Document:

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                         DATED MARCH 15, 2000

                        THE WEB FACTORY LIMITED                           (1)

                                 and

                        CASTLEGATE 133 LIMITED                            (2)

                                 and

                  TELTRAN INTERNATIONAL GROUP LIMITED                     (3)

                                 and

                            DATATEC LIMITED                               (4)

                   AGREEMENT FOR THE SALE AND PURCHASE
            OF PART OF THE BUSINESS OF THE WEB FACTORY LIMITED

Browne Jacobson
44 Castle Gate
Nottingham
NG1 7BJ

Telephone: (0115) 9766000
Fax: (0115) 947 5246
DX: 718130, Nottingham 27
Email : info@brownej.co.uk

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                                      Index

         Clauses

1.       Interpretation
2.       Sale and purchase
3.       Consideration
4.       Completion
5.       Further assurances
6.       Name
7.       Warranties
8.       Restrictive covenants
9.       Book debts
10.      Contracts and other obligations
11.      Assignment and novation of contracts
12.      Apportionments
13.      Employees
14.      Future trading
15.      Value added tax
16.      Guarantee
17.      Costs
18.      Announcements
19.      Notices
20.      General
21.      Governing law
22.      Entire Agreement

Schedules

1        Allocation of consideration
2        Warranties
3        Escrow Account
4        Software Specification

Documents in Agreed Form

Assignments of:

        Trademarks
        Goodwill and Software
Release of Encumbrances
Licence
Debenture
Disclosure Letter
Notice of Assumption of Contracts
Opinion Letter

Date:   March 15, 2000

Parties:

(1)     THE WEB FACTORY LIMITED (company number 03096331) whose registered
        office is at APV Building Speedwell Road,

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        Parkhouse Industrial Estate East Newcastle, Staffordshire ST6 5RG (the
        "Vendor")

(2)     CASTLEGATE 133 LIMITED (company number 3897137) whose registered office
        is at 44 Castle Gate, Nottingham NG1 7BJ (the "Purchaser")

(3)     TELTRAN INTERNATIONAL GROUP LIMITED incorporated in Delaware, whose
        registered office is at One Penn Plaza, New York, New York, 10019 (the
        "Guarantor")

(4)     DATATEC LIMITED a company incorporated in South Africa of Building 8,
        Harrowdene Office Park, Western Services Road, Woodmead, Gauteng, South
        Africa ("Datatec")

IT IS AGREED as follows:

1       Interpretation

In this Agreement:

        1.1     the following words and expressions shall have the following
                meanings:

               Expression                 Meaning
               ----------                 -------
               "Accounts Date"            31 March 1999

               "Assets"                   the assets bought and sold pursuant to
                                          clause 2.1

               "Assumed Employees"        those employees employed in the
                                          Business as at the Transfer Date whose
                                          names are set out in section 11 of the
                                          Disclosure Bundle

               "Book-Debts"               all book and other debts owed to the
                                          Vendor in respect of the Business as

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                                          at the Transfer Date, details of which
                                          are included in Section 3 of the
                                          Disclosure Bundle

               "Business"                 the business of supplying Internet
                                          network and related services including
                                          supply of connectivity, hosted
                                          services, managed network services,
                                          messaging (comprising the internet
                                          connection equipment and related
                                          software and the contracts and other
                                          assets used in relation thereto) and
                                          the provision of associated financial
                                          software (including the Financial
                                          Software) carried on under the name
                                          "The Web Factory", "PDM", "PDM 2000",
                                          "ShareTracker", and "Key Financial" by
                                          the Vendor (other than to the extent
                                          relating to the Retained Business save
                                          as otherwise specified in this
                                          definition) but excluding for the
                                          avoidance of doubt internet protocol
                                          software application development and
                                          web site integration and design other
                                          than in respect of the Financial

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                                          Software

               "Business Accounts Date"   31 December 1999

               "Business Accounts"        the unaudited management accounts of
                                          the Business for the period from 1st
                                          April 1999 to the Business Accounts
                                          Date in the form set out in Section 10
                                          of the Disclosure Bundle

               "Business                  Day" a day (other than a Saturday) on
                                          which banks are open for the
                                          transaction of all normal sterling
                                          banking business in the City of London

               "Claims"                   all rights of the Vendor at the
                                          Transfer Date in relation to any of
                                          the Plant and any liabilities assumed
                                          or incurred by the Purchaser as a
                                          result of this Agreement (including,
                                          without limitation, such rights under
                                          any warranties, guarantees,
                                          indemnities (in each case whether
                                          express or implied) or insurance
                                          policies)

               "Clearing Bank"            a bank which is a member of CHAPS and
                                          Town Clearing Company Limited

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               "Companies Act"            the Companies Act 1985

               "Completion"               completion of the sale and purchase of
                                          the Business and Assets in accordance
                                          with clause 4

               "Computer System"          all computer hardware, software (to
                                          the extent used in the operation of
                                          the hardware (excluding for the
                                          avoidance of doubt the Financial
                                          Software and any software relating to
                                          the black website) and networks
                                          comprised in the Business including
                                          all arrangements relating to the
                                          provision of maintenance and support,
                                          security, disaster recovery,
                                          facilities management bureau and
                                          on-line services to the Business as
                                          are included in the Business

               "Consideration"            the aggregate consideration specified
                                          in clause 3 for the Assets

               "Contracts"                those orders or contracts entered into
                                          on or prior to the Transfer Date by or
                                          on behalf of the Vendor in connection
                                          with the Business which remain as at
                                          the Transfer Date (in whole or in
                                          part) to be

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                                          performed by the Vendor to the extent
                                          the terms of such Contracts have been
                                          fairly disclosed in the Disclosure
                                          Letter or the Purchaser has given
                                          notice to the Vendor that such
                                          Contracts are to be assumed for the
                                          purposes of this Agreement

               "Disclosure                Letter" the letter (together with any
                                          schedules, appendices and annexures
                                          specified in it (the "Disclosure
                                          Bundle")) in the Agreed Form and
                                          expressed to be the Disclosure Letter

               "Domain Names"             the domain names listed in section 22
                                          of the Disclosure Bundle

               "Encumbrance"              any claim, charge, lien, pledge,
                                          encumbrance, equity or third party
                                          right affecting property

               "Escrow Account"           as defined in Schedule 3

               "Excluded Assets"          any and all assets or rights and the
                                          benefit of any claims consisting of or
                                          comprised in:

                                          (a)     the Vendor's cash in hand and
                                                  at bank;

                                          (b)     the Statutory Books of the
                                                  Vendor;

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                                          (c)     without prejudice to the
                                                  obligation of the Vendor to
                                                  account for prepayment
                                                  pursuant to clause 12.1, all
                                                  debts owing to the Vendor
                                                  including the Book Debts;

                                          (d)     all freehold and leasehold
                                                  property;

                                          (e)     the styles and designations
                                                  "TWF" and "TWF Corporate
                                                  Solutions" and associated
                                                  goodwill;

                                          (f)     all insurance policies;

                                          (g)     the three servers detailed at
                                                  section 7(1.1.3) of the
                                                  Disclosure Letter

                                          (h)     the  telephone   number  01782
                                                  858585   and   the   facsimile
                                                  number 01782 858586

                                          (i)     the agreements referred to at
                                                  Section 1 of the Disclosure
                                                  Bundle

                                          (j)     for the avoidance of doubt and
                                                  without

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                                                  limitation any software (other
                                                  than Financial Software and
                                                  any software used to operate
                                                  the Computer System or
                                                  relating to the black website)
                                                  developed by the Vendor
                                                  including, but not limited to,
                                                  "PIMS", "Wombat",
                                                  "e-commerceshop" and "image
                                                  library"

                                          (k)     any and all other assets of
                                                  the Vendor not exclusively
                                                  used in the Business

               "Financial Software"       the software known as "ShareTracker"
                                          and "PDM" the specification for each
                                          of which is set out in Schedule 4

               "Goodwill"                 the goodwill relating to the Business
                                          as at the Transfer Date together with
                                          the exclusive right for the Purchaser
                                          or its assignee to represent itself as
                                          carrying on the Business as a going
                                          concern in succession to the Vendor
                                          together with the trade names "The Web
                                          Factory" and "Key Financial" and the

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                                          product names "ShareTracker" and "PDM"
                                          and "PDM2000" and all other trade
                                          names associated with the Business
                                          excluding "TWF" and "TWF Corporate
                                          Solutions" and the benefit of all
                                          outstanding enquiries and negotiations
                                          to the extent they relate to the
                                          Business

               "holding company"          the meaning given in section 736 of
                                          the Companies Act

               "ICTA"                     Income and Corporation Taxes Act 1988

               "Intellectual              those of the following which are used
               Property Rights"           exclusively in the Business as at the
                                          Transfer Date:

                                          (a)     all and any rights in patents,
                                                  petty patents, utility models,
                                                  trade or service marks
                                                  (whether registered or
                                                  unregistered), trade names,
                                                  copyrights (including
                                                  copyright in computer
                                                  software), registered designs,
                                                  unregistered design rights,
                                                  applications for any

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                                                  of the foregoing and the right
                                                  to apply for any of the
                                                  foregoing in any part of the
                                                  world and all or any other
                                                  intellectual property whether
                                                  or not registered or capable
                                                  of registration.

                                          (b)     in whatsoever medium held:
                                                  know-how, information,
                                                  designs, formulae, source
                                                  codes, specifications,
                                                  drawings, data, instruction
                                                  manuals, service records and
                                                  components lists relating to
                                                  the Business including the
                                                  Software and the Domain Names
                                                  and all web sites relating to
                                                  the Business including the
                                                  "Black Web Site", "PDM 2000",
                                                  "ShareTracker" and "Key
                                                  Financial" (excluding the TWF
                                                  web site)

               "Interest Rate"            4% above the base rate from time to
                                          time of National Westminster Bank

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                                          plc

               "Liabilities"              all liabilities and obligations (past
                                          present and future) of the Vendor
                                          which are not expressly assumed by the
                                          Purchaser hereunder including any
                                          guarantees warranties or obligations
                                          in respect of services provided prior
                                          to the Transfer Date

               "Licence"                  the licence to occupy the Premises in
                                          the Agreed Form

               "Plant"                    all the fixed and moveable plant,
                                          tooling, machinery, equipment and
                                          tooling, computer and communication
                                          hardware used or intended for use
                                          exclusively in the Business as at the
                                          Transfer Date included in the list set
                                          out in section 5 of the Disclosure
                                          Bundle

               "Premises"                 the premises detailed in the Licence

               "Purchaser's Group"        any company other than the Purchaser
                                          which at the relevant time is or was:

                                          (a)     a holding company of the
                                                  Purchaser;

                                          (b)     a subsidiary of any

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                                                  such holding company; or

                                          (c)     a subsidiary of the Purchaser

               "Purchaser's Solicitors"   Browne Jacobson, 44 Castle Gate,
                                          Nottingham NG1 7BJ

               "Records"                  in whatsoever medium held:

                                          (a)     all documents, papers and
                                                  records (excluding VAT
                                                  records) relating exclusively
                                                  to the Business, the Assets
                                                  and the Assumed Employees;

                                          (b)     information exclusively
                                                  relating to the management,
                                                  administration and running of
                                                  the Business;

                                          (c)     all marketing information
                                                  exclusively relating to the
                                                  Business and Assets including,
                                                  without limitation, copies of
                                                  lists of customers, suppliers,
                                                  potential customers, contacts,
                                                  and catalogues, advertising
                                                  and

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                                          promotional material

               "Regulations"              Transfer of Undertakings (Protection
                                          of Employment) Regulations 1981

               "Retained Business"        the business of electronic business
                                          application consultancy and software
                                          design and applications and computer
                                          hardware sales (other than to the
                                          extent relating to the Business)
                                          carried on by the Vendor

               "Retained Employees"       any persons other than the Assumed
                                          Employees who are or have been engaged
                                          in the Business

               "Software"                 all software owned or used by the
                                          Vendor exclusively in the Business
                                          including the Financial Software

               "Subsidiary"               the meaning given in section 736 of
                                          the Companies Act

               "Transfer Date"            the date upon which Completion takes
                                          place

               "Vendor Accounts"          the audited accounts of the Vendor
                                          comprising the balance sheet as at,
                                          and the profit and loss account for
                                          the two financial years ended on, the
                                          Accounts Date together

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                                          with the directors' report, the
                                          auditors' report, cash flow statements
                                          and notes together with the management
                                          accounts of the Vendor for the period
                                          from the Accounts Date and ending on
                                          31 December 1999 in each case in the
                                          form as attached as section 25 of the
                                          Disclosure Bundle

               "Vendor's Group"           any company other than the Vendor
                                          which at the relevant time is or was:

                                          (a)     a holding company of the
                                                  Vendor;

                                          (b)     a subsidiary of any such
                                                  holding company; or

                                          (c)     a subsidiary of the Vendor

               "Vendor's Solicitors"      Kent Jones and Done of Churchill
                                          House, Regent Road, Stoke-on-Trent SR1
                                          3RG

               "Warranties"               the warranties, representations and
                                          undertakings set out in clause 7 and
                                          Schedule 2

        1.2     section 839 ICTA applies as it applies in that Act to determine
                whether one person is connected with another;

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        1.3     any reference to a person shall be construed to include a
                reference to a body corporate, unincorporated association or a
                partnership;

        1.4     headings used in this Agreement are for convenience only and
                shall not affect its construction;

        1.5     whenever a document is referred to in this Agreement as being
                "in the Agreed Form" it shall be in the form agreed between the
                parties and initialled by the Purchaser's Solicitors and the
                Vendor's Solicitors by way of identification;

        1.6     references to statutory provisions shall be construed as
                including:

                1.6.1   references to the provisions of any earlier statute
                        which are directly or indirectly amended, consolidated
                        or re-enacted by such provisions; and

                1.6.2   references to those provisions as amended or re-enacted
                        or modified from time to time;

        1.7     in construing this Agreement the interpretation of general words
                shall not be restricted by being followed by words indicating a
                particular class of acts, matters or things or being followed by
                particular examples.

2       Sale and Purchase

        2.1     The Vendor shall sell and the Purchaser shall purchase as a
                going concern with effect from the close of business on the
                Transfer Date:

                2.1.1   the Claims;

                2.1.2   the Computer System;

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                2.1.3   the benefit (subject to the burden as provided in clause
                        10) of the Contracts;

                2.1.4   the Plant;

                2.1.5   the Goodwill;

                2.1.6   the Intellectual Property Rights (other than the
                        Financial Software);

                2.1.7   the Records;

                2.1.8   the Financial Software; and

                2.1.9   all other assets of whatever nature which are owned by
                        the Vendor and which are used exclusively in or are
                        connected with the Business

                but excluding for the avoidance of doubt and without limitation
                the Excluded Assets.

        2.2     The Assets shall be sold with full title guarantee and free from
                any Encumbrance and with all accrued benefits and rights
                attaching to them.

3       Consideration

        3.1     Subject to clause 3.4, the Consideration shall be
                (pound)3,000,000 which shall be apportioned among the Assets as
                set out in Schedule 1.

        3.2     Subject to clause 3.4, the Consideration shall be paid in cash
                as follows:

                3.2.1   (pound)750,000 on Completion;

                3.2.2   as to the balance by three instalments of (pound)750,000
                        on each of 30 April 2000, 31 August 2000 and 31 December
                        2000 (the "Deferred Consideration").

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                by way of a CHAPS transfer from a clearing bank to the client
                account of the Vendor's Solicitors with National Westminster
                Bank plc Sort Code 01-03-69, account number 06487513, or by such
                other method as may be agreed by the parties.

        3.3     The Vendor's Solicitors are authorised to receive the
                consideration on behalf of the Vendor and payment to the
                Vendor's Solicitors will be a good and sufficient discharge to
                the Purchaser who need not be concerned to enquire as to the
                application of any monies so paid.

        3.4     If the Purchaser serves notice on the Vendor of a claim under
                this Agreement whilst monies are still outstanding under clause
                3.2.2 (for the avoidance of doubt, after account being taken of
                the limitations in clause 7), the Purchaser shall be entitled to
                pay a part of such sum not exceeding the amount specified in
                such notice being a bona fide estimate of the amount of the
                claim into a retention account in accordance with the terms of
                Schedule 3.

        3.5     If any part of the Deferred Consideration or any other monies
                payable by any party to any other party under this Agreement are
                not paid on the due date for payment (and in respect of a
                successful claim for an unliquidated sum by either party then
                the due date for payment shall be deemed to be 30 days after
                written notice of the claim is served on the other party), the
                defaulting party or parties shall pay interest on the amount
                outstanding calculated on a daily basis at the Interest Rate
                (after as well as before judgment) from the due date of payment
                until the actual date of payment provided that any monies in the
                Escrow Account shall only accrue interest at the rate payable on
                such account

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        3.6     If any part of the Deferred Consideration is not paid (whether
                to the Vendor or into the Escrow Account) within 30 days of the
                due date for payment then the covenants set out in clauses 8.1
                and 8.3 and the restriction on use of confidential information
                (as opposed to disclosure thereof) in clause 8.2 of this
                Agreement shall cease to apply

4       Completion

        The sale and purchase of the Assets and the Business shall be completed
                at the offices of the Vendor's Solicitors immediately after both
                the signing and exchanging of this Agreement, when:

        4.1     the Vendor shall deliver or procure delivery to the Purchaser
                of:

                4.1.1   all of the Assets which can be transferred by delivery
                        and shall permit the Purchaser to take possession of
                        such Assets;

                4.1.2   duly executed assignments of such of the Intellectual
                        Property Rights in the Agreed Form as the Purchaser
                        shall direct and all documents of title, licences,
                        agreements and other documents relating to the
                        Intellectual Property Rights;

                4.1.3   a duly executed assignment of the Goodwill in the Agreed
                        Form;

                4.1.4   the Licence;

                4.1.5   the Records and all media in which they are stored
                        (subject to clause 4.3);

                4.1.6   certified copies of duly executed releases in respect of
                        the Assets in the Agreed Form by National Westminster
                        Bank of its fixed and floating charge dated 15th
                        December 1998 and a

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                        fixed and floating charge in favour of Datatec dated
                        17th February 1998

                4.1.7   a duly passed resolution of the members of the Vendor
                        making the name change referred to in clause 6; and

                a duly passed board minute (or certified copy) of the Vendor and
                Datatec in the Agreed Form

        4.2     the Purchaser shall pay that part of the Consideration due under
                clause 3.2.1 and deliver to the Vendor

                4.2.1   a duly passed board minute (or certified copy) of the
                        board of directors of each of the Purchaser and the
                        Guarantor in the Agreed Form and

                4.2.2   a duly executed counterpart of the Licence

                4.2.3   a duly executed debenture in the Agreed Form

                4.2.4   an opinion letter of the Guarantor's Counsel in the
                        Agreed Form and certified copies of any authorities
                        pursuant to which this Agreement is executed on behalf
                        of the Guarantor

                4.2.5   a notice given by the Purchaser to the Vendor in the
                        Agreed Form for the purpose of clause 10.1.

        4.3     If and to the extent the Vendor is unable to deliver any part of
                the Records relating to title in the Assets at Completion the
                Vendor shall deliver such records as it has relating thereto as
                soon as practicable after Completion.

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5       Further assurances

The Vendor shall at the request of the Purchaser at any time after Completion
        execute or procure the execution of such documents or procure the doing
        of such acts and things as the Purchaser may be necessary for the
        vesting of the Assets in the Purchaser or otherwise giving the Purchaser
        the benefit of all the provisions of this Agreement and without
        limitation the Vendor shall make available on request to the Purchaser
        such of the Excluded Assets as may be necessary to deliver the Financial
        Software.

6       Names

        6.1     The name of the Vendor shall be changed to Logical e business
                Solutions Limited and the Vendor and Datatec undertake to the
                Purchaser that it shall not and shall procure that no member of
                the Vendor's Group shall in connection with the business carried
                on by it (other than as agent for or pursuant to any agreement
                or arrangement with the Purchaser), use the name(s) "The Web
                Factory" "Key Financial" "ShareTracker" or "PDM" or "PDM2000" or
                any trade names used in the Business or any colourable imitation
                of or any names or words similar to or likely to be confused
                with such names after Completion provided always that the
                Purchaser acknowledges and agrees that following Completion the
                Vendor shall be entitled to trade under and use the names and
                style "TWF" and "TWF Corporate Solutions".

        6.2     Notwithstanding the sale of the Goodwill pursuant to this
                Agreement the Purchaser undertakes that it shall not and the
                Guarantor undertakes to procure that no member of the
                Purchaser's Group registered in the UK shall at any time within
                1 year of the date of this Agreement, use the name "The Web
                Factory" or "Web Factory" (the "restricted name") as its
                corporate

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                name provided that for the avoidance of doubt the Purchaser and
                any member of the Purchaser's Group may (a) trade using the
                restricted name or (b) have the restricted name as part of its
                corporate name when used with another word distinguishing the
                corporate name from the restricted name and (c) the Purchaser's
                Group may have a dormant subsidiary registered in the UK as "The
                Web Factory Limited".

        6.3     Notwithstanding any other provision of this Agreement the
                Purchaser undertakes to the Vendor that that it shall not use or
                distribute any catalogues advertising and promotional materials
                included in the Records which carry any logo (including without
                limitation "DataTec" "Logical" "IT IQ" and "Westcon") or name
                indicating any connection with the Vendor's Group or otherwise
                use any such logo following the Transfer Date.

7       Warranties

        7.1     Subject to clause 7.2, the Vendor warrants and represents to the
                Purchaser in the terms of the Warranties.

        7.2     The Purchaser shall not be entitled to claim that any fact or
                combination of facts contrary to any of the Warranties
                constitutes a breach of any of the Warranties if and to the
                extent that such fact or combination of facts has been fairly
                disclosed in the Disclosure Letter.

        7.3     Without restricting the rights of the Purchaser or the ability
                of the Purchaser to claim damages on any basis available to it,
                the Vendor undertakes to the Purchaser that if any of the
                Warranties set out in paragraphs 1.1.3 and 1.1.4 of Schedule 2
                is proved to be untrue or misleading and the amount of all such
                claims of the Purchaser exceeds (pound)15,000 the

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                Vendor will pay to the Purchaser an amount necessary to put the
                Business into the position which would have existed if the
                Warranties had been true or not misleading but if the amount of
                such liability (aggregated with liability in respect of any
                other relevant claim or claims) exceeds such sum the Vendor
                shall be liable for the whole amount of such liability and not
                merely for the excess.

        7.4     The Vendor agrees that the amount of the Purchaser's claim shall
                not be limited by reference to the way the Consideration is
                apportioned amongst the Assets in Schedule 1.

        7.5     Each of the Warranties shall be construed as a separate and
                independent Warranty and (save where expressly provided to the
                contrary in this Agreement) shall not be limited or restricted
                by reference to, or inference from, the terms of any other
                Warranty or any other term of this Agreement.

        7.6     In this Agreement, unless otherwise specified, where any
                Warranty refers to the knowledge, information and belief (or
                similar expression) of the Vendor, the Vendor is deemed to have
                such knowledge, information and belief which the Vendor would
                have had if it had made all due and careful enquiries of the
                directors of the Vendor (other than Patricia Morris, Alan Harvey
                and Simon Griffiths) and Andrew Morphet into the subject matter
                of that Warranty.

        7.7     Notwithstanding the other provisions of clause 7,(other than
                clause 7.3 in respect of which this clause shall not apply) the
                Vendor shall be under no liability to make any payment in
                satisfaction of any relevant claim unless the amount of such
                liability (when aggregated with the Vendor's liability in
                respect of any other relevant claim or claims or which could
                have been made but for this clause 7.7)

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                is in excess of (pound)75,000 but if the amount of such
                liability (aggregated with liability in respect of any other
                relevant claim or claims) exceeds such sum the Vendor shall be
                liable for the whole amount of such liability and not merely for
                the excess.

        7.8     Notwithstanding the other provisions of this clause 7 the Vendor
                shall not be under any liability to make any payment in
                satisfaction of any relevant claim unless:

                7.8.1   written particulars (giving details of the specific
                        matter in respect of which such claim is made and
                        including a bona fide pre-estimate of the amount claimed
                        in respect of the relevant claim) shall have been given
                        to the Vendor; and

                7.8.2   such particulars are given on or before the 30 June 2001
                        ;and

                7.8.3   proceedings in respect of any breach so notified are
                        commenced (by the issue and service of proceedings)
                        within six months of such notification unless such claim
                        has been settled within such six month period.

        7.9     The total liability of the Vendor in respect of relevant claims
                shall not exceed (pound)3,000,000 (including any monies in
                respect of which setoff is exercised)

        7.10    Any liability of the Vendor in respect of a relevant claim which
                is agreed by the Vendor or otherwise determined shall be paid or
                settled on a pound for pound basis:-

                7.10.1  first by deduction from any part of the Deferred
                        Consideration which has not at the time of such
                        agreement or determination been paid to the Vendor or
                        into the Escrow Account (which

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                        shall be applied against the amount of the Deferred
                        Consideration first falling due);

                7.10.2  second by payment from any funds standing to the credit
                        of the Escrow Account; and

                7.10.3  thirdly, by payment of the balance by the Vendor.

        7.11    No right of recision shall be available to the Purchaser by
                reason of any breach of the Warranties.

        7.12    The Vendor shall not be liable for any breach of the Warranties:

                7.12.1  to the extent that the amount of the relevant claim is
                        provided for or reserved for on the face of the Business
                        Accounts (and for this purpose any general provisions
                        may be utilised against all claims of that type) or is
                        included in calculating the balance to be paid pursuant
                        to clause 12 (apportionments);

                7.12.2  to the extent that a relevant claim arises wholly or
                        partly as a result of the passing of an enactment or
                        other governmental regulation following Completion;

                7.12.3  to the extent that the amount of the relevant claim has
                        been or is made good or is otherwise compensated for by
                        a third party without cost to the Purchaser;

                7.12.4  to the extent that the amount of the relevant claim is
                        recovered by the Purchaser by insurance (except to the
                        extent of any losses or liabilities arising by the
                        making of such relevant claim);

                7.12.5  in respect of the Warranties at paragraphs 1.1.5, 5.3 -
                        5.7 (inclusive), 5.9, 5.10, 11.1 -

                                       23
<PAGE>

                        11.5 (inclusive), 11.7, 16.1 ,16.2 and 19 of Schedule 2
                        in respect of any fact or circumstance known to either
                        Alan Harvey or Patricia Morris unless such fact or
                        circumstance is within the knowledge, information or
                        belief of the Vendor as defined in clause 7.6.

        7.13    The Purchaser shall not be entitled to claim more than once in
                respect of the same loss or damage.

        7.14    The Purchaser shall take all such reasonable actions as the
                Vendor may reasonably request to avoid dispute, resist,
                compromise, defend or appeal any claims against the Purchaser
                giving rise to the relevant claim but subject to being
                indemnified and secured by the Vendor (in respect of the
                relevant claim and all liabilities, costs and expenses arising
                in connection therewith) to the reasonable satisfaction of the
                Purchaser and (whether or not such action is requested) the
                Purchaser shall not make any admission of liability, agreement
                or compromise in respect of such claim or otherwise settle such
                claims without giving notice to and (so far as reasonably
                practicable) consulting with the Vendor.

        7.15    Where the Purchaser is entitled to recover any sum from some
                other person, firm or company in respect of any matter giving
                rise to a relevant claim under this Agreement, the Purchaser
                shall take all reasonable steps to enforce such recovery subject
                to being indemnified and secured by the Vendor in respect of the
                relevant claim and all liabilities, costs and expenses arising
                in connection therewith to the reasonable satisfaction of the
                Purchaser and shall account to the Vendor for any amount by
                which the relevant claim is reduced by the amount so recovered
                (not exceeding any amount paid by the Vendor in respect of the
                relevant claim) after deducting all

                                       24
<PAGE>

                costs and expenses incurred by the Purchaser in connection
                therewith.

        7.16    The Purchaser shall reimburse to the Vendor an amount equal to
                any sum paid in respect of any relevant claim which is
                subsequently recovered by or paid to the Purchaser by any third
                party less any costs and expenses incurred by the Purchaser in
                connection therewith.

        7.17    Any amount paid or otherwise satisfying a relevant claim by the
                Vendor under this Agreement shall be treated as a reduction in
                the Consideration

        7.18    Nothing in this clause 7 shall be deemed to relieve the
                Purchaser from any common law duty to mitigate any loss or
                damage incurred by it in respect of a relevant claim.

        7.19    The Purchaser shall give to the Vendors 7 days notice in writing
                of any action which it intends to take in relation to the
                Business which is outside the ordinary course of the Business
                after the Transfer Date and where the Purchaser knows that a
                relevant claim will arise as a result of such action provided
                that any failure to do so shall not limit the relevant claim
                except to the extent the liability of the Vendor is increased by
                the Purchaser's failure to give notice.

        7.20    None of the Warranties are given in relation to the "Black Web
                Site".

        7.21    In this Agreement "relevant claim" means any claim which is made
                against the Vendor in respect of any liability under the
                Warranties.

        7.22    The provisions of clause 7.8 to 7.20 shall not apply to limit or
                exclude the liability of the Vendor to the extent that any claim
                arises by reason of any

                                       25
<PAGE>

                fraud, dishonesty or wilful misstatement or omission by or on
                behalf of the Vendor.

8       Restrictive covenants

        8.1     For the purpose of assuring to the Purchaser the full benefit of
                this Agreement and in consideration of the agreement of the
                Purchaser to buy the Assets on the terms of this Agreement, the
                Vendor undertakes to the Purchaser that without the written
                consent of the Purchaser the Vendor shall not whether directly
                or indirectly and whether alone or in conjunction with, or on
                behalf of any other person and whether as partner, shareholder,
                director, manager, consultant, agent or employee or in any other
                capacity whatsoever:

                8.1.1   for a period of 2 years immediately following the
                        Transfer Date, canvass or solicit orders or facilitate
                        the canvassing of or the soliciting of orders from any
                        person who at any time during the 6 months immediately
                        preceding the Transfer Date was:

                        8.1.1.1 a customer or client of the Business; or

                        8.1.1.2 negotiating for the supply by the Business of
                                goods or services,

               where the orders are for goods or services which are competitive
                        with those supplied by the Business at any time during
                        the 6 months immediately preceding the Transfer Date;

                8.1.2   for a period of 2 years immediately following the
                        Transfer Date, accept the custom of any person who at
                        any time during the 6 months immediately preceding the
                        Transfer Date was:

                        8.1.2.1 a customer or client of the Business; or

                                       26
<PAGE>

                        8.1.2.2 negotiating with the Business for the supply by
                                the Business of goods or services,

               where the custom involves the supply of goods or services which
                      are competitive with those supplied by the Business at any
                      time during the 6 months immediately preceding the
                      Transfer Date;

                8.1.3   for a period of 2 years immediately following the
                        Transfer Date, canvass, solicit or entice away from the
                        Business any supplier to the Business who had supplied
                        goods and/or services to the Business at any time during
                        the 6 months immediately preceding the Transfer Date if
                        such solicitation or enticement causes or would cause
                        such supplier to cease supplying, or materially to
                        reduce its supply of, those goods and/or services to the
                        Business;

                8.1.4   for a period of 2 years immediately following the
                        Transfer Date (save as the holder of shares or other
                        securities in any company which are quoted, listed or
                        otherwise dealt in on a recognised stock exchange or
                        other securities market and which confer not more than 5
                        per cent of the votes which could be cast at a general
                        meeting of the company concerned) carry on any trade or
                        business which provides internet access or any product
                        competitive with the Financial Software within the
                        United Kingdom (provided that nothing in this clause
                        8.1.4 shall preclude or prevent any member of the
                        Vendor's Group (other than the Vendor) providing
                        internet access).

                8.1.5   for a period of 2 years immediately following the
                        Transfer Date, canvass, solicit or entice

                                       27
<PAGE>

                        away from the Business any Assumed Employee who was
                        employed in a managerial, supervisory, technical, sales
                        or administrative post or any person who was a
                        consultant to, the Business at the Transfer Date or at
                        any time during the period of one month immediately
                        preceding the Transfer Date;

                8.1.6   attempt, or knowingly assist or procure any other
                        person, to do any of the foregoing things.

        8.2     The Vendor undertakes to the Purchaser that (save as required by
                law or to the extent necessary to comply with the regulations of
                any stock exchange or regulated market on which the shares of
                any of the Vendor's Group are or are to be quoted or listed but,
                in each case, only after reasonable notification of such
                proposed disclosure has been given to the Purchaser) the Vendor
                shall not divulge or communicate to any other person (other than
                to any employee of the Vendor or any Assumed Employee who needs
                that knowledge in the discharge of duties) such information in
                relation to the Business or as is contained in the Records which
                is confidential, shall not use or attempt to use any such
                information for the Vendor's or their own benefit or for the
                benefit of any other person and shall use all reasonable
                endeavours to prevent the publication or disclosure of any such
                information provided that the Vendor shall be entitled to use
                for its own benefit any information which relates to the
                Retained Business.

        8.3     In consideration of the Purchaser entering in to this Agreement,
                Datatec undertakes to the Purchaser that without the written
                consent of the Purchaser, Datatec shall not and shall procure
                that no member of the Vendor's Group shall, whether directly or
                indirectly and whether alone or in conjunction with or on behalf
                of any other person and whether as partner,

                                       28
<PAGE>

                shareholder, director, manager, consultant, agent or employee or
                in any other capacity whatsoever act contrary to the provisions
                of clause 8.2 (on the basis that such sub-clause was set out in
                this clause).

        8.4     The Vendor and Datatec acknowledge that each of the undertakings
                contained in clauses 8.1, 8.2 and 8.3 is reasonable and for the
                proper protection of the Business and further acknowledges that
                damages may not be an adequate remedy to the Purchaser for
                breach of those undertakings.

        8.5     The restrictions on the Vendor contained in clause 8.2 above
                shall not apply to any information which is or becomes generally
                available to the public on a non-confidential basis through no
                act or default on the part of the Vendor.

        8.6     Each undertaking contained in clauses 8.1, 8.2 and 8.3 shall be
                construed as a separate undertaking and if any one or more of
                such undertakings or any part of an undertaking is held to be
                against the public interest or unlawful or in any way as an
                unreasonable restraint of trade, the remaining undertaking or
                undertakings or the remaining part of such undertaking or
                undertakings shall continue in full force and effect and shall
                bind the Vendor or Datatec as the case may be.

        8.7     For the purposes of protecting the Retained Business and in
                consideration of the agreement of the Vendor to sell the Assets
                on the terms of this Agreement, the Purchaser undertakes to the
                Vendor that without the written consent of the Vendor the
                Purchaser shall not whether directly or indirectly and whether
                alone or in conjunction with, or on behalf of any other person
                and whether as a partner, shareholder,

                                       29
<PAGE>

                director, manager, consultant, agent or employee or in any other
                capacity whatsoever:

                8.7.1   for a period of 1 year immediately following the
                        Transfer Date, canvass or solicit orders or facilitate
                        the canvassing of or the soliciting of orders from any
                        person who at any time during the 6 months immediately
                        preceding the Transfer Date was:

                        8.7.1.1 a customer or client of the Retained Business;
                                or

                        8.7.1.2 negotiating for the supply by the Retained
                                Business of goods or services,

               where orders are for goods or services which are competitive
                      with those supplied by the Retained Business at any time
                      during the 6 months immediately preceding the Transfer
                      Date and for the avoidance of doubt not goods or services
                      supplied by the Business during such period.

                8.7.2   For a period of 1 year immediately following the
                        Transfer Date, accept the custom of any person who at
                        any time during the 6 months immediately preceding the
                        Transfer Date was:

                        8.7.2.1 a customer or client of the Retained Business;
                                or

                        8.7.2.2 negotiating with the Retained Business for the
                                supply by the Business of goods or services,

               where  the custom involves the supply of goods or services which
                      are competitive with those supplied by the Retained
                      Business at any time during the 6 months immediately
                      preceding the Transfer Date and for the avoidance of doubt
                      not

                                       30
<PAGE>

                        goods or services supplied by the Business during such
                        period

                8.7.3   For a period of 1 year immediately following the
                        Transfer Date, canvass, solicit or entice away from the
                        Business any employee of the Vendor at the Transfer Date
                        (other than an Assumed Employee) who was employed in a
                        managerial, supervisory, technical, sales or
                        administrative post or any person who was a consultant
                        to, the Retained Business at the Transfer Date or at any
                        time during the Period of one month immediately
                        preceding the transfer date;

                8.7.4   attempt or knowingly assist or procure any other person,
                        to do any of the foregoing things.

        8.8     In consideration of the Vendor entering into this Agreement at
                the request of the Guarantor, the Guarantor undertakes to the
                Vendor that without the written consent of the Vendor, the
                Guarantor shall not and shall procure that no member of the
                Purchaser's Group shall, whether directly or indirectly, and
                whether alone or in conjunction with or on behalf of any other
                person and whether as partner, shareholder, director, manager,
                consultant, agent or employee or in any other capacity
                whatsoever act contrary to the provisions of clause 8.7 (on the
                basis that such clauses are set out in this clause).

        8.9     The Purchaser and the Guarantor acknowledge that each of the
                undertakings contained in clauses 8.7 and 8.8 is reasonable and
                for the proper protection of the Retained Business and further
                acknowledges that damages may not be an adequate remedy to the
                Vendor for breach of those undertakings.

        8.10    Each undertaking contained in clauses 8.7 and 8.8 shall be
                construed as a separate undertaking and if

                                       31
<PAGE>

                any one or more of such undertakings or any part of an
                undertaking is held to be against the public interest or
                unlawful in any way as an unreasonable restraint of trade, the
                remaining undertaking or undertakings or the remaining part of
                such undertaking or undertakings shall continue in full force
                and effect and shall bind the Purchaser and the Guarantor.

        8.11    The restrictions in clauses 8.7 and 8.8 shall cease to apply if
                the Vendor fails to satisfy a claim under this Agreement within
                30 days of the agreement or determination of such claim by any
                order of a court of competent jurisdiction.

        8.12    The restrictions in clauses 8.1, 8.3, 8.7 and 8.8 shall only
                apply to the United Kingdom.

9       Book Debts

        9.1     Each party shall account to the other promptly for the payment
                of any debtor which is received by it and which is properly
                payable to the other.

        9.2     It is agreed that monies received in respect of debtors relating
                to the provision of access to the internet shall be applied
                firstly against invoices rendered by the Vendor in respect
                thereof unless the relevant debtor has raised a bona fide
                dispute in relation to the sums owing to the Vendor and provided
                also that where any debtor is a pre -payment of services to be
                provided after the Transfer Date, the relevant proportion of the
                debtor may be retained by the Purchaser pursuant to clause 12.1.

10      Contracts and other obligations

        10.1    Subject to clause 10.2, the Purchaser undertakes to the Vendor
                to carry out and complete, to the

                                       32
<PAGE>

                extent they remain unperformed at the Transfer Date, the
                Contracts after Completion and the Purchaser shall (subject to
                clause 10.2) indemnify and keep the Vendor indemnified against
                all losses, liabilities, costs, claims and demands arising in
                respect of the Contracts after the Transfer Date whether or not
                any agreement, consent or novation as mentioned in clause 11.1
                has been obtained

        10.2    The Purchaser will have no liability for, or be required to
                perform any obligation arising out of any breach of any of the
                Contracts prior to the Transfer Date whether a breach by the
                Vendor or some other person provided that the Purchaser agrees
                to fulfil the obligations of the Vendor in respect of those
                breaches of the Contracts referred to in the disclosure against
                Warranty 11.3 in the Disclosure Letter (without any obligation
                to make any payment).

        10.3    Save where these are specifically assumed by the Purchaser under
                this Agreement the Vendor shall pay, satisfy and discharge all
                the Liabilities and (subject to clause 10.2) shall indemnify and
                keep indemnified the Purchaser in respect of the same.

        10.4    Nothing in this Agreement shall make the Purchaser liable in
                respect of anything done or omitted to be done prior to the
                Transfer Date other than as specifically stated in this
                Agreement.

        10.5    The Vendor will settle any sum outstanding in respect of the
                Tigris Router so as to give title to such asset to the Purchaser

11      Assignment and novation of contracts

        11.1    If the benefit of any of the Contracts cannot be assigned to the
                Purchaser except with the agreement or consent of a third party
                or that third party entering into a novation agreement then the
                Vendor

                                       33
<PAGE>

                and the Purchaser will each use their reasonable endeavours to
                procure such agreement, consent or novation (without any
                obligation to make a payment in respect thereof) .

        11.2    Unless and until the benefit of any Contract is assigned or
                novated, or where any of the Contracts is incapable of transfer
                by assignment to the Purchaser:

                11.2.1  the Vendor shall continue its corporate existence and
                        shall hold the benefit of such Contract upon trust for
                        the Purchaser absolutely and shall account to the
                        Purchaser without any deduction for all sums and other
                        benefits derived from such Contract and the Purchaser
                        shall perform at its cost and risk the outstanding
                        obligations (subject to clause 10.2) of the Vendor under
                        any such Contract in accordance with its terms;

                11.2.2  the Vendor shall give all reasonable assistance to the
                        Purchaser to enable it to enforce the rights of the
                        Vendor under such Contract and shall at all times act
                        with regard to the Contract in accordance with the
                        Purchaser's reasonable instructions from time to time;
                        and

                11.2.3  the Vendor shall not take any action in respect of such
                        Contract without the prior written approval of the
                        Purchaser such approval not to be unreasonably withheld
                        or delayed.

12      Apportionments

        12.1    Subject to clause 12.2, the Vendor shall account to the
                Purchaser for all pre-payments made or to be made (but only as
                and when and to the extent received) by third parties to the
                Vendor in respect of the Business and the Assets save for such
                amounts which are attributable to obligations of the Vendor
                which

                                       34
<PAGE>

                have been wholly completed or discharged as at the Transfer Date
                and the Purchaser shall account to the Vendor for any sums
                received by the Purchaser for network services provided in
                respect of the Business prior to the Transfer Date.

        12.2    The Vendor shall account to the Purchaser in the amount of
                (pound)720 in respect of the Stable Express Services (as defined
                in the Disclosure Letter) and the Purchaser hereby acknowledges
                assumption by it of the obligation to perform such services.

        12.3    All periodic outgoings relating to, or payable, or accruing in
                respect of the Business down to and including the Transfer Date
                shall be borne by the Vendor and as from the Transfer Date shall
                be borne by the Purchaser. Such outgoings shall if necessary be
                apportioned accordingly provided that outgoings specifically
                referable to the extent of the user of any property or rights
                shall be apportioned accordingly to the extent of such user.

        12.4    Within 30 days from the Transfer Date an account shall be drawn
                up by the Purchaser and presented to the Vendor showing the
                calculations of what the Vendor or the Purchaser owes to the
                other under clauses 12.1, 12.2, 12.3 and 13.3.

        12.5    If the account is not agreed by the Vendor and the Purchaser
                within 10 business days of such presentation, either party may
                apply for an independent accountant nominated by the president
                for the time being of the Institute of Chartered Accountants in
                England and Wales to be appointed who shall give a decision
                based on representations of the Vendor and the Purchaser as to
                the amount which is owed in respect of the matters which ought
                to have been included within the account and such person shall
                act and expert and not as arbitrator and his or

                                       35
<PAGE>

                her decision shall be binding on the Vendor and the Purchaser
                save in the event of manifest error.

        12.6    Any payment required pursuant to the account prepared under
                clause 12.3 above shall be made within two business days of the
                agreement or determination of the amount due.

13      Employees

        13.1    The contracts of employment of the Assumed Employees shall be
                transferred to the Purchaser under the Regulations.

        13.2    The Vendor shall discharge and indemnify the Purchaser against:

                13.2.1  all liabilities, obligations, costs, claims and demands
                        arising from or in respect of any of the Retained
                        Employees;

                13.2.2  all liabilities, obligations, costs, claims and demands
                        arising from or in respect of any of the Assumed
                        Employees, caused by any act or omission by the Vendor
                        prior to the Transfer Date.

        13.3    Responsibility for all salaries, wages, bonuses and other
                emoluments, all statutory contributions and all income tax
                deductible under PAYE for which the Vendor is accountable, all
                employer's contributions to the pension scheme(s) and all other
                employment costs and holiday pay in respect of the Assumed
                Employees and the Retained Employees in respect of or referable
                to the period ending on to the Transfer Date shall be the
                Vendor's if relating to any period prior to or including the
                Transfer Date whether or not due for payment at that date and
                shall be the Purchaser's after the Transfer Date and such
                responsibility shall be apportioned on a time basis.

                                       36
<PAGE>

14      Future trading

        14.1    The Vendor shall promptly refer to the Purchaser (on a non
                exclusive basis) all enquiries to the extent they relate to the
                Business including, without limitation, enquiries or orders for
                any stock, spares, parts, accessories and other equipment
                manufactured or sold, or any services provided in connection
                with the Business, which the Vendor may receive after the
                Transfer Date:

                14.1.1  to the extent they are received from any person who is
                        at the Transfer Date or was within 12 months prior to
                        that date a customer of the Business whenever such
                        enquiry is received; and

                14.1.2  in respect of enquiries relating to the Business
                        received from any other person only if received within 3
                        months from the date of this Agreement.

        14.2    The Vendor shall promptly give notice to the Purchaser of any
                claims made by third parties against the Vendor in respect of
                any matter relating to the Business prior to the Transfer Date
                and the Vendor shall not take any steps in relation to any such
                matters which might reasonably be expected to damage the
                commercial interests of the Purchaser without prior notification
                to the Purchaser.

        14.3    For a period of 6 years after the Transfer Date each party shall
                preserve and make available to the other free of charge, all
                information and records (including the Records) generated prior
                to the date hereof which the other may reasonably require
                relating to the Business, and the Assets.

        14.4    For the period of ninety days following the Transfer Date (the
                "Access Period"):-

                                       37
<PAGE>

                14.4.1  the Purchaser grants to the Vendor the right to use the
                        Computer System at the Premises free of charge for its
                        own internal business purposes and, subject to clause
                        8.2 which shall apply to all information stored on the
                        Computer System which is confidential, the Purchaser
                        shall permit the Vendor full and unrestricted access
                        during the Purchaser's normal business hours to use the
                        Computer System for such purpose;

                14.4.2  the Vendor agrees to provide telephone and fax
                        facilities in the form currently used by the Business to
                        the Purchaser free of charge during the Vendor's normal
                        business hours; and

                14.4.3  the Vendor will whilst the same are in its employ,
                        provide the services of Simon Wardley and Andrew
                        Mitchell in connection with the operation of the
                        "Financial Software" on an as and when needed basis
                        subject to the Purchaser giving notice of not less than
                        5 working days and sickness and holiday in respect of
                        each of Simon Wardley and Andrew Mitchell at a cost of
                        (pound)1,250 (plus VAT) per day per person.

                14.4.4  the Purchaser will control the domain name
                        "webfactory.co.uk" and shall promptly redirect all
                        e-mail addressed to the addresses listed as retained
                        addresses in section 22 of the Disclosure Bundle to such
                        e-mail address as the Vendor may from time to time
                        notify.

        14.5    Neither the Purchaser nor the Vendor shall copy (save for the
                purposes of backups), process, transfer, corrupt or otherwise
                modify in any way or use for any purpose the other party's
                programs and data held on the Computer System from time to time
                and the Purchaser agrees that, upon expiry of the Access Period
                or at the Vendor's written request at any

                                       38
<PAGE>

                time, to cause any programs or data of the Vendor to be deleted
                from the Computer System.

        14.6    Save in respect of death or personal injury caused by the
                negligence of the Vendor or the Purchaser (as the case may be)
                neither the Vendor nor the Purchaser shall be liable to the
                other for any loss, damage, costs or expense arising from the
                relevant facility being interrupted, prevented, postponed,
                delayed, limited, inadequate or curtailed due to:

                14.6.1  such failure being outside the reasonable control of the
                        relevant party or due to other unforeseen event,
                        emergency or circumstance;

                14.6.2  good cause or routine or general maintenance,
                        inspection, servicing, repair, renewal or replacement;

                14.6.3  emergency maintenance, inspection, servicing, repair,
                        renewal or replacement

        and, save in respect of death or personal injury caused by negligence or
                damage caused by wilful default or gross negligence, the maximum
                liability of the Vendor and the Purchaser to the other in the
                provision of such facilities shall be (pound)100,000.

        14.7    The Vendor acknowledges and agrees that:

                14.7.1  the Vendor Accounts (or accurate and not misleading
                        extracts from them) may be used by the Purchaser or the
                        Purchaser's Group in connection with its returns filings
                        and announcements in respect of securities law of the
                        United States ("SEC Requirement") and the Vendor shall
                        reasonably endeavour to procure the consent of the
                        auditors of the Vendor for such purpose; and

                                       39
<PAGE>

                14.7.2  the Purchaser in particular (without limiting 14.3) may
                        have access to any records of the Vendor which relate to
                        the Business or the Retained Business for the purposes
                        of preparing management accounts of the Business for the
                        period of the Vendor Accounts and of preparing audited
                        accounts of the Business in connection with any SEC
                        Requirement for the period up to the date of this
                        Agreement in both cases if and to the extent necessary
                        to comply with any SEC Requirement and the Vendor shall
                        reasonably promptly co-operate in the preparation of
                        such accounts at its own cost (subject to payment of
                        expenses properly incurred).

        14.8    Without prejudice to the other provisions of clause 14, the
                Vendor agrees and undertakes to provide (at its own cost) such
                assistance as is reasonably required by the Purchaser to enable
                the Purchaser to produce management accounts for the period from
                1 April 1999 to the date of this Agreement.

15      Value added tax

        15.1    All amounts expressed in this Agreement as being payable by or
                to the Purchaser are expressed exclusive of any value added tax
                which may be chargeable thereon and the amount of any such value
                added tax shall be payable in addition thereto subject as
                hereinafter provided.

        15.2    The Vendor and the Purchaser shall use all reasonable endeavours
                to ensure that the provisions of article 5 of the Value Added
                Tax (Special Provisions) Order 1995 apply to the sale and
                purchase of the Business and the Assets.

        15.3    The Vendor and the Purchaser shall as soon as reasonably
                practicable after the Transfer Date each

                                       40
<PAGE>

                give notice of the sale and purchase to H M Customs and Excise
                andthe Vendor shall be entitled to request that all records
                referred to in section 49(1) of the Value Added Tax Act 1994 be
                retained by the Vendor and the Vendor hereby undertakes to
                preserve such records for such period as may be required by law
                and shall during that period afford reasonable access to them
                free of charge at the request of the Purchaser.

        15.4    If H M Customs and Excise determine that value added tax is
                chargeable on the sale of the Business and Assets hereunder or
                any of them then the Vendor shall promptly notify the Purchaser
                of such determination and the Purchaser agrees that such value
                added tax shall be in addition to the Consideration and the
                Purchaser shall (against production by the Vendor of tax
                invoices in respect thereof) pay the amount of any such value
                added tax forthwith to the Vendor but such payment shall be
                without prejudice to the right of the Purchaser under this
                Agreement to call upon the Vendor to make or join an appeal
                against the aforesaid determination subject to the provisions of
                clause 15.5.

        15.5    The Purchaser at its sole discretion (but after consultation
                with the Vendor) may within twenty Business Days of notification
                by the Vendor of a determination having been made by H M Customs
                and Excise dispute that determination or request the Vendor to
                dispute or join with the Purchaser or any other person in
                disputing that determination, including the making of a formal
                appeal to the Value Added Tax Tribunals and such higher court of
                law as may subsequently be required to reach a decision on the
                dispute and the Vendor shall promptly comply with any reasonable
                request but shall not be obliged to take any action under this
                clause unless the

                                       41
<PAGE>

                Purchaser shall indemnify it against all reasonable costs and
                expenses so incurred.

        15.6    The Purchaser shall indemnify the Vendor against any penalty,
                surcharge, fine or interest incurred by the Vendor in respect of
                any late payment of VAT payable in respect of the Consideration
                which arises up to the period of 4 business days after the VAT
                is paid to the Vendor in cleared funds.

        15.7    All value added tax payable in respect of goods and services
                supplied or deemed to be supplied by the Vendor in connection
                with the Business prior to the Transfer Date, and all interest
                and penalties attributable to it, shall be paid to H M Customs
                and Excise by the Vendor and the Vendor shall be entitled to
                receive and to retain for its own benefit all reimbursement or
                credit from H M Customs and Excise for value added tax borne by
                the Vendor on goods and services supplied to the Vendor prior to
                the Transfer Date and any payments received in respect of value
                added tax overpaid to H M Customs and Excise prior thereto.

16      Licence Indemnity

[Not used.]

17      Guarantee

        17.1    All obligations contained in or relating from the execution of
                this Agreement on the part of the Guarantor and the Purchaser
                shall be construed and take effect as joint and several
                obligations and any benefits contained in this Agreement in
                favour of them shall be construed and take effect as conferred
                on each of them collectively and individually.

        17.2    The Guarantor unconditionally and irrevocably:

                                       42
<PAGE>

                17.2.1  guarantees to the Vendor as principal obligor and not
                        merely as surety the due and punctual performance by the
                        Purchaser of all obligations of the Purchaser arising
                        under this Agreement for which the Guarantor is not
                        primarily liable or jointly liable with the Purchaser;
                        and

                17.2.2  acknowledges and agrees that the Vendor may enforce its
                        rights under this Agreement without first having
                        recourse to any rights it may have or taking any steps
                        or proceedings against the Purchaser.

        17.3    The obligations of the Guarantor under clause 17.2 of this
                Agreement are continuing obligations and shall not be affected
                discharged or diminished by and the Guarantor shall perform such
                obligations notwithstanding that:

                17.3.1  any obligation of the Purchaser may be void, voidable or
                        unenforceable;

                17.3.2  any intermediate payment or settlement of account by or
                        the insolvency of or analogous proceedings relating to
                        the Purchaser;

                17.3.3  the granting of any time or indulgence or any extension
                        to the Purchaser or by any failure by the Vendor to
                        pursue any remedies or rights against the Purchaser or
                        any modification or variation agreed by the Vendor with
                        the Purchaser from time to time (unless in writing);

                17.3.4  the Vendor giving up dealing with varying or abstaining
                        from perfecting or enforcing any security held by the
                        Vendor; or

                17.3.5  any arrangement, matter or fact or circumstances which
                        might otherwise operate to discharge or diminish the
                        liability of or

                                       43
<PAGE>

                        otherwise provide a defence to a surety (other than any
                        arrangement, matter or fact or circumstance which is
                        available to the Purchaser).

18      Costs

Each party hereto shall pay its own costs and expenses of and incidental to the
        negotiation preparation and execution of this Agreement and all
        documents ancillary to this Agreement, except where otherwise expressly
        stated in this Agreement.

19      Announcements

Save for the announcement in the Agreed Form or an announcement (including to
        customers clients or suppliers of the Business by the Purchaser or of
        the Retained Business by the Vendor) merely of the fact that the
        Purchaser has acquired the Business, no announcements concerning the
        transactions contemplated by this Agreement or any matter ancillary to
        it and no disclosure of the terms of this Agreement shall (save as
        required by law) be made by the Vendor except with the prior written
        consent of the Purchaser or by the Purchaser except with the prior
        written consent of the Vendor (such consent not to be unreasonably
        withheld or delayed)

20      Notices

        20.1    In order to be effective, any notice, demand or other
                communication to be served under or pursuant to this Agreement
                shall be in writing and shall be served upon any party to this
                Agreement by:

                20.1.1  posting by first class post (for inland mail); or

                20.1.2  posting by airmail (for overseas mail); or

                                       44
<PAGE>

                20.1.3  delivery by hand; or

                20.1.4  facsimile transmission

to the party to be served at its address or facsimile number given below or at
        such other address or number in the United Kingdom as it may from time
        to time notify in writing to the other parties to this Agreement as
        being the recipient's address or number for service provided that it may
        (at the option of the sender) in any event be addressed to the
        recipient's registered office:

Vendor:                         The Web Factory Limited

Address:                        APV Building, Speedwell Road, Partohouse
                                Industrial Estate, Newcastle Staffordshire
                                ST5 7RG

Facsimile number:               01782 858586

Marked for the attention of:    Andrew Morphet with a copy to Vendors
                                Solicitors, fax number 01782 202040, marked for
                                the attention of Peter Ellis

Purchaser:                      Castlegate 133 Limited

Address:                        One Penn Plaza
                                New York
                                New York 10019

Facsimile Number:               001 (212) 643 1997

Marked for the attention of:    Byron Lerner

Guarantor:                      Teltran International Group Limited

Address:                        One Penn Plaza, New York, New York 10019

Facsimile Number:               001 (212) 643 1997

                                       45
<PAGE>

Marked for the attention of:    Byron Lerner

With a copy to:                 Parker Duryee Rosoff & Haft
                                529 Fifth Avenue, New York, New York 10017

Facsimile Number:               001 (212) 972 9487

Marked for the attention of:    Michael DiGiovanna

but so that any notice served by facsimile transmission shall be confirmed by
        the sender in writing served not later than the second Business Day
        after the date of the facsimile transmission.

        20.2    A notice or demand given in accordance with this clause shall be
                deemed to have been given or made on the following days:

                20.2.1  if served by hand shall be deemed duly served when left
                        at the address for service unless such delivery occurs
                        on a day which is not a Business Day or after 5pm on a
                        Business Day, in which case it shall be deemed duly
                        served on the next following Business Day;

                20.2.2  if served by inland mail it shall be deemed duly served
                        on the second Business Day or if by overseas mail the
                        fifth Business Day after posting; or

                20.2.3  if sent by facsimile transmission it shall be deemed to
                        have been served at the time of transmission (unless
                        such transmission occurs on a day which is not a
                        Business Day or after 5 pm on a Business Day in which
                        case service will be deemed to occur on the next
                        following Business Day),

        and in proving service of the same it shall be sufficient to prove, in
                 the case of a letter, that such letter

                                       46
<PAGE>

                was properly stamped or franked first class or airmail (as
                relevant) addressed and placed in the post and, in the case of a
                facsimile transmission, that such facsimile was transmitted to
                the facsimile number of the addressee referred to above.

21      General

        21.1    This Agreement shall be binding on and shall continue for the
                benefit of each party's successors. . Save as aforesaid this
                Agreement shall not be assignable.

        21.2    Notwithstanding Completion each of the agreements, covenants,
                obligations, warranties, indemnities and undertakings contained
                in this Agreement shall, except in so far as fully performed at
                Completion, continue in full force and effect.

        21.3    None of the rights of any party arising out of this Agreement
                shall be varied or restricted by the giving of any time or other
                indulgence to any person but shall only be affected by a
                specific waiver or release by the relevant party and any such
                waiver or release shall be specific to the matters to which it
                relates, shall not be deemed to be a waiver of any subsequent
                breach or default and shall in no way affect the other terms of
                this Agreement.

        21.4    All the rights and remedies expressly provided for by this
                Agreement shall not exclude any rights or remedies provided by
                law.

        21.5    This Agreement may be executed in any number of counterparts by
                the different parties hereto or on separate counterparts, each
                of which when executed and delivered shall constitute an
                original, but all of which shall constitute one and the same
                instrument.

                                       47
<PAGE>

        21.6    Any variation of this Agreement shall be binding only if it is
                recorded in a written document signed by or on behalf of all the
                parties.

22      Governing Law

This Agreement shall be governed by and construed in all respects in
     accordance with English law and the parties submit to the exclusive
     jurisdiction of the English Courts.

23      Entire Agreement

This Agreement (and the documents entered into pursuant to this Agreement)
     embodies the entire understanding of the parties hereto and the Purchaser
     declares (and the Vendor acknowledges) that the Purchaser is relying on no
     other warranties, representations, covenants, undertaking, indemnities or
     other statements whatsoever, other than those expressly set out in this
     Agreement or any documents entered into pursuant to this Agreement.

IN WITNESS of these matters this document has been executed as a deed and
delivered on the date set out at the beginning of this Agreement.

                                       48
<PAGE>

                                   SCHEDULE 1

                           Allocation of Consideration

The Consideration shall be apportioned among the Assets as follows:-

                                                                 (pound)

1.     Plant                                              (pound)299,994

2.     Claims                                                       1.00

3.     The benefit of the Contracts                                 1.00

4.     Goodwill                                              (pound)1.00

5.     Intellectual   Property  Rights                              1.00
       (other  than  the Financial Software
       and Registered Trade Marks)

6.     The Computer System                                          1.00

7.     Records                                                      1.00

8.     Registered Trade Marks                                      5,000

9.     The Financial Software
                                                     (pound)2,695,000.00
                                                     -------------------
       Total                                         (pound)3,000,000.00

                                       49
<PAGE>

                                   SCHEDULE 2

                                   Warranties

1       Assets: General

        1.1     The Assets:

1.1.1   are situate at the Premises;

1.1.2   not the subject of any dispute;

1.1.3                 in the case of the Plant and the Computer System comprise
                      all the assets of that nature used in the Business in the
                      12 months prior to the Transfer Date;

1.1.4                 in the case of the Intellectual Property Rights, comprise
                      all the intellectual property rights used in the Business
                      as carried on at the Transfer Date

1.1.5                 are not surplus to requirements of the Business and are
                      owned absolutely by the Vendor free from any Encumbrance.

        1.2     All deeds and documents which show or affect in any way the
               right, title or interest of the Vendor in or to any of the Assets
               which are in its possession or direct control are included in the
               Records

2       Book Debts

        2.1     An accurate schedule of the Book Debts as at the Transfer Date
                is included in the Schedule and the Book Debts are all the
                outstanding debtors of the Business.

                                       50
<PAGE>

        2.2     None of the Book Debts have been outstanding for more than 90
                days from its due date of payment.

        2.3     None of the Book Debts are the subject of any dispute.

3       Plant

        3.1     The Plant is in a good and safe state of repair and condition
                and satisfactory working order .

        3.2     An accurate Schedule of the Plant is included in the Disclosure
                Letter.

4       Computer System

        4.1     Full details of all elements of the Computer System, including
                all licences and service agreements are set out in the
                Disclosure Letter.

        4.2     The Computer System:

                4.2.1   is so far as the Vendor is aware free from any material
                        defect and is fulfilling the present requirements of the
                        Business as carried on at the Transfer Date;

                4.2.2   has such security, back-ups, duplication, hardware and
                        software support and maintenance (including emergency
                        cover) and trained personnel as the Vendor considers
                        necessary in place to ensure:

                        4.2.2.1 that breaches of security, errors and breakdowns
                                are kept to a minimum; and

                        4.2.2.2 that the Computer System is year 2000 compliant.

        4.3     The acquisition of the Business by the Purchaser shall not
                affect the rights of the Purchaser to have

                                       51
<PAGE>

                full and unrestricted access to use each element of the Computer
                System in the manner in which such element has been used prior
                to Completion. Such rights of access shall not be subject to the
                grant of any additional rights and/or the use of any element of
                the Computer System on a shared basis with the Vendor or an
                other member of the Vendor's Group and/or any third party.

        4.4     The Vendor is not in breach of any arrangements pursuant to
                which any element of the Computer System has been made available
                by any third party. In addition, the Vendor has not received
                notice of and is not aware of any circumstances which would
                enable any third party to terminate such arrangements.

        4.5     In paragraph 4.2.2 "year 2000 compliant" means the ability for
                the continued normal use of the Computer System such that
                neither the performance nor the functionality of the Computer
                System will be affected by any changes to the date format caused
                by the advent of the year 2000. In particular:

                4.5.1   year 2000 compliant shall mean that no value for current
                        date will cause any interruption of the Computer System;

                4.5.2   all manipulations of time-related data will produce the
                        desired results for all valid date values within the
                        application domain and in combination with other
                        products, prior to, through and beyond the Year 2000 and
                        no part of the Computer System shall use date values for
                        special meanings;

                4.5.3   date elements in interfaces and data storage will permit
                        specifying the century to eliminate date ambiguity
                        without human intervention, including leap year
                        calculations;

                                       52
<PAGE>

                4.5.4   where any date element is represented without a century,
                        the correct century shall be unambiguous for all
                        manipulations involving that element;

                4.5.5   year 2000 shall be identified as a leap year.

5       Intellectual Property

        5.1     All Intellectual Property Rights are in full force and effect
                and are vested in and beneficially owned by the Vendor free from
                any Encumbrance and, without limitation, free from all claims or
                rights of employees, agents, consultants, customers, licencees
                or other parties involved in the development creation
                documentation marketing maintenance enhancement or licencing of
                such Intellectual Property Rights.

        5.2     Details of all registered Intellectual Property Rights, all
                Software, and all other Intellectual Property Rights considered
                by the Vendors to be material to the Business and any
                applications to register Intellectual Property Rights are
                contained in Schedule 4 or in the Disclosure Letter.

        5.3     No person has been authorised by the Vendor to use any
                Intellectual Property Rights owned or used by the Vendor.

        5.4     The Disclosure Letter has copies annexed to it or contains full
                details of all licences and other agreements relating to
                Intellectual Property Rights to which the Vendor is a party.
                Such agreements are valid, subsisting and enforceable in
                accordance with their terms and the Vendor is not in breach of
                any of their provisions.

        5.5     The Business is not carried on in such a way as to infringe any
                intellectual property rights or moral rights of any person.

                                       53
<PAGE>

        5.6     To the knowledge information or belief of the Vendor there has
                not been any infringement by another party of the Intellectual
                Property Rights.

        5.7     So far as the Vendor is aware none of the Intellectual Property
                Rights are being (or are threatened to be) used, claimed,
                opposed or attacked by any person or are subject to any claim or
                potential claim for compensation pursuant to sections 40 and 41
                of the Patents Act 1977 or otherwise.

        5.8     Where an Intellectual Property Right has been registered, the
                Vendor is registered as sole proprietor.

        5.9     To the information, knowledge or belief of the Vendor there is
                no breach of the terms of the authorisations or agreements
                referred to in paragraphs 5.3 and 5.4 by any of the other
                parties thereto and the Vendor is not in breach of the terms of
                the authorisations or agreements.

        5.10    The Vendor has not (except in the ordinary and normal course of
                business) disclosed or permitted to be disclosed or undertaken
                or arranged to disclose to any person other than the Purchaser
                the source code in the software or any of the information
                contained in the Records.

        5.11    The Software owned by the Vendor is not dependant on any
                Software licence to the Vendor in order to operate effectively

        5.12    The source code for all Software is documentated to an extent to
                allow the Purchaser (with reasonably experienced and trained
                personnel) to utilise the Software without the knowledge
                information or assistance of the Vendor, the Assumed Employees
                or any other person.

                                       54
<PAGE>

6       Premises

 [Not used]

7       Records

 The Records:

        7.1     have been, properly maintained on a consistent basis and are up
                to date and contain true and accurate records of all aspects of
                the Business and the Assets to which they relate and of all
                matters required by law to be entered in them;

        7.2     give a true and fair view of the contractual and trading
                position of the Business and of its fixed and current assets and
                liabilities (actual and contingent) and debtors and creditors .

8       Business Accounts

The Business Accounts accurately show (within 5% in aggregate) invoices in
    respect of sales issued during and expenditure incurred during the period to
    which the Business Accounts relate

9       Employees

        9.1     The Disclosure Letter contains details of:

                9.1.1   the identities, dates of commencement of employment (or
                        appointment to office) dates of birth, remuneration and
                        job title of each of the Assumed Employees;

                9.1.2   the written terms of all existing contracts with each of
                        the Assumed Employees;

                                       55
<PAGE>

                9.1.3   the terms of all consultancy agreements relating to the
                        Business.

        9.2     The Vendor has no outstanding liability to any Assumed Employees
                except for salary which has accrued in respect of the calendar
                month in which this Agreement is executed or for business
                expenses incurred during the same month.

        9.3     There are no agreements or other arrangements (whether or not
                legally binding) between the Vendor and any trade union or other
                body representing the Assumed Employees.

        9.4     There is no agreement or understanding (contractual or
                otherwise) between the Vendor and any Assumed Employee with
                respect to:

                9.4.1   his or her employment;

                9.4.2   ceasing to be employed; or

                9.4.3   retirement

        which is not included in the written terms of that employee's employment
               or previous employment (as the case may be).

        9.5     Since 31st December 1999, no change has been made in the terms
                of employment of any Assumed Employee.

        9.6     No negotiations for any increase in the emoluments or benefits
                of any Assumed Employee are current or are expected to take
                place within the next three months.

        9.7     The subsisting contracts of each of the Assumed Employees is
                terminable by the Vendor without compensation (other than under
                the Employment Rights Act 1996) by giving the minimum period of
                notice specified in section 86 of that Act.

                                       56
<PAGE>

        9.8     There is not and has not within the twelve months preceding the
                date of this Agreement been, any industrial dispute involving
                persons engaged in the Business and there are no facts which
                suggest that there may be an industrial dispute involving the
                Assumed Employees.

        9.9     The Disclosure Letter contains details of any claims made by any
                person employed in the Business in the 3 years prior to the date
                of this Agreement for compensation for alleged injury or illness
                caused in the course of employment in the Business whether with
                the Vendor or a previous owner of the Business.

        9.10    The Vendor has not established, nor has expressed an intention
                to establish, any share or share option scheme or arrangement,
                or profit sharing bonus, commission, or other incentive scheme
                for all or any of the Assumed Employees.

        9.11    There is no early retirement scheme applicable to any Assumed
                Employee.

        9.12    None of the products or services supplied by the Business are
                produced or provided by outworkers.

        9.13    The Vendor has not acquired any undertaking or part of one such
                that the Transfer of Undertakings (Protection of Employment)
                Regulations 1981 apply, or may apply, thereto which is being
                sold pursuant to this Agreement as part of the Business.

        9.14    The Disclosure Letter contains a list of all the Retained
                Employees and all other individuals who have worked in the
                Business in the period of 6 months immediately prior to the
                Transfer Date.

        9.15    The Disclosure Letter contains full details of all redundancies
                and dismissals made by the Vendor in the six months period prior
                to Completion.

                                       57
<PAGE>

10      Pensions

There are no agreements, arrangements, customs or practices (whether legally
      enforceable or not) in operation at the date of this Agreement for the
      payment of or contribution towards any pensions, allowances, lump sums or
      other like benefits on retirement or on death or during periods of
      sickness or disablement for the benefit of any of the Assumed Employees or
      for the benefit of the dependants of any such persons, nor has any
      proposal been announced to establish any such agreement or arrangement.

11      Contracts and Customers

        11.1    The Contracts are the only contracts outstanding in respect of
                the Business and the terms of all the Contracts are set out in
                the Disclosure Letter.

        11.2    The Vendor is not party to any Contract where notice of
                termination has been given or received by the Vendor or which
                the Vendor has reason to believe may be terminated (or not
                renewed on any renewal date or the expiry of a fixed term) by
                any other party to it.

        11.3    The Vendor is not in breach of any Contract, and so far as the
                Vendor is aware no other party is in breach of any Contract, and
                to the knowledge, information and belief of the Vendor there are
                no grounds existing at the Transfer Date for the termination,
                rescission, avoidance or repudiation of any Contract by the
                Vendor or any other party to any Contract.

        11.4    No offer, quote or tender given or made by the Vendor in
                relation to the Business on or before the date of this Agreement
                is capable of giving rise to a contract by the unilateral act of
                a third party.

        11.5    The Vendor has not waived nor has any other party waived its
                rights under the Contracts.

                                       58
<PAGE>

        11.6    In the period of twelve months prior to the date of this
                Agreement, no substantial customer or supplier (in each case
                attributing more than 5% of revenue or expenditure in the last
                financial year (as the case may be) of the Business:

                11.6.1  has ceased to trade with the Business;

                11.6.2  has materially reduced the amount of business which it
                        carries on with the Business; or

                11.6.3  has materially changed the terms on which it carries on
                        trade with the Business,

        and no indication has been received by the Vendor that there will or may
            be any such cessation, reduction or change.

        11.7    In the 12 month period prior to the Transfer date there have
                been no arrangements and understandings (whether legally
                enforceable or not) between the Vendor and any person connected
                with the Vendor relating to the management or operation of the
                Business or the letting of any of the Assets or the provision of
                finance, goods, services or other facilities to or by the Vendor
                or otherwise in any way relating to the Business or the Assets.

12      Insolvency

        12.1    No order has been made or petition presented or resolution
                passed for the winding up of the Vendor or for an administration
                order in respect of the Vendor and neither has the Vendor made,
                nor is it in the process of negotiating, any composition with
                its creditors.

        12.2    No administrative receiver supervisor, receiver and/or manager
                has been appointed to the Business or the Assets or any part
                thereof.

                                       59
<PAGE>

        12.3    No distress, execution or other process which remains
                undischarged has been levied on the Business or the Assets.

        12.4    The Vendor is not aware of any facts which could give rise to a
                material possibility that any of the events or circumstances
                referred to in paragraphs 12.1 to 12.3 will take place.

13      Legal Compliance

        13.1    So far as the Vendor is aware neither the Vendor, nor any of its
                officers, agents or employees (during the course of their duties
                in relation to the Business) have committed, or omitted to do,
                any act or thing the commission or omission of which is, or
                could be, in contravention of any act, order, regulation or the
                like in the United Kingdom or elsewhere which is punishable by
                fine or other penalty or could give rise to proceedings or other
                liability in relation to the Business or any of the Assets.

        13.2    So far as the Vendor is awarethere has not been within the six
                years prior to the date of this Agreement and there is not
                pending or in existence any investigation or enquiry by, or on
                behalf of, any governmental or other body into the affairs of
                the Business.

14      Licences

The Vendor has the licences and consents set out in the Disclosure Letter
    required from any governmental or local or similar body for carrying on the
    Business and is not in breach of the terms or conditions of such licences
    and consents and, so far as the Vendors are aware, there are no pending or
    threatened proceedings which might in any way affect such licences and
    consents. To the knowledge, information and belief of the Vendor the Vendor
    has all

                                       60
<PAGE>

        licences and consents required for carrying on the Business and there is
        no reason why any of the licences or consents it does have should be
        suspended, threatened or revoked or be invalid and there is no
        requirement for special arrangement or expense in transferring any of
        them. The Disclosure Letter contains copies of all such licences and
        consents held by the Vendor.

15      Default

In carrying on the Business the Vendor has not , sold or supplied any services
   which were in any respect defective or which did not comply with any
   warranties or representations, expressly or impliedly made by it, or with
   customers' specifications or with all applicable statutes, regulations,
   orders or standards.

16      Litigation

        16.1    Apart from normal debt collection for amounts not exceeding an
                aggregate of(pound)5,000, neither the Vendor, nor any person for
                whose acts or defaults in the matter the Vendor may be
                contractually or vicariously liable, is involved in any civil or
                criminal litigation or arbitration proceedings or reference of
                any dispute or disagreement to an expert which affects the
                Business and to the knowledge, information and belief of the
                Vendor no such proceedings or reference are pending or
                threatened and there are no facts likely to give rise to such
                proceedings arbitration or reference.

        16.2    In relation to the Business there is no unsatisfied judgment or
                unfulfilled order outstanding against the Vendor and the Vendor
                is not party to any undertaking or assurance given to a court,
                tribunal or any other person in connection with the
                determination or settlement of any claim or proceedings.

                                       61
<PAGE>

17      Events since 31st March 1999

Since the 31st March 1999:

        17.1    the Business has been carried on in the ordinary and usual
                course and in the same manner, including nature and scope, as in
                the financial year ended on the Accounts Date;

        17.2    there has been no material adverse change in the trading
                position (or the prospects of the Business) and there has been
                no decrease in turnover or (in the opinion of the Vendor in the
                gross or net profits margins), or in liabilities (actual or
                contingent) or expenses (direct or indirect) of the Business as
                compared with the corresponding months in the financial year
                ended on 31st March 1999

        17.3    the Business has not been adversely affected by the loss of any
                contract or customer or source or supply or by any other factor
                not affecting similar businesses to a like extent;

        17.4    no capital expenditure has been incurred in respect of the
                Business and in particular, without limitation, no capital asset
                having a value in excess of (pound)10,000 or capital assets
                having an aggregate value in excess of (pound)10,000 have been
                acquired or been agreed to be acquired;

        17.5    the Vendor has not disposed of or agreed to dispose of, any
                capital asset which has been used in the Business either
                included in the Accounts at a value in excess of (pound)10,000
                or acquired since the Accounts Date;

18      Taxation

        18.1    No assets to be transferred to the Purchaser pursuant to this
                Agreement are capital items for the purposes

                                       62
<PAGE>

                of Part XV of the Value Added Tax Regulations 1995 (S.I. 2518)
                in respect of which the period of adjustment (as there defined)
                has not expired and that all adjustments required to be made
                pursuant to the said Part on or before the date hereof have been
                made and declared to H M Customs and Excise in the appropriate
                manner.

        18.2    The Vendor has not made any election pursuant to the provisions
                of paragraph 2 Schedule 10 Value Added Tax Act 1994 in respect
                of any land or buildings transferred hereunder.

        18.3    All documents which are required to be stamped and which relate
                to the Assets have been duly stamped.

19      Effects of this Agreement

The Vendor has received no indication that following the acquisition of the
    Business any of its suppliers and customers will cease to deal, or
    materially change its terms of dealing, with the Purchaser.

20      Liabilities

Full and accurate details of all the trade creditors of the Business as at
     the Transfer Date is included in the Disclosure Letter.

21      Capacity

The Vendor has the necessary power and authority to enter into and perform this
    Agreement and sell and transfer the Assets or procure the transfer of the
    Assets and this Agreement constitutes valid and binding obligations of the
    Vendor in accordance with its terms.

                                       63
<PAGE>

                                   SCHEDULE 3

                   Provisions regarding Deferred Consideration

In the event of any part of the Deferred Consideration being paid into a
retention account (the "Escrow Account") pursuant to clause 3.4, then that part
of the Deferred Consideration shall be paid by the Purchaser to the Purchaser's
Solicitors and the Vendor's Solicitors (the "Escrow Account Holders") who shall
be irrevocably instructed by the Vendor and the Purchaser:-

1.      to place the Deferred Consideration in a deposit account in the name of
        the Escrow Account Holders with National Westminster Bank plc and,
        subject to paragraphs 2 and 5, to retain the same in such account;

2.      If at any time or from time to time the Escrow Account Holders shall
        receive notice from the Purchaser stating that any claim for
        compensation, indemnity or abatement has been made by the Purchaser
        under this Agreement to pay to the Purchaser any amount admitted by the
        Vendors or awarded by a final order of any court or competent authority
        (including costs which may be admitted or awarded in favour of the
        Purchaser) and/or (as the case may be) retain the amount in dispute
        pending the determination or award in respect of the claim and, subject
        thereto, to pay the balance of the Deferred Consideration to the
        Vendor's Solicitors or as the Vendor or the Purchaser may jointly
        instruct in writing;

3.      to pay any interest received by the Escrow Account Holders on the
        Deferred Consideration (less any tax thereon for which the Escrow
        Account Holders may be accountable and any charges and expenses incurred
        by the Escrow Account Holders) to the Vendor's and/or to the Purchaser
        in

                                       64
<PAGE>

        proportion to the amounts paid to them under this Schedule.

4.      a final order for the purposes of this Schedule 3 is an order from which
        there is no right of appeal or in respect of which any right of appeal
        has expired

5.      In respect of any relevant claim which ceases to be a claim because of
        the operation of clause 7.8.3 of this Agreement, the Escrow Account
        Holders shall pay the amount claimed in respect of such claim (subject
        to retention of amounts in respect of all other claims) to the Vendor

                                       65
<PAGE>

                                   SCHEDULE 4

                                    Software

"PDM 2000"

"PDM 2000" is an internet based bespoke business application developed to
deliver the most comprehensive information available for both the private
investor and the independent financial advisor.

"PDM 2000" is modular in design and receives data feeds from information vendors
(under contract) to create and deliver financial information via the internet.
For a more detailed specification see document 29 of the Disclosure Bundle

"ShareTracker"

"ShareTracker" is an internet based financial report service and e-commerce
transaction service based upon the same database as "PDM 2000". "ShareTracker"
delivers reports to users on a pay and receive basis. For a more detailed
specification see document 30of the Disclosure Bundle.

                                       66
<PAGE>

EXECUTED AS A DEED by        )
                             )
THE WEB FACTORY LIMITED      )
                             )
acting by
                                  Director  /s/
                                           ------------------------------

                             Secretary/Director  /s/
                                                 ------------------------------

EXECUTED AS A DEED by        )
                             )
CASTLEGATE 133 LIMITED       )
                             )
acting by
                                  Director  /s/
                                            ------------------------------

                             Secretary/Director /s/
                                                -------------------------------

EXECUTED by                  )
                             )
TELTRAN INTERNATIONAL        )
                             )
GROUP LIMITED                )
                             )
acting by its duly authorised)
                             )
representative               )

EXECUTED by                  )
                             )
DATATEC LIMITED              )
                             )
acting by
                                  Director  /s/
                                            ------------------------------

                             Secretary/Director  /s/
                                                 ------------------------------

                                       67<PAGE>

<TABLE>

<S> <C>                                               <C>
To: (1)   Inter Parfums, S.A.                         (2)   Inter Parfums, Inc.
          4-6 Rond Point des Champs-Elysees                 551 Fifth Avenue
          75008 Paris                                       New York
          France                                            NY 10176-0198
          For the attention of Philippe Benacin             USA
                                                            For the attention of Jean Madar

    (3)   Philippe Benacin                            (4)   Jean Madar
          31 Avenue Kleber                                  1 Rue de Marechal Harispe
          75016 Paris                                       75007 Paris
          France                                            France

    (5)   Philippe Santi                              (6)   Daniel Piette
          (c/o Inter Parfums, S.A.)                         (c/o Inter Parfums, Inc.)

    (7)   Jean Cailliau                               (8)   LV Capital, USA, Inc.
          (c/o Inter Parfums, Inc.)                         Two Park Avenue
                                                            Suite 1830
                                                            New York
                                                            New York 10016
                                                            USA
</TABLE>

                                                                 8 February 2000

Dear Sirs

INTER PARFUMS, INC. / LVMH

1.   INTRODUCTION

1.1  We refer to:

     (a)  the investment by LV Capital USA, Inc. in Inter Parfums, Inc in
          November 1999;

     (b)  the Licence Agreement (as defined below); and

     (c)  the Extension Agreement (as defined below).

1.2  In consideration for Burberry entering into the Extension Agreement and for
     the waiver

<PAGE>

     by Burberry of its rights under Clauses 15.1(b), 16.1(i) and 17.6 of the
     Licence Agreement in relation to the investment referred to in Paragraph
     1.1(a) above, the addressees of this letter have agreed to its terms.

2.   DEFINITIONS

2.1  In this letter the following terms have the following meanings:

     "BURBERRY"               means Burberry Limited, a company incorporated in
                              England and Wales under No. 162636, whose
                              registered office is at 18/22 Haymarket, London
                              SW1Y 4DQ;

     "BURBERRY INFORMATION"   means any and all information (in any
                              form) relating to the business or affairs of
                              Burberry which is:

                              (1)     confidential or secret; or

                              (2)     information whose use or disclosure
                                      might detrimentally affect Burberry's
                                      business, goodwill or other legitimate
                                      interests

                              which shall include but not be limited to any
                              and all information concerning:

                              (i)     proposed, possible or intended openings
                                      or acquisitions of Burberry retail
                                      outlets (including departments,
                                      concessions, sections or corners in a
                                      retail store);

                              (ii)    proposals or intentions for Burberry to
                                      begin supplying any products to any
                                      person, firm or company;

                              (iii)   Burberry's business plans, intentions or
                                      objectives;

                              (iv)    proposed, contemplated or actual changes
                                      of Burberry personnel and/or officers;

                              (v)     product and/or geographic markets
                                      targeted or contemplated by Burberry;

                              (vi)    proposed or intended brand names of any
                                      Burberry product;

                              (vii)   product development by or on behalf of
                                      Burberry;

                                     2
<PAGE>

                              (viii)  the identity of any proposed or possible
                                      licensee of Burberry; and/or

                              (ix)    the trading performance of Burberry
                                      (other than in relation to Licensed
                                      Products)

                              but which shall not include:-

                              (a)     Permitted Information; or

                              (b)     information which can be demonstrated by
                                      IPSA to have been publicly available
                                      (i.e. in the public domain) as at the
                                      date of receipt by IPSA or to have
                                      become publicly available (i.e. entered
                                      the public domain) subsequently other
                                      than as a direct or indirect result of
                                      any infringement of the Licence
                                      Agreement or of this letter;

     "CONTROL"                means the power to direct the affairs of
                              another, whether by contract, the ownership of
                              shares, or otherwise; and "CONTROLS" and
                              "CONTROLLED" shall be construed accordingly;

     "EXTENSION AGREEMENT"    means the letter agreement entered into
                              contemporaneously with this Agreement between
                              Burberry, IPSA and IPInc to (among other things)
                              extend the term of the Licence Agreement to 31
                              December 2006;

     "IPINC"                  means Inter Parfums, Inc., a Delaware
                              corporation, whose principal place of business
                              is at 551 Fifth Avenue, New York, New York
                              10176, USA;

     "IPSA"                   means Inter Parfums, S.A., whose principal place
                              of business is at 4-6 Rond Point des
                              Champs-Elysees, 75008, Paris, France;

     "LICENCE AGREEMENT"      means the Licence Agreement dated 15 July 1993
                              between Burberry, IPSA and IPInc, as amended;

     "LV CAPITAL"             means LV Capital, USA, Inc, a Delaware
                              corporation;

     "LVMH"                   means LVMH Moet Hennessy Louis Vuitton S.A., a
                              French societe anonyme;

                                     3
<PAGE>

     "LVMH AFFILIATE"         means a corporation, entity or person which
                              directly or indirectly Controls or is Controlled
                              by or is under common Control with LVMH and/or
                              LV Capital;

     "LVMH REPRESENTATIVES"   means those directors of IPInc from time to time
                              who are Prohibited Persons or are nominated or
                              appointed by, or who represent, LVMH, LV Capital
                              and/or any LVMH Affiliate; the current LVMH
                              Representatives being Daniel Piette and Jean
                              Cailliau;

     "PERMITTED INFORMATION"  means:

                              (i)     any and all financial data relating to
                                      IPSA, including but not limited to all
                                      accounts; sales figures; Net Sales;
                                      Quarterly Accounts; Annual Accounts;
                                      cost of goods; development costs;
                                      marketing, promotion and advertising
                                      expenses of IPSA and IPSA's projections
                                      and forecasts;

                              (ii)    details of any allegations, claims or
                                      notices by or to Burberry from time to
                                      time (and at any time) of any breach of,
                                      default under, or cure of such breach or
                                      default under the Licence Agreement;

                              (iii)   details of any proposed modifications or
                                      amendments to the Licence Agreement from
                                      time to time (and at any time); and

                              (iv)    such other information as Burberry may
                                      from time to time at its absolute
                                      discretion agree in writing; and

     "PROHIBITED PERSON"      means each of:

                              (i)     LV Capital;

                              (ii)    LVMH;

                              (iii)   any LVMH Affiliate;

                              (iv)    any person, firm or company who is at
                                      the relevant time employed by or a
                                      representative, advisor, agent,
                                      consultant or officer of LV Capital,
                                      LVMH and/or any LVMH Affiliate; and

                                     4
<PAGE>

                              (v)     the LVMH Representatives.

2.2  Terms defined in the Licence Agreement shall have the same meaning in this
     letter unless the context requires otherwise.

3.   BURBERRY INFORMATION

3.1  Without prejudice to Clause 20 of the Licence Agreement, each of IPInc,
     IPSA, Philippe Benacin, Jean Madar and Philippe Santi shall:

     (a)  not directly or indirectly disclose (and shall ensure that no person,
          firm or company will directly or indirectly disclose) any Burberry
          Information to any Prohibited Person at any time;

     (b)  not use (and will not permit, authorise or enable any person, firm or
          company to use) any Burberry Information for any purpose other than
          the proper performance of the Licence Agreement by IPSA; and

     (c)  ensure that:

          (i)   all the directors of IPSA;

          (ii)  all the directors of IPInc; and

          (iii) everyone working at or for IPSA or IPInc in relation to the
                Licensed Products and/or Burberry from time to time

          is aware of the obligations contained in this Paragraph 3.1 and
          shall comply with them at all times as if they were each
          individually a party to this letter

     provided that Burberry Information may be disclosed to any Prohibited
     Person if and to the extent required by any applicable legal or regulatory
     requirement, but only if IPSA or IPInc first notifies Burberry promptly of
     the nature and extent of (and reason for) the required disclosure and gives
     Burberry reasonable opportunity to object and/or to obtain an appropriate
     order or confidentiality agreement.

3.2  No LVMH Representative nor any other Prohibited Person shall:-

     (a)  attend any meetings with Burberry (nor any of Burberry's employees,
          officers and/or agents) relating directly or indirectly to the Licence
          Agreement or any of the Licensed Products; nor

     (b)  attend any meetings or participate in discussions if and to the extent
          that they relate to the operation of the Licence Agreement

                                       5
<PAGE>

     without Burberry's prior written consent; but either or both of the
     LVMH Representatives may attend any meeting and/or participate in any
     discussion to the extent that Permitted Information is discussed or
     disclosed, provided that no other issues concerning the operation of the
     Licence Agreement shall be discussed at that meeting in the presence
     (whether physical, audible or electronic) or with the participation of
     either or both of the LVMH Representatives.

3.3 IPSA, IPInc, Philippe Benacin and Jean Madar will ensure that:

     (a)  all issues concerning the proper day to day performance of the Licence
          Agreement by IPSA (including design, product development, marketing,
          promotion, etc) will be dealt with by IPSA alone and (save for the
          disclosure and discussion of Permitted Information) without reference
          to IPInc;

     (b)  all issues relating to Burberry and/or the Licence Agreement which
          (subject to Paragraphs 3.1 and 3.3(a) above) are reported back or
          referred to IPInc by IPSA (except for Permitted Information) shall be
          handled exclusively by a committee of IPInc executives, which shall
          not include either of the LVMH Representatives or any other Prohibited
          Person; and

     (c)  no member of that committee shall report or disclose (or permit the
          disclosure of) any Burberry Information to any Prohibited Person.

3.4  Without prejudice to Paragraphs 3.1 to 3.3 above, if (despite those
     Paragraphs) any Burberry Information is disclosed to or obtained by either
     of the LVMH Representatives, neither of the LVMH Representatives shall
     disclose that information to any other Prohibited Person (including but not
     limited to the other LVMH Representative), nor use it (nor permit it to be
     used) for any purpose other than the proper performance by IP Inc and/or
     IPSA of its obligations under the Licence Agreement or any other purpose
     which is essential in order to perform the fiduciary duties of the LVMH
     Representatives as directors of IPInc.

3.5  Each of IPInc, IPSA, Philippe Benacin and each of the LVMH Representatives
     shall execute and deliver to Burberry within 30 days after the end of each
     calendar year a certificate of compliance substantially in the form set out
     in the Schedule to this letter. If:

     (a)  any of them has not issued such a certificate within that time period
          and fails to do so within 30 days after Burberry has notified IPInc
          and IPSA in writing of that failure; and/or

     (b)  any such certificate is false or misleading in any material respect

     then Burberry may (subject to Paragraph 6.2 below) terminate the Licence
     Agreement immediately (or after the expiry of such longer notice as
     Burberry may at its discretion see fit) by giving written notice of
     termination to IPInc and IPSA.

                                       6
<PAGE>

4.   BOARD REPRESENTATION ON IPSA

4.1  IPInc, Philippe Benacin and Jean Madar shall ensure that:

     (a)  no Prohibited Person shall appoint or nominate (directly or
          indirectly) any director or officer of IPSA; and

     (b)  no Prohibited Person, nor any employee, officer, agent or
          representative of any Prohibited Person, will become a director or
          officer of IPSA, unless they do so as part of a bona fide acquisition
          by IPSA of the business of an LVMH Affiliate and on completion of that
          acquisition the relevant person ceases to be an employee, officer,
          agent or representative of the LVMH Affiliate and becomes a full time
          officer or employee of IPSA.

     provided that this Paragraph 4.1 shall not limit the performance by the
     LVMH Representatives of their fiduciary duties as directors of IPInc.

4.2  LV Capital shall not appoint or seek to appoint or nominate any director or
     officer of IPSA.

4.3  No LVMH Representative shall be appointed or serve as a director or officer
     of IPSA.

5.   POSSIBLE FURTHER INVOLVEMENT OF LVMH

5.1  Subject to Paragraph 5.2, if:

     (a)  there is an increase in the aggregate number of LVMH Representatives;
          or

     (b)  the percentage of the IPInc Board who are LVMH Representatives (the
          "RELEVANT PERCENTAGE") increases to more than 25%;

     (however arising) this will constitute a material change under Clause 15.1
     of the Licence Agreement.

5.2  If the resignation and/or death of one or more directors of IPInc causes
     the Relevant Percentage to increase to more than 25%, then the increase
     caused by those death(s) and/or resignation(s) shall not constitute a
     material change under Clause 15.1 of the Licence Agreement provided that
     within 30 days after the date when the Relevant Percentage exceeded 25%,
     additional directors of IPInc (who are not LVMH Representatives) are
     appointed so that the Relevant Percentage falls to below 25%.

5.3  If at any time the aggregate beneficial shareholding and/or voting rights
     of LVMH, LV Capital, and LVMH Affiliates in IPInc is equal to or greater
     than the aggregate beneficial shareholding and/or voting rights of Philippe
     Benacin and Jean Madar in IPInc, Burberry

                                       7
<PAGE>

     may (subject to Paragraph 6.2 below) terminate the Licence Agreement
     immediately (or after the expiry of such longer notice as Burberry may at
     its discretion see fit) by giving written notice of termination to IPInc
     and IPSA.

6.   TERMINATION OF LICENCE AGREEMENT

6.1  Without prejudice to Clause 16 of the Licence Agreement, Burberry may
     (subject to Paragraph 6.2 below) terminate the Licence Agreement with
     immediate effect (or after the expiry of such longer notice as Burberry may
     at its discretion see fit) by giving written notice of termination to IPSA
     and IPInc if any of the parties to this letter (other than Burberry):

     (a)  commits any material breach of this letter which is not capable of
          remedy; or

     (b)  commits a material breach of this letter which is capable of remedy
          and fails to remedy that breach within 30 days of being requested in
          writing to do so.

6.2  Any termination of the Licence Agreement in accordance with this letter
     (whether under Paragraph 3.5, 5.2 or 6.1 of this letter, or otherwise)
     shall be subject to those provisions of the Licence Agreement which are
     expressed to apply or to continue in force after termination, including but
     not limited to Clauses 13.5, 13.7, 16.4, 16.7, 16.8, 16.9 and 20 of the
     Licence Agreement.

7.   GENERAL PROVISIONS

7.1  The rights and remedies contained in this letter and in the Licence
     Agreement are cumulative and not exclusive of any other rights or remedies,
     whether provided by law, equity or otherwise.

7.2  This letter constitutes the entire agreement between the parties with
     respect to its subject matter and (other than the Licence Agreement and
     Extension Agreement) supersedes all prior agreements and understandings
     (both oral and written) between the parties with respect to the subject
     matter of this letter.

7.3  Nothing in this letter shall constitute or be deemed to constitute a
     partnership between the parties or to make one party the agent of another
     for any purpose.

7.4  Each party represents and warrants to the other parties that it has the
     full right, power and authority to enter into this letter and to perform
     all of its obligations under it.

7.5  Any notice to be given under this letter shall be given in accordance with
     Clause 22 of the Licence Agreement. Any notice given:-

     (a)  to Philippe Benacin and/or Philippe Santi shall be given to him (or
          them) c/o IPSA;

                                       8
<PAGE>

     (b)  to Jean Madar and/or any LVMH Representative shall be given to him (or
          them) c/o IPInc

     or to such other address or fax numbers as may from time to time be
     properly notified to Burberry.

7.6  No amendments to or modifications of any of the provisions of this letter
     shall be effective unless they are in writing and signed by the parties (if
     they are individuals) or their duly authorised representatives (if they are
     companies).

7.7  No forbearance, indulgence or relaxation shown or granted by Burberry to
     any other party in enforcing any of the terms of this letter shall in any
     way affect, diminish, restrict, operate as or be deemed to be a waiver of
     any breach of any of those terms by any other party. No single or partial
     exercise of any right or remedy under this letter shall prevent any further
     exercise of the right or remedy or the exercise of any other right or
     remedy.

7.8  Each party shall bear its own costs in relation to the negotiation and
     preparation of this letter.

7.9  This letter shall be subject to and construed in accordance with English
     law. The English Courts shall (subject as mentioned below) have exclusive
     jurisdiction to determine any disputes which may arise out of, under, or in
     connection with this letter, provided that nothing contained in this letter
     shall prevent Burberry from obtaining any injunctive or other similar
     relief which may be available to it in the Courts of any other country or
     state in any particular case and the other parties each submit to the
     jurisdiction of any such court. It is acknowledged that damages would not
     be an adequate remedy for a breach of this letter.

7.10 This letter may be executed in any number of counterparts, each of which
     when executed shall be an original, but all the counterparts together shall
     constitute one and the same instrument.

Please sign, date and return the enclosed copy of this letter to confirm your
agreement to its terms.

Yours sincerely

---------------------------------
VICTOR J. BARNETT
For and on behalf of
BURBERRY LIMITED

                                       9
<PAGE>

We confirm our agreement to the above

SIGNED by PHILIPPE BENACIN)
for and on behalf of      )
INTER PARFUMS, S.A.       )        .............................................

Dated:                                                                      2000

SIGNED by JEAN MADAR      )
for and on behalf of      )
INTER PARFUMS, INC        )        .............................................

Dated:                                                                      2000

SIGNED by                 )
PHILIPPE BENACIN          )       ..............................................

Dated:                                                                      2000

SIGNED by                 )
JEAN MADAR                )        .............................................

Dated:                                                                      2000

SIGNED by                 )
PHILIPPE SANTI            )        .............................................

Dated:                                                                      2000

                                       10
<PAGE>

SIGNED by                 )
DANIEL PIETTE             )        .............................................

Dated:                                                                      2000

SIGNED by                 )
JEAN CAILLIAU             )        .............................................

Dated:                                                                      2000

SIGNED by                 )
for and on behalf of      )
LV CAPITAL, USA, INC.     )        .............................................

Dated:                                                                      2000

                                       11
<PAGE>

                                    SCHEDULE

                            CERTIFICATE OF COMPLIANCE

To:      Burberry Limited
         18-22 The Haymarket
         London SW1Y 4DQ

FAO:     The Director of Licensing

                                                               Dated [ o ] 20[o]

                            CERTIFICATE OF COMPLIANCE

1.   I/We refer to the Confidentiality Agreement dated [ o ] 2000 between
     Burberry Ltd, Inter Parfums, S.A., Inter Parfums, Inc., Philippe Benacin,
     Jean Madar, Philippe Santi, Daniel Piette, Jean Cailliau and LV Capital,
     USA, Inc (the "CONFIDENTIALITY AGREEMENT").

2.   I/We hereby certify and confirm to Burberry Limited that all the provisions
     of Paragraph 3 of the Confidentiality Agreement were complied with in full
     during the year.

3.   I/We are fully aware of the consequences if this certificate is false or
     misleading in any material respect.

[For individuals]                       [For Inter Parfums S.A./Inc.]
-----------------                       -----------------------------
Signed by:                              Signed by:
Name: ...............................   Name: ..................................

                                        Title: .................................

Signature: ..........................   Signature: .............................
                                           Duly authorised for and on behalf of
                                        INTER PARFUMS SA/INC
in the presence of:
Name of witness: ........................................

Address of witness ......................................

 .........................................................

Occupation of witness: ..................................

Signature of witness: ...................................

                                       12

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