Document:

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                      FIRST AMENDMENT TO LICENSE AGREEMENT

         THIS FIRST AMENDMENT TO LICENSE AGREEMENT (the "First Amendment") is
made and entered into as of March 1, 2001 by and between Oryx Technology Corp.,
a Delaware corporation ("Oryx") and Oryx Advanced Materials, Inc., a California
corporation ("Licensee").

         WHEREAS, Oryx and Licensee have entered into that certain License
Agreement dated as of June 1, 1999 (the "Agreement").

         WHEREAS, Oryx and Licensee desire to amend the Agreement as set forth
in this First Amendment.

         NOW, THEREFORE, the parties, intending to be legally bound, agree as
follows:

         1. Amendment to Section 3(e). Section 3(e) is hereby amended in its
entirety to read as follows:

         "(e) Upon payment by Licensee to Oryx of (i) a one-time termination
payment of One Hundred Thousand Dollars ($100,000) and (ii) accrued royalties
through November 30, 2000 of One Hundred Twenty Thousand Dollars ($120,000) to
be evidenced by a secured subordinated promissory note in substantially the form
attached hereto as Exhibit A (the "Note"), Licensee's payment obligations shall
be amended such that Licensee's sole royalty obligation to Oryx under this
Agreement shall be a two and one half percent royalty (2.5%) in perpetuity on
gross sales revenue of the Intragene business of Licensee, commencing as of
December 1, 2000. Such royalty shall be payable quarterly in arrears on each
July 15, October 15, January 15, and April 15. The audit rights set forth in
Section 3(d) of the Agreement shall apply to such royalty payments.
Notwithstanding the foregoing, upon any Event of Default (as defined in the
Note), the preceding amendment to subsection (e) shall be null and void and the
royalty obligations of Licensee, as set forth in the Agreement shall be
reinstated in their entirety."

         2. Counterparts. This First Amendment may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

         3. Complete Agreement. The Agreement and this First Amendment
constitute the entire agreement of the parties with respect to the subject
matter thereof and hereof and supercede all prior agreements of the parties and
all representations, warranties, undertakings and understandings, whether
written or verbal, made with respect to the same subject matter. The Agreement
and this First Amendment may not be changed or modified in any manner, orally or
otherwise, except in writing, in the form of an amendment, duly executed by each
of the parties hereto.

         4. Governing Law; Authority. This First Amendment shall be governed by
and construed under the laws of the State of California applied to agreements
among California residents entered into and to be performed entirely within
California.

                                       1
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this First Amendment
to be executed by their duly authorized representatives as of the day and year
first written above.

                                          ORYX TECHNOLOGY CORP.

                                          By: /s/  Mitch Underseth
                                              -----------------------------

                                          Name: Mitch Underseth
                                                ---------------------------

                                          Title: CFO
                                                 --------------------------
                                          ORYX ADVANCED MATERIALS, INC.

                                          By: /s/ Victor Tan
                                              -----------------------------

                                          Name: Victor Tan
                                                ---------------------------

                                          Title: President
                                                 --------------------------

                                       2
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                                    EXHIBIT A

                      Secured Subordinated Promissory Note

<PAGE>

                      SECURED SUBORDINATED PROMISSORY NOTE

                                                             Fremont, California
$120,000.00                                                        March 1, 2001

         This Secured Subordinated Promissory Note (this "Note") is made and
delivered pursuant to that certain First Amendment to License Agreement dated as
of March 1, 2001 (the "First Amendment") between Oryx Advanced Materials, Inc.,
a California corporation ("Debtor") and Oryx Technology Corp., a Delaware
corporation ("Oryx").

         1. Obligation. The undersigned Debtor hereby promises to pay to the
order of Oryx Technology Corp. (or any successor-in-interest or assignee
thereof) at Oryx's principal place of business at 1100 Auburn Street, Fremont,
California 94538, or at such other place as Oryx may direct, the principal sum
of One Hundred Twenty Thousand Dollars ($120,000) and all accrued interest
thereon. Debtor shall pay to Oryx principal in monthly installments of Ten
Thousand Dollars ($10,000) together with all interest accrued thereon at a rate
of eight percent (8%) per annum commencing on April 1, 2001, 2001 and on the
first business day of each month thereafter until all principal and accrued
interest under this Note has been paid in full.

         2. Prepayment. Prepayment of unpaid principal and/or interest due under
this Note may be made at any time without penalty. Unless otherwise agreed in
writing by Oryx, all payments will be made in lawful tender of the United States
and will be applied (a) first, to the payment of accrued interest, and (b)
second, (to the extent that the amount of such prepayment exceeds the amount of
all such accrued interest), to the payment of principal.

         3. Security. As security for the due performance and payment of the
obligations under this Note, Debtor hereby grants to Oryx a security interest in
any and all of Debtor's assets, properties, goods, inventory, equipment,
furniture, fixtures, leases, supplies, records, money, documents, instruments,
chattel paper, accounts and intellectual property rights (including but not
limited to, copyrights, moral rights, patents, patent applications, mask works,
trademarks, service marks, trade names, trade secrets and other general
intangibles, whether owned by Debtor on the date of this Note or hereafter
acquired, and all proceeds and thereof (collectively, the "Collateral"). So long
as Debtor is indebted to Oryx under the Note, Debtor will promptly execute and
deliver to Oryx such assignments, notices, financing statements, or other
documents and papers (including, but not limited to, such documents as may be
filed with the U.S. Register of Copyrights and the U.S. Patent and Trademark
Office in order to perfect Oryx's rights in the Collateral) as Oryx may require
in order to perfect and maintain the security interest in the Collateral and to
give any third party notice of Oryx's interest in such Collateral. Debtor will
pay to Oryx all reasonable expenses incurred by Oryx in filing such assignments,
notices, financing statements or other documents or papers (and any continuation
statements or amendments thereto). Upon the full and final discharge of all of
Debtor's obligations under this Note, Oryx will execute and deliver such
documents as may be reasonably necessary and requested by Debtor to release the
Collateral from the security interested granted to Oryx hereunder.

                                       1
<PAGE>

         4. Default; Acceleration of Obligation. Debtor will be deemed to be in
default under this Note and the outstanding unpaid principal balance of this
Note, together with all interest accrued thereon, will immediately become due
and payable in full, without the need for any further action on the part of
Oryx, upon the occurrence of any of the following (each, an "Event of Default"):
(i) failure to pay any installment of principal or interest under this Note when
due and such default is not cured within thirty (30) days of the occurrence
thereof; (ii) upon the filing by or against Debtor of any voluntary or
involuntary petition in bankruptcy or any petition for relief under the federal
bankruptcy code or any other state or federal law for the relief of debtors;
provided, however, with respect to an involuntary petition in bankruptcy, such
petition has not been dismissed within thirty (30) days after the filing of such
petition; (iii) upon the execution by Debtor of an assignment for the benefit of
creditors or the appointment of a receiver, custodian, trustee or similar party
to take possession of Debtor's assets or property; or (iii) upon any breach,
default or violation by Debtor of any term, condition, obligation,
representation or covenant of the Agreement or the First Amendment that is not
cured within thirty (30) days of such breach, default or violation.

         5. Remedies on Default; Acceleration. Upon any Event of Default, Oryx
may declare the entire unpaid principal and accrued interest amount under this
Note to be immediately due and payable in full and may pursue any legal or
equitable remedies that are available to Oryx including, but not limited to, (i)
the remedies of a secured creditor with respect to the Collateral under the
California Uniform Commercial Code and (ii) the right to institute a suit or
other action for recovery of the entire principal amount of and all accrued
interest on this Note then due and owing from Debtor to Oryx.

         6. Representations and Warranties of Debtor. Debtor represents and
warrants to Oryx that:

                  (a) Authority. Debtor has all right, power and authority
necessary to make, enter into and perform its obligations under this Note. This
Note is a valid and binding obligation of Debtor, enforceable against Debtor in
accordance with its terms. Neither the execution and delivery of this Note nor
the consummation of any transaction contemplated hereby has constituted or
resulted in, or will constitute or result in, a breach of the provisions of any
instrument, contract or agreement to which Debtor is a party or by which Debtor
and/or the Collateral is bound, or the violation of any law, judgment, decree or
governmental or administrative order, rule or regulation applicable to Debtor,
or has resulted in or will result in the creation of any lien or claim upon any
of the Collateral. No consent of any other person (including without limitation
any shareholder or creditor of Debtor) is required in connection with the
execution, delivery, performance, validity or enforceability of this Note.

                  (b) Title; No Liens or Claims in Collateral. Debtor owns all
right, title and interest in and to the Collateral and no other person or entity
has any right, title or interest in or to the Collateral. The Collateral, except
for the lien granted to KBK Financial, is free and clear of all liens, security
interests, mortgages, claims, rights, encumbrances and restrictions of any kind,
except for the security interest granted to Oryx under this Note.

                                       2
<PAGE>

         7. Covenants. Debtor covenants and agrees with Oryx that, from and
after the date of this Note until all the obligations under this Note are paid
in full and satisfied and the Note has terminated:

                  (a) No Liens on Collateral. Debtor will not create, incur or
permit to exist, will defend the Collateral against, and will take such other
action as is necessary to remove, any lien, security interest, encumbrance or
claim on or to any of the Collateral, other than the security interest
previously granted to KBK Financial and the security interest granted to Oryx
under this Note.

                  (b) Limitations on Dispositions of Collateral. Debtor will not
sell, transfer, lease or otherwise dispose of any of the Collateral, or attempt,
offer or contract to do so, except for the grant of non-exclusive licenses in
the ordinary course of business.

         8. Subordination

                  (a) The indebtedness evidenced by this Note is hereby
expressly subordinated, to the extent and in the manner hereinafter set forth,
in right of payment to the prior payment in full of all Debtor's Senior
Indebtedness, if any, as hereinafter defined. As used herein, the term "Senior
Indebtedness" shall mean the principal of and unpaid accrued interest on
indebtedness of Debtor to KBK Financial.

                  (b) If there should occur any receivership, insolvency,
assignment for the benefit of creditors, bankruptcy, reorganization or
arrangements with creditors (whether or not pursuant to bankruptcy or other
insolvency laws), sale of all or substantially all of the assets, dissolution,
liquidation or any other marshaling of the assets and liabilities of Debtor, or
if this Note shall be declared due and payable upon the occurrence of an event
of default with respect to any Senior Indebtedness, if any, then (i) no amount
shall be paid by Debtor in respect of the principal of or interest on this Note
at the time outstanding, unless and until the principal of and interest on the
Senior Indebtedness then outstanding shall be paid in full, and (ii) no claim or
proof of claim shall be filed with Debtor by or on behalf of Oryx or any
subsequent holder of this Note that shall assert any right to receive any
payments in respect of the principal of and interest on this Note, except
subject to the payment in full of the principal of and interest on all of the
Senior Indebtedness then outstanding. If there occurs an event of default that
has been declared in writing with respect to any Senior Indebtedness, or in the
instrument under which any Senior Indebtedness is outstanding, permitting the
holder of such Senior Indebtedness to accelerate the maturity thereof, then,
unless and until such event of default shall have been cured or waived or shall
have ceased to exist, or all Senior Indebtedness shall have been paid in full,
no payment shall be made in respect of the principal of or interest on this
Note, unless within ninety (90) days after the happening of such event of
default, the maturity of such Senior Indebtedness shall not have been
accelerated.

                  (c) Subject to the rights of the holders of Senior
Indebtedness under this Section 8 to receive cash, securities or other
properties otherwise payable or deliverable to Oryx or any subsequent holder of
this Note, nothing contained in this Section 8 shall impair, as between Debtor
and Oryx or any subsequent holder of this Note, the obligation of Debtor,
subject to the terms and conditions hereof, to pay to Oryx or any subsequent
holder of this Note

                                       3
<PAGE>

the principal hereof and interest hereon as and when the same become due and
payable, or shall prevent Oryx or any subsequent holder of this Note, upon
default hereunder, from exercising all rights, powers and remedies otherwise
provided herein or by applicable law.

                  (d) Subject to the payment in full of all Senior Indebtedness
and until this Note shall be paid in full, Oryx and any subsequent holder of
this Note shall be subrogated to the rights of the holders of Senior
Indebtedness (to the extent of payments or distributions previously made to such
holders of Senior Indebtedness pursuant to the provisions of Section 8 above) to
receive payments or distributions of assets of Debtor applicable to the Senior
Indebtedness.

         9. Miscellaneous.

                  (a) Waiver and Amendment. Any provision of this Note may
be amended or modified only by a writing signed by both Debtor and Oryx. Except
as provided below with respect to waivers by Debtor, no waiver or consent with
respect to this Note will be binding or effective unless it is set forth in
writing and signed by the party against whom such waiver is asserted. No course
of dealing between Debtor and Oryx will operate as a waiver or modification of
any party's rights or obligations under this Note. No delay or failure on the
part of either party in exercising any right or remedy under this Note will
operate as a waiver of such right or any other right. A waiver given on one
occasion will not be construed as a bar to, or as a waiver of, any right or
remedy on any future occasion.

                  (b) Waivers of Debtor. Debtor hereby waives presentment,
notice of non-payment, notice of dishonor, protest, demand and diligence.

                  (c) Governing Law; Jurisdiction. This Note will be governed by
and construed in accordance with the internal laws of the State of California as
applied to agreements between residents thereof to be performed entirely within
such State, without reference to that body of law relating to conflict of laws
or choice of law. Debtor, by its execution of this Note, hereby irrevocably
submits to the in personam jurisdiction of the state courts of the State of
California and of the United States District Court for the Northern District of
California for the purpose of any suit, action or other proceeding arising out
of or based upon this Note.

                  (d) Severability; Headings. The invalidity or unenforceability
of any term or provision of this Note will not affect the validity or
enforceability of any other term or provision hereof. The headings in this Note
are for convenience of reference only and will not alter or otherwise affect the
meaning of this Note.

                  (e) Attorneys' Fees. If suit is brought for collection of this
Note, Debtor agrees to pay all reasonable expenses, including attorneys' fees,
incurred by Oryx in connection therewith whether or not such suit is prosecuted
to judgment.

                  (f) Assignment. This Note may not be assigned or delegated by
Debtor, whether by voluntary assignment or transfer, operation of law, merger or
otherwise.

                                       4
<PAGE>

         IN WITNESS WHEREOF, Debtor and Oryx have executed this Note as of the
date and year first above written.

                                            DEBTOR:

                                            Oryx Advanced Materials, Inc.
                                            a California corporation

                                            By:         /s/ Victor Tan
                                                     ---------------------------

                                            Name:        Victor Tan
                                                     ---------------------------

                                            Title:       President
                                                     ---------------------------

                                            ORYX:

                                            Oryx Technology Corp.
                                            a Delaware corporation

                                            By:         /s/  Mitch Underseth
                                                     ---------------------------

                                            Name:       Mitch Underseth
                                                     ---------------------------

                                            Title:       CFO
                                                     ---------------------------

                                       5<PAGE>

                              LOTS TECHNOLOGY INC.
                   SERIES A PREFERRED STOCK PURCHASE AGREEMENT

     THIS SERIES A PREFERRED STOCK PURCHASE AGREEMENT is entered into as of July
30, 1999, by and between LOTS Technology Inc., a California corporation (the
"Company"), and the purchasers listed on the Schedule of Purchasers attached
hereto as Exhibit A (the "Purchasers").

     In consideration of the mutual promises, covenants and conditions
hereinafter set forth, the parties hereto agree as follows:

     1. Authorization and Sale of the Shares.

        1.1. Authorization; Amended and Restated Articles of Incorporation. The
Company has adopted and filed with the Secretary of State of California Amended
and Restated Articles of Incorporation in the form attached hereto as Exhibit B
(the "Articles") to create and authorize 1,000,000 shares of Series A Preferred
Stock (the "Series A Preferred" or the "Shares") having the rights,
restrictions, privileges and preferences set forth in the Articles and, on or
before the Closing Date (as hereinafter defined), shall take all necessary
corporate action for the purpose of authorizing the sale and issuance of the
Shares pursuant hereto.

        1.2. Issuance and Sale. Subject to the terms and conditions hereof, at
the Closing (as hereinafter defined) the Company will issue and sell to each
Purchaser, and each Purchaser will purchase from the Company, the number of
Shares specified opposite such Purchaser's name on the Schedule of Purchasers at
a purchase price of $3.00 per share, for the aggregate purchase price shown
opposite such Purchaser's name on the Schedule of Purchasers.

        1.3. Separate Agreements. The Company's agreement hereunder with each
Purchaser is a separate agreement, and the sale of the Shares to each Purchaser
is a separate sale.

     2. Closings; Delivery.

        2.1. Closings. The initial closing of the purchase and sale of the
Shares shall take place at the offices of Gray Cary Ware & Freidenrich LLP,
counsel to the Company, 400 Hamilton Avenue, Palo Alto, California on July 30,
1999 (the "Closing"). The date of the Closing is hereinafter referred to as the
"Closing Date". The Company may conduct additional closings hereunder until such
time as it has sold all of the Shares (each such closing a "Subsequent Closing"
and the date thereof a "Subsequent Closing Date."). Each party purchasing Shares
at a Subsequent Closing shall be treated as a Purchaser hereunder.

        2.2. Delivery. Subject to the terms and conditions of this Agreement, at
the Closing or Subsequent Closing, as applicable, the Company will deliver to
each Purchaser a stock certificate representing the Shares to be purchased by
such Purchaser (which shall be issued in such Purchaser's name as set forth on
the Schedule of Purchasers) against payment of the

                                      -1-
<PAGE>

purchase price therefor by a check, payable to the order of the Company, by wire
transfer of immediately available funds to the bank account of the Company
and/or by services rendered by Purchaser for the benefit of the Company, which,
in the aggregate, the Board of Directors of the Company has recognized is equal
in value to such purchase price.

     3. Representations and Warranties of the Company. The Company hereby
represents and warrants to the Purchaser as follows:

        3.1. Organization and Standing; Articles and Bylaws. The Company is a
corporation duly organized and validly existing under, and by virtue of, the
laws of the State of California and is in good standing under such laws. The
Company has the requisite corporate power to own and operate its properties and
assets and to carry on its business as presently conducted and as proposed to be
conducted. The Company is not qualified to transact business as a foreign
corporation in any other jurisdiction, and the nature of the Company's current
operations require no such qualification. The Company has made available to the
Purchasers true, correct and complete copies of the Company's Articles and
Bylaws, each as amended to date.

        3.2. Corporate Power. The Company has all requisite corporate power to
enter into this Agreement, the Shareholder Rights Agreement among the Company
and certain shareholders to be entered into in connection with the sale of the
Shares hereunder in the form attached hereto as Exhibit C (the "Rights
Agreement"), to sell the Shares hereunder and to carry out and perform its other
obligations under the terms of this Agreement and the Rights Agreement.

        3.3. Subsidiaries. The Company does not control, directly or indirectly,
or have an interest in, any other corporation, association or other business
entity.

        3.4. Capitalization. The authorized capital stock of the Company as of
the Closing Date and immediately prior to the Closing will consist of (i)
15,000,000 shares of Common Stock ("Common"), 4,900,000 of which will be issued
and outstanding; and (ii) 5,000,000 shares of Preferred Stock, of which
1,000,000 shares will be designated Series A Preferred and none of which will be
issued and outstanding. All such issued and outstanding shares have been duly
authorized and validly issued, are fully paid and nonassessable and were issued
in compliance with all applicable state and federal laws concerning the issuance
of securities. There are no outstanding preemptive rights or other rights,
plans, options, warrants, conversion rights or agreements for the purchase or
acquisition from the Company of any shares of its capital stock, except that (i)
1,000,000 shares of Common (the "Conversion Shares") have been reserved for
issuance upon conversion of the outstanding shares of Series A Preferred; and
(ii) 2,000,000 shares of Common have been reserved for issuance to employees of
the Company pursuant to options and/or issuances approved by the Board of
Directors of the Company, including 514,500 shares of Common Stock reserved for
issuance upon exercise of outstanding options.

                                      -2-
<PAGE>

     3.5. Authorization.

        (a) All corporate action on the part of the Company, its officers,
directors and shareholders necessary for (i) the sale and issuance of the Shares
pursuant hereto, (ii) the issuance of the Conversion Shares upon conversion of
the Shares and (iii) the execution, performance and delivery by the Company of
this Agreement and the Rights Agreement have been taken or will be taken prior
to the Closing hereunder. This Agreement and the Rights Agreement are valid and
binding obligations of the Company, enforceable against it in accordance with
their respective terms, except as such enforcement may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium or other laws of general
application relating to or affecting enforcement of creditors' rights and rules
or laws concerning equitable remedies.

        (b) The Shares, when issued in compliance with the provisions of this
Agreement, and the Conversion Shares, when issued in accordance with the
Articles, will be validly issued, fully paid and nonassessable; provided,
however, that the Shares and Conversion Shares may be subject to restrictions on
transfer under state and/or federal securities laws as set forth herein or
otherwise required by such laws at the time a transfer is proposed.

        (c) No shareholder of the Company has any right of first refusal or any
preemptive rights in connection with the issuance and sale of the Shares or the
issuance of the Conversion Shares.

     3.6. Properties and Assets; Liens, etc. The Company has recently commenced
operations and has no material assets. The Company has good and marketable title
to its properties and assets and good title to all its leasehold estates, in
each case free and clear from mortgage, pledge, lien, encumbrance or charge,
other than liens resulting from taxes which have not yet become delinquent and
liens and encumbrances which do not in any case materially detract from the
value of the property subject thereto or materially impair the operations of the
Company, and which have not arisen otherwise than in the ordinary course of
business.

     3.7. Liabilities. The Company has no liabilities, absolute or contingent,
except liabilities incurred in connection with its organization and otherwise
incurred in the ordinary course of its business or pursuant to the contracts
described in Section 3.8 hereof.

     3.8. Contracts and Commitments. Except for a real property lease for the
Company's offices in Sunnyvale California, there are no contracts, mortgages,
indentures, agreements, instruments and transactions or proposed transactions to
which the Company is a party or by which it is bound which involve (A)
obligations of, or payments to, the Company in excess of $50,000, (B) the
license of any patent, copyright, trade secret or other proprietary right to or
from the Company, or (C) the grant of rights to manufacture, produce, assemble,
license, market or sell its products to any other person (the "Contracts"). All
of the Contracts are valid, binding and in full force and effect and enforceable
by the Company in accordance with their respective terms, in all material
respects, subject to the effect of applicable bankruptcy, insolvency,
reorganization, moratorium or other laws of general application relating to or
affecting enforcement of creditors' rights and rules or laws concerning
equitable remedies. The

                                      -3-
<PAGE>

Company is not in material default under any of such Contracts. To the Company's
knowledge, no other party to any of the Contracts is in default thereunder.

     3.9. Compliance with Other Instruments; None Burdensome, etc. The Company
is not in violation of any term of the Articles or its Bylaws, as amended, or
any instrument, judgment, decree or order by which the Company is bound or to
which its properties are subject or, to its knowledge, any statute, rule, or
regulation applicable to the Company where such violation would materially and
adversely affect the business, assets, liabilities, financial condition,
operations or prospects of the Company. The execution, delivery and performance
of and compliance with this Agreement and the Rights Agreement and the
transactions contemplated hereby and thereby will not result in any such
violation and will not be in conflict with or constitute a default under any of
the foregoing and will not result in the creation of any mortgage, pledge, lien,
encumbrance or charge upon any of the properties or assets of the Company
pursuant to any of the foregoing.

     3.10. Employees. To the Company's knowledge, no employee of the Company is
in violation of any term of any employment contract, confidentiality agreement
or any other contract or agreement relating to the right of any such employee to
be employed by the Company because of the nature of the business conducted or to
be conducted by the Company or for any other reason, and the continued
employment by the Company of its present employees will not result in any such
violations.

     3.11. Litigation, etc. There are no actions, suits, proceedings or
investigations pending or, to the Company's knowledge, threatened against the
Company, nor, to the Company's knowledge, is there any basis therefor, which,
either in any case or in the aggregate, could be reasonably expected to result
in any material adverse change in the business, prospects, affairs or operations
of the Company or in any of its properties or assets, or in any material
impairment of the right or ability of the Company to carry on its business as
now conducted or as proposed to be conducted, or in any material liability on
the part of the Company. There are no actions, suits, proceedings or
investigations pending or, to the Company's knowledge, threatened which question
the validity of this Agreement or the Rights Agreement or any action taken or to
be taken in connection herewith or therewith. The Company is not a party or
subject to any writ, order, decree or judgment and there is no action, suit,
proceeding or investigation by the Company currently pending or which the
Company intends to originate.

     3.12. Registration Rights. Except as provided in the Rights Agreement and
in the Founders Stock Purchase Agreement, dated August 3, 1993 between the
Company and William Oakley, the Company is not under any obligation to register
any presently outstanding securities, or any securities which may hereafter be
issued, under the Securities Act of 1933, as amended (the "Securities Act").

     3.13. Governmental Consent, etc. No consent, approval or authorization of,
or registration, declaration or filing with any governmental authority on the
part of the Company is required in connection with the valid execution and
delivery of this Agreement or the Rights Agreement or the offer, sale or
issuance of the Shares or the consummation of any other transaction contemplated
hereby or thereby, except filings under the California Corporate

                                      -4-
<PAGE>

Securities Law of 1968, as amended (the "California Law") which will be made and
will be effective within the time periods required by law.

     4. Representations and Warranties of the Purchaser and Restrictions on
        Transfer Imposed by the Securities Act of 1933 and the California
        Corporate Securities Law of 1968.

        4.1. Representations and Warranties of the Purchaser. Each Purchaser
hereby represents and warrants to the Company as follows:

             (a) The Shares and the Conversion Shares are being acquired for
such Purchaser's own account, for investment and not with a view to, or for
resale in connection with, any distribution or public offering thereof within
the meaning of the Securities Act or the California Law.

             (b) Such Purchaser understands that the Shares and the Conversion
Shares have not been registered under the Securities Act by reason of their
issuance in a transaction exempt from the registration requirements of the
Securities Act pursuant to Section 4(2) thereof, that the Company has no present
intention of registering the Shares or the Conversion Shares, that the Shares
and the Conversion Shares must be held by such Purchaser indefinitely, and that
such Purchaser must therefore bear the economic risk of such investment
indefinitely, unless a subsequent disposition thereof is registered under the
Securities Act or is exempt from such registration. Such Purchaser further
understands that the Shares and the Conversion Shares have not been qualified
under the California Law by reason of their issuance in a transaction exempt
from the qualification requirements of the California Law pursuant to Section
25102(f) thereof, which exemption depends upon, among other things, the bona
fide nature of such Purchaser's investment intent expressed above.

             (c) During the negotiation of the transactions contemplated herein,
such Purchaser and its counsel have been afforded full access to the corporate
books, records, documents, and other information concerning the Company and have
been afforded an opportunity to ask such questions of the Company's officers and
representatives concerning the Company's business, operations, financial
condition, assets, liabilities and other relevant matters as they have deemed
necessary or desirable, and have been given all such information as has been
requested, in order to evaluate the merits and risks of the prospective
investment contemplated herein.

             (d) Such Purchaser has such knowledge and experience in financial
and business matters that such Purchaser is capable of evaluating the merits and
risks of the purchase of the Shares pursuant to the terms of this Agreement.
Such Purchaser is an "accredited investor" as defined in Rule 501 of Regulation
D pursuant to the Securities Act.

             (e) Such Purchaser has the full right, power and authority to enter
into and perform such Purchaser's obligations under this Agreement and the
Rights Agreement. All corporate partnership or trust action (if applicable) on
the part of such Purchaser necessary for the execution of this Agreement has
been taken or will be taken prior to the Closing hereunder. This

                                      -5-
<PAGE>

Agreement is valid and binding obligations of such Purchaser enforceable in
accordance with its terms except as such enforcement may be limited by
applicable bankruptcy, insolvency, reorganization, moratorium or other laws of
general application relating to or affecting enforcement of creditors' rights
and rules or laws concerning equitable remedies.

             (f) No consent, approval or authorization of or designation,
declaration or filing with any governmental authority on the part of such
Purchaser is required in connection with the valid execution and delivery of
this Agreement or the Rights Agreement.

             (g) Such Purchaser is aware of the adoption of Rule 144 by the SEC
promulgated under the Securities Act, which permits limited public resales of
securities acquired in a nonpublic offering, subject to the satisfaction of
certain conditions. Such Purchaser understands that the conditions for the use
of Rule 144, include, among other things, the availability of certain current
public information about the issuer and the resale occurring not less than one
year after the party has purchased and paid for the securities to be sold. If
such public information is not available, the Purchaser (if not an "affiliate"
of the Company, as defined in the Securities Act) may not resell such securities
less than two years after the purchase of such securities. Such Purchaser
acknowledges that such current public information is not now available and the
Company has no present plans to make such information available.

        4.2. Securities Legends. Each certificate representing the Shares, or
the Conversion Shares may be endorsed with legends in substantially the
following form:

             (a) THE SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD,
TRANSFERRED, ASSIGNED OR HYPOTHECATED UNLESS THERE IS AN EFFECTIVE REGISTRATION
STATEMENT UNDER SUCH ACT COVERING SUCH SECURITIES, THE TRANSFER IS MADE IN
COMPLIANCE WITH RULE 144 PROMULGATED UNDER SUCH ACT OR THE COMPANY RECEIVES AN
OPINION OF COUNSEL FOR THE HOLDER OF THESE SECURITIES REASONABLY SATISFACTORY TO
THE COMPANY, STATING THAT SUCH SALE, TRANSFER, ASSIGNMENT OR HYPOTHECATION IS
EXEMPT FROM THE REGISTRATION AND PROSPECTUS DELIVERY REQUIREMENTS OF SUCH ACT.

             (b) Any other legends required by the California Law or other
applicable state securities laws.

The Company need not register a transfer of any such securities and may also
instruct its transfer agent not to register the transfer of any such securities,
unless the conditions specified in the foregoing legends are satisfied.

        4.3. Removal of Legend and Transfer Restrictions.

             (a) Any legend endorsed on a certificate pursuant to Section 4.2(a)
and the related stop transfer instructions with respect to such securities shall
be removed, and the Company shall issue a certificate without such legend to the
holder thereof, if such securities are

                                      -6-
<PAGE>

registered under the Securities Act and a prospectus meeting the requirements of
Section 10 of the Securities Act is available, if such legend may be properly
removed under the terms of Rule 144 promulgated under the Securities Act or if
such holder provides the Company with an opinion of counsel for such holder,
reasonably satisfactory to legal counsel for the Company, to the effect that a
sale, transfer or assignment of such securities may be made without
registration.

             (b) Any legend endorsed on a certificate pursuant to Section 4.2(b)
and the related stop transfer instructions with respect to such securities shall
be removed upon receipt by the Company of an order of the California Department
of Corporations or other appropriate state securities authority authorizing such
removal.

     5. Conditions to Closing.

        5.1. Conditions to Obligations of the Purchasers. The obligation of each
Purchaser to purchase the Shares at the Closing is subject to the fulfillment on
or prior to the Closing Date and the Subsequent Closing Date of the following
conditions, any of which may be waived by such Purchaser:

             (a) Representations and Warranties Correct; Performance of
Obligations. The representations and warranties made by the Company in Section 3
hereof shall be true and correct when made, and shall be true and correct on the
Closing Date and the Subsequent Closing Date with the same force and effect as
if they had been made on and as of said date; the Company's business and assets
shall not have been adversely affected in any material way prior to the Closing
Date or the Subsequent Closing Date; and the Company shall have performed all
obligations and conditions herein required to be performed or observed by it on
or prior to the Closing Date or the Subsequent Closing Date, as applicable.

             (b) Consents and Waivers. The Company shall have obtained any and
all consents (including all governmental or regulatory consents, approvals or
authorizations required in connection with the valid execution and delivery of
this Agreement or the Rights Agreement), permits and waivers necessary or
appropriate for consummation of the transactions contemplated by this Agreement
or the Rights Agreement.

             (c) Rights Agreement. The Company and the other parties to the
Rights Agreement shall have executed and delivered the Rights Agreement.

             (d) Compliance Certificate. The Company shall have delivered to the
Purchaser a certificate, executed by the President or Chairman of the Board of
the Company, dated the Closing Date, certifying to the fulfillment of the
conditions specified in subsection (a) of this Section 5.1.

        5.2. Conditions to Obligations of the Company. The obligation of the
Company to sell and issue the Shares to each Purchaser at the Closing is subject
to the fulfillment on or prior to the Closing Date or the Subsequent Closing
Date, as applicable, of the following conditions, any of which may be waived by
the Company:

                                      -7-
<PAGE>

             (a) Representations and Warranties. The representations and
warranties made by such Purchaser in Section 4 hereof shall be true and correct
when made, and shall be true and correct on the Closing Date or the Subsequent
Closing Date, as applicable, with the same force and effect as if they had been
made on and as of said date.

             (b) Consents and Waivers. The condition set forth in subsection (b)
of Section 5.1 hereof shall have been fulfilled.

             (c) Rights Agreement. Such Purchaser shall have executed and
delivered the Rights Agreement.

     6. Miscellaneous.

        6.1. Waivers and Amendments. With the written consent of the holders of
a majority of the Shares (including any Conversion Shares or any other
securities obtained upon exchange of the Shares or the Conversion Shares, and as
adjusted for stock dividends, stock splits, recapitalizations and the like), the
obligations of the Company and the rights of such holders under this Agreement
may be waived (either generally or in a particular instance, either
retroactively or prospectively and either for a specified period of time or
indefinitely), and with the same consent the Company, may enter into a
supplementary agreement for the purpose of adding any provisions to or changing
in any manner or eliminating any of the provisions of this Agreement; provided,
however, that no such waiver or supplemental agreement shall reduce the
aforesaid percentage of the shareholders which are required to consent to any
waiver or supplemental agreement without the consent of all such shareholders.
Upon the effectuation of each such waiver, consent or agreement of amendment or
modification the Company shall promptly give written notice thereof to the
record holders of the Shares (and/or such other securities) who have not
previously consented thereto in writing. Neither this Agreement nor any
provision hereof may be changed, waived, discharged or terminated orally, but
only by a statement in writing signed by the party against which enforcement of
the change, waiver, discharge or termination is sought, except to the extent
provided in this Section 6.1.

        6.2. Governing Law. This Agreement shall be governed in all respects by
the laws of the State of California as such laws are applied to agreements
between California residents entered into and to be performed entirely within
California.

        6.3. Survival. The representations, warranties, covenants and agreements
made herein shall survive the execution of this Agreement and the Closing.

        6.4. Successors and Assigns. Except as otherwise expressly provided
herein, the provisions hereof shall inure to the benefit of, and be binding
upon, the successors, assigns, heirs, executors and administrators of the
parties hereto.

        6.5. Entire Agreement. This Agreement, the exhibits to this Agreement
and the other documents delivered pursuant hereto constitute the full and entire
understanding and agreement between the parties with regard to the subjects
hereof and thereof.

                                      -8-
<PAGE>

        6.6. Notices, etc. All notices and other communications required or
permitted hereunder shall be in writing and shall be sent via facsimile,
overnight courier service or mailed by certified or registered mail, postage
prepaid, return receipt requested, addressed or sent (a) if to a Purchaser, at
the address or facsimile number of such Purchaser set forth on the Schedule of
Purchasers, or at such other address or number as such Purchaser shall have
furnished to the Company in writing, or (b) if to the Company, at the address or
facsimile number of the Company set forth on the signature page hereof, or at
such other address or number as the Company shall have furnished to the
Purchaser in writing.

        6.7. Separability. In case any provision of this Agreement shall be
declared invalid, illegal or unenforceable, the validity, legality and
enforceability of the remaining provisions shall not in any way be affected or
impaired thereby.

        6.8. Finder's Fees.

             (a) The Company hereby agrees to indemnify and to hold each
Purchaser harmless of and from any liability for any commission or compensation
in the nature of a finder's fee to any broker or other person or firm (and the
costs and expenses of defending against such liability or asserted liability)
for which the Company or any of its employees has agreed to pay in writing.

             (b) Each Purchaser (i) represents and warrants to the Company that
it has retained no finder or broker in connection with the transactions
contemplated by this Agreement and (ii) hereby agrees to indemnify and to hold
the Company harmless of and from any liability for any commission or
compensation in the nature of a finder's fee to any broker or other person or
firm (and the costs and expenses of defending against such liability or asserted
liability) for which it, or any of its employees or representatives, are
responsible.

        6.9. Expenses. The Company and the Purchasers shall each bear their
respective expenses and legal fees incurred with respect to this Agreement and
the transactions contemplated hereby.

        6.10. Titles and Subtitles. The titles of the paragraphs and
subparagraphs of this Agreement are for convenience of reference only and are
not to be considered in construing this Agreement.

        6.11. Counterparts. This Agreement may be executed in counterparts, each
of which shall be an original, but all of which together shall constitute one
instrument.

                            [SIGNATURE PAGE FOLLOWS]

                                      -9-
<PAGE>

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

COMPANY:

LOTS TECHNOLOGY INC.

By:  /s/ William S. Oakley
     ----------------------

Its: President
     ----------------------

Address: 1274 Geneva Drive
         Sunnyvale, CA 94089
         Telephone No.: (408) 747-1111
         Facsimile No.: (408) 747-0245

                                      -10-
<PAGE>

                     PURCHASER'S COUNTERPART SIGNATURE PAGE
                              LOTS TECHNOLOGY INC.
                            STOCK PURCHASE AGREEMENT

                                  July 7 , 2000

PURCHASER :
ORYX Technology Corporation
-----------------------------------------------------------
Print Name of Entity

By: /s/ Philip Micciche
    ----------------------
    Signature

Philip J. Micciche, President & CEO
-----------------------------------------------------------
Print Name and Title of Signatory

1100 Auburn Street
-----------------------------------------------------------
Address

Fremont, CA 94538
-----------------------------------------------------------

-----------------------------------------------------------
Social Security/Taxpayer ID No.

<PAGE>

                                                                       EXHIBIT A

                             SCHEDULE OF PURCHASERS

                                 FOURTH CLOSING
                                  July 7, 2000

<TABLE>
<CAPTION>
Name and Address of Purchaser              Number of Shares Purchased at       Aggregate Purchase Price
                                                 $3.00 per Share

<S>                                                  <C>                              <C>
ORYX Technology Corporation                          166,666                          $499,998
Attn: Philip J. Micciche
President & CEO
1100 Auburn Street
Fremont, CA 94538
</TABLE>

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