Document:

DATED                                            2000
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                     ADRIAN CLARKE, WENDY ELIZABETH LUGNER,

                     KENNETH FRASER SHIMMIN and PETER BUTLER

                                     - and -

                               G S TELECOM LIMITED

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                            SHARE PURCHASE AGREEMENT

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Xethos Group Inc.                May 2000                              Snowstorm

                                    CONTENTS

Clause        Subject matter                                              Page

1.   INTERPRETATION..........................................................1

2.   PURCHASE AND SALE OF SHARES AND SHAREHOLDER LOAN........................5

3.   OPERATIVE WARRANTY PROVISIONS...........................................6

4.   WARRANTIES OF THE VENDOR................................................7

5.   PURCHASER'S REPRESENTATIONS AND WARRANTIES.............................16

6.   CLOSING MATTERS........................................................17

7.   TRANSACTION EXPENSES...................................................18

8.   VENDORS RIGHT TO UNWIND THIS AGREEMENT.................................18

9.   FURTHER PROVISIONS.....................................................18

10.  NOTICES................................................................18

11.  GENERAL................................................................18

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Xethos Group Inc.                May 2000                              Snowstorm

THIS AGREEMENT is dated the                     day of                     2000

BETWEEN:

(1)    Adrian Clarke of 18 Reading Road, Cholsey, Oxon OX10 9HL, Wendy Elizabeth
       Lugner of 32 Boothfields,  Knutsford,  Cheshire WA16 8JU,  Kenneth Fraser
       Shimmin of 5 South View, Ditchlings,  Hassocks,  Sussex BN6 8TQ and Peter
       Butler of Castle Farm, Lavendon, Olney, Bucks MK46 4JG ("Vendors");

(2)    G.S. TELECOM,LIMITED, a company incorporated  pursuant to the laws of the
       State of Colorado whose principal place of business is at 10200 west 44th
       Ave, Wheat Ridge, Colorado 8033, USA ("Purchaser").

WHEREAS:

(A)    The  Vendors  are the  registered  and  beneficial  owners of 100% of the
       issued share capital of the Company represented by 100 ordinary shares of
       (pound)1 each; and

(B)    The Vendors have agreed to sell and the  Purchaser has agreed to Purchase
       100% of the issued share capital of the Company, subject to the following
       terms and conditions.

1.       INTERPRETATION

       Where used in this  Agreement,  each of the following words will have the
       following meanings:

       "Accounts Receivable"

                     means all of the  trade  accounts,  notes  and other  debts
                     arising out of the  operation of the Business  owing to the
                     Company as at the  Closing  Date,  whether due or to become
                     due  as at  or  after  the  Closing  Date,  and  which  are
                     described  in  Schedule  E  together  with  those  accounts
                     receivable arising in the normal and ordinary course of the
                     business  between the date  specified in Schedule E and the
                     Closing Date;

       "Act"

                     means the United States Securities and Exchange Act of 1933
                     and the  Rules  thereunder,  both as  amended  from time to
                     time;

       "Assets"

                     means  all  of   personal   property,   choses  in  action,
                     intangible or  intellectual  property,  including  patents,
                     copyrights,  trade-marks,  trade names or licenses, and all
                     other  assets of  whatsoever  nature  owned by the Company,
                     listed in Schedule B;

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       "Business"

                     means the business carried on by the Company

       "Business Plan"

                     means the business plan of the Company to be agreed by both
                     parties  within  one  month  of  closing.  The  agreed  key
                     objective  of this  business  plan  being cash  flow  being
                     positive in Month six and in  any case  no later than month
                     nine.

       "Closing Date"

                     means the date of closing of  the transactions in paragraph
                     6.1 of this Agreement;

       "Company"

                     means Snowstorm Developments Ltd;

       "Common Stock"

                     means shares of common stock, no par value;

       "Consideration Securities"

                     means 3 million restricted shares of Common Stock;

       "Contracts"

                     means  all  of  the   material   commitments,   agreements,
                     contracts,  arrangements,  instruments,  leases  and  other
                     documents entered into by the Company, by which the Company
                     is bound or to which the Company or the Assets are subject;

       "Disclosure Statement"

                     means a statement of disclosures made by the Vendor for the
                     purpose of  qualifying  the  representations and warranties
                     contained in this Agreement;

       "Exchange"

                     means the NASD Bulletin Board;

       "Financial Statements"

                     means those included in Schedule A;

       "Indebtedness"

                     means  any  and  all   trade   accounts,   debts,   duties,
                     endorsements,    guarantees,   liabilities,    obligations,
                     responsibilities  and  undertakings of the Company assumed,
                     created,   incurred   or   made,   whether   voluntary   or
                     involuntary,  however incurred or made or arising,  whether
                     due or not due (except  accrued  employees'  salaries which
                     are  not  yet  due),  absolute,   inchoate  or  contingent,
                     liquidated or  unliquidated,  determined  or  undetermined,
                     direct or indirect,  express or implied,  and for which the
                     Company may be liable  individually or jointly with others,

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Xethos Group Inc.                May 2000                              Snowstorm

                     which are described in Schedule C, as at the date specified
                     in Schedule C;

       "Lien"

                     means  any  mortgage,   debenture,  charge,  hypothecation,
                     pledge, interest or encumbrance of whatever kind or nature,
                     regardless  of form and  whether  consensual  or arising by
                     laws,  statutory or otherwise,  that secures the payment of
                     any  Indebtedness  or the  performance of any obligation or
                     creates   in  favour  of  or  grants  to  any   Person  any
                     proprietary right;

       "Person"

                     means   an   individual,   corporation,   body   corporate,
                     partnership,  joint venture, society, association, trust or
                     unincorporated   organisation  or  any  trustee,  executor,
                     administrator, or other legal representative;

       "Purchaser'

                     means G.S.Telecom, Limited;

       "Shares"

                     means  the 100  ordinary  shares  of  (pound)1  each in the
                     capital  of the  Company  of  which  the  Vendors  are  the
                     registered and beneficial owners,  representing 100% of the
                     issued shares in the capital of the Company;

       "Stock Options"

                     means the stock  options to be issued by the  Purchaser  to
                     the  Vendors and such other  persons as the Vendors  should
                     elect, on the terms set out in the Schedule;

       "TCGA 1992"

                     means Taxation of Chargeable Gains Act 1992;

       "Tax or Taxation"

                     means liability arising under any of the Taxation Statutes;

       "Taxation Statutes"

                     means statutes and all statutory  provisions  made pursuant
                     to it  whether  before or after the date of this  agreement
                     for the time being in force  providing  for or  imposing or
                     relating to all forms of tax,  duties,  levies and rates of
                     any kind including without limitation:

                    (i)    any  charge, tax, duty or levy upon income,  profits,
                           chargeable gains or any other property or instruments
                           in writing or supplies or other transactions;

                    (ii)   income tax, corporation tax, advance corporation tax,
                           withholding tax, capital gains tax,  inheritance tax,
                           capital  transfer tax,  value added tax,  stamp duty,
                           stamp duty reserve  tax,  capital  duty,  customs and
                           other    import    duties,     national     insurance
                           contributions,  general  rates,  water rates or other
                           local rates;

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                   (iii)   any liability for sums equivalent to any such charge,
                           tax, duty, levy or rates and/or for any penalty, fine
                           or interest payable in connection with them; or

                   (iv)    any law,  regulation  or  statutory  provision of any
                           kind providing for or imposing or otherwise  relating
                           to any  charge,  tax,  levy or  rates,  of a  similar
                           nature,  chargeable outside the United Kingdom and/or
                           for  any  penalty,   fine  or  interest   payable  in
                           connection with them.

       "VAT"

                     means value added tax.

       "Warranties"

                     means the statements set out in clause 3.1;

       "Heads of Agreement"

                     the heads of  agreement  set out in the  schedule  dated 22
                     March 2000 between the Purchaser and the Company.

1.2      In this Agreement, except as otherwise expressly provided:

            (a)      "Agreement" means this agreement,  as it may  from  time to
                     time be supplemented or amended in effect;

            (b)      all  references  in this Agreement  to  a designated "para-
                     graph"  or  other  subdivision  or  to  a Schedule  to  the
                     designated   paragraph   or   other   subdivision   of   or
                     Schedule, to this Agreement;

            (c)      the words  "herein",  "hereof'  and  "hereunder"  and other
                     words of similar  import refer to this Agreement as a whole
                     and not to any particular paragraph or other subdivision or
                     Schedule;

            (d)      the  headings  are for  convenience  only and do not form a
                     part of this  Agreement  and are not intended to interpret,
                     define,  or limit  the  scope,  extent  or  intent  of this
                     Agreement or any provision hereof;

            (e)      the  singular of any term  includes  the  plural,  and vice
                     versa,  the use of any term is  equally  applicable  to any
                     gender and, where  applicable,  and the word "including" is
                     not limited (whether or not non-limited  language,  such as
                     "without  limitation"  or "but  not  limited"  to  words of
                     similar import, is used with reference thereto;

            (f)      any   accounting  term  not  otherwise   defined   has  the
                     meanings  assigned  to  it in   accordance  with  generally
                     accepted accounting principles applicable in the United
                     Kingdom;

            (g)      any  reference to a statute  includes and is a reference to
                     that statute and to the regulations made pursuant  thereto,
                     with all amendments  made thereto and in force from time to
                     time, and to any statute or regulations  that may be passed
                     which has the effect of  supplementing  or superseding that
                     statute or regulations;

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            (h)      except as otherwise provided, any dollar amount referred to
                     in this Agreement is in U.S. funds; and

            (i)      any other  term defined within  the text  of this Agreement
                     has the meaning so ascribed.

1.3      The following are the Schedules to this Agreement:

           Schedule        Description

           A               Financial Statements of the Company

           B               List of Assets

           C               List of Contracts

           D               Service Contracts

           E               Disclosure Statement

           F               Heads of Agreement.

2.       PURCHASE AND SALE OF SHARES AND SHAREHOLDER LOAN

2.1        Subject to the conditions and upon the terms  hereinafter  set forth,
           the  Purchaser  agrees to purchase and the Vendors  agree to sell and
           assign to the Purchaser  all of their rights,  title and interests in
           and to the Shares.

2.2      The purchase price for the Shares shall be as follows:

         (a)      the allotment and issue  credited as fully paid to the Vendors
                  of the  Consideration  Securities  such allotment and issue to
                  be effective as from 22.03.00;

         (b)      the granting of the Stock Options of  640,000.00 shares at the
                  higher of $1:50 or the market price for that class of share on
                  the date of grant;

         (c)     a further  payment of one million shares of common stock in the
                 capital of the Purchaser  forthwith  on the Company achieving a
                 net profit of $125,000 or  more for two successive quarters (as
                 evidenced  by  the   management  accounts of the Company) or on
                 achieving a registered  user base of one million and;

         (d)     a further one million shares of common stock in the  capital of
                 the Company will be  allocated to the Vendors  forthwith on the
                 Company  achieving a  net profit  of  $250,000 or more  for two
                 successive quarters (as evidenced by the management accounts of
                 the  Company) or  on achieving  a registered  user base of five
                 million;

           With the  consideration  securities  and the further shares of common
           stock to be issued  pursuant to  paragraphs  2.2 (c) and (d) above be
           issued to the Vendor in the  proportions by which they own the Shares
           immediately prior to Completion of this Agreement.

2.3        On the Date of signing  the  Purchaser  shall make  available  to the
           Company a facility which may be drawn down by the Company  monthly in
           advance  in  accordance  with  the  cashflow  projections  agreed  as
           follows;  $45,000 for June,  July and August 2000 then  $190,000  for
           September 2000 onwards until the cash flow is positive or nine months
           whichever  is earlier.  . The  facility  drawn down shall be interest
           free  and  repayable  only  in the  event  of the  unwinding  of this
           Agreement in accordance with this Agreement,  at which point it shall
           become repayable within 18 months of the date of such unwinding.

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3.       Operative warranty provisions

3.1      The Vendors warrant to the Buyer that in their opinion:

3.1.1         except only as fairly disclosed in the Disclosure  Statement,  the
              Warranties  are on the  Closing  Date true and not  misleading  or
              inaccurate.

3.1.2         the Purchaser  will obtain  absolute title to the entire legal and
              beneficial  interest  in all the  Shares  free  from any  Security
              Interest.

3.2      The rights  and remedies of the Purchaser for any breach of the Warran-
         ties will not be affected  by:

3.2.1         The  execution  and Closing of this  Agreement;

3.2.2         any investigation  made by or on behalf of  the Purchaser into the
              Company;

3.2.3         any information  of which it may have actual, implied or construc-
              tive notice prior to the Closing Date,  other than that  contained
              in the Disclosure Statement;

3.2.4         the Purchaser  rescinding or failing to rescind this  agreement or
              failing to  exercise or  delaying  the exercise of  any  right  or
              remedy; or

3.2.5         any other event or matter  whatsoever,  except a specific and duly
              authorised written waiver or release.

3.3        The Vendors  acknowledge  that the  Purchaser  is entering  into this
           agreement in reliance upon the Warranties.

3.4        Each  of  the  Warranties   will  be  construed  as  a  separate  and
           independent  warranty  and,  except where  expressly  provided to the
           contrary, will not be governed, limited or restricted by reference to
           or  inference  from any other  terms of this  agreement  or any other
           Warranty.

3.5        Where  any  Warranty  refers  to  the  awareness  or  the  knowledge,
           information or belief of the Vendors, the Vendors undertake that they
           have  made  reasonable  enquiry  into  the  subject  matter  of  that
           Warranty.

3.6        The Vendors  undertake with the Purchaser that they will not make any
           claim for an indemnity  or a  contribution  or otherwise  against the
           Company or any director or employee of the Company , or the estate of
           any such director or employee, in connection with any liability which
           the  Vendors  have or may have in  respect of the  Warranties  or any
           other term of this agreement.

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4.       WARRANTIES OF THE VENDOR

4.1      The Vendors  represent and warrant  to the  Purchaser  (subject to  the
         provisions of paragraph  4.2) as follows:

                (a)  The Vendors are the registered  holder and beneficial owner
                     of the entire issued share capital of the Company,  and the
                     Vendors have no other interest, legal or beneficial, direct
                     or indirect,  in any other securities in the capital of the
                     Company or in the Assets or Business of the Company;

                (b)  the  Shares  are free and  clear of all  liens,  mortgages,
                     encumbrances,  security instruments,  equities or claims of
                     any  nature  or  kind  whatsoever,  and to the  best of the
                     knowledge of the Vendors,  the Shares are validly issued as
                     fully paid;

                (c)  no Person has any agreement or option or a right capable of
                     becoming an  agreement  for the purchase of the Shares;

                (d)  the  execution  and  delivery  of  this  Agreement  and the
                     completion of the transaction  contemplated hereby has been
                     duly and  validly  authorised  by all  necessary  corporate
                     action on the part of the Vendors;

                (e)  the  Vendors  have  the  power  and  capacity  and good and
                     sufficient right and authority to enter into this Agreement
                     on  the  terms  and  conditions  herein  set  forth  and to
                     transfer the legal and  beneficial  title and  ownership of
                     the Shares to the Purchaser;

                (f)  this  Agreement  constitutes  a legal,  valid  and  binding
                     obligation of the Vendors  enforceable  against the Vendors
                     in  accordance  with its terms  except as may be limited by
                     laws  of  general  application   affecting  the  rights  of
                     creditors;

                (g)  the  performance of this Agreement will not be in violation
                     of any agreement or other  instrument to which the  Vendors
                     are a party;

                (h)  the Company is duly incorporated and validly existing under
                     the laws of England and Wales,  and has filed all necessary
                     returns  and  audited  accounts  and has the right to enter
                     into this Agreement;

                (i)  the  authorised   capital  of  the  Company  is  (pound)100
                     comprised of 100 ordinary  shares of(pound)1 each and there
                     are  currently  an  aggregate  of 100  ordinary  shares  of
                     (pound)1 each issued and held as follows:

                     Name of Shareholders            Number of Shares
                     Adrian Clarke                            75
                     Wendy Elizabeth Lugner                   12
                     Ken Shimmin                               3
                     Peter Butler                             10

                (j)  no other  person or party has any  agreement or option or a
                     right or is capable of  becoming a party to this  Agreement
                     nor has any  person  or  party  the  right to  require  the
                     Company  to issue any  further or other  securities  in its

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                     capital or to convert or exchange  any  securities  into or
                     for shares in the  capital of the Company or any rights for
                     the purchase, subscription, allotment or issuance of any of
                     the  unissued  shares in the capital of the Company nor any
                     right  to  require  the  Company  to  purchase,  redeem  or
                     otherwise acquire any of the issued and outstanding  shares
                     in the capital of the Company;

                (k)  the unaudited  financial  statements of the Company for the
                     period  ended  21.3.2000,  which  are  attached  hereto  as
                     Schedule A, present  fairly the  financial  position of the
                     Company and the results of its  operations  for the periods
                     then  ended,   in  accordance   with   generally   accepted
                     accounting principles;

                (l)  since 21.3.2000,
                       (i) there have been no  material  adverse  changes in the
                           corporate or financial  affairs or  operations of the
                           Company  apart from losses  substantially  similar to
                           previous losses;

                      (ii) the Company has not  discharged or  satisfied or paid
                           any Liens or Indebtedness other than current Indebted
                           -ness in the ordinary course of business;

                     (iii) no single capital  expenditure has been authorised or
                           made by the Company which exceeds (pound)5,000;

                      (iv) the Company  has neither  waived nor  surrendered any
                           right of material  value;

                (m)  there is  no Indebtedness of  the Company which is not dis-
                     closed or reflected in Schedules A  and C, except  that in-
                     curred in the ordinary course of business since  21.3.2000,
                     and the Company has not guaranteed, or agreed to guarantee,
                     any debt, liability or other obligation of any Person;

                (n)  on the  Closing Date  the Indebtedness of the  Company will
                     not exceed(pound)25,000, save as disclosed;

                (o)  Save as disclosed in the  Disclosure  Statement the Company
                     is not indebted nor under obligation  to the Vendors or any
                     of the directors, officers, employees or  affiliates of the
                     Company, and specifically the Company is  not liable to pay
                     any  outstanding salaries or wages,  except in the ordinary
                     course of business;

                (p)  neither the  Vendors nor any  officer, director or employee
                     of the  Company  are  indebted or  under obligation  to the
                     Company on any account whatsoever;

                (q)  no  dividends or other  distribution on any  shares  in the
                     capital  of  the  Company  have   been  made,  declared  or
                     authorised;

                (r)  the Company has the corporate power to own the Assets owned
                     by it as shown in Schedule B, and to carry on the  Business
                     and is duly  registered  and qualified to carry on business
                     in the United Kingdom and all other  jurisdictions in which
                     it does so;

                (s)  the Company has good title or rights to and  possession  of
                     all the Assets free and clear of all Liens, and neither the
                     Vendors  nor any of  their  family  or  affiliates  own any
                     Assets used by the Company;

                (t)  since  21.3.2000  the Company has conducted the Business in
                     the ordinary  course and has  maintained the Assets in good
                     condition,  repair and  working  order and  suitable in all
                     respects for the use to which they are intended;

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                (u)  the  Accounts  Receivable of  the Company are bona fide and
                     collectible in  the ordinary  course and are not subject to
                     any known defences, counterclaims or set-off;

                (v)  the  memorandum and  articles of the Company  have not been
                     altered  since the  incorporation  of the Company;

                (w)  there is not  believed to be any basis for and there are no
                     actions, suits,  judgements,  investigations or proceedings
                     outstanding  or pending or to the  knowledge of the Vendors
                     threatened  against or  affecting  the Company at law or in
                     equity or before or by any court or governmental authority,
                     department, commission, board, bureau or agency;

                (x)  to the best knowledge of the Vendors, the Company is not in
                     breach  or  violation  of any laws,  ordinances,  statutes,
                     regulations,  by-laws,  judgements,  orders or  decrees  to
                     which it is subject or which apply to it or of any patents,
                     copyrights,  trade-marks  or  licenses  held  by any  other
                     Person;

                (y)  so far as the Vendors  are aware the  Company has  obtained
                     all permits,  certificates,  approvals,  registrations  and
                     licenses  which  are  required  for  the  operation  of the
                     Business  as  it  is  presently  being  conducted,  and  no
                     violations   thereof  have  been  experienced,   noted,  or
                     recorded,   and  so  far  as  the  Vendors  are  aware,  no
                     proceeding  is pending or threatened to revoke or limit any
                     of them;

                (z)  the Company has not  experienced  nor are the Vendors aware
                     of  any  occurrence  or  event  which  has  had,  or  might
                     reasonably be expected to have, a materially adverse effect
                     on the Business or the results of its operations;

                (aa) all material transactions of the Company have been promptly
                     and  properly  recorded or filed in or with its  respective
                     books and  records,  and the  minute  books of the  Company
                     contain  all records of the  meetings  and  proceedings  of
                     shareholders and directors thereof,

                (bb) the performance of this Agreement and the completion of the
                     transactions  contemplated hereby will not conflict with or
                     be in  violation  of  the  articles  of  incorporation  and
                     by-laws  of  the  Company  or of  any  agreement  or  other
                     instrument  to which the Vendors or the Company are a party
                     and will not give any  Person  any  right to  terminate  or
                     cancel any agreement or any right, license, permit or other
                     benefit  enjoyed by the  Company and will not result in the
                     creation  or  imposition  of  any  lien,   encumbrance   or
                     restriction  of any nature  whatsoever in favour of a third
                     party upon or against the assets of the Company;

                (cc) the  Company does  not  own,  directly or  indirectly,  any
                     shares or interest in any other  Person;

                (dd) the only  directors  and  officers  of the  Company are  as
                     follows:

                     Name                 Positions:
                     Adrian Clarke        President and Chief Executive
                     Peter Butler         Non-Executive Chairman
                     Nils Lugner          Executive Sales and Marketing Director

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                (ee) set out  in Schedule "F"  is a true and  correct listing of
                     the only valid and  outstanding  Contracts of the Company;

                (ff) all of the  Contracts  set out in  Schedule  "F" have  been
                     approved by the board of  directors  of the Company and the
                     Company  is not in  material  breach  of any of the  terms,
                     conditions,  covenants  or  provisions  of,  is in  default
                     under,  or has done or omitted to do anything  which,  with
                     the  giving  of  notice  or lapse  of time or  both,  would
                     constitute  a  material  breach  of or  default  under  any
                     Contract;

                (gg) as at 21/3/00 the only  full-time  employees of the Company
                     were the Executive Directors as above and David Richardson;

                (hh) the Company  does not have any  Contracts,  pension  plans,
                     profit  sharing  plans,  bonus  plans,   undertakings,   or
                     arrangements whether oral, written or implied with lessees,
                     licensees,   managers,   accountants,   suppliers,  agents,
                     distributors, officers, directors, lawyers, or others which
                     cannot be terminated on not more than one month's notice;

                (ii) there are no pension, profit sharing,  incentive,  bonus or
                     similar  plans or other  compensation  plans  affecting the
                     Company and the Company has no unfunded or unpaid liability
                     in respect of any such plans;

                (jj) Taxation

                     Liability to Taxation

                     In  the  opinion  of  the  Directors  the  Company  has  no
                     liability  for  taxation in respect of the period  ended on
                     the 21.3.2000.  Returns,  clearances and investigations All
                     information,  notices,  returns,  computations and payments
                     which  should be or should have been  submitted  or made by
                     the Company for any purpose  relating to Taxation have been
                     and will until the Closing Date  continue to be made within
                     the requisite periods and are up-to-date,  correct and on a
                     proper  basis and none of them is the  subject or likely to
                     be the  subject of any  dispute  with the  Inland  Revenue,
                     Customs and Excise or other Taxation authorities.

                     All particulars  furnished to the Inland  Revenue,  Customs
                     and Excise or other Taxation authorities in connection with
                     the  application  for any consent or clearance on behalf of
                     the Company or affecting the Company  fully and  accurately
                     disclosed  all facts  and  circumstances  material  for the
                     decision of the relevant  authority and any such consent or
                     clearance is valid and  effective and any  transaction  for
                     which  such  consent  or  clearance  has  previously   been
                     obtained has been carried  into effect in  accordance  with
                     the  terms  of  the   relative   application,   consent  or
                     clearance.

                     The  Company  has not been the  subject  of a back  duty or
                     other  investigation  by the Inland  Revenue,  Customs  and
                     Excise or other  Taxation  authority and there are no facts
                     which  are  likely to cause  any such  investigation  to be
                     instituted.

                     Penalties and interest

                     The  Company  has not  paid  or  become  liable  to pay any
                     penalty or interest  charged by virtue of the provisions of
                     the  Taxes  Management  Act  1970  or  any  other  Taxation
                     Statute.

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                     Taxation  claims,  liabilities  and  reliefs.

                     The Company  is not nor will become liable  to pay or  make
                     reimbursement  or  indemnity  in respect of any Taxation or
                     amounts  corresponding  to it in consequence of the failure
                     by any other person to discharge  that Taxation  within any
                     specified  period or otherwise where such Taxation  relates
                     to a profit, income or gain,  transaction,  event, omission
                     or circumstance  arising or deemed to arise, whether wholly
                     or partly, prior to the Closing Date.

                     No relief, whether by way of deduction, reduction, set-off,
                     exemption,  repayment  or  allowance  or  otherwise,  from,
                     against  or in  respect of any  Taxation  has been  claimed
                     and/or  given  to the  Company  which  could  or  might  be
                     withdrawn,  postponed,  restricted  or otherwise  lost as a
                     result  of  any  act or  omission,  event  or  circumstance
                     arising or occurring at any time after the Closing Date.

                     The  execution  of this  agreement or Closing Date will not
                     result in any profit or gain being  deemed to accrue to the
                     Company  for  any   purpose  in   relation   to   Taxation.

                     Distributions and deductibility of payments

                     The Company has not made any  distribution within the mean-
                     ing  of any of sections  209,  210 and 211 ICTA 1988 in the
                     last six  years other than those provided for in the Finan-
                     cial Statements.

                     The  Company  has not  since  21.3.2000  incurred  material
                     expenditure   which  will  not  be  wholly   deductible  in
                     computing  profits  as a  trading  expense  or  expense  of
                     management or as a charge on income or in computing  income
                     for  the  purposes  of  schedule  D ICTA  1988  except  for
                     expenditure  on the  acquisition  of an  asset  to be  held
                     otherwise than as stock-in-trade,  details of which are set
                     out in the Disclosure Statement.

                     Utilisation of losses and advance  corporation tax

                     Nothing has been done and no event or  series of events has
                     occurred in respect  of the Company  which might  cause the
                     disallowance  of the carry  forward losses, excess charges,
                     excess expenses  of  management or  advance corporation tax
                     under  sections  245, 393, 768 or 768A ICTA 1988.

                     Transactions not at arm's-length

                     The  Company  has not  carried  out or been  engaged in any
                     transaction  or  arrangement  to which  the  provisions  of
                     section  770 ICTA  1988 have  been or may be  applied.  The
                     Company  is not  party to any  transaction  or  arrangement
                     under which it may be required to pay for assets,  services
                     or  facilities,  an amount which is in excess of the market
                     value of the relevant  assets,  services or  facilities  or
                     will  receive  any  payment  for any  assets,  services  or
                     facilities that it has supplied or provided or is liable to
                     supply or provide  which is less than the  market  value of
                     the relevant assets, services or facilities.

                     The  Company has not  disposed of or acquired  any asset in
                     such  circumstances  that the provisions of section 17 TCGA
                     1992 could apply to them.

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                     Base values and acquisition costs

                     The Company has not in the six years  ending on the Closing
                     Date  carried  out or been  engaged in any  transaction  or
                     arrangement  in respect of which  there may be  substituted
                     for the  actual  consideration  given or  received  by it a
                     different   consideration  for  any  purposes  relating  to
                     Taxation.

                     Capital losses and limited partnerships

                     The  Company has not  incurred a capital  loss to which the
                     provisions of section 18(3) TCGA 1992 are applicable.

                     PAYE, NIC and  deductions  from  payments  made

                     The  Company  has properly fulfilled its  obligations under
                     the PAYE  system and/or any  other Taxation  Statute by de-
                     ducting  income tax as  required  by law from all  payments
                     made or treated as made to its employees or former employ-
                     ees and accounting to the Inland Revenue for all tax so de-
                     ducted or which ought to have been deducted and for all tax
                     chargeable on benefits  provided for or to its employees or
                     former employees.

                     Tax avoidance

                     The Company has not engaged in or been  a party to a scheme
                     or arrangement of which the main purpose or one of the main
                     purposes was the avoidance of, or a  reduction in liability
                     to Taxation.

                     Chargeable gains

                     The  Company  is not  owed a  debt,  not  being a debt on a
                     security,  upon the  disposal  or  satisfaction  of which a
                     liability to corporation tax on chargeable gains will arise
                     by reason of the provisions of section 251 TCGA 1992.

                     Stamp duty and stamp duty reserve tax

                     The Company has not made a claim for relief  under  section
                     42 Finance Act 1930 in circumstances  where such relief may
                     be forfeited by the sale of the Shares to the  Purchaser or
                     the  existence  of any other  term of this  agreement.  The
                     Company has complied in all respects with the provisions of
                     part IV  Finance  Act 1986 and  with any  regulations  made
                     under it,  and the  Company  is not  party to an  agreement
                     which falls  within the terms of section 87 (1) of that Act
                     and in  relation  to which the  conditions  referred  to in
                     section 87 (2) of that Act have not been fulfilled.

4.2      Limitations

4.2.1         The provisions of this  paragraph  4.2.1 shall operate to limit or
              qualify the liabilities of the Vendors under or in connection with
              the  Warranties  and other terms  contained in this  Agreement and
              references to "such liabilities"  shall be construed  accordingly.
              The  warranties  will  survive the  execution  and closing of this
              agreement

4.2.2          No claim  shall be brought against the Vendors in respect of such
               liabilities   unless   notice  in   writing  of  any  such  claim
               (specifying in reasonable  detail the nature of the breach and so
               far as is practicable the amount claimed in respect  thereof) has
               been given to the Vendors by the person  intending  to bring such

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               claim by not later  than one year from the  Closing  Date and any
               such  claim  which may have  been made  shall (if it has not been
               previously satisfied settled or withdrawn) be deemed to have been
               withdrawn on the expiration of 6 months from the date of the said
               notice unless proceedings in respect thereof shall have been both
               issued and served on the Vendors before such expiration.

4.2.3    Notwithstanding the other provisions of paragraph 4.2:
                     (i)   no  claim   shall  be  brought  in  respect  of  such
                           liabilities  unless the amount of loss  sustained  in
                           respect  of which a claim  may  properly  be  brought
                           shall  exceed the sum of  (pound)5,000  (such a claim
                           which exceeds that sum being herein  referred to as a
                           "Qualifying Claim");

                     (ii)  no claim may be brought  in  respect of a  Qualifying
                           Claim  unless  the  loss  thereby   sustained   (when
                           aggregated with any other Qualifying  Claims) exceeds
                           (pound)25,000 whereupon all Qualifying Claims and not
                           merely the excess over  (pound)25,000 may be brought;
                           and

                     (iii) the total  liability of the Vendors in respect of all
                           claims  under or in  respect  of any of the  terms of
                           this Agreement shall not exceed (pound)50,000.

4.2.4         The Vendors shall have no liability in respect of such liabilities
              and  accordingly no claim may be brought in respect thereof if and
              to the extent that any one or more of the following provisions may
              apply:

                     (i)   such  liabilities  are wholly or partly  attributable
                           to any voluntary act omission transaction or arrange-
                           ment of the  Purchaser at  any time or of the Company
                           after the date hereof;

                     (ii)  either the  Company or the  Purchaser  is entitled to
                           claim  indemnity  against any loss or damage suffered
                           by any of  them  under  the  terms  of any  insurance
                           policy  for the time  being in  force,  save that any
                           excess payable under any such  insurance  policy will
                           be payable by the Vendors;

                     (iii) such  liabilities  arise in connection with any fact,
                           matter or  circumstance  disclosed in the  Disclosure
                           Statement  or  in  any  of  the   schedules  to  this
                           Agreement;

                     (iv)  such liabilities arise in connection  with any matter
                           provided  for under  the  terms of  this Agreement or
                           arising from the implementation of the same;

                     (v)   such liabilities  arise in connection with any matter
                           or thing done or omitted  prior to  Completion by the
                           Vendors or the Company at the  written  request of or
                           with  the  written  approval  of the  Purchaser,  its
                           representatives or professional advisers;

                     (vi)  the loss or  liability  suffered  or  incurred by the
                           Purchaser  or the  Company  (as the  case  may be) to
                           which such liabilities  relate is contingent,  future
                           or  unascertainable  and no claim may be  brought  in
                           respect  of such  liabilities  until such time as the
                           Company or the Purchaser shall have actually suffered
                           the loss or incurred the liability in question;

                     (vii) such liabilities  arise wholly or  partly out of as a
                           result of or in connection with:

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                            (a)     any change in the nature of the  business of
                                    the Company (or in the manner  of conducting
                                    the same) after the date hereof; or
                            (b)     any asset acquired or disposed of by the
                                    Company after the date hereof; or
                            (c)     any  statutory provision not in force at the
                                    date hereof or  any change in any  statutory
                                    provision  hereafter  or any decision of the
                                    Courts altering  the accepted interpretation
                                    of any statutory provision or the withdrawal
                                    of any extra statutory concession previously
                                    made by or any change in practice of the In-
                                    land  Revenue or other taxation authority or
                                    any  increase in the rates  of  Taxation  in
                                    force at the date hereof; or
                            (d)     the passing of a  resolution for the winding
                                    up of the Company  after the date hereof; or
                            (e)     any  change in the  format,  matter,  bases,
                                    priorities  and   principles   used  in  the
                                    preparation  of the  accounts of the Company
                                    after the  Closing  Date from those used and
                                    adopted  in the  accounts  of  the  Company,
                                    prior to the Closing Date;

                     (viii)the loss or liability resulting from such liabilities
                           has been or is made good or otherwise compensated for
                           at no expense to the Purchaser and/or the Company;

                     (ix)  the loss or liability resulting from such liabilities
                           is less than the aggregate of any over-provision made
                           in the accounts in respect of any  liability  and any
                           undervalue of any asset recorded in the accounts.

                     (x)   such  liabilities  arise  in relation  to  any  fact,
                           matter or circumstance which would be revealed by:
                            (a)    a physical inspection of the state and condi-
                                   tions of the Assets;
                            (b)    the statutory books  and registers (including
                                   minute books) of the Company;
                     (xi)  such  liabilities  arise  in  relation  to any  fact,
                           matter or  circumstance  which  appear as a matter of
                           public  record,  including but not limited to matters
                           appearing on the file at  Companies  House in respect
                           of the Company.

4.2.5         The Purchaser  shall  reimburse to the Vendors amount equal to any
              sum  paid  by the  Vendors  in  respect  of  any  claim  for  such
              liabilities  which  is  subsequently  recovered  by or paid to the
              Purchaser or the Company by any other person (less any  reasonable
              costs  and  expenses  incurred  by  the  Company  in  making  such
              recovery) within ten days of such payment.

4.2.6         Any  sum  recovered  by  the  Purchaser  or  the  Company  in  the
              circumstances  described in  paragraph  4.2.5 above shall be taken
              into account, with retrospective effect, when ascertaining whether
              the threshold in paragraph 4.2.3 is exceeded. Any sums paid by the
              Vendors  which  would  not  have  been  payable  but for the  said
              threshold being exceeded by the inclusion of the reimbursed  claim
              shall be repaid forthwith.

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4.2.7         Where   having   discharged   any   claim   for   breach   of  the
              representations  or  warranties  herein the  Vendors  request  the
              assignment to them of any right of the Purchaser or of the Company
              to make  recovery  in whole or in part from any third  party,  the
              Purchaser  will assign or procure the assignment to the Vendors of
              such right and,  if the same is not legally  capable of  effective
              assignment,  will,  subject to being indemnified to the reasonable
              satisfaction of the Purchaser, pursue such claim on behalf of such
              Vendors and pay over to the Vendors all amounts recovered.

4.2.8         Any such  liabilities  shall not extend to any part of the loss or
              damage suffered by the Purchaser or the Company to the extent that
              such part  shall be used or shall be  capable of being used by the
              Purchaser or the Company or any present or future  subsidiaries of
              either of them to offset in whole or in part any past  present  or
              future liability to Taxation.

4.2.9         Where the  Company or the Purchaser  may be entitled  (whether  by
              reason of  insurance or payment, discount or otherwise) to recover
              from some other person any sum in respect of taxation or any other
              damage or  liability  the  subject of a claim  against the Vendors
              under this  Agreement or for which a claim could be made hereunder
              (and  whether  before or after the Vendors have made payment here-
              under)  the  Purchaser shall if so  required by the Vendors and at
              its own cost and expense take or (as the case may require) procure
              that the  Company  takes  all steps  (whether by  way of  a  claim
              against its insurers or otherwise)  as the Vendors may  reasonably
              require to enforce such recovery and shall keep the Vendors inform
              -ed to his reasonable  satisfaction of the progress of any  action
              taken.  Thereafter any claim against the Vendors  shall be limited
              (in  addition to the  limitations  on the  liability of the Vendor
              referred to in this paragraph 4.2) to the amount by which the loss
              or  damage  suffered by the  Purchaser  as a result of such breach
              shall exceed the amount (if any) so recovered. The Purchaser shall
              not be entitled to make any claim  in respect of such  liabilities
              if it or the Company fails to act in  accordance  with the reason-
              able instructions  of the  Vendors in conducting a claim against a
              third party.

4.2.10        The Vendors  shall be entitled  to require  the  Purchaser  or the
              Company to take all such  reasonable steps or  proceedings  as the
              Vendors may consider appropriate in order to mitigate any claim in
              respect  of such liabilities or in  respect of the undertakings in
              this  Agreement  and the Purchaser  shall procure that the Company
              shall act in  accordance with any such requirements subject to the
              Purchaser  and/or the Company  being  indemnified  by the  Vendors
              against all reasonable  costs and expenses incurred in  connection
              therewith.  For the  purpose of  enabling the  Vendors to remedy a
              breach or to  mitigate or otherwise  determine  the amount  of any
              claim or to  decide  what steps or proceedings  should be taken in
              order  to  mitigate  any  claim  the Purchaser shall:

                (i)        give  notice  to the  Vendors  within  30 days of any
                           breach or circumstance  giving or likely to give rise
                           to a breach  coming to its notice or to the notice of
                           the Company;

                (ii)       make or procure to be made  available  to the Vendors
                           or their duly authorised representatives all relevant

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                           personnel,    books   of   accounts,    records   and
                           correspondence  of the  Company  for the  purpose  of
                           enabling  the  Vendor to  ascertain  or  extract  any
                           relevant information; and

                (iii)      make  no  admission  of the  fact  or  amount  of any
                           liability on the part of the Company or the Purchaser
                           without the prior written consent of the Vendors such
                           consent not to be unreasonably withheld or delayed.

                     The  Purchaser  shall not be  entitled to make any claim in
                     respect of a breach of any  warranty  if it or the  Company
                     fails to give the said notice or act in accordance with the
                     reasonable  instructions  of the Vendors in conducting  any
                     dispute  or   negotiation  in  relation  to  the  claim  in
                     accordance with this paragraph 4.2.10.

4.2.11        Any breach of any of the warranties or any other provision of this
              Agreement by the Vendors  shall give rise only to an action by the
              Purchaser  for  damages and shall not  entitle  the  Purchaser  to
              rescind this Agreement.

4.2.12        Nothing in this Agreement shall be deemed to relieve the Purchaser
              from its common law duty to the Vendors to  mitigate  its loss and
              without prejudice to the generality of the foregoing the Purchaser
              shall  take and shall  procure  that the  Company  shall  take all
              practicable and reasonable  steps to avoid or mitigate any loss or
              liability which may give rise to a claim under this Agreement.

              Nothing  in this  paragraph  4.2.12  shall  exclude  or limit  the
              Vendor's liability arising out of the Vendor's fraud.

5.       PURCHASER'S REPRESENTATIONS AND WARRANTIES

5.1        In order to induce  the  Vendors to enter  into and  consummate  this
           Agreement,  the Purchaser  represents  and warrants to the Vendors as
           follows:

5.1.1         the  Purchaser  is a  corporation  duly  incorporated  and validly
              existing under the laws of Colorado,  and is in good standing with
              respect  to the  filing  of  annual  reports  with  the  State  of
              Colorado.

5.1.2         the execution and delivery of this Agreement and the completion of
              the  transactions  contemplated  hereby have been duly and validly
              authorised  by all necessary  corporate  action on the part of the
              Purchaser.

5.1.3         the Purchaser is a "reporting issuer within the meaning of the
              U.S Securities Laws.

5.1.4         the Purchaser is a resident of the United States for tax purposes.

5.1.5         the current form 15c211 is  true and correct and complies with the
              requirements of the Act.

5.1.6         the execution, delivery and performance of this Agreement and each
              of the other  agreements contemplated or referred to herein to the
              Purchaser,  and the completion  of the  transactions  contemplated
              hereby,  will not constitute or result in a violation or breach or
              default under:

                (i)      any term or provision of any of the memorandum, art-
                         icles,  or other  constitutional  documents of the
                         Purchaser; or

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                (ii)      any term or  provision of any licenses,  registrations
                          or  qualification  of  the  Purchaser  or  any  court,
                          governmental  authority  or  regulatory   body  or any
                          applicable law or regulation of any jurisdiction.

5.1.7         the  Consideration  Securities  are  registered  under the Act and
              therefore  none  of  such  securities  can be  sold,  transferred,
              assigned or disposed of except in accordance  with the Act and the
              Rules and  Regulations of the  Securities and Exchange  Commission
              promulgated thereunder.

5.1.8         the Consideration Securities shall rank pari passu in all respects
              with  the  Common  Stock in  issue  at the  date  hereof  and will
              continue to do so after the Closing Date.

6.       CLOSING MATTERS

6.1        The   obligations  of  the  parties  to  complete  the   transactions
           contemplated  by this  Agreement may be subject to the acceptance for
           filing  by the  Exchange  of this  Agreement.  The  parties  agree to
           co-operate  fully in the  obtaining of such approval if necessary and
           agree to provide such further and other  documents and  assurances to
           obtain such approval,  provided that no such documents and assurances
           change the substance of this Agreement.

6.2        On the  Closing  Date,  the  Vendors  will  deliver  or  cause  to be
           delivered to the  Purchaser at the  registered  office of the Company
           the following:

                (a)  all   corporate   records,  books  of  account,  Contracts,
                     registers  and  documents  of  the  Company,  including the
                     minute book and corporate seal of the Company;

                (b)  minutes  of a  meeting  of the  board of  directors  of the
                     Company  approving this Agreement and the Service Agreement
                     (Contract   of   employment),   providing   the   necessary
                     authorisation  for the company to enter into the  Agreement
                     and the Service Agreement;

               (c)   duly executed  resolutions  of  the  Company  amending  the
                     authorised  signatories of all  corporate bank  accounts as
                     the Purchaser directs;

6.3      Within one month of the Closing Date, the Purchaser shall deliver to
         the Vendors' Solicitors:

              (a)    non-renounceable Certificates in the agreed form in respect
                     of the  Consideration  Securities to be allotted and issued
                     pursuant to Clause 2.2;

             (b)     the Stock Options duly executed by the Purchaser;

             (c)     a certified  copy  of the  resolutions  of the Board of the
                     Purchaser  approving the execution by the Purchaser of this
                     Agreement and all  transactions and documents to be entered
                     into or made pursuant to it; and

             (d)     any other documents required.

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7.       TRANSACTION EXPENSES

       Each party to this Agreement will bear all costs and expenses incurred by
       it in negotiating  this Agreement  Without limiting the generality of the
       foregoing,  the  Purchaser  will bear all costs and  expenses  related to
       obtaining  any  approvals  which may be required by paragraph  6.2, or in
       order to obtain permission for the Consideration  Securities to be traded
       on  the  Exchange  except  to  the  extent  that  any   documentation  or
       information  is required  to be  provided by the Vendors to complete  the
       same,  in  which  event  the  cost of  providing  that  documentation  or
       information will be to the account of the Vendors.

8.     VENDORS RIGHT TO UNWIND THIS AGREEMENT

       If at any  time  the  funds  agreed  to be paid by the  Purchaser  to the
       Company as set out in the Heads of  Agreement or further  agreed  between
       the parties or set out in this  Agreement  are not made  available to the
       Company  within  fourteen days following the due date of payment then the
       Vendors  shall  have the right to unwind  this  Agreement  and retain the
       consideration as security free of restriction. For the avoidance of doubt
       it is hereby agreed that in the event of such unwinding all  intellectual
       property  belonging  to the Company  will revert to Adrian  Clarke and no
       further right to exploit that intellectual  property will remain with the
       Company or Xethos Group Inc.

9.       FURTHER PROVISIONS

9.1  The Company will appoint the Purchaser's  nominated  representative  to its
     Board forthwith upon receipt of the documents set out in clause 6.3 above .

9.2  The  Purchaser  agrees to deposit  with the Company the funds  required for
     each  month  under  clause  2.3 above  and  subsequently  under the  agreed
     Business Plan of the Company on the first day of that month.

9.3  The Purchaser  will appoint Adrian Clarke as a Director of the board of the
     Purchaser should he so request within two years of the date hereof.

10.      NOTICES

       All notices, requests, demands and other communications hereunder must be
       in  writing  and will be deemed to have been duly given if  delivered  by
       courier or sent by prepaid  registered mail addressed to the addressee at
       the address  appearing on the first page hereof or to such other  address
       as may be given in writing by the parties  hereto,  and will be deemed to
       have been received,  if delivered,  on the date of delivery and if mailed
       as  aforesaid,  then on the sixth  business  day  following  the  posting
       thereof

11.      GENERAL

11.1   This Agreement will endure to the benefit of and will be binding upon the
       parties  and  their  heirs,  executors,  administrators,  successors  and
       assigns

11.2     Time will be of the essence of this Agreement.

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11.3    The  terms  and  provisions  herein  contained   constitute  the  entire
        agreement  between the parties and will  supersede  all previous oral or
        written communications regarding the purchase and sale of the Shares.

11.4    If any part of this  Agreement  is held  invalid or  unenforceable  by a
        Court of law,  then this  Agreement  will be read as if such  invalid or
        unenforceable provision were removed.

11.5    This  Agreement  may be executed  in several  parts in the same form and
        such parts and the heads of agreement as so executed  will together form
        one  original  agreement,  and  such  parts  will be read  together  and
        construed as if all signing parties hereto had executed one copy of this
        Agreement.

11.6    This Agreement will be governed by and construed in accordance  with the
        laws of England  and Wales and the parties  submit to the  non-exclusive
        jurisdiction of the English Courts.

11.7    The provisions of the Heads of Agreement  shall remain in full force and
        effect notwithstanding  Closing in so far as the provisions thereof have
        not been completed or superseded by this Agreement.

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IN WITNESS  WHEREOF the parties have duly executed  this  Agreement as a Deed on
the day and year first above written.

Executed and delivered as a deed            )
at the date of this agreement by            )
Adrian Clarke in the presence of:           )

Witness:

Address:

Occupation:

Executed and delivered as a deed           )
at the date of this agreement by           )
Wendy Elizabeth Lugner in the presence of: )

Witness:
Address:
Occupation

Executed and delivered as a deed            )
at the date of this agreement by            )
Peter Butler in the presence of:            )

Witness:
Address:
Occupation:

Executed and delivered as a deed           )
at the date of this agreement by           )
Kenneth Fraser Shimmin in the presence of: )

Witness:
Address:
Occupation:
Executed and delivered as a deed            )
at the date of this agreement by            )

Copyright Xethos                                                         Page 20

<PAGE>

Xethos Group Inc.                May 2000                              Snowstorm

G.S.TELECOM, LIMITED acting by              )

                                    Secretary/Director

                                    President/CEO

Copyright Xethos                                                         Page 21AGENCY AGREEMENT

THIS AGREEMENT (the "Agreement") is made as of this 2nd day of June, 2000 by and
between  Xethos Group Inc,  formerly  known as GS Telecom  Limited of Enterprise
House, Ocean Village, Southampton, SO14 3XD, (hereinafter referred to as Xethos)
and ARGONET PAYMENT SYSTEMS LIMITED, and its Affiliates  (collectively "APSL") a
corporation duly incorporated under the laws of the British Virgin Islands.

         BACKGROUND

         WHEREAS,  Xethos knows of and has contacts directly and indirectly with
certain merchants and Independent Sales Organisations who collectively also have
contacts  directly and indirectly  with certain other  merchants and Independent
Sales  Organisations  (collectively  "Contacts")  who may desire to enter into a
business  relationship with APSL,  including but not limited to the provision by
APSL of a  range  of  services,  including  but  not  limited  to,  credit  card
processing,  trust  services,  investment  advice and services,  depositing  and
investing  funds,  and  general  banking  and  advisory  services  (collectively
"Services"); and

         WHEREAS, Xethos intends to  Introduce (as hereinafter defined) Contacts
to APSL; and

         WHEREAS,  APSL desires to, and is capable of, providing Services to all
Contacts  within  its  existing  operations  and  desires  to  induce  Xethos to
Introduce  Contacts  to APSL  for the  purpose  of  permitting  APSL to  provide
Services to Contacts.

         NOW, THEREFORE,  in consideration of the various covenants and promises
contained  herein,  in  addition  to  other  consideration,   the  receipt;  and
sufficiency of which are hereby acknowledged, the parties agree as follows:

GLOSSARY

         Capitalised  terms used in this  Agreement  and not  otherwise  defined
shall have the meaning set forth below:

"Affiliate"  means any person  (whether  natural  or legal)  that  controls,  is
controlled by, or is under common control with the relevant party.  For purposes
hereof, the term "control" means the legal or beneficial  ownership of more than
fifty  percent  (50%) of the  capital or votes of the  relevant  person,  or the
possession,  directly  or  indirectly,  of the  power to  direct  or  cause  the
direction  of the  management  and policies of any such person  whether  through
ownership of voting securities, by contract or otherwise.

"Initial Term" shall have the meaning set forth in Section 4.1.

"Introduce"  or such  conjunction  thereof as the context may require shall have
the meaning set forth in Section 2.1.

<PAGE>

                                    ARTICLE 1
                                    Services

1.1      Scope of services.  During the Initial Term of this  Agreement  and any
         Renewal  Terms,  Xethos shall have the right to  Introduce  Contacts to
         APSL  that may be  interested  in having  APSL  provide  Services.  For
         purposes of this agreement,  "Introduce" ( or such conjugation  thereof
         as the  context  may  require  ) shall  mean for  Xethos  or any of its
         affiliates,   subsidiaries,  officers,  directors,  employees,  agents,
         representatives  or attorneys to make contact,  in writing or verbally,
         with a person or entity or their representatives. An introduction shall
         also include  Introductions made by Contacts  Introduced by Xethos with
         or without the knowledge or participation of Xethos which result in the
         entering  of a business  relationship  between  APSL and such person or
         entity  Introduced by such Introduced  Contact.  In the event a Contact
         Introduced by Xethos or a Contact Introduced by a contact enters into a
         business  relationship of any kind with APSL then such contact shall be
         deemed to be an "  Introduced  Contact " by Xethos and shall be covered
         by the terms of this Agreement,  including without limitation,  Article
         3.

1.2      Independent  Contractor.  In the  performance  of this  Agreement it is
         mutually  understood  and  agreed  that both  parties  are at all times
         acting and performing a independent contractors.  This Agreement is not
         intended to make either party a partner, employee of, or joint venturer
         with the other party.

                                    ARTICLE 2
                                  Compensation

2.1      Xethos Fee: In  consideration of making  Introductions,  APSL agrees to
         pay  Xethos  a  maximum  of 0.5% of the  gross  merchant  sales  volume
         processed by APSL for all  Introduced  Contacts for which APSL performs
         authorization, capture and settlement processing services. The level of
         Xethos  fees  will  be  scaled  to the  overall  fee  payable  by  each
         introduced  contact.  Any  additional  fees paid to Xethos for Services
         provided by APSL for Introduced  Contacts  shall be mutually  agreed by
         APSL and  Xethos.  The above fees  collectively  shall be  referred  to
         herein as the "Xethos Fee".

2.2      Financial  Reporting.  APSL  agrees  to  supply  Xethos  with a monthly
         accounting,  certified as to truth and accuracy by a corporate  officer
         of APSL, in sufficient detail in the opinion of Xethos to determine the
         accuracy  of the  Xethos  Fee.  In the event of a  question  by Xethos,
         Xethos shall have the right to cause its accounting  firm to audit APSL
         and its Affiliates to determine the amount of the Xethos Fee.

2.3      Sale of  Portfolio.  In the event  APSL  desires to sell,  transfer  or
         convey any of its  rights to provide  any  Services  to any  Introduced

<PAGE>

         Contacts,  it may do so only with the written consent of Xethos. In the
         event of such a sale,  transfer or  conveyance,  all  proceeds or other
         compensation  received  by APSL shall be divided  equally  between  the
         parties hereto.

                                    ARTICLE 3
                              Term and Termination

3.1      Initial Term and Renewal. The initial term of this Agreement shall be 2
         years,  beginning  on the date  hereof  (the  "Initial  Term").  At the
         completion of the Initial  Term,  Xethos shall have the option to renew
         the Agreement for a further 1 year upon the delivery of written  notice
         to APSL prior to the expiration of the Initial Term.

3.2      Grounds for  Termination.  Xethos may terminate  this Agreement if APSL
         materially fails to perform its obligations to Xethos or any Introduced
         Contact.  Furthermore,  either  party may  immediately  terminate  this
         Agreement if the other party,  or any of the other  party's  Affiliates
         involved in providing any Services under this Agreement is convicted of
         fraud  or any  other  crime  of  moral  turpitude,  including  a  crime
         involving the corruption of state officials.

                                    ARTICLE 4
                                 Indemnification

4.1      Indemnification  by APSL.  APSL  agrees to  indemnify,  defend and hold
         Xethos and its subsidiaries,  affiliated and related entities, and each
         of their officers, directors,  employees, agents and attorneys harmless
         from and  against  any and all  damages  or other  losses (  including,
         without  limitation,  attorneys  ` fees and costs ) arising  out of any
         claim ( threatened or actual, fixed or contingent,  known or unknown ),
         lawsuit, judgement, arbitration or other proceedings resulting from any
         breach  by  APSL  of its  obligations,  representations  or  warranties
         hereunder,  or as a result  of the  breach  of its  obligations  to any
         Introduced Contact.

                                    ARTICLE 5
                                  Miscellaneous

5.1      Notice.  All  notices or other  communications  which are  required  or
         permitted  hereunder shall be in writing and sufficient if delivered by
         hand,  by facsimile or  telecopier  transmission  ( and a  transmission
         confirmation   is  received  by  the  sender  ),  or  by  a  recognised

<PAGE>

         international or overnight courier, to the persons at the addresses set
         forth below (or at such other  addresses as may be provided hereunder),
         and  shall  be  deemed  to have  been  delivered  as of the date so de-
         livered.

                  If to Xethos:             Sam Lupton
                                            Enterprise House
                                            Ocean Village
                                            Southampton
                                            SO14 3XD

                  If to APSL:               John Mitchell
                                            2nd Floor,  14-16 Regent Street,
                                            London SW1Y 4PH
                                            England

The parties may change the  addresses to which notice shall be sent by notice as
stipulated in this Section 6.3

5.2      Construction.  The section numbers and captions of the articles of this
         Agreement  are inserted only as a matter of  convenience  and are in no
         way intended to define or limit the scope or intent of such articles or
         affect this  Agreement.  Unless the  context  otherwise  requires,  all
         section and article references  contained in this Agreement shall refer
         to sections and articles of this Agreement.

5.3      Severability.  If any provision of this  Agreement,  or the application
         thereof to any person or circumstance,  shall, for any reason or to any
         extent,   be   invalid   or    unenforceable,    such   invalidity   or
         unenforceability  shall not in any manner  affect or render  invalid or
         unenforceable  the remainder of this Agreement,  and the application of
         that provision to other persons or circumstances shall not be affected,
         but rather shall be enforced to the extent permitted by law.

5.4      Successors  and Assigns.  All the  provisions of this  Agreement  shall
         inure to the benefit of and be binding upon the  successors and assigns
         of the parties hereto;  provided,  however,  that nothing  contained in
         this  section  6.6 shall be  constructed  as  granting to any party the
         right to assign or transfer its rights under this  Agreement  except as
         expressly permitted in section 6.7.

5.5      Assignment. This Agreement shall not be assignable by one party without
         the consent of the other party, which consent shall not be unreasonably
         withheld;  provided that Xethos may assign this Agreement to any of its
         affiliates without the consent of APSL. Notwithstanding anything herein
         to the contrary,  APSL may elect to perform any of its  obligations  or
         undertakings  hereunder  through one or more of its Affiliates;  of its
         obligations  hereunder  regardless  of  the  entity  performing  on its
         behalf.

5.6      Entire Agreement. This Agreement contains the complete statement of all
         the  agreements  between  the  parties  hereto  with the respect to the

<PAGE>

         subject matter  hereof,  and all prior  agreements  between the parties
         respecting  the  subject  matter  hereof,  whether  written or oral are
         merged  herein  and  shall  be of no  further  force  or  effect.  This
         Agreement cannot be changed, modified, discharged or terminated, except
         by an instrument in writing signed by the parties.

5.7      Governing  Law.  This  Agreement, and all amendments hereof and waivers
         waivers and consents  hereunder shall be governed by, and construed and
         enforced in accordance with the laws of England.

5.8      No Waiver. No waiver or purported  waiver,  whether express or implied,
         by any party of any  breach by the other  party of its  obligations  or
         covenants  hereunder shall be effective unless made in writing,  and no
         failure  to pursue or elect any  remedy  with  respect  to any  default
         under, or breach of, any provision of this Agreement shall be deemed to
         be a waiver of any subsequent, similar or different default or breach.

5.9      Remedies.  Each right,  power and remedy  provided for herein or now or
         hereafter existing at law, in equity, by stature or otherwise, shall be
         cumulative.

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

For:              Argonet Payment Systems Ltd                 Xethos Group Inc

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

Print name:

Date:             -----------------------            -----------------------

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