other pension costs and benefits                         1,004,201.88              0.00
    of which in respect of old-age pensions: DM 22,436.00 (97: DM
     0.00)
---------------------------------------------------------------------------------------------------------------
6.  Depreciation of intangible fixed assets and tangible assets                    485,969.55              0.00
---------------------------------------------------------------------------------------------------------------
7.  Other operating costs                                                        4,343,056.60         58,692.71
---------------------------------------------------------------------------------------------------------------
8.  Other interest and similar income                                               40,333.38          4,232.74
---------------------------------------------------------------------------------------------------------------
9.  Interest and similar expense                                                   289,650.33            689.96
                                                                               --------------      ------------
---------------------------------------------------------------------------------------------------------------
10. Results from ordinary activities                                            -5,385,766.89     -   54,689.93
---------------------------------------------------------------------------------------------------------------
11. Loss on merger                                                              -8,294,011.36              0.00
---------------------------------------------------------------------------------------------------------------
12. Taxes on income                                                                    - 4.40       -    624.00
---------------------------------------------------------------------------------------------------------------
13. Other taxes                                                                     27,231.08     -        0.08
                                                                               --------------      ------------
---------------------------------------------------------------------------------------------------------------
14. Net loss for the year                                                      -13,707,004.93       - 54,065.85
---------------------------------------------------------------------------------------------------------------
15. Loss brought forward from previous year                                      - 311,827.41      - 257,761.56
                                                                               --------------      ------------
---------------------------------------------------------------------------------------------------------------
16. Balance sheet loss                                                         -14,018,832.34      - 311,827.41
                                                                               ==============      ============
---------------------------------------------------------------------------------------------------------------
</TABLE>

                                                                   Schedule 1.11
                                                                   -------------

                                                                      Schedule 1
                                                                      ----------

MeTechnology Aktiengesellschaft, Bienitz near Leipzig

Balance Sheet as per 31 December 1998

<TABLE>
----------------------------------------------------------------------------------------------------------------------------------
Assets                                    31.12.1998        26.06.1998  Liabilities                    31.12.1998    26.06.1998
                                                DM              DM                                          DM            DM
----------------------------------------------------------------------------------------------------------------------------------
<S>                                     <C>                     <C>    <C>                         <C>              <C>
A. Fixed Assets                                                         A. Capital Stock
   Financial assets                                                     1.  Subscribed capital         1,000,000.00   1,000,000.00
   Shares in affiliated undertakings     189,318,398.80         -       2.  Capital reserve          165,418,398.30       -
                                                                        3.  Net loss for the year       -404.295.62       -
                                                                                                     --------------   ------------
----------------------------------------------------------------------------------------------------------------------------------
B. Current Assets                                                                                    166,014,103.18   1,000,000.00
                                                                                                     --------------   ------------
----------------------------------------------------------------------------------------------------------------------------------

I. Accounts receivable and other
   assets                                                               B. Provisions
   - including receivables with period                                     Other provisions
       to                                                                                                252,000.00       -
                                                                                                     --------------   ------------

   maturity exceeding one year:                                                                          252,000.00       -
   DM 0.00                                                                                           --------------   ------------

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

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------------
<S>                                     <C>                     <C>      <C>
1. Due from affiliated companies             500,000.00          -
2. Other assets                               17,689.18          -
                                          --------------         -
                                             517,689.18
----------------------------------------------------------------------------------------------------------------------------------
II.   Checks, cash at banks                   54,019,45  100,000.00      C. Liabilities
                                                                            - including liabilities with a residual
                                                                              term of over one year:
                                                                              DM 124,004.25
                                                                         1. Loans, of which convertible:   3,500,000.00        -
                                                                         2. Advances from customers          124,004.25        -
                                                                                                         --------------    ------
                                                                                                           3,624,004.25        -
----------------------------------------------------------------------------------------------------------------------------------

                                         169,890,107.43  100,000.00                                      169,890,107.43  100,000.00
                                        ---------------  ----------                                      --------------  ----------
----------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>

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

                                 List A. 2.3.

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

                               Assets owned by third parties

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

                                           None

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

                                       2

List A. 2.3(3)

Assets leased

--------------------------------------------------------------------------------
                        Cumulative      Latest expiration
         Item             monthly             date
                        installment                            Comment
                           in DM
--------------------------------------------------------------------------------

12 leased vehicles       15,201.00         December 2001         None
--------------------------------------------------------------------------------
<PAGE>

                                                              Schedule A. 2.3(6)
                                                   Status as per 20 January 1999

                   Summary of industrial property rights of
                           MeTechnology Europe GmbH
                       Here: Patents and Utility Models

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
Sequence no.     PAK            Project
                 no.                            Country      Owner      active      Ref. No.     Patent no. Registration  Priority

-----------------------------------------------------------------------------------------------------------------------------------
<S>            <C>       <C>                    <C>      <C>        <C>          <C>              <C>      <C>          <C>
      1          P51       Micro controller       FRG     ESD Munich  Patent (P)   P4419635.0       4419635  94-06-04     94-06-04

-----------------------------------------------------------------------------------------------------------------------------------
      2          P53              Key             FRG     ESD Munich    Patent     P4420967.3       4420967  94-06-16     94-06-16

-----------------------------------------------------------------------------------------------------------------------------------
      3          P116        Physical unit        FRG     ESD Dolzig    Patent    19540930.2-09    19540930  95-11-03     95-11-03

-----------------------------------------------------------------------------------------------------------------------------------
      4          P117         Transaction         FRG     ESD Dolzig    Patent    19540973.6-53    19540973  95-11-03     95-11-03

-----------------------------------------------------------------------------------------------------------------------------------
      5          P150     Payment [illegible      FRG     ESD Dolzig    Patent     19628045.1                96-07-11     96-07-11
                                  annotation]

-----------------------------------------------------------------------------------------------------------------------------------
      6          P264          Chip card          FRG     ESD Dolzig    Patent     19705620.2                97-02-14     97-02-14

-----------------------------------------------------------------------------------------------------------------------------------
      7          P321         MeCommerce          FRG     ESD Dolzig    Patent   97115782.1-2201             97-09-11     97-09-11

-----------------------------------------------------------------------------------------------------------------------------------
      8          P349         MeCommerce          FRG     ESD Dolzig    Patent     09/119,243                98-07-20     97-09-11
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>

-----------------------------------------------------
Sequence no.     PAK
                 no.           Current status

-----------------------------------------------------
      1          P51        Granted on 96-08-29

-----------------------------------------------------
      2          P53      Examination proceedings

-----------------------------------------------------
      3          P116       Granted on 97-04-24

-----------------------------------------------------
      4          P117       Granted on 97-10-23

-----------------------------------------------------
      5          P150     Examination proceedings

-----------------------------------------------------
      6          P264     Examination proceedings

-----------------------------------------------------
      7          P321     Examination proceedings

-----------------------------------------------------
      8          P349     Examination proceedings
-----------------------------------------------------
<PAGE>

                                       2

<TABLE>
<CAPTION>

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

<S>   <C>         <C>     <C>                 <C>     <C>          <C>       <C>                        <C>
                                                                                                                   Examination
      9          P395      Charging terminal    FRG     ESD Dolzig    Patent   19818726.2-53  98-04-27  98-04-27   proceedings
-----------------------------------------------------------------------------------------------------------------------------------

Re 1:    P51      classified as    "Micro controller securing process"
Re 2:    P53      classified as    "Decryption device for digital information and processes to effect
                                    encryption and decryption of such information using
                                    the decryption device"
Re 3:    P116     classified as    "Process to produce an information distribution system for any number
                                    of closed user groups using one physical unit"
Re 4:    P117     classified as    "Process to secure input and for transactions with digital
                                    information"
Re 5:    P150     classified as    "Process and array for the integration of customers/dealers within
                                    existing payment structures when payment transactions conducted via networks"
Re 6:    P264     classified as    "Array and process for de-central chip card identification"
Re 7:    P321     classified as    "Process for computer aided payment handling via payment systems"
Re 8:    P349     classified as    "Process for computer aided payment handling via payment systems"
Re 9:    P395     classified as    "Charging terminal for cash cards"
</TABLE>
<PAGE>

                                       3

                                                    Schedule A. 2.3(6) (cont'd)
                                                    ---------------------------
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------------------------
Sequence no.     PAK
                 no.               Project            Country        Owner            active          Ref. No.      Roll no.
-------------------------------------------------------------------------------------------------------------------------------
<S>   <C>          <C>        <C>                    <C>         <C>              <C>              <C>             <C>
      1          GM84           MeTechnology            FRG        ESD Dolzig      Utility model     29716145.8     29716145
                                                                                            (GM)

-------------------------------------------------------------------------------------------------------------------------------
      2          GM97         Charging Terminal         FRG        ESD Dolzig      Utility model     29807597.0     29807597
                                                                                            (GM)
-------------------------------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------
Sequence no.     PAK
                 no.         Registration     Priority      Current status
------------------------------------------------------------------------------

      1          GM84          97-09-09       97-09-09        Granted on
                                                               97-11-13

------------------------------------------------------------------------------
      2          GM97          98-04-27       98-04-27        Granted on
                                                               98-07-16
------------------------------------------------------------------------------

Re 1:    GM84      classified as    "Array for computer-controlled payment handling via payment systems"
Re 2:    GM97      classified as    "Charging terminal for cash cards"
</TABLE>

Addresses of the Owners:
------------------------

ESD Munich:     ESD Vermogensverwaltungsgesellschaft mbH, 80333 Munich
ESD Dolzig:     ESD Information Technology Entwicklungs GmbH, Ringstrasse 33,
                04430 Dolzig
MeTechnology:   MeTechnology Europe GmbH, Ringstrasse 33, 04330 Dolzig
<PAGE>

                                       4

                    Summary of industrial property rights of
                            MeTechnology Europe GmbH
                           Here: Trademarks and Titles

                                                  Status as per 20 January 1999

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------------
Sequence no    PAK
               no.             Project          Country          Owner         active     Ref. No.     Roll no.    Registration
----------------------------------------------------------------------------------------------------------------------------------
<S>   <C>    <C>               <C>             <C>          <C>            <C>         <C>            <C>           <C>
      1       WZ237            MeCHIP             FRG         ESD Dolzig     Trademark  396 07 608.4   39607608      96-02-19

----------------------------------------------------------------------------------------------------------------------------------
      2       WZ238            MeCHIP             USA         ESD Dolzig     Trademark   75/116757    75/116,757     96-06-10

----------------------------------------------------------------------------------------------------------------------------------
      3       WZ248            MeCHIP             FRG         ESD Dolzig     Trademark  396 09 374.4   39609374      96-02-29

----------------------------------------------------------------------------------------------------------------------------------
      4       WZ251           MeWALLET            FRG         ESD Dolzig     Trademark  396 37 869.2   39637869      95-08-30

----------------------------------------------------------------------------------------------------------------------------------
      5       WZ298          Metabanking           EU         ESD Dolzig     Trademark   000666347    000666347      97-10-23

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

------------------------------------------------------------
Sequence no    PAK
               no.        Priority       Current status
------------------------------------------------------------
      1       WZ237       96-02-19       Registered on
                                            96-07-26

------------------------------------------------------------
      2       WZ238       96-02-19       Registered on
                                            98-09-29

------------------------------------------------------------
      3       WZ248       96-06-29       Registered on
                                            96-04-22

------------------------------------------------------------
      4       WZ251       95-08-30       Registered on
                                            96-12-12

------------------------------------------------------------
      5       WZ298       97-10-23       Registered on
                                            98-10-26

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

                                       5

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------------
<S>   <C>       <C>                                                                      <C>          <C>            <C>   <C>
      6       WZ299           MeBanking            EU         ESD Dolzig     Trademark   000666289    000666289      97-10-23

----------------------------------------------------------------------------------------------------------------------------------
      7       WZ300          Metabanking          USA         ESD Dolzig     Trademark   75/419715     419,715       98-01-20

----------------------------------------------------------------------------------------------------------------------------------
      8       WZ301           MeBanking           USA         ESD Dolzig     Trademark   75/419718     419,718       98-01-20

----------------------------------------------------------------------------------------------------------------------------------
      9       WZ330    VLT - virtual charging     FRG         ESD Dolzig     Trademark     398 26      39826309      98-05-12
                                   terminal                                                      309.4/09

----------------------------------------------------------------------------------------------------------------------------------
     10       WZ332      VGL - virtual cash       FRG         ESD Dolzig     Trademark     398 26      39826308      98-05-12
                              charging terminal                                                  308.6/09

----------------------------------------------------------------------------------------------------------------------------------
     11       WZ339         Metechnology           EU         ESD Dolzig     Trademark   000861013    000861013      98-06-08

----------------------------------------------------------------------------------------------------------------------------------
     12       WZ364             Me/4               EU        Me Technology   Trademark   000988394    000988394      98-11-16

----------------------------------------------------------------------------------------------------------------------------------
     13       WZ366             Me/4              USA        Me Technology   Trademark

----------------------------------------------------------------------------------------------------------------------------------
     14       WZ367         Metechnology          USA        Me Technology   Trademark

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

------------------------------------------------------------
Sequence no    PAK
               no.        Priority       Current status
------------------------------------------------------------
      6       WZ299       97-10-23     Registration to be
                                               effected in
                                                  1999
------------------------------------------------------------
      7       WZ300       98-01-20     Application phase
------------------------------------------------------------
      8       WZ301       98-01-20     Application phase
------------------------------------------------------------
      9       WZ330    VL 98-05-12       Registered on
                                           98-09-15
------------------------------------------------------------
     10       WZ332       98-05-12       Registered on
                                           98-09-15
------------------------------------------------------------
     11       WZ339       98-06-08     Registration to be
                                               effected
                                                 02/1999
------------------------------------------------------------
     12       WZ364       98-11-16     Application phase
------------------------------------------------------------
     13       WZ366                    Application phase
------------------------------------------------------------
     14       WZ367                    Application phase
------------------------------------------------------------
</TABLE>
<PAGE>

                                       6

                                                    [Cont'd from previous page]
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------------
<S>   <C>   <C>        <C>                    <C>      <C>            <C>                 <C>         <C>       <C>
      1      WZ333      Title VLT - Virtual      FRG     ESD Dolzig     Title               98-05-05   98-05-05  Published 19/1998
                             charging terminal                              protection
----------------------------------------------------------------------------------------------------------------------------------
      2      WZ335   Title VGL - Virtual cash    FRG     ESD Dolzig     Title               98-05-05   98-05-05  Published 19/1998
                             charging terminal                              protection
----------------------------------------------------------------------------------------------------------------------------------
</TABLE>

Addresses of the Owners:
------------------------

ESD Munich:     ESD Vermogensverwaltungsgesellschaft mbH, 80333 Munich
ESD Dolzig:     ESD Information Technology Entwicklungs GmbH, Ringstrasse 33,
                04430 Dolzig
MeTechnology:   MeTechnology Europe GmbH, Ringstrasse 33, 04330 Dolzig
<PAGE>

                                                                         Sheet 3

List A. 2.3(6)

Agreements on the utilization of
property rights

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------
       Beneficiary                      Contents                  Date of Agreement             Comment
------------------------------------------------------------------------------------------------------------------

<S>                      <C>                                        <C>
                              Development of a customized
    ZMD GmbH, Dresden      switching circuit with ASIC project        96-05-10         No longer of significance
                                     classification                                        for MeTechnology
                                MEPAR for MeChip

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

                          Licensing of an algorithm for
    ASCOM Systec AG,        MeTechnology Application Software         98-01-22
 Maegenwil, Switzerland          for 128 bit encryptions

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

                          Licensing of the PMS 500 core
       Pijnenburg          (construction of the chip switching        95-05-29         No longer of significance
   micro-electronics &        circuit) to MeTechnology for                                 for MeTechnology
  software b.v.; Vught,           producing the MeChip
       Netherlands

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

                           Conferring a license, distribution                            MeTechnology will not
    Siemens Business      and processing right to the Software        98-12-16         continue to sell CVF but
  Services, GmbH & Co.       Community Visual Framework plus                             merely use it in the
    oHG, Munich (SBS)         support services to existing                               production of its own
                                    customers of SBS                                           toolkits.

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

List A. 3.1(2)

Customer contracts / orders
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------
                     Customer                               Date of Agreement                    Comment

------------------------------------------------------------------------------------------------------------------
<S>                                                              <C>                          <C>
    Baden-Wurttembergische Bank AG, Stuttgart                    98-10-14                       Agreement

------------------------------------------------------------------------------------------------------------------
            Commerzbank AG, Frankfurt                                                           Agreement

------------------------------------------------------------------------------------------------------------------
         debis Systemhaus GmbH, Frankfurt                        98-03-18                       Agreement

------------------------------------------------------------------------------------------------------------------
              DG Bank AG, Frankfurt                              97-03-18                       Agreement

------------------------------------------------------------------------------------------------------------------
           Dresdner Bank AG, Frankfurt                           98-01-12                       Agreement

------------------------------------------------------------------------------------------------------------------
            Ericsson GmbH, Dusseldorf                            98-07-23                       Agreement

------------------------------------------------------------------------------------------------------------------
         Ikoss Van GmbH, Aix-la-Chapelle                         98-06-15                       Agreement

------------------------------------------------------------------------------------------------------------------
     Landesbank Sachsen Girozentrale, Leipzig                    98-02-27                       Agreement

------------------------------------------------------------------------------------------------------------------
             Loewe Opta GmbH, Kronach                            98-12-07                       Agreement

------------------------------------------------------------------------------------------------------------------
               Net Bank AG, Hamburg                              98-04-15                       Agreement

------------------------------------------------------------------------------------------------------------------
              Sparda Bank Hamburg eG                             96-03-12                       Agreement

------------------------------------------------------------------------------------------------------------------
      Sparda Datenverarbeitung eG, Nuremberg                     97-08-14                       Agreement

------------------------------------------------------------------------------------------------------------------
        Stadt- und Kreissparkasse Erlangen                       98-06-24                       Agreement

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

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

                                 Schedule A. 3.2

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

         Lists with respect to A. 2 paragraph 13 items (1) through (20)

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

                                       2

List A. 3.2(1)

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------
  Contracts of employment with fixed     No employee is paid a fixed remuneration in
            remuneration exceeding                   excess of
 DM 150,000 p.a. and/or sales bonuses     DM 150,000 p.a. Sales staff do,
                                          however, participate in the sales
                                          revenue they acquire and collect
                                                  directly
          List A. 3.2. (1)
            Employee                            Sales Bonus                                     Comment
------------------------------------------------------------------------------------------------------------------
      <S>                <C>
        Bugovics           1% of the sales collected on behalf of Me Technology
------------------------------------------------------------------------------------------------------------------

        Daybelge           1% of the sales achieved and collected himself on behalf of
                                                      Me Technology

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

       de Brosses          1% of the sales achieved and collected himself on behalf of
                                                      Me Technology

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

         de Dood           1% of the sales achieved and collected himself on behalf of
                                                      Me Technology

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

          Engel            1% of the sales achieved and collected himself on behalf of
                                                      Me Technology

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

        von Falck          1% of the sales achieved and collected himself on behalf of
                                                      Me Technology

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

         Ferlan            1% of the sales achieved and collected himself on behalf of
                                                      Me Technology

------------------------------------------------------------------------------------------------------------------
                                                                                          Orally terminated by
          Huber            1% of the sales collected on behalf of MeTechnology GmbH               mutual
                                                                                                   agree-ment as
                                                                                                   per 30 April
                                                                                                   99.

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

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------
                                                                                                    Further
                                                                                                    free-lance
                                                                                                    basis/1/

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

<S>                       <C>
Kinsky                    1% of the sales collected on behalf of MeTechnology GmbH
------------------------------------------------------------------------------------------------------------------

Kornfeld                  1% of the sales achieved and collected himself on behalf of
                                  Me Technology

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

________________________

/1/ Wording in italic not in German original but added as the sentence is
    obviously incomplete.

</TABLE>
<PAGE>

                                       4

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------
           List A. 3.2. (1)                              Sales Bonus                    Comment
                Employee

------------------------------------------------------------------------------------------------------------------
<S>                        <C>
        Krajewski          1% of the sales achieved and collected himself on behalf of
                                                  Me Technology

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

          Merry           2% of the sales achieved and collected himself on
                          behalf of Me Technology, 1% of the partner sales
                          serviced by him. Both calculated in accordance with
                          the target achievement formula

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

      von Meysenbug          1% of the sales achieved and collected himself from the
                                     international branches of Me Technology

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

        Olivares          2% of the sales achieved and collected himself on
                          behalf of Me Technology, 1% of the partner sales
                          serviced by him. Both calculated in accordance with
                          the target achievement formula

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

        Putschek          2% of the sales achieved and collected himself on
                          behalf of Me Technology, 1% of the partner sales
                          serviced by him. Both calculated in accordance with
                          the target achievement formula

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

          Reich           2% of the sales achieved and collected himself on
                          behalf of Me Technology, 1% of the partner sales
                          serviced by him. Both calculated in accordance with
                          the target achievement formula

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

         Schmied          2% of the sales achieved and collected himself on
                          behalf of Me Technology, 1% of the partner sales
                          serviced by him. Both calculated in accordance with
                          the target achievement formula

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

          Wolff            1% of the sales achieved and collected himself on behalf of
                                                      Me Technology

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

         Ziegler          2-6.5% of the sales achieved and collected himself
------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------
<S>                      <C>
                         on behalf of Me Technology UK Ltd. In accordance with the
                                       sales table

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

         Loffler            2% of the sales achieved and collected himself
                          on behalf of Me Technology, 1% of the partner sales serviced by
                            him. Both calculated in accordance with the target
                                      achievement formula
------------------------------------------------------------------------------------------------------------------

                           2% of the sales achieved and collected himself on behalf of
       Oberwinster                  Me Technology, 1% of the partner sales serviced by
                                    him. Both calculated in accordance with the target
                                                   achievement formula

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

         List A. 3.2.(4)

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

 Consultancy agreements providing
  for an amount in excess of DM
             150,000

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

         Consultancy firm                 Contents/Amount provided for                      Comment

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

      GCI Management; Munich        Support on controlling systems and growth       Enterprise affiliated to
                                               management. Fee limited to a             shareholders
                                            maximum of DM 250,000. Bonus only
                                                      in case of IPO
------------------------------------------------------------------------------------------------------------------

                                                                                   [handwritten annotation]:
    ABC Werbeagentur Frankfurt           Image campaign for MeTechnology        to be divided up between ME GmbH
           [advertising agency]                                                                and Vendors
------------------------------------------------------------------------------------------------------------------
                                                                                   [handwritten annotation]:
      Oppenhoff und Radler,                 Advice on IPO preparation             to be taken over by Vendors
         attorneys at law
------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>

                                       6
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------

         List A. 3.2.(5)

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

 Current agreements providing for
 an exclusive distribution right

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

           Beneficiary                              Contents                                Comment

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

<S>                                          <C>                                <C>
 BULL GmbH, Deutschland, Cologne                Charging cash card for
                                                shareholder SIZ in                        MeTechnology
                                                Germany through April 2000          can license back at
                                                                                any time. Bull then given 25% license

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

      Omikron GmbH, Cologne         Exclusive sales right for Me HBCI special   Not critical as the exclusivity
                                               application on the basis of               only relates to Omikron
                                            Omikron API. 12 months' notice of                      API
                                               termination possible as per
                                               December 31 of any one year.
------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>

                                       7

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------

         List A. 3.2.(6)

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

<S>                                <C>
  Agreements with partners which     There are no agreements with resellers
            could give rise to               which could give rise to claims
          claims to compensation             to compensation in the event of
                                                       cancellation

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

           Beneficiary                              Contents                                Comment

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

                                       8

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------

         List A. 3.2.(6)

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

<S>                                <C>
                                    There are no partner agreements which, if
 List of partner agreements with             duly terminated, could give rise
          claims to compensation              to any claims to compensation

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

                                       9

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------

         List A. 3.2.(8)

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

        Credit agreements

------------------------------------------------------------------------------------------------------------------
<S>                                <C>                           <C>                       <C>
           Lender                     Loan amount                  Maturity                    Interest

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

        Dresdner Bank                 750,000.00                04 November 99                   5.20%
------------------------------------------------------------------------------------------------------------------

         von Seemann                 1,000,000.00                 30 June 99                      6%
------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>

                                      10

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

         List A. 3.2.(9)

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

        Rental agreements
        Leasing agreements

------------------------------------------------------------------------------------------------------------------
     Item rented/leased       Monthly installment            Term                          Comment
                                    in DM
------------------------------------------------------------------------------------------------------------------

        Company cars               c.f. List               c.f. List
                                   A. 2.3.(3)              A. 2.3.(3)                 c.f. List A. 2.3.(3)

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

     Rent HQ in Bienitz            25,690.00         One month's notice to     Increase by approx. DM 5000 per
                                                   expire on 31 December 99          month from March 99
------------------------------------------------------------------------------------------------------------------
                                                                              Move planned but no new agreement
       Rent in Munich               2,500.00         Expiration 1 May 2008    yet prepared. GCI shall take over
                                                                                  old rent agree-ment and Me
                                                                                         obligations
------------------------------------------------------------------------------------------------------------------

       Rent in London               8,900.00         One month's notice to
                                                    expire on 31 December 99

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

        Rent in Paris               3,900.00         One month's notice to
                                                    expire on 31 December 99
------------------------------------------------------------------------------------------------------------------

       Rent in Hungary              1,500.00         One month's notice to      No rental agreement yet signed
                                                   expire on 31 December 99
------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>

                                      11

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------
<S>                          <C>                          <C>
      Rent in Paderborn             6,000.00         Expiration 1 February
                                                             2001
------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>

                                      12

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------
<S>                          <C>                          <C>                             <C>
    List A. 3.2. (13)

  Agreements on the use
      and licensing
      of property
        rights
       excluding
        customer
       agreements
------------------------------------------------------------------------------------------------------------------
       Beneficiary                     Contents                   Date of                   Comment
                                                                 Agreement
------------------------------------------------------------------------------------------------------------------

  IncoTech,                  Granting sales rights with          23 May 1997            Partner Agreement
  Luxembourg                 respect to Me4 platform
------------------------------------------------------------------------------------------------------------------

    Siemens Business        Granting utilization, sales and    16 December 1998    MeTechnology shall not continue
       Services,               processing right to the                            to sell CVF but merely use it to
      GmbH&Co. oHG,            software and trademark                                 produce its own toolkits.
      Munich (SBS)               Community Visual
                              Framework plus support
                             services for existing SBS
                                    customers
------------------------------------------------------------------------------------------------------------------

       EL ME GmbH            Granting sales rights for         16 November 1998           Partner Agreement
                                      Me4 platform
------------------------------------------------------------------------------------------------------------------

    BAT GmbH, Vienna         Granting sales rights for          2 November 1998           Partner Agreement
                                      Me4 platform
------------------------------------------------------------------------------------------------------------------

     Globe Set Inc.       Licensing the GlobeSet product for      1 July 1998             Partner Agreement
                                     evaluation purposes
------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
                                      13

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------
<S>                          <C>                           <C>                             <C>
                                    in order to produce an
                                       interface to the
                                         Me4 platform
------------------------------------------------------------------------------------------------------------------

     Integrata GmbH          Granting sales rights for            1 July 1998             Partner Agreement
                                          Me4 platform
------------------------------------------------------------------------------------------------------------------

     Ikoss Van GmbH,         Cross licensing agreement for        15 June 1998            Partner Agreement
     Aix-la-Chapelle            reciprocal licensing of
                               sales rights for software
                                 licenses. For Alpha:
                               Poseidon IPS; For Ikoss
                                   Van: Me4 secure
------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
                                      14

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------
<S>                        <C>                          <C>                             <C>
    List A. 3.2. (13)

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

    Bull Group, Paris      Licensing and acquisition of the    23 March 1998           Partner Agreement
                               right to further license
                              the Me4 platform worldwide
------------------------------------------------------------------------------------------------------------------
    ASCOM Systec AG,
       Maegenwil,           Licensing an algorithm for         22 January 1998
      Switzerland            MeTechnology Application
                               Software for 128 bit
                                   encryptions
------------------------------------------------------------------------------------------------------------------

    Sun Microsystems      Reseller agreement for Sun hardware  9 January 1998          Partner Agreement
------------------------------------------------------------------------------------------------------------------

    Broad Vision Inc.         Licensing the Broad Vision       1 November 1997          Partner Agreement
                                product: OnetoOne for
                                evaluation purposes to
                               produce interface to Me4
                                       platform
------------------------------------------------------------------------------------------------------------------

   Investronica Syst.;       Granting sales rights for         25 August 1997        Partner Agreement with
        Madrid                     Me4 platform                                     ex-clusivity for Spain if
                                                                                 busi-ness targets are achieved;
                                                                                      not achieved, however
------------------------------------------------------------------------------------------------------------------

   Bull GmbH, Cologne        Granting sales rights for          9 July 1997          Partner Agreement
                                    Me4 platform
------------------------------------------------------------------------------------------------------------------

  Omikron GmbH, Cologne    Sales right for Me HBCI product.     2 July 1997          Partner Agreement
                               Exclusivity on the basis
                                    of Omikron API
------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
                                      15

<TABLE>
<CAPTION>
<S>                          <C>                          <C>                             <C>
------------------------------------------------------------------------------------------------------------------
  ZMD GmbH, Dresden        Development of a customized       10 May 1996      No longer of significance for
                              switching circuit with                                 MeTechnology
                                   ASIC project
                            classification for MeChip
------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>

                                      16

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

    List A. 3.2. (13)

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

       Pijnenburg             Licensing the PMS 500 core        29 May 1995      No longer of significance for
    microelectronics             (construction of chip                                  MeTechnology
       & software                switching circuit) for
      b.v.; Vught,              the construction of the
      Netherlands                       MeChip

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

                                      17

<TABLE>
<CAPTION>
<S>                                                  <C>                         <C>
       List A. 3.2. (14)

   Customer agreements / orders
                                                                 Date of                  Comment
             Customer                                           Agreement

      Bankverlag GmbH, Cologne                                04 February 1999             Order

         BIK GmbH, Frankfurt                                  28 December 1998             Order

          Bull AG, Cologne                                    Jan. through        Several individual agreements
                                                               Dec. 1998

             CC-Bank AG                                     02 February 1999              Agreement

        DG Bank AG, Frankfurt                                  18 March 1998              Agreement

      Ericsson GmbH, Dusseldorf                               23 July 1998                Agreement

Landesbank Sachsen Girozentrale, Leipzig                    27 February 1998              Agreement

       Loewe Opta GmbH, Kronach                             07 December 1998              Agreement

         Net Bank AG, Hamburg                                 15 April 1998               Agreement

       Postbank Data GmbH, Bonn                             28 December 1998              Agreement
</TABLE>
<PAGE>

                                      18

<TABLE>
<CAPTION>
<S>                                                  <C>                         <C>
        Sparda Bank Hamburg eG                                12 March 1996               Agreement

 Sparda Datenverarbeitung eG, Nuremberg                      14 August 1997               Agreement

   Stadt- und Kreissparkasse Erlangen                         24 June 1998                Agreement

     Volksbank Hannover eG, Hanover                         09 December 1996              Agreement

</TABLE>
<PAGE>

                                      19

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

         List A. 3.2. (14)
                                                              Nothing needs to be added to the agreements
    Customer/Supplier Agreements not already                            already listed in the
                 mentioned                                                   Schedules
-------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>

                                      20

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------

       List A. 3.2. (15)

   Agreements with
        affiliated
       enterprises
----------------------------------------------------------------------------------------------------------------
<S>                             <C>                                             <C>
     Consultancy Companies                Contents/Amount provided for                      Comment

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

     GCI Management; Munich       Support in the controlling systems and growth   Enterprise affiliated to the
                                     management. Fee fixed at maximum of DM             shareholders of
                                     250,000.00. Bonus only in case of IPO.            [handwritten]: ME
----------------------------------------------------------------------------------------------------------------

          SBF, Leipzig             Service fee for dormant participation in an           [handwritten]:
                                               amount of 2% p.a.,                    Being taken over by ME
                                             i.e. DM 199,999.00 p.a.                       Shareholders
----------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>

                                      21
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------

         List A. 3.3

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

Business liability
         insurance

------------------------------------------------------------------------------------------------------------------
<S>                           <C>                           <C>                            <C>
      Type of Insurance          Amount of cover in DM         Insurance Company                Comment

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

Business liability insurance       Personal injury:              AGF, Cologne
                                     3,000,000.00                No. 82952-02
                                  Damage to property:
                                     3,000,000.00
------------------------------------------------------------------------------------------------------------------

    Electronic insurance             1,000,000.00                AGF, Cologne
                                                                 No. 82952-04
------------------------------------------------------------------------------------------------------------------

   Bundled insurance cover            250,000.00                 AGF, Cologne
                                                                 No. 82952-03
------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>

                                      22
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------

        List A. 2.16

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

         Litigation

---------------------------------------------------------------------------------------------------
<S>                           <C>                            <C>
          Plaintiff                Amount in dispute                       Comment

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

                                                                Plaintiff alleges that MeTechnology
                                                                     promised to engage him and
   Wolfgang Kaiser, Munich             206,400.00                       did not keep to their
                                                                        promise. He therefore
                                                                    incurred damage as he did not
                                                                    accept an alternative position
---------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>

We, Sachsische Beteiligungsfond GmbH,

hereby confer upon

                                                Dr. Christoph Bufon

                                                 POWER OF ATTORNEY

to represent us:

1.       in entering into an Agreement on Subscription and Contribution of
         Capital with Brokat Infosystems AG, Stuttgart, to take over shares in
         Brokat Infosystems AG in the course of an increase in non-cash capital
         against the transfer of shares in MeTechnology Aktiengesellschaft,
         Bienitz

2.       in signing a subscription slip to take over shares in Brokat
         Infosystems AG in the course of an increase in non-cash capital against
         the transfer of shares in MeTechnology Aktiengesellschaft, Bienitz.

The power of attorney shall also include the authority to carry out other legal
acts which are pertinent in connection with the execution and implementation of
the aforementioned legal transactions. The attorney is released and discharged
from the restrictions imposed by Section 181 of the German Civil Code [BGB] and
authorized to confer sub powers of attorney to the extent of the authority
conferred upon him.

Place:   Leipzig
Date:    20 May 1999

[stamp] SBF Sachsische Beteiligungsfonds GmbH
Lohrstrasse 16
01435 Leipzig
[signed]
Sachsische Beteiligungsfond GmbH
<PAGE>

We, Sachsische Beteiligungsfond GmbH,

hereby confer upon

                              Dr. Christoph Bufon

                               POWER OF ATTORNEY

to represent us in entering into the following agreements and carrying out the
following legal acts:

1.      Agreement (parties: Dr. Anderer, Schlumpberger, Rover, Janssen,
        Schumacher on the one hand and Dr. von Aufschnaiter, Bugovics, Dr.
        Bulfon, Kinsky, Schoeller, Dr. von Seemann, SBF Sachsische
        Beteiligungsfond GmbH, Kainz and GCI Management GmbH on the other hand)

2.      Agreement on Subscription and Contribution of Capital (parties: Brokat
        on the one hand and Dr. von Aufschnaiter, Bugovics, Dr. Bulfon, Kinsky,
        Schoeller, Dr. von Seemann, SBF Sachsische Beteiligungsfond GmbH, Kainz
        and GCI Management GmbH on the other hand)

3.      Warranty Agreement (parties: Brokat on the one hand and Dr. von
        Aufschnaiter, Bugovics, Dr. Bulfon, Kinsky, Schoeller, Dr. von Seemann,
        SBF Sachsische Beteiligungsfond GmbH, Kainz and GCI Management GmbH on
        the other hand)

4.      Signing a subscription slip to take over the shares in Brokat
        Infosystems AG, Stuttgart, during the course of an increase in non-cash
        capital against the transfer of shares in MeTechnology
        Aktiengesellschaft, Bienitz.

        The power of attorney shall also include the authority to carry out
        other legal acts which are pertinent in connection with the execution
        and implementation of the aforementioned legal transactions including
        the Internal Agreement dated 17 May 1999 (parties: Dr. von Aufschnaiter,
        Bugovics, Dr. Bulfon, Kinsky, Schoeller, Dr. von Seemann, SBF Sachsische
        Beteiligungsfond GmbH, Kainz and GCI Management GmbH). The attorney is
        released and discharged from the restrictions imposed by Section 181 of
        the
<PAGE>

                                       2

        German Civil Code [BGB] and authorized to confer sub powers of attorney
        to the extent of the authority conferred upon him.

Place:   Leipzig
Date:    20 May 1999

[stamp] SBF Sachsische Beteiligungsfonds GmbH
Lohrstrasse 16
01435 Leipzig
[signed]
Sachsische Beteiligungsfond GmbH
<PAGE>

We,

Stefan Rover,

and

Achim Schlumpberger,

in our capacity as members of the Management Board of BROKAT Infosystems AG,
having its registered office in Stuttgart and recorded in the Commercial
Register of Stuttgart under no. HRB 19292, being authorized to jointly represent
the Company, hereby confer upon:

                               Dr. Peter Ladwig
                       c/o Haver & Mailander, Stuttgart

                               POWER OF ATTORNEY

to represent BROKAT Infosystems AG in entering into the following agreements and
executing the following legal acts:

1.       Agreement on Subscription and Contribution of Capital dated 20 May 1999
         (parties: Brokat on the one hand and Dr. von Aufschnaiter, Bugovics,
         Dr. Bulfon, Kinsky, Schoeller, Dr. von Seemann, SBF Sachsische
         Beteiligungsfond GmbH, Kainz and GCI Management GmbH on the other hand)

2.       Warranty Agreement dated 20 May 1999 (parties: Brokat on the one hand
         and Dr. von Aufschnaiter, Bugovics, Dr. Bulfon, Kinsky, Schoeller, Dr.
         von Seemann, SBF Sachsische Beteiligungsfond GmbH, Kainz and GCI
         Management GmbH on the other hand)

3.       carrying out other legal acts which are necessary or pertinent in
         connection with the execution and implementation of the aforementioned
         legal transactions.
<PAGE>

                                       2

The attorney is released and discharged from the restrictions imposed by Section
181 of the German Civil Code [BGB] and authorized to confer sub powers of
attorney to the extent of the authority conferred upon him.

Place:   Stuttgart
Date:    20 May 1999

[signed twice]
on behalf of: BROKAT Infosystems AG
<PAGE>

           BROKAT Infoystems AG, Industriestrasse 3, 70565 Stuttgart

            Increase in Non-cash capital from Authorized Capital I
         Pursuant to the Resolution of the Management Board adopted on

                                  20 May 1999

                                  Calculation

                Of the costs anticipated in connection with the
                            Issue of the new shares

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------
                                  Type of Cost                                             Amount in DM

------------------------------------------------------------------------------------------------------------------
<S>                                                                                            <C>
Costs of notary public and court costs                                                                   5,000.00
------------------------------------------------------------------------------------------------------------------

Publication costs                                                                                        2,500.00
------------------------------------------------------------------------------------------------------------------

Commission of the consortium banks for admission to official trading                                    39,000.00
------------------------------------------------------------------------------------------------------------------

Legal counsel                                                                                          230,000.00
------------------------------------------------------------------------------------------------------------------

Auditing and assessment                                                                                260,000.00
------------------------------------------------------------------------------------------------------------------

Miscellaneous costs                                                                                     76,000.00
------------------------------------------------------------------------------------------------------------------

Sum total                                                                                              612,500.00
------------------------------------------------------------------------------------------------------------------
</TABLE>

Place:   Stuttgart
Date:    20 May 1999

[signed]                            [signed]
Stefan Rover                        Achim Schlumpberger
<PAGE>

                                       2

           BROKAT Infoystems AG, Industriestrasse 3, 70565 Stuttgart

                          List of subscribers to the
                     new 777,458 shares of no par value in
                       BROKAT Infosystems AG, Stuttgart,
           from the increase in non-cash capital of DM 3,887,290.00
                resolved by the Management Board on 20 May 1999

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------

               Subscriber             No.  of  shares  of no par  value            Non-cash contribution:
                                      subscribed  to with a  calculated           Contribution of shares in
                                      share in the capital  stock of DM     MeTechnology AG, Commercial Registry
                                      5.00 each                                of the Local Court of Leipzig,
                                                                                        no. HRB 14687
------------------------------------------------------------------------------------------------------------------
<S>                                 <C>                                   <C>
Dr. Andreas von Aufschnaiter,         38,874 shares                         10,000 shares
Metzstr. 18/Rgb.,
81668 Munich

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

Jozsef Bugovics, Ringstr. 33          116,618 shares                        30,000 shares
04430 Dolzig/Leipzig
------------------------------------------------------------------------------------------------------------------

Dr. Christoph Bulfon                  155,491 shares                        40,000 shares
Widenmayerstr. 12
80538 Munich
------------------------------------------------------------------------------------------------------------------

Philipp A. Schoeller                  139,943 shares                        36,000 shares
Rodelweg 12,
82067 Ebenhausen
------------------------------------------------------------------------------------------------------------------

Andreas Kinsky                         23,324 shares                         6,000 shares
Ismaninger Str. 73
81675 Munich
------------------------------------------------------------------------------------------------------------------

Dr. Nikolaus Seemann Ritter           194,364 shares                        50,000 shares
------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>

                                       3
<TABLE>
------------------------------------------------------------------------------------------------------------------
<S>                                                                                                           <C>
        von Treuenwart,
Furst-Johann-Str. 5,
9497 Triesen, Lichtenstein
------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>

                                  Translation
                                                                   Schedule EV 1

                                    Minutes

   of the Meeting of the Management Board of BROKAT Infosystems AG, Stuttgart

                               held on 20 May 1999

In attendance:

1.  Dr. Boris Anderer
2.  Michael Janssen
3.  Stefan Rover
4.  Achim Schlumpberger
5.  Michael Schumacher

I.   Preliminary Comments

1.   In accordance with the resolution passed at the extraordinary Shareholders'
     Meeting of BROKAT Infosystems AG (hereinafter referred to as "BROKAT" or
     the "Company") held on 17 August 1998 (agenda item 4), the Management Board
     of the Company is authorized to increase with the approval of the
     Supervisory Board the capital stock in the period prior to 30 June 2003
     through the issue of new shares in return for cash or non-cash
     contributions one or more times by a total of up to DM 16,064,265
     (Authorized Capital I). The Management Board is further authorized to
     exclude any subscription rights of the shareholders with the approval of
     the Supervisory Board. The Authorized Capital I was recorded in the entry
     for the Company in the Commercial Register on 15 September 1998.

2.   The foregoing authorization was first exercised in accordance with a
     resolution of the Management Board of 01 October 1998 and the capital stock
     of the Company increased by exploiting the authorized capital by DM 700,000
     and increasing the capital stock from DM 40,160,665 (in words: Deutschmarks
     forty million one hundred and sixty thousand six hundred and sixty-five) to
     DM 40,860,665 (in words: Deutschmarks forty million eight hundred and sixty
     thousand six hundred and sixty-five) through the issue of 140,000 new
     bearer shares of no par value with a calculated share in the capital stock
     of DM 5.00 each.
<PAGE>

                                       2

     The subscription right of the shareholders was excluded and the new shares
     taken over by the Frankfurt am Main branch of Paribas, for the account of
     the consortium leader. The execution of the capital increase was recorded
     in the Company's entry in the Commercial Register on 27 October 1998.

3.   MeTechnology Europe GmbH (hereinafter referred to as "ME") is a company
     recorded in the Register of Companies of the Local Court of Leipzig under
     no. HRB 14868. The capital stock of ME amounts to DM 150,000 (in words:
     Deutschmarks one hundred and fifty thousand) and is sub-divided into the
     following shares:

One share with a par value of DM 3,700
One share with a par value of DM 3,800
One share with a par value of DM 7,500
One share with a par value of DM 15,000
One share with a par value of DM 25,000
One share with a par value of DM 12,500
One share with a par value of DM 24,000
One share with a par value of DM 6,000
One share with a par value of DM 7,500
One share with a par value of DM 7,500
One share with a par value of DM 6,000
One share with a par value of DM 21,000
One share with a par value of DM 5,000
One share with a par value of DM 5,000
One share with a par value of DM 500
Sum total of shares:    DM 150,000

     All shares in ME are held by ME Technology AG, recorded under no. HRB 14687
     in the Commercial Register of the Local Court of Leipzig (hereinafter "ME
     AG") which is thus sole shareholder in ME. The capital stock of ME AG
     amounts to DM 1 million and is sub-divided into 200,000 shares (hereinafter
     "ME Shares"). The sole shareholders in ME AG are:

(1)  Dr. Andreas von Aufschnaiter     holding     10,000  ME Shares
(2)  Jozsef Bugovics                  holding     30,000  ME Shares
(3)  Dr. Christoph Bulfon             holding     40,000  ME Shares
(4)  Philipp A. Schoeller             holding     36,000  ME Shares
(5)  Andreas Kinsky                   holding      6,000  ME Shares
(6)  Dr. Nikolaus Seemann Ritter
     von Treuenwart                   holding     50,000  ME Shares
<PAGE>

                                       3

(7)  SBF Sachsische
     Beteiligungsfond GmbH    holding  10,000  ME Shares
(8)  Roman E. Kainz           holding  10,000  ME Shares
(9)  GCI Management GmbH      holding   8,000  ME Shares

     Nos. (1) through (9) are hereinafter collectively referred to as "ME
     Shareholders".

4.   BROKAT intends to take over the ME Shares by means of an increase in the
     capital stock against non-cash contribution. The capital stock of BROKAT is
     to be increased for this purpose and ME AG merged into BROKAT.

     The Management Board of BROKAT appointed the firm of auditors and tax
     consultants Bansbach Schubel Brosztl & Partner GmbH Wirtschaftsprufungs-
     gesellschaft Steuerberatungsgesellschaft, Stuttgart (hereinafter referred
     to as "BSB") to assess the value of the ME Shares and the number of new
     BROKAT Shares appropriate to the corporate value of BROKAT. On the basis of
     this expertise, BROKAT and the ME Shareholders mutually agreed in the
     Agreement on Subscription and Contribution of Capital dated 20 May 1999 to
     increase the capital stock of BROKAT by DM 3,887,290 from the amount of DM
     40,860,665 pertaining hitherto to DM 44,747,955 by issuing 777,458
     individual share certificates to the ME Shareholders against the
     contribution of the ME Shares. The foregoing increase in the capital stock
     of BROKAT is to be effected from the Authorized Capital I. Pursuant to the
     terms of the Agreement on Subscription and Contribution of Capital this
     shall become effective as soon as the Management Board resolves to increase
     the capital stock.

     Now wherefore the Management Board of BROKAT adopts the following
     resolution to meet the condition set forth in the Agreement on Subscription
     and Contribution of Capital:

II.  Increasing the Capital Stock of BROKAT

     We, the entire members of the Management Board of BROKAT Infosystems AG,
     hereby unanimously resolve to further exploit the Authorized Capital I as
     follows:

1.   The capital stock of the Company in an amount of DM 40,860,665 (in words:
     Deutschmarks forty million eight hundred and sixty thousand six hundred and
     sixty-five) sub-divided into 8,172,133 shares of no par value shall be
     increased by exploiting the Authorized Capital I by means of non-cash
     contributions of DM 3,887,290, increasing the capital stock to DM
     44,747,955 (in words: Deutschmarks forty-four
<PAGE>

                                       4

     million seven hundred and forty-seven thousand nine hundred and fifty-five)
     by issuing 777,458 new bearer shares of no par value with a calculated
     share in the capital stock of DM 5.00 each.

2.   The new shares shall participate in profits with effect from 01 January
     1999.

3.   The statutory subscription right of the shareholders shall be excluded. The
     new shares shall be subscribed and taken over by the ME Shareholders as
     follows:

(1)       Dr. Andreas von Aufschnaiter
          Metzstr. 18/Rgb., 81668 Munich                    38,874  shares

(2)       Jozsef Bugovics
          Ringstr. 33, 04430 Dolzig/Leipzig                116,618  shares

(3)       Dr. Christoph Bulfon
          Widenmayerstr. 12, 80538 Munich                  155,491  shares

(4)       Philipp A. Schoeller
          Rodelweg 12, 82067 Ebenhausen                    139,943  shares

(5)       Andreas Kinsky
          Ismaninger Strasse 73, 81675 Munich,              23,324  shares

(6)       Dr. Nikolaus Seemann Ritter von Treuenwart
          Furst-Johann-Str. 5, FL-9497 Triesen,
          Lichtenstein                                     194,364  shares

(7)       SBF Sachsische Beteiligungsfond GmbH
          Lohrstr. 16, 04105 Leipzig                        38,873  shares

(8)       Roman E. Kainz Ziegelweg 2,
          CH-6052 Hergiswil, Switzerland                    38,873  shares

(9)       GCI Management GmbH
          Brienner Str. 10, 80333 Munich                    31,098  shares

          Total                                            777,458  shares
<PAGE>

                                       5

4.   The non-cash contributions shall be effected by transferring to the Company
     the ME Shares and thus the entire capital stock of MeTechnology AG,
     recorded in the Commercial Register of the Local Court of Leipzig under no.
     HRB 14687, as follows:

(1)    Dr. Andreas von Aufschnaiter           10,000  ME Shares

(2)    Jozsef Bugovics                        30,000  ME Shares

(3)    Dr. Christoph Bulfon                   40,000  ME Shares

(4)    Philipp A. Schoeller                   36,000  ME Shares

(5)    Andreas Kinsky                          6,000  ME Shares

(6)    Dr. Nikolaus Seemann Ritter
       von Treuenwart                         50,000  ME Shares

(7)    SBF Sachsische
       Beteiligungsfond GmbH                  10,000  ME Shares

(8)    Roman E. Kainz                         10,000  ME Shares

(9)    GCI Management GmbH                     8,000  ME Shares

The contribution of the ME Shares by the ME Shareholders shall be effective as
from the date of transfer to the Company and have a right to participate in
profits as from 01 January 1999. Insofar as the value of the ME Shares exceeds
the arithmetical proportion of the new shares in the capital stock, the amount
of any such surplus up to a maximum amount of DM 151,604,310.00 shall be
allocated to the capital reserves of the Company (Section 272, paragraph 2, item
1 German Commercial Code [HGB]).

III. Approval by the Supervisory Board, Modification of the Bylaws

The Supervisory Board of the Company approved the exploitation of the Authorized
Capital I in the aforementioned resolution and the exclusion of the subscription
right of the shareholders in the resolution of 20 May 1999.
<PAGE>

                                       6

The Supervisory Board further resolved that, in accordance with the authority
conferred upon it in the resolution adopted by the Shareholders' Meeting of 17
August 1998 (agenda item 4), the Bylaws of the Company be modified in accordance
with the extent to which the Authorized Capital is being exploited and the
wording of Article 4, paragraphs 1 and 2 be amended accordingly.

Stuttgart, 20 May 1999

___________________________________             _____________________________
Dr. Boris Anderer                               Michael Janssen

___________________________________             _____________________________
Stefan Rover                                    Achim Schlumpberger

___________________________________             _____________________________
Michael Schumacher
<PAGE>

                                  Translation

                                                             IN TWO COUNTERPARTS

                                                                   Schedule EV 2

To
BROKAT Infosystems AG
Stuttgart

                          Increase of Non-Cash Capital
                      in accordance with the Resolution of
                                  20 May 1999

                              Subscription slip of

                   .........................................

                              Preliminary Comments

1.   In accordance with the resolution passed at the extraordinary Shareholders'
     Meeting of BROKAT Infosystems AG (hereinafter referred to as "BROKAT" or
     the "Company") held on 17 August 1998 (agenda item 4), the Management Board
     of the Company is authorized to increase with the approval of the
     Supervisory Board the capital stock in the period prior to 30 June 2003
     through the issue of new shares in return for cash and non-cash
     contributions one or more times by a total of up to DM 16,064,265
     (Authorized Capital I). The Management Board is further authorized to
     exclude any subscription rights of the shareholders with the approval of
     the Supervisory Board. The Authorized Capital I was recorded in the entry
     for the Company in the Commercial Register on 15 September 1998.

4.   The foregoing authorization was first exercised in accordance with a
     resolution of the Management Board of 01 October 1998 and the capital stock
     of the Company increased by exploiting the authorized capital by DM 700,000
     and increasing the capital stock from DM 40,160,665 (in words: Deutschmarks
     forty million one hundred and sixty thousand six hundred and sixty-five) to
     DM 40,860,665 (in words: Deutschmarks forty million eight hundred and sixty
     thousand six hundred and sixty-five) through the issue of 140,000 new
     bearer shares of no par value with a calculated share in the capital stock
     of DM 5.00 each.

     The subscription right of the shareholders was excluded and the new shares
     taken over by the Paribas branch in Frankfurt am Main, Germany, for the
     account of the
<PAGE>

                                       2

     consortium leader. The execution of the capital increase was recorded in
     the Company's entry in the Commercial Register on 27 October 1998.

3.   MeTechnology Europe GmbH (hereinafter referred to as "ME") is a company
     recorded in the Register of Companies of the Local Court of Leipzig under
     no. HRB 14868. The capital stock of ME amounts to DM 150,000 (in words:
     Deutschmarks one hundred and fifty thousand) and is sub-divided into the
     following shares:

One share with a par value of DM 3,700
One share with a par value of DM 3,800
One share with a par value of DM 7,500
One share with a par value of DM 15,000
One share with a par value of DM 25,000
One share with a par value of DM 12,500
One share with a par value of DM 24,000
One share with a par value of DM 6,000
One share with a par value of DM 7,500
One share with a par value of DM 7,500
One share with a par value of DM 6,000
One share with a par value of DM 21,000
One share with a par value of DM 5,000
One share with a par value of DM 5,000
One share with a par value of DM 500
Sum total of shares:    DM 150,000

     All shares in ME are held by ME Technology AG, recorded under no. HRB 14687
     in the Commercial Register of the Local Court of Leipzig (hereinafter "ME
     AG") which is thus sole shareholder in ME. The capital stock of ME AG
     amounts to DM 1 million and is sub-divided into 200,000 shares (hereinafter
     "ME Shares"). The sole shareholders in ME AG are:

(1)  Dr. Andreas von Aufschnaiter            holding     10,000  ME Shares
(2)  Jozsef Bugovics                         holding     30,000  ME Shares
(3)  Dr. Christoph Bulfon                    holding     40,000  ME Shares
(4)  Philipp A. Schoeller                    holding     36,000  ME Shares
(5)  Andreas Kinsky                          holding      6,000  ME Shares
(6)  Dr. Nikolaus Seemann Ritter
     von Treuenwart                          holding     50,000  ME Shares
<PAGE>

                                       3

(7)  SBF Sachsische
     Beteiligungsfond GmbH    holding  10,000  ME Shares
(8)  Roman E. Kainz           holding  10,000  ME Shares
(9)  GCI Management GmbH      holding   8,000  ME Shares

     Nos. (1) through (9) are hereinafter collectively referred to as "ME
     Shareholders".

4.   BROKAT intends to take over the ME Shares by means of an increase in the
     capital stock against non-cash contribution. The capital stock of BROKAT is
     to be increased for this purpose and ME AG merged into BROKAT.

     In execution of the above, the Management Board of BROKAT adopted the
     following resolution to increase capital by exploiting the Authorized
     Capital I on 20 May 1999:

(1)  To increase the capital stock of BROKAT from the amount of DM 40,860,665
     (in words: Deutschmarks forty million eight hundred and sixty thousand six
     hundred and sixty-five) subdivided into 8,172,133 shares of no par value to
     DM 44,747,955 (in words: Deutschmarks forty-four million seven hundred and
     forty-seven thousand nine hundred and fifty-five) by exploiting the
     Authorized Capital I by DM 3,887,290 against non-cash contributions by
     issuing 777,458 bearer shares of no par value with a calculated share in
     the capital stock of DM 5.00 each.

(2)  The new shares shall participate in profits with effect from 01 September
     1999.

(3)  The shareholders' statutory subscription right shall be excluded. The new
     shares shall be subscribed to and taken over by the ME Shareholders as
     follows:

  a)  Dr. Andreas von Aufschnaiter
      Metzstr. 18/Rgb., 81668 Munich                          38,874   shares

  b)  Jozsef Bugovics
      Ringstr. 33, 04430 Dolzig/Leipzig                      116,618   shares

  c)  Dr. Christoph Bulfon
      Widenmayerstr. 12, 80538 Munich                        155,491   shares

  d)  Philipp A. Schoeller
      Rodelweg 12, 82067 Ebenhausen                          139,943   shares

  e)  Andreas Kinsky
      Ismaninger Strasse 73, 81675 Munich,                    23,324   shares

<PAGE>

                                       4

  f)  Dr. Nikolaus Seemann Ritter von Treuenwart
      Furst-Johann-Str. 5, FL-9497 Triesen,
       Lichtenstein                                          194,364   shares

  g)  SBF Sachsische Beteiligungsfonds GmbH
      Lohrstr. 16, 04105 Leipzig                              38,873   shares

  h)  Roman E. Kainz
      Ziegelweg 2, CH-6052 Hergiswil, Switzerland             38,873   shares

  i)  GCI Management GmbH
      Brienner Str. 10, 80333 Munich                          31,098   shares

      Total                                                   777,458   shares

4.   The non-cash contributions shall be effected by transferring to the Company
     the ME Shares and thus the entire capital stock of MeTechnology AG,
     recorded in the Commercial Register of the Local Court of Leipzig under no.
     HRB 14687, as follows:

a)   Dr. Andreas von Aufschnaiter  10,000  ME Shares

b)   Jozsef Bugovics               30,000  ME Shares

c)   Dr. Christoph Bulfon          40,000  ME Shares

d)   Philipp A. Schoeller          36,000  ME Shares

e)   Andreas Kinsky                 6,000  ME Shares

f)   Dr. Nikolaus Seemann Ritter
     von Treuenwart                50,000  ME Shares

g)   SBF Sachsische
     Beteiligungsfond GmbH         10,000  ME Shares

h)   Roman E. Kainz                10,000  ME Shares

<PAGE>

                                       5

i)   GCI Management GmbH            8,000  ME Shares

     The contribution of the ME Shares by the ME Shareholders shall be effective
     as from the date of transfer to the Company and have a right to participate
     in profits as from 01 January 1999. Insofar as the value of the ME Shares
     exceeds the arithmetical proportion of the new shares in the capital stock,
     the amount of any such surplus up to a maximum amount of DM 151,604,310.00
     shall be allocated to the capital reserves of the Company (Section 272,
     paragraph 2, item 1 German Commercial Code [HGB]).

          - Paragraphs (1) through (4) hereinafter referred to as "Non-Cash
            Capital Increase".

                                  Subscription

The undersigned .................. subscribes to and hereby takes over ......
new bearer shares of no par value in BROKAT Infosystems AG to be issued to him
in accordance with the foregoing resolution on the Non-Cash Capital Increase
with a calculated share in the capital stock of DM 5.00 each, therefore
amounting to an aggregate of DM .........

Dr. Andreas von Aufschnaiter shall immediately transfer to BROKAT 10,000 ME
Shares as a non-cash contribution for the shares taken over with commercial
effect as from the date of transfer to the Company and with a right to
participate in profits as from 01 January 1999.

The above subscription shall not be binding if the execution of the Non-Cash
Capital Increase has not been recorded in the entry of BROKAT in the Commercial
Register by 31 December 1999.

Place:
Date: 20 May 1999

______________________________
Dr. Andreas von Aufschnaiter
<PAGE>

                                  Translation
                                                                   Schedule EV 3

                               Warranty Agreement

by and between

BROKAT Aktiengesellschaft

- hereinafter referred to as "BROKAT"

and

1.   Dr. Andreas von Aufschnaiter

2.   Jozsef Bugovics

3.   Dr. Christoph Bulfon

4.   Andreas Kinsky

5.   Philipp A. Schoeller

6.   Dr. Nikolaus von Seemann

Nos. 1 through 6 all c/o GSM Industriebeteiligungen GmbH, Brienner Strasse 10,
80333 Munich

7.   SBF Sachsische Beteiligungsfond GmbH

8.   Roman E. Kainz, Ziegelweg 2, CH-6052 Hergiswil, Switzerland

9.   GCI Management GmbH

- Nos. 1 through 9 hereinafter collectively referred to as "Vendors" -
<PAGE>

                                       3

                                       I
                                       -
                                    Recitals
                                    --------

1.   BROKAT is a company limited by shares recorded in the Register of Companies
     of the Local Court of Stuttgart under no. HRB 19292. The capital stock of
     BROKAT amounts to DM 40,860,665 (in words: Deutschmarks forty million eight
     hundred and sixty thousand six hundred and sixty-five) and is sub-divided
     into 8,172,133 shares of no par value.

     The first listing of the BROKAT shares on the regulated market at the Neuer
     Markt of the Frankfurt Stock Exchange was on 16 September 1998. Listing
     commenced at the Neuer Markt on 17 September 1998.

     BROKAT develops and markets software and hardware solutions in particular
     for the secure transfer of data in heterogeneous inter-company data
     networks and intra-company data networks. The corporate enterprise has
     developed positively during the course of the past few years and has
     attained the position of market leader in the market segment it services in
     Germany. BROKAT is endeavoring to expand the competitive position attained
     both nationally and internationally.

2.   ME AG is a company recorded in the Register of Companies of the Local Court
     of Leipzig under no. HRB 14687. The capital stock of ME AG amounts to DM 1
     million (in words: Deutschmarks one million) and is sub-divided into
     200,000 shares. The sole shareholders in ME AG are as follows:

     (1)  Dr. Andreas von Aufschnaiter   holding  10,000  shares
     (2)  Jozsef Bugovics                holding  30,000  shares
     (3)  Dr. Christoph Bulfon           holding  40,000  shares
     (4)  Philipp A. Schoeller           holding  36,000  shares
     (5)  Andreas Kinsky                 holding   6,000  shares
     (6)  Dr. Nikolaus Seemann Ritter
          von Treuenwart                 holding  50,000  shares
     (7)  SBF Sachsische
          Beteiligungsfond GmbH          holding  10,000  shares
     (8)  Roman E. Kainz                 holding  10,000  shares
     (9)  GCI Management GmbH            holding   8,000  shares
<PAGE>

                                       4

     - hereinafter collectively referred to as "ME Shares" -

3.   MeTechnology Europe GmbH (hereinafter referred to as "ME") is a company
     recorded in the Register of Companies of the Local Court of Leipzig under
     no. HRB 14868. The capital stock of ME amounts to DM 150,000 (in words:
     Deutschmarks one hundred and fifty thousand) and is sub-divided into the
     following shares:

One share with a par value of DM 3,700
One share with a par value of DM 3,800
One share with a par value of DM 7,500
One share with a par value of DM 15,000
One share with a par value of DM 25,000
One share with a par value of DM 12,500
One share with a par value of DM 24,000
One share with a par value of DM 6,000
One share with a par value of DM 7,500
One share with a par value of DM 7,500
One share with a par value of DM 6,000
One share with a par value of DM 21,000
One share with a par value of DM 5,000
One share with a par value of DM 5,000
One share with a par value of DM 500
Sum total of shares:    DM 150,000

     - hereinafter collectively referred to as "ME Shares"

     ME AG is the sole shareholder in ME GmbH and holds the entire shares in ME.

     ME also develops and markets software and hardware solutions for processing
     transactions in electronic networks. The business activity of ME focuses
     principally on the banking sector.

4.   ME AG and BROKAT intend to merge in order to obtain synergy benefits. The
     capital stock of BROKAT is to be increased by DM 3,887,290 for this purpose
     from the amount of DM 40,860,665 pertaining hitherto to DM 44,747,955 by
     issuing 777,458 individual share certificates and the ME Shares are to be
     taken over by BROKAT
<PAGE>

                                       5

     during the course of the capital increase against non-cash contribution. To
     execute the foregoing the Vendors and BROKAT shall enter into an Agreement
     on Subscription and Contribution of Capital on today's date (hereinafter
     "Subscription Agreement") and the Management Board of BROKAT shall adopt
     the Resolution on the Capital Increase enclosed as Schedule GV 1.

     In order to regulate the warranties, guaranties and obligations required to
     supplement the Subscription Agreement the parties hereto agree and covenant
     as follows:

                                       II.
                                   Warranties

                                      (S) 1
                            Warranties by the Vendors

The Vendors provide BROKAT with a warranty with respect to the corporate assets
transferred directly or indirectly in the course of the contribution of the ME
Shares pursuant to (S) 3 of the Subscription Agreement in accordance with the
provisions set forth in greater detail in Schedule A.
                                          ----------

                                      (S) 2
           Legal Consequences of a Violation of a Warranty or Guaranty
                                 by the Vendors

1.   If any incorrect guaranties or representations are given by the Vendors,
     the Vendors have the right to remedy such violation, insofar as the
     violation does not demand immediate rectification.

2.   If the Vendors fail to remedy such violation within a reasonable period of
     time not exceeding four weeks, the Vendors shall place BROKAT in the same
     position it would have been in, had the guaranty or representation given
     herein been accurate or not infringed ("Damages"). In this connection the
     following shall apply:
<PAGE>

                                       6

(1)  BROKAT shall only be entitled to claim Damages if and insofar as the damage
     incurred exceeds an aggregate amount of DM 1,000,000 (in words:
     Deutschmarks one million). The elimination of any tax loss carryover shall
     not give rise to any entitlement to claim Damages.

(2)  In the event of a violation of the guaranty set forth in (S) A. 1 item 9,
     the liability of the Vendors shall be limited to the obligation to make
     good the amount of the shortfall with respect to the amount of guaranteed
     equity. The Vendors shall settle the amount of the difference with respect
     to the guaranteed equity in the annual financial statements A by means of a
     cash contribution to the reserves of ME.

     If the violation of the guaranty set forth in (S) A. 1, item 9 is due to
     facts simultaneously breaching one or several other guaranties set forth in
     (S) A. 1 and (S) A. 2, raising a claim to Damages on the basis of a
     violation of these other guaranties shall be excluded to the extent that
     this violation has brought about a compensation of the shortfall with
     respect to the amount of guaranteed equity pursuant to the foregoing
     paragraph.

(3)  Insofar as the Vendors are obliged to pay Damages, the amount thereof shall
     be limited as follows:

     a)   in those cases covered by (S) A. 1, items 1 through 8 (Company Law
          Matters), (S) A. 1, item 9 (Equity), item 10 (Taxation and Social
          Security) and item 11 (ME AG) to

     aa)  in case of the complete or partial sale of the new BROKAT shares by
          the Vendors: to the sum total of the proceeds obtained by the sale,
          but to no less than the proceeds actually obtainable by the Vendors

     plus

     bb)  if the new BROKAT shares are not fully sold: to the sum total of the
          proceeds actually obtainable by the Vendors through the sale of these
          shares at the time of performance of the guaranty obligation
<PAGE>

                                       7

     whereby the employee shares are not to be taken into consideration in cases
     aa) and bb)

          (Sum total of aa) and bb) hereinafter referred to as "Maximum Amount")

     b)   in all other cases to a maximum total of Euro 3 millions.

     The total amount of liability stemming from all of the foregoing guaranties
     is limited to the Maximum Amount. The foregoing limitations shall not apply
     in case of a willful or grossly negligent breach of the guaranties.

     All other rights, claims to remedy or claims against the guarantor shall be
     excluded.

3.   Insofar as a third party has a claim against ME AG, ME or BROKAT, ME AG, ME
     or BROKAT, depending on who is affected, shall give the Vendors the
     opportunity to proceed against this claim at their own expense. ME AG, ME
     or BROKAT shall allow the Vendors to participate in all negotiations and in
     all correspondence with such third party at their own expense. At the
     Vendors' request ME AG, ME or BROKAT, depending on who is affected, shall
     conduct litigation against such third party at the Vendors' expense and in
     accordance with their instructions, or arrange for the respective company
     to conduct litigation, provided, however, that the Vendors effect security
     to the other party in an amount corresponding to the costs or expenses
     anticipated in connection with the conduct of the litigation.

4.   Insofar as it is a question of knowledge of certain circumstances or
     situations which was or should have been available, such knowledge
     available to the members of the management acting for ME at the time the
     Agreement was executed is to be attributed to the Vendors.

5.   All taxes, duties and other claims due in derogation from the
     representations made in (S) A. 1, item 10 shall be for the Vendors' account
     subject to the provisions of paragraph 2(1) and (2) and are to be refunded
     to ME AG or ME. The settlement shall be effected taking account of the
     taxes due thereon, gross for net, less any future tax advantages of ME and
     ME AG corresponding to the claim to compensation discounted at a rate of 6
     % p.a.
<PAGE>

                                       8

6.   ME AG, ME or BROKAT, depending on who is affected, shall give the Vendors
     the opportunity to participate in all discussions and possible appeal
     proceedings in connection with taxes and duties. Paragraph 3 shall apply
     accordingly, in particular if ME AG and/or ME is affected BROKAT shall
     grant the Vendors the same access to all information and correspondence and
     the same participation at discussions and BROKAT shall appeal and apply for
     legal remedies in accordance with the instructions of the Vendors in
     accordance with the provisions of paragraph 3.

                                      (S) 3
                               No Prior Knowledge

     Prior to entering into this Agreement BROKAT conducted a due diligence
     examination of the ME enterprise and had an extensive opportunity to gain
     an insight into the conditions pertaining at ME. Insofar as BROKAT, at the
     time of execution of this Agreement, was aware of facts or circumstances
     which give rise to or could give rise to the violation of a guaranty or
     warranty assumed by the Vendors on behalf of the ME business, BROKAT shall
     not be entitled to any warranty or guaranty claims. The same shall apply to
     ME AG with respect to the agreements made available together with the
     covering letter of 17 May 1999. BROKAT declares that, at the time of
     execution of this Agreement, in particular following completion of the due
     diligence examination and conduct of cooperation with ME, it is not aware
     of any facts which give rise to or could give rise to any violation of a
     warranty or guaranty, with the exception of those disclosed to the Vendors
     in the letter dated 17 May 1999.

                                      (S) 4
                             Statute of Limitations

1.   Claims by BROKAT based on a violation of obligations, guaranties or
     representations pursuant to (S) A. 1 - (S) A. 2 of Schedule A, excluding
     those in (S) A. 1, item 10, shall become time-barred on 31 December 1999.

2.   Claims falling under (S) A. 1, item 10 shall become time-barred with
     respect to the taxes, duties or other claims affected, two months following
     receipt of a non-appealable tax
<PAGE>

                                       9

     assessment of the respective tax, duty or other claim, which assessment is
     not conditional upon any re-examination, but no later than upon expiration
     of the respective deadline for determination of the tax, duty or other
     claim falling under (S) A. 1, item 10.

                                      (S) 5
                 Redemption of Liabilities Equivalent to Equity

1.   The Vendors shall ensure that

     (1)  the agreement on convertible loan stock entered into in November 1998
          between ME AG and Private Equity Bridge Invest Ltd and all other
          agreements entered into in connection with the convertible loan stock
          be terminated ("Convertible Loan Stock");

     (2)  the participation agreement entered into between ME and SBF Sachsische
          Beteiligungsfonds GmbH on 02/06 December 1996 together with a
          supplement thereto dated May 1998 be terminated in accordance with the
          provisions of the takeover agreement in GV2(2) ("Dormant
          Participation");

     (3)  the loan agreement entered into between ME and GSM
          Industriebeteiligungen GmbH be terminated on the date of transfer of
          the ME Shares to BROKAT in accordance with GV2(3) ("GSM Loan");

     (4)  the creditors of the Dormant Participation, of the GSM Loan and of the
          Convertible Loan Stock waive their entire control and information
          rights and any reservations subject to their approval with effect from
          the transfer date of the ME Shares to BROKAT by means of a declaration
          in writing to be submitted to BROKAT;

     (5)  the creditors of the Convertible Loan Stock waive their contractual
          conversion right with effect from the transfer date of the ME Shares
          to BROKAT by means of a declaration in writing to be submitted to
          BROKAT.
<PAGE>

                                      10

2.   The Vendors shall indemnify ME AG and ME with respect to

     (1) any claim to repayment of the loans or contributions granted to ME AG
         or ME on the basis of the Dormant Participation or GSM Loan to ME and
         on the basis of the Convertible Loan Stock and

     (2) any claim to payment of interest or other remuneration for the Dormant
         Participation or the GSM Loan insofar as incurred for the period with
         effect from 31 July 1999;

     (3) any claim to payment of interest or other remuneration for the
         Convertible Loan Stock.

     The claim to indemnification by ME AG, ME and BROKAT shall become
     time-barred following expiration of a period of four years following the
     due date of the claim by the creditor.

     ME AG and ME shall allocate the equivalent value of the contributions to be
     made by the Vendors in accordance with the Contribution Agreement (GV4) to
     reserves as a contribution affecting net profits under commercial law, but
     not affecting net income from a taxation viewpoint. The Vendors shall not
     be liable for the company's treatment of the contribution under commercial
     and taxation law.

                                       III
                                  Miscellaneous

                                      (S) 6
                             Non-Competition Clause

1.   Vendor no. 1 [Bugovics] and Vendor no. 2 [Kinsky] each undertakes on his
     own behalf not to conduct or promote any business activity, either directly
     nor indirectly, in the field of the development, sale or consultancy of
     software and hardware solutions for the secure transfer of data and the
     processing of transactions in heterogeneous inter-company data networks and
     intra-company electronic data networks for a period of two years following
     31 July 1999 (hereinafter "Competition Date"). In particular
<PAGE>

                                      11

     neither Vendor no. 1 nor Vendor no. 2 shall form, acquire, hold a
     participating interest in, advise or otherwise promote any enterprise
     competing with ME as defined above. This non-competition clause shall apply
     world-wide.

2.   The other Vendors each undertake on their own behalf not to advise,
     otherwise promote or hold a participating interest, either directly or
     indirectly, in one or several of the enterprises listed in Schedule GV 3
                                                                -------------
     for a period of two years following the Competition Date. Participations of
     less than 1% of the capital are not deemed to constitute competition and
     are allowed.

3.   If a court of law should rule that the provisions of this non-competition
     clause are invalid or unenforceable in whole or in part, the parties hereto
     mutually agree that this respective court shall be authorized to amend or
     rescind the scope, the period of validity or other provisions and to
     replace such invalid or unenforceable provisions by provisions which are
     valid and enforceable and which pursue an economic purpose approximating
     most closely the purpose intended by the Agreement.

4.   For a period of five years with effective from the Competition Date the
     Vendors shall not solicit any employees away from ME AG, ME or BROKAT or
     cause any third party to solicit employees away from ME AG, ME or BROKAT.

                                      (S) 7
                             Employee Participation

1.   Prior to entering into this Agreement ME AG offered the ME employees the
     prospect of taking a participating interest in the capital stock of ME AG,
     in order to participate them indirectly in the ME enterprise. The Vendors
     shall therefore offer and transfer to these employees BROKAT Shares from
     their own stock of BROKAT Shares in accordance with the following
     provisions:

     (1)  The Vendors shall hold in readiness 45,052 BROKAT Shares as defined in
          (S) 4 hereof (hereinafter "Employee Shares") for the purpose of being
          purchased by ME employees;
<PAGE>

                                      12

     (2)  offer and grant to ME employees in an employment relationship with ME
          at the time of execution of this Subscription Agreement option rights
          to acquire Employee Shares by analogous application of the option
          conditions applying to BROKAT employees and in accordance with more
          detailed instructions by BROKAT;

     (3)  if and insofar as the employees exercise these option rights in good
          time, transfer Employee Shares to the holders of these option rights
          concurrently upon payment of a sales price of Euro 32.72 per Employee
          Share;

     (4)  if and insofar as the employees do not exercise these option rights in
          good time and/or if the Employee Shares are not subject to option
          rights and/or if the preconditions subject to which the option rights
          may be exercised are not met and in all other cases where the
          employees cannot acquire the Employee Shares, such shares may be
          exploited for the Vendors' own account;

     (5)  waive any exercising and raising of all the administrative rights, in
          particular voting and subscription rights, associated with the
          Employee Shares during the ownership thereof by the Vendors, or
          alternatively transfer such rights to third parties in accordance with
          instructions from BROKAT;

     (6)  waive the right to dividends arising during the ownership of the
          Employee Shares by the Vendors.

2.   The Vendors shall bear all costs and taxes arising in connection with the
     execution of paragraph 1 including any such social security costs and taxes
     (hereinafter collectively "Costs") arising for or to be borne by ME AG, ME
     or BROKAT up to the amount of the proceeds from the sale of the Shares. The
     proceeds from the sale of the Shares shall be equivalent to the sum of the
     sales prices obtained for the Employee Shares by the Vendors in accordance
     with paragraph 1 (3) and the exploitation prices obtained in accordance
     with paragraph 1 (4) (hereinafter "Sale Proceeds").

3.   The obligation of the Vendors to offer and transfer the Employee Shares to
     the employees in accordance with the terms of paragraph 1 may not be
     enforced against the Vendors insofar and as long as
<PAGE>

                                      13

     (1)  the Costs exceed the Sale Proceeds or if the Vendors estimate that
          they could exceed them and

     (2)  if it is not guaranteed that the Costs in excess of the Sale Proceeds
          (hereinafter "Shortfall") will be assumed by the Employees or a third
          party by providing adequate security.

     If the Vendors' obligation to offer and transfer the Employee Shares to the
     employees in accordance with the terms of paragraph 1 cannot be enforced
     against the Vendors under the terms of this paragraph, the Vendors shall be
     entitled to demand, in a written declaration to BROKAT, that the Shortfall
     be taken over by providing security (hereinafter together "Cost Security").
     The Cost Security is to be provided to the Vendors no later than three
     months after receipt of the declaration by BROKAT; in such case the written
     assurance from BROKAT that the Shortfall will be taken over upon first
     demand shall be deemed to constitute adequate Cost Security at any event.

     BROKAT is not obliged to take over the Shortfall; if the Cost Security is
     not evidenced within the aforementioned deadline, however, the obligations
     of the Vendors under paragraph 1 (1) through (3), (5) and (6) shall be
     canceled.

4.   To guaranty compliance with the obligations undertaken in the foregoing
     paragraphs 1 through 3 the Vendors shall transfer the Employee Shares
     immediately after the purchase thereof to the

                                 Dresdner Bank
                               Frankfurt am Main
                              Jurgen-Ponto-Platz 1

     as trustee and give such trustee irrevocable instructions to hold and
     exploit the Employee Shares in accordance with paragraphs 1 through 3 and
     paragraph 6 and to meet the obligations undertaken by ME AG vis-a-vis the
     employees and BROKAT, subject to the reservation contained in paragraph 3
     above, for the account of ME AG.
<PAGE>

                                      14

5.   The Vendors are entitled to transfer the obligations set forth in this (S)
     7 to a third party given the approval of BROKAT, whereby BROKAT must grant
     such approval save as in the event of cause for refusal thereof.

6.   If it is not possible to sell the Employee Shares to the employees prior to
     31 December 2004, whether it be due to the non-occurrence of the option
     entitlement or to other reasons, or whether it be due to the cancellation
     of the obligations as set forth in paragraph 1 in the absence of a Cost
     takeover or provision of security as set forth in paragraph 3, the Employee
     Shares shall be at the free and unencumbered disposal of the Vendors.
     Claims by the Vendors to Cost Security granted with respect to Employee
     Shares covered by sentence one above may no longer be raised; payments
     already received by the Vendors with respect to such Employee Shares on the
     basis of such Cost Security are to be refunded to the provider of such
     Security.
<PAGE>

                                      15

                                      (S) 8
                               Condition Precedent

     This Agreement shall become effective as soon as all of the following
     conditions have been met:

1.   Once the Subscription Agreement has been validly executed.

2.   Once the Management Board of BROKAT has adopted the resolution on the
     capital increase in accordance with (S) 1, paragraph 2 of the Subscription
     Agreement.

                                     (S) 9
                                  Taxes, Costs

BROKAT shall bear the costs of any notarial authentication of this Agreement.
The parties hereto shall otherwise each pay their own costs and taxes arising in
connection with the execution and performance hereof.

                                     (S) 10
                                Final Provisions

1.   The individual Vendors shall not be liable for the obligations undertaken
     in accordance with this Agreement as joint and several debtors but pro rata
     in proportion to the share they hold in the capital stock of ME AG.

2.   The following persons are authorized to take delivery of all notices or
     declarations of intent to be given in accordance or in connection with this
     Agreement to the Vendors or BROKAT:

if to the Vendors:
<PAGE>

                                      16

                             Dr. Christoph Bulfon,
                      c/o GSM Industriebeteiligungen GmbH
                       Brienner Strasse 10, 80333 Munich

with a copy to:

                              Oppenhoff & Radler,
                         Attn.: Dr. Hermann Schlindwein
                Mainzer Landstrasse 16, 60325 Frankfurt am Main

if to BROKAT:

                                  Stefan Rover
                        Obere Strasse 18, 71155 Altdorf

with a copy to:

                               Haver & Mailander
                            Attn.: Dr. Peter Ladwig
                         Lenzhalde 83, 70192 Stuttgart

3.   Alterations and modifications to this Agreement including any such
     alterations and modifications to this clause itself must be made in writing
     to be legally valid, save as where a more stringent form is imposed by law;
     in such a case this more stringent form must be complied with.

4.   If any provisions contained herein should be ineffective or unenforceable,
     this shall not affect the validity of the remaining provisions hereof. This
     shall also apply if it should transpire that this Agreement contains a gap.
     A reasonable ruling shall be deemed to replace the ineffective or
     unenforceable provisions or to complete the gap which forms the closest
     equivalent to the intention of the parties or which they would have
     intended in accordance with the spirit and purpose of this Agreement if
     they had considered the
<PAGE>

                                      17

     issue when the Agreement was entered into or when a provision was included
     at a later date.

Place:
Date:

______________________________               ________________________________
<PAGE>

                                      18

                                   Schedule A
                           Warranties by ME AG and ME

(S) A. 1
Guaranties by the Vendors

     The Vendors provide the following guaranty with respect to 10 March 1999
     save as where the provisions hereinbelow indicate a different date
     (hereinafter "Effective Date"):

1.   ME AG and ME have been duly formed and are validly existing companies,
     their capital stock or equity has been fully paid in and no repayments of
     the capital stock or equity have been effected and no such obligations
     undertaken; there is no obligation to effect subsequent contributions,
     irrespective of the legal ground therefor, in particular not on account of
     inadequate or concealed non-cash contributions;

2.   The merger agreement dated 13 July 1998 and the contribution agreement
     between ME and ESM Information Technology Entwicklungs GmbH dated
     ............. have been effectively executed and implemented;

3.   The articles of incorporation of ME AG and ME are valid in the version
     dated 6 November 1998 (ME AG; date of the Certificate of Completeness
     issued by Notary Public Dr. Vossius, Roll of Deeds No. URNr. 3445/1998) and
     dated 13 July 1998 (ME);

4.   The extracts from the Commercial Register submitted for ME AG and ME and
     for the companies in which ME holds a participating interest accurately
     reflect the situation of ME and of the companies in which ME holds a
     participating interest;

5.   At the time of transfer to BROKAT there are no encumbrances on the Vendors'
     ownership in the ME Shares - excluding the restrictions on disposal
     established to secure the implementation of the Subscription Agreement -
     the shares in ME held by ME AG and the participating interests in other
     companies held by ME are not subject to any restrictions on the disposal
     thereof nor to any rights of third parties, in particular

     -    the ME Shares, these shares and these participating interests have not
          been pledged, pledged as security, assigned as security or assigned
          for any other reason,

     -    there are no option or other third party rights to acquire or charge
          the ME Shares, these shares or participating interests,
<PAGE>

                                      19

     -    The ME Shares, these shares, these participating interests and the
          rights stemming therefrom are not subject to usufructuary rights of
          third parties, sub- participations, dormant companies or similar
          relations under company law;

6.   At the time of transfer of the ME Shares to BROKAT, there are, save as
     indicated in Schedule A. 1.8, no participations in ME AG or ME other than
                  ---------------
     the ME Shares and the shares held in ME by ME AG, in particular there are
     no dormant participations, rights to acquire stock, shares or participating
     interests or other rights such as loans with participation in the debtor's
     profits which could give rise to a participation in the profits or assets
     of ME AG or ME or to participate in decisions made by the shareholders;

7.   The participating interest in ME Ungarn (Hungary) is held by Mr. Joszef
     Bugovics as trustee of ME;

8.   The Vendors warrant the liquidity of ME AG up to the date of transfer of
     the ME Shares to BROKAT and of ME up to the Effective Date by providing a
     security for any outside funding which may be necessary. Such security
     shall thereafter be taken over by BROKAT.

9.   With respect to ME it is guaranteed that, when applying the statutory
     provisions applying to large corporations and generally accepted accounting
     principles and continuing to apply the same principles for drawing up the
     balance sheet as applied to the previous balance sheet date and the same,
     legally admissible assessment principles, whilst consistently exercising
     the same optional rights for drawing up the balance sheet and for
     assessments, subject to any assessment modifications due to tax audits, the
     balance sheet and income statement of ME as per 31 December 1998 enclosed
     as Schedule A. 1.9 (hereinafter collectively "Annual Financial Statements
        ---------------
     A") are accurate to the extent that, taking account of the redemption of
     equity-like obligations as set forth in (S) 5 (assuming that this was
     effected as per 31 December 1998), they show capital stock of no less than
     DM 3,611,167.66. No guaranty is given in excess hereof with respect to
     Annual Financial Statements A. In particular no guaranty is given with
     respect to the volume of sales situation and the realization of sales.
     Insofar as the amount of capital stock should be changed due to the fact
     that the Annual Financial Statements A were not compiled on a going concern
     basis (for instance due to existing loss carryforwards) no guaranty is
     given with respect to such change in the amount of the capital stock
     either.

     Insofar as the balance sheet treatment of business transactions in the
     Annual Financial Statements A were disclosed and explained to BROKAT or
     BROKAT's advisors,
<PAGE>

                                      20

     BROKAT cannot deduce any rights from the balance sheet treatment of such
     transactions.

10.  ME AG and ME have filed in good time all requisite tax returns, statements
     of account with respect to public duties etc. or shall file the same and
     shall pay all taxes and public duties due by the Effective Date.

11.  With respect to ME AG it is guaranteed that as per the date of transfer of
     the ME Shares to BROKAT, the only asset of ME AG is the interest in ME and
     that there are no liabilities, contingent liabilities, imminent
     liabilities, whether known or unknown, and that ME AG is not subject to any
     obligation - whether it be from any agreement or due to another legal
     ground, whether capable of being entered in the balance sheet or not. Any
     further liability is excluded, in particular no liability whatsoever is
     assumed for the valuation given in the balance sheet for the interest held
     in ME by ME AG.

                                    (S) A. 2
                Guaranties by Andreas Kinsky and Joszef Bugovics

Andreas Kinsky and Joszef Bugovics guaranty as per the Effective Date that:

1.   All of the information and documentation given to BROKAT is fundamentally
     complete, correct and not misleading according to their best knowledge and
     careful examination;

2.   No major resolutions have been adopted by the shareholders, the supervisory
     boards or the management other than those disclosed to BROKAT;

3.   The participating interests held in ME Ungarn and the industrial property
     rights of use to the ME enterprise and held by ME are held by Mr. Joszef
     Bugovics as trustee of ME;

4.   No continuous, negative change has arisen with respect to the assets,
     financial or profit and loss situation of ME since 31 December 1998 as
     compared with previous developments;

5.   The property leased, taken on lease or rented by ME and specified in
     greater detail in Schedule A. 2.3(3) is in the possession of ME and
                       ------------------
     available for ME's free use;
<PAGE>

                                      21

6.   ME has not taken on lease, rented or leased any property other than the
     property specified in Schedule A. 2.3(3), involving an individual net
                           ------------------
     monthly financial outlay in excess of DM 5,000;

7.   The IT systems and products of ME and all parts thereof are in conformity
     with Y2K requirements and will guaranty a safe and defect-free Y2K function
     prior to and following 01 January 2000 without even partial renewal or
     upgrading, whereby no such liability is assumed whatsoever with respect to
     IT systems and products delivered by third parties and with respect to the
     conformity of systems and products supplied by customers in this respect;

8.   The industrial property rights (patents, utility models, copyrights,
     trademarks and marks, know-how) specified in Schedule A. 2.3(6) including
                                                  ------------------
     the applications effected by the Effective Date and all license rights
     resulting herefrom:

     -    are solely due to ME without encumbrance except as otherwise specified
          in Schedule A. 2.3(6), and, according to Vendors' best knowledge,
          there are no third party rights to these protected or license rights
          or with respect to the use thereof;

     -    are legally valid and existing according to the Vendors' knowledge,
          are not being contested by third parties nor are, according to
          Vendors' knowledge, any such contests threatened, nor is there any
          danger of cancellation or nullity of the protected rights and,
          according to the Vendors' best knowledge, the protected rights or use
          thereof do not violate any industrial property rights of third
          parties;

     -    and that there are no fundamental agreements affecting the corporate
          purpose of ME, with the exception of those specified in Schedule A.
          2.3(6), which include the use of protected rights including marks;

9.   According to the Vendors' best knowledge, conducting the business of ME
     does not infringe upon any industrial property rights of third parties;

10.  During the period of time intervening between 31 December 1998 on the one
     hand and the date of transfer of the ME Shares to BROKAT on the other hand,
     ME AG and ME have not conducted any transactions not falling within the
     ordinary course of business about which BROKAT or BROKAT's employees have
     not been informed in advance and which BROKAT or one of BROKAT's employees
     has not objected to. The Vendors assume no liability whatsoever for any
     deterioration in the financial or profits situation or in the continuation
     of ME caused by notification of the cooperation with BROKAT or by the
     (whole or partial) migration of ME and BROKAT. Insofar as any
<PAGE>

                                      22

     continuing deterioration in the business operation or in the assets,
     financial or profit situation of ME should occur during this period, ME AG
     shall advise BROKAT hereof without delay.

11.  ME has basically duly performed all of the orders - insofar as they have
     been completed prior to the Effective Date;

12.  The customer agreements set forth in Schedule A. 3.1(2) have not been
                                          ------------------
     terminated.

13.  ME has no obligations arising from the following legal relationships except
     for those agreements and obligations disclosed in Schedule A. 3.2:
                                                       ---------------

     (1)  Employment or work agreements awarding an annual gross fixed salary in
          excess of DM 150,000 in each case or providing for notice of
          termination of longer than one year or awarding employees or
          executives profit participation;

     (2)  Obligations or promises with respect to old-age, invalidity, early
          retirement or dependent benefits which are not completely covered in
          the annual financial statements of ME (basis rate of interest 6%) or
          fully recognized in the accounts;

     (3)  Plant agreements or obligations from other collective bargaining
          agreements in connection with labor relations (including claims by
          third parties, in particular social security authorities and the
          employment exchange), obligations stemming from social schemes for
          layoffs, agreements settling conflicting interests, plant practices or
          overall commitments to perform social security benefits or other
          employee benefits;

     (4)  Consultancy agreements of all types with an annual volume in excess of
          DM 150,000;

     (5)  Agreements awarding an exclusive distribution right;

     (6)  Agreements with commercial agents, distributors and other dealers
          providing for contractual or statutory settlement or compensation
          claims or which could give rise to such claims, whether they be
          conditional or unconditional, due or not due;

     (7)  Sureties, guaranty obligations, joint assumption of debt, letters of
          comfort or granting any type of security individually in excess of DM
          50,000 and obligations
<PAGE>

                                      23

          to third parties individually in excess of DM 50,000 where such third
          parties have provided ME with sureties, guaranties or other security
          of any kind;

     (8)  Obligations to grant and/or draw on loans of all kinds with an annual
          volume in excess of DM 50,000;

     (9)  Rental, lease or leasing agreements not terminating on 31 December
          2002 at the latest and/or providing for a monthly financial burden or
          monthly proceeds individually in excess of DM 5,000;

     (10) Agreements on the purchase or sale of real estate or rights to real
          estate which have not been performed or not fully performed;

     (11) Investment agreements (on the acquisition of assets) giving rise to an
          obligation by ME individually in excess of DM 100,000;

     (12) Any type of arrangement to restrict competition, in particular
          agreements excluding or limiting the right of one of the ME companies
          to conduct business in certain lines or areas of business or to use
          the initials "ME";

     (13) Agreements on industrial property rights or know-how or other
          immaterial rights or license agreements covering industrial property
          rights or know-how or other immaterial rights - excluding agreements
          entered into with customers - irrespective of whether ME is the
          vendor, purchaser, licensee or licensor (excluding sales licenses and
          agreements on the licenses required for the normal conduct of business
          [standard software etc.]);

     (14) Agreements with suppliers and/or customers, the value of which exceeds
          DM 500,000 or with respect to which ME has delayed performance for a
          period of more than four weeks and/or which provides for compensation
          to be paid for delayed performance in excess of DM 100,000 in each
          individual case, insofar as such obligations are not contained in the
          Schedules to this Agreement or taken into consideration in the Annual
          Financial Statements A;

     (15) Agreements or other obligations with respect to the Vendors or
          enterprises in which the Vendors hold a direct or indirect
          participation and insofar as such obligations are not contained in the
          Schedules to this Agreement or taken into consideration in the Annual
          Financial Statements A;
<PAGE>

                                      24

     (16) Obligations with respect to former shareholders and/or their heirs;

     (17) Affiliation agreements as defined in Section 291 et seq. of the German
          Stock Corporation Act and cooperation agreements of any type excluding
          distribution partnerships;

     (18) Agreements and arrangements with respect to the participation by ME in
          joint ventures or consortia;

     (19) Agreements on the purchase or sale of enterprises, participating
          interests in enterprises, operating facilities or part operations
          which have not yet been performed;

     (20) Agreements under public law which have not yet been performed.

14.  The list of existing insurance agreements contained in Schedule A. 3.3 is
                                                            ---------------
     complete and provides an accurate picture of the insurance cover existing
     at ME; the Vendors represent that all of the premiums due with respect to
     these insurance policies have been duly paid;

15.  No claims have been raised against ME with respect to product liability,
     warranty or damages with a risk of over DM 50,000 in each case and -
     according to the Vendors' best knowledge, there are no circumstances
     evident to ME AG which could give rise to any such claims;

16.  ME is not party to any litigation, arbitration proceedings, administrative
     proceedings or any other official proceedings with a risk of over DM 10,000
     in each case, excluding those set forth in Schedule A. 2.1.6, and no
                                                -----------------
     circumstances are evident which could give rise to any such claims;

17.  According to the Vendors' best knowledge the business operation conducted
     by ME does not infringe upon any provisions, guidelines or official orders
     under trading law, public construction law, neighborhood law, public and
     private law of emissions or under other environmental, anti-trust, unfair
     competition or penal law or the corresponding foreign legal provisions,
     where compliance with such is of fundamental importance for the
     continuation of the business operation of ME;
<PAGE>

                                      25

18.  No judicial or official proceedings are pending on account of a willful
     violation of public law provisions and rulings or on account of suspected
     crimes or offenses, nor are any such proceedings impending according to the
     Vendors' best knowledge;

19.  All and any retrospective demands for taxes, duties, customs and ancillary
     tax burdens such as interest, and fines relating to the period up to 31
     December 1998 at ME AG or ME have been entered as a liability in the annual
     financial statements;

20.  No public grants or subsidies awarded to ME are due for repayment now or in
     future on account of the transfer of the ME Shares to BROKAT for instance.

                                    (S) A. 3
                               Guaranty by BROKAT

BROKAT undertakes with respect to the ME AG balance sheet as per 31 December1998
attached as Schedule A. 1.11 that
            ----------------

a)  it shall be approved promptly

b)  it shall not be amended without the written consent of Vendor no. 3 (Dr.
    Christoph Bulfon).

Frankfurt am Main/Munich/Stuttgart, 20 May 1999

     On behalf of BROKAT by virtue of a power of attorney conferred orally and
     promising to submit a written authority [handwritten]: power of attorney at
     a later time:

[signed]
 ................................................
Dr. Peter Ladwig

On behalf of
<PAGE>

                                      26

a)   Vendors nos. 1, 2, 4 through 6 and 9 by virtue of a power of attorney
     conferred and promising to submit the written authority of those persons
     represented at a later time and on his own behalf and

b)   on behalf of SBF Sachsische Beteiligungsfond GmbH by virtue of a telefax
     copy of a power of attorney as appended hereto:

[signed]
 ...............................................
Dr. Christoph Bulfon

On behalf of Mr. Roman E. Kainz by virtue of a telefax copy of a power of
attorney as appended hereto:

[signed]
 ...............................................
Dr. Hermann Schlindwein
<PAGE>

                                      27

Negative List (Non-Competition)

NetLife
Datadesign AG
FICS
EDIFY
Neon
Netdynamics
BEA
Security First
Factum
Ikoss Van

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