Document:

Exhibit 10.2

                  AGREEMENT AND PLAN OF MERGER

                              among

                          Othnet, Inc.,

                    Othnet Merger Sub, Inc.,

                               and

          Association of Volleyball Professionals, Inc.

                    Dated as of June 29, 2004

     AGREEMENT AND PLAN OF MERGER, dated as of June 29, 2004 (the
"Agreement"),   among   Othnet,  Inc.,  a  Delaware   Corporation
("Othnet"),  Othnet Merger Sub, Inc., a Delaware corporation  and
wholly owned subsidiary of Othnet ("Merger Sub"), and Association
of  Volleyball  Professionals, Inc., a Delaware corporation  (the
"Company").  Othnet, Shareholder, Merger Sub, and the Company are
collectively  referred  to herein as the "Parties."   Othnet  and
Merger  Sub are sometimes referred to herein collectively as  the
"Othnet Parties."

                            RECITALS:

     WHEREAS,  the  respective boards of  directors  of  each  of
Othnet,  Merger Sub and the Company have approved the  merger  of
Merger  Sub  with  and into the Company (the "Merger")  upon  the
terms and subject to the conditions set forth in this Agreement;

     WHEREAS,  it  is  intended  that,  for  federal  income  tax
purposes, the Merger shall qualify as a reorganization under  the
provisions  of  Section 368(a) of the Internal  Revenue  Code  of
1986,  as  amended,  and  the rules and  regulations  promulgated
thereunder (the "Code"); and

     WHEREAS, the Company, Othnet and Merger Sub desire  to  make
certain representations, warranties, covenants and agreements  in
connection with this Agreement.

     NOW,  THEREFORE, in consideration of the premises and mutual
promises   herein   made,   and   in   consideration    of    the
representations,  warranties,  covenants  and  agreements  herein
contained, and intending to be legally bound hereby, the  Parties
agree as follows:

                            ARTICLE I
                           DEFINITIONS

      1.1   Certain  Definitions.  In  addition  to  other  terms
defined elsewhere herein, the following terms shall, when used in
this Agreement, have the following meanings:

     "Acquisition"  means the acquisition  by  a  Person  of  any
businesses, assets or property other than in the ordinary course,
whether  by  way of the purchase of assets or stock,  by  merger,
consolidation or otherwise.

     "Affiliate"  means,  with respect to  any  Person:  (i)  any
Person  directly  or indirectly owning, controlling,  or  holding
with  power  to  vote  10%  or  more of  the  outstanding  voting
securities   of  such  other  Person  (other  than   passive   or
institutional  investors); (ii) any Person 10% or more  of  whose
outstanding  voting securities are directly or indirectly  owned,
controlled,  or  held with power to vote, by such  other  Person;
(iii)  any  Person directly or indirectly controlling, controlled
by,  or under common control with such other Person; and (iv) any
officer, director or partner of such other Person.  "Control" for
the  foregoing  purposes shall mean the possession,  directly  or
indirectly, of the power to direct or cause the direction of  the
management  and  policies  of  a  Person,  whether  through   the
ownership  of voting securities or voting interests, by  contract
or otherwise.

     "Business Day" means any day other than Saturday, Sunday  or
a  day  on which banking institutions in Los Angeles, California,
are required or authorized to be closed.

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

     "Collateral  Documents"  mean the  Exhibits  and  any  other
documents,  instruments  and  certificates  to  be  executed  and
delivered by the Parties hereunder or thereunder.

     "Commission" means the Securities and Exchange Commission or
any Regulatory Authority that succeeds to its functions.

     "Company  Assets"  mean all properties, assets,  privileges,
powers,   rights,  interests  and  claims  of  every   type   and
description that are owned, leased, held, used or useful  in  the
Company Business and in which the Company has any right, title or
interest  or  in which the Company acquires any right,  title  or
interest on or before the Closing Date, wherever located, whether
known  or unknown, and whether or not now or on the Closing  Date
on the books and records of the Company, but excluding any of the
foregoing,  if any, transferred prior to the Closing pursuant  to
this Agreement or any Collateral Documents.

     "Company  Business" means the acquisition and  operating  of
sports and entertainment events.

     "Company  Common  Stock"  means the  common  shares  of  the
Company.

     "Company Preferred Stock" means the Series A Preferred Stock
of the Company.

     "Company Shareholders" means, as of any particular date, the
holders  of Company Common Stock and Series A Preferred Stock  on
that date.

     "Company  Stock"  means the Company  Common  Stock  and  the
Company Preferred Stock.

     "Encumbrance"  means  any material mortgage,  pledge,  lien,
encumbrance,  charge,  security  interest,  security   agreement,
conditional  sale or other title retention agreement, limitation,
option,  assessment, restrictive agreement, restriction,  adverse
interest,  restriction on transfer or exception  to  or  material
defect   in   title   or  other  ownership  interest   (including
restrictive covenants, leases and licenses).

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

     "Exchange Act" means the Securities Exchange Act of 1934, as
amended, and the rules and regulations thereunder.

     "GAAP"  means  United  States generally accepted  accounting
principles as in effect from time to time.

     "Legal Requirement" means any statute, ordinance, law, rule,
regulation, code, injunction, judgment, order, decree, ruling, or
other  requirement enacted, adopted or applied by any  Regulatory
Authority,  including judicial decisions applying common  law  or
interpreting any other Legal Requirement.

     "Losses"   shall   mean  all  damages,  awards,   judgments,
assessments,   fines,  sanctions,  penalties,   charges,   costs,
expenses,  payments,  diminutions  in  value  and  other  losses,
however  suffered  or  characterized, all interest  thereon,  all
costs  and  expenses  of  investigating  any  claim,  lawsuit  or
arbitration  and  any  appeal therefrom, all  actual  attorneys',
accountants'   investment  bankers'  and  expert  witness'   fees
incurred  in  connection therewith, whether or  not  such  claim,
lawsuit  or  arbitration is ultimately defeated and,  subject  to
Section  9.4,  all  amounts paid incident to  any  compromise  or
settlement of any such claim, lawsuit or arbitration.

     "Liability" means any liability or obligation (whether known
or  unknown, whether asserted or unasserted, whether absolute  or
contingent,  whether accrued or unaccrued, whether liquidated  or
unliquidated,  and whether due or to become due),  including  any
liability for Taxes.

     "Material Adverse Effect" means a material adverse effect on
(i)  the  assets,  liabilities, properties  or  business  of  the
Parties,  (ii) the validity, binding effect or enforceability  of
this  Agreement or the Collateral Documents or (iii) the  ability
of  any Party to perform its obligations under this Agreement and
the  Collateral Documents; provided, however, that  none  of  the
following  shall  constitute a Material  Adverse  Effect  on  the
Company:  (a)  occurrences  due to  a  disruption  of  a  Party's
business as a result of the announcement of the execution of this
Agreement  or changes caused by the taking of action required  by
this  Agreement,  (b)  general economic conditions,  or  (c)  any
changes  generally  affecting the industries  in  which  a  Party
operates.

     "Merger  Shares"  means  the  shares  of  Othnet  Series   A
Convertible Preferred Stock deliverable by Othnet in exchange for
Company Common Stock pursuant to Section 2.5(a).

     "Othnet  Assets"  mean all properties,  assets,  privileges,
powers,   rights,  interests  and  claims  of  every   type   and
description that are owned, leased, held, used or useful  in  the
Othnet  Business  and in which Othnet or any of its  Subsidiaries
has any right, title or interest or in which Othnet or any of its
Subsidiaries acquires any right, title or interest on  or  before
the Closing Date, wherever located, whether known or unknown, and
whether  or  not  now or on the Closing Date  on  the  books  and
records of Othnet or any of its Subsidiaries.

     "Othnet Business" means the business conducted by Othnet and
its Subsidiaries.

     "Othnet Common Stock" means the common shares of Othnet.

     "Othnet   Preferred  Stock"  means  Series   A   Convertible
Preferred Stock and the Series B Convertible Preferred  Stock  of
Othnet.

     "Othnet Securities Filings" means Othnet's Annual Report  on
Form  10-KSB  and its quarterly reports on Form 10-QSB,  and  all
other reports filed and to be filed with the Commission prior  to
the Effective Time.

     "Othnet  Series A Convertible Preferred Stock" means  shares
of  Series  A Preferred Stock of Othnet to be designated  by  the
Board of Directors of Othnet prior to the Closing containing  the
terms and provisions set forth in Exhibit A hereto.

     "Othnet  Series B Convertible Preferred Stock" means  shares
of  Series  B Preferred Stock of Othnet to be designated  by  the
Board of Directors of Othnet prior to the Closing containing  the
terms and provisions set forth in Exhibit B hereto.

     "Othnet  Shareholders" means the holders  of  Othnet  Common
Stock immediately prior to the Effective Time.

     "Permit"  means  any  license,  permit,  consent,  approval,
registration,  authorization,  qualification  or  similar   right
granted by a Regulatory Authority.

     "Permitted Liens" means (i) liens for Taxes not yet due  and
payable   or   being  contested  in  good  faith  by  appropriate
proceedings; (ii) rights reserved to any Regulatory Authority  to
regulate  the affected property; (iii) statutory liens  of  banks
and rights of set-off; (iv) as to leased assets, interests of the
lessors  and sublessors thereof and liens affecting the interests
of   the   lessors   and   sublessors   thereof;   (v)   inchoate
materialmen's, mechanics', workmen's, repairmen's or  other  like
liens  arising  in  the ordinary course of business;  (vi)  liens
incurred  or  deposits made in the ordinary course in  connection
with  workers'  compensation and other types of social  security;
(vii)  licenses  of  trademarks or  other  intellectual  property
rights  granted by the Company or Othnet, as the case may be,  in
the  ordinary course and not interfering in any material  respect
with  the  ordinary  course of the business  of  the  Company  or
Othnet,  as the case may be; and (viii) as to real property,  any
encumbrance,  adverse  interest,  constructive  or  other  trust,
claim,  attachment,  exception to or defect  in  title  or  other
ownership  interest (including, but not limited to, reservations,
rights  of  entry,  rights  of first  refusal,  possibilities  of
reversion,  encroachments,  easement, rights-of-way,  restrictive
covenants,  leases,  and licenses) of any kind,  which  otherwise
constitutes  an  interest in or claim against  property,  whether
arising pursuant to any Legal Requirement, under any contract  or
otherwise,  that  do  not,  individually  or  in  the  aggregate,
materially  and  adversely affect or  impair  the  value  or  use
thereof as it is currently being used in the ordinary course.

     "Person" means any natural person, corporation, partnership,
trust,    unincorporated   organization,   association,   limited
liability company, Regulatory Authority or other entity.

       "Regulatory  Authority" means: (i) the  United  States  of
America; (ii) any state, commonwealth, territory or possession of
the  United  States  of  America and  any  political  subdivision
thereof (including counties, municipalities and the like);  (iii)
Canada and any other foreign (as to the United States of America)
sovereign entity and any political subdivision thereof;  or  (iv)
any agency, authority or instrumentality of any of the foregoing,
including any court, tribunal, department, bureau, commission  or
board.

     "Representative"  means  any  director,  officer,  employee,
agent,  consultant, advisor or other representative of a  Person,
including legal counsel, accountants and financial advisors.

     "Securities  Act"  means  the Securities  Act  of  1933,  as
amended, and the rules and regulations thereunder.

     "Subsidiary" of a specified Person means (a) any  Person  if
securities having ordinary voting power (at the time in  question
and  without regard to the happening of any contingency) to elect
a   majority  of  the  directors,  trustees,  managers  or  other
governing  body  of  such Person are held or  controlled  by  the
specified Person or a Subsidiary of the specified Person; (b) any
Person  in  which  the  specified  Person  and  its  subsidiaries
collectively  hold  a  50% or greater equity  interest;  (c)  any
partnership or similar organization in which the specified Person
or  subsidiary of the specified Person is a general  partner;  or
(d)  any Person the management of which is directly or indirectly
controlled  by the specified Person and its Subsidiaries  through
the exercise of voting power, by contract or otherwise.

     "Tax" means any U.S. or non U.S. federal, state, provincial,
local  or  foreign  income,  gross  receipts,  license,  payroll,
employment,   excise,  severance,  stamp,  occupation,   premium,
windfall   profits,  environmental,  customs   duties,   capital,
franchise,  profits, withholding, social security  (or  similar),
unemployment,  disability,  real  property,  personal   property,
intangible property, recording, occupancy, sales, use,  transfer,
registration, value added minimum, estimated or other tax of  any
kind  whatsoever,  including  any  interest,  additions  to  tax,
penalties,  fees, deficiencies, assessments, additions  or  other
charges  of any nature with respect thereto, whether disputed  or
not.

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

     "Treasury Regulations" means regulations promulgated by  the
U.S. Treasury Department under the Code.

                           ARTICLE II
                           THE MERGER

      2.1  Merger; Surviving Corporation.  In accordance with and
subject  to  the  provisions of this Agreement  and  the  General
Corporation  Law  of  the  State  of  Delaware  ("GCL"),  at  the
Effective Time (as defined in Section 2.4), the Merger Sub  shall
be  merged  with  and  into the Company (the "Merger"),  and  the
Company  shall  be  the  surviving  corporation  in  the   Merger
(hereinafter  sometimes called the "Surviving  Corporation")  and
shall  continue  its corporate existence under the  laws  of  the
State of Delaware.  At the Effective Time, the separate existence
of  the  Merger Sub shall cease.  All properties, franchises  and
rights belonging to the Company and Merger Sub, by virtue of  the
Merger  and without further act or deed, shall be vested  in  the
Surviving Corporation, which shall thenceforth be responsible for
all the liabilities and obligations of each of Merger Sub and the
Company.

      2.2   Articles of Incorporation.  The Company's certificate
of  incorporation,  as  in effect at the  Effective  Time,  shall
continue  in  full  force  and  effect  as  the  certificate   of
incorporation  of  the  Surviving Corporation  until  altered  or
amended as provided therein or by law.

      2.3   By-Laws.  The Company's by-laws, as in effect at  the
Effective Time, shall be the by-laws of the Surviving Corporation
until altered, amended or repealed as provided therein or by law.

      2.4  Effective Time.  The Merger shall become effective  at
the  time  and  date  that  the certificate  of  merger  with  an
Officers'  Certificate of each of the Merger Sub and the  Company
(the  "Certificate of Merger"), in form and substance  acceptable
to  the Parties, is accepted for filing by the Secretary of State
of the State of Delaware in accordance with the provisions of the
GCL.   The Certificate of Merger shall be executed by the  Merger
Sub  and  the Company and delivered to the Secretary of State  of
the  State of Delaware for filing on the Closing Date.  The  date
and time when the Merger becomes effective are referred to herein
as the "Effective Time."

       2.5    Merger  Shares;  Conversion  and  Cancellation   of
Securities.

           (a)   Conversion  of  Company Common  Stock.   At  the
Effective   Time,   all  shares  of  Company  Stock   outstanding
immediately before the Effective Time and all Options as  defined
in  Section 3.2(b) converted pursuant to Section 2.5(b) and stock
options authorized for issuance to Company employees and players,
other  than  shares described in Section 2.5(c)  and  other  than
Dissenting Shares (as defined in Section 2.8), collectively,  the
"Excluded  Shares", shall be converted, by virtue of the  Merger,
into  an amount of Series A Convertible Preferred Stock (together
with  the  aforesaid  options  "Merger  Shares")  determined   as
follows:

                (i)   Subject to adjustment as elsewhere provided
herein,  the amount of Merger Shares shall equal the sum  of  (I)
the product obtained by multiplying (A) the sum of the amount  of
(i)  Othnet  stock  outstanding on a fully diluted  basis  (i.e.,
common  stock outstanding or issuable upon exercise or conversion
of  outstanding  securities or other  rights  to  acquire  Othnet
common  stock),  without  giving effect  to  the  Merger  or  the
Financings,  as hereinafter defined ("Outstanding Othnet"),  plus
(ii) the amount of Othnet common stock ("Bridge Stock") issued or
issuable  upon  exercise  or  conversion  of  securities   issued
pursuant  to the Bridge Financing, as hereinafter defined,  minus
the  product obtained by multiplying the amount of shares subject
to  warrants  included in the Bridge Stock  by  a  fraction,  the
numerator  of  which shall be .21, and the denominator  of  which
shall  be  .5366;  plus (iii) the quotient obtained  by  dividing
$4,000,000  by $.5366 by (B) 1.6681 (i.e., the quotient  obtained
by  dividing .6252 by 1 minus .6252), plus (II) any excess of the
quotient obtained by dividing $4,000,000 by .5366 over the amount
of  the amount of Othnet common stock issuable upon conversion of
the  Othnet  Series  B  Convertible Preferred  Stock  ("Series  B
Stock") to be issued in the Private Placement (together with  the
Bridge Financing, the "Financings") referred to in Section 5.11.

               (ii)  Section 5.2(a)(i) is expressed algebraically
as follows:

     MS  = (O + (BS - (W*(.21/.5633)) + (4,000,000/.5366))*1.6881
+    (($4,000,000/.5366) - B)

     Where:  MS is the amount of Merger Shares;

          O is the amount of Outstanding Othnet;

          BS is the amount of Bridge Stock;

          B  is  the amount of Othnet common stock issuable  upon
          conversion of the   Series B Stock; and

          W  is  the  amount of warrants issued pursuant  to  the
          Bridge Financing.

                (iii)  The amount of Merger Shares determined  in
accordance  with  the  previous  section  shall  be  subject   to
adjustment as follows:  If the amount of Outstanding Othnet shall
be  22,344,279 shares; the Series B Stock shall be sold  pursuant
to  the  Private Placement at a price of $0.5366  per  share;  at
least  20  units (but not more than 23 units), comprised  as  set
forth in Section 6.10, shall be sold in the Bridge Financing, and
the notes ("Bridge Notes") sold in the Bridge Financing shall  be
convertible  into Othnet common stock at a per share price  equal
to  85%  of  the  price  at which sold pursuant  to  the  Private
Placement;  the  sum of the principle amount of converted  Bridge
Notes  plus  the proceeds net to Othnet of the Private  Placement
shall  be  $6,300,000; and Othnet shall have no debt  as  of  the
Closing  Date, no adjustment shall be made.  In any  other  case,
adjustment to the amount of Merger Shares shall be made  so  that
the  holders of Merger Shares immediately after giving effect  to
the  Merger  and the Financings shall be in at least  as  good  a
position  vis- -vis the other holders of Othnet equity securities
as  such  holders  of  Merger Shares  would  have  been  had  the
immediately preceding sentence been true.

                (iv)   Notwithstanding  anything  else  contained
herein, (x) it is expressly understood that the shares underlying
warrants  referred to in Section 11.15 shall not be  included  in
any calculation under this Section 2.5(a), and (y), if, within 24
months from the date of Closing, it shall be determined that,  as
of  the Closing Date, Othnet shall have had any Liability,  other
than unconverted Bridge Notes, additional Merger Shares, on an as
converted  basis, or Othnet common stock equal  to  the  quotient
obtained  by  dividing  the amount of such Liabilities  by  .5366
shall be issued pro rata among those persons who were holders  of
Merger  Shares  immediately  after the  Closing.   The  right  to
receive  such  additional shares shall not be transferable  other
than by will, inheritance, or operation of law.

                (v)  Sample calculations are set forth as Exhibit
2.5(a).

     At the Effective Time, all Company Shares shall no longer be
outstanding and shall be cancelled and retired and shall cease to
exist,  and  each certificate formerly representing  any  Company
Common  Stock  (other  than  Excluded  Shares)  shall  thereafter
represent   only  the  right  to  the  Merger  Shares   and   any
distribution or dividend pursuant to Section 2.6(b).

           (b)   Stock  Options.   At the  Effective  Time,  each
outstanding  option to purchase Company Common Stock (a  "Company
Option"),  whether  vested  or  unvested,  shall  be  deemed   to
constitute  a fully vested option to acquire, on the  same  terms
and  conditions as were applicable under such Company Option, the
same  number  of shares of Othnet Series A Convertible  Preferred
Stock  as  the  holder  of such Company Option  would  have  been
entitled  to  receive  pursuant to the  Merger  had  such  holder
exercised  such option in full immediately prior to the Effective
Time  (rounded up to the nearest whole number), at  a  price  per
share  (rounded up to the nearest whole cent) equal  to  (i)  the
aggregate  exercise price for the Company Common Stock  otherwise
purchasable pursuant to such Company Option divided by  (ii)  the
number  of  full shares of Othnet Series A Convertible  Preferred
Stock  deemed  purchasable pursuant to  such  Company  Option  in
accordance  with  the foregoing.  At or prior  to  the  Effective
Time, Othnet shall take all corporate action necessary to reserve
for  issuance a sufficient number of Othnet Series A  Convertible
Preferred  Stock  for delivery upon exercise of  Company  Options
assumed by it in accordance with this Section.

           (c)   Treasury  Shares, Etc.  Each  share  of  Company
Common Stock held in the treasury of the Company and (each  share
of Company Common Stock, if any, held by Othnet or any Subsidiary
of  Othnet  or  of the Company immediately before  the  Effective
Time)  shall be cancelled and extinguished, and nothing shall  be
issued or paid in respect thereof.

           (d)   Fractional  Shares.  No  certificates  or  scrip
evidencing fractional shares of Othnet Preferred Stock  shall  be
issued  in  exchange  for Company Common Stock.   All  fractional
share amounts shall be rounded up to the nearest whole share.

     2.6  Surrender of Company Certificates.

          (a)  Exchange Procedures.  Promptly after the Effective
Time,  Othnet or its appointed designee shall mail to each holder
of   a  certificate  or  certificates  of  Company  Common  Stock
("Company  Certificates") whose shares  are  converted  into  the
right  to  receive the Merger Shares, (i) a letter of transmittal
(which shall specify that delivery shall be effected, and risk of
loss  and title to the Company Certificates shall pass to Othnet,
only  upon  delivery of the Company Certificates  to  Othnet  and
which  shall  be in such form and have such other  provisions  as
Othnet  may reasonably specify) and (ii) instructions for use  in
effecting  the surrender of the Company Certificates in  exchange
for  the  Merger Shares and any dividends or other  distributions
pursuant   to   Section  2.6(b).   Upon  surrender   of   Company
Certificates  for  cancellation to  Othnet,  together  with  such
letter  of  transmittal, duly completed and validly  executed  in
accordance  with  the instructions thereto, the holders  of  such
Company  Certificates  shall be entitled to  receive  the  Merger
Shares  in  exchange therefore and any dividends or distributions
payable  pursuant to Section 2.6(b), and the Company Certificates
so   surrendered   shall  forthwith  be   canceled.    Until   so
surrendered, outstanding Company Certificates will be deemed from
and after the Effective Time, for all corporate purposes, subject
to  Section 2.8, to evidence the ownership of the number of  full
shares  of Othnet Preferred Stock into which such shares  of  the
Company  Common  Stock  shall have  been  so  converted  and  any
dividends  or  distributions payable pursuant to Section  2.6(b).
Notwithstanding  the  foregoing, if any  Company  Certificate  is
lost,  stolen, destroyed or mutilated, such holder shall  provide
evidence  reasonably  satisfactory to Othnet  as  to  such  loss,
theft,  destruction or mutilation and an affidavit  in  form  and
substance  satisfactory  to Othnet, and, thereupon,  such  holder
shall  be  entitled  to  receive the Merger  Shares  in  exchange
therefore and any dividends or distributions payable pursuant  to
Section 2.6(b), and the Company Certificates so surrendered shall
forthwith be canceled.

          (a)  Distributions With Respect to Unexchanged Shares.  No
dividends or other distributions declared or made after the  date
of  this  Agreement with respect to Othnet Common  Stock  with  a
record date after the Effective Time, will be paid to the holders
of  any  unsurrendered Company Certificates with respect  to  the
shares  of  Othnet Preferred Stock represented thereby until  the
holders  of  record of such Company Certificates shall  surrender
such  Company  Certificates  or,  in  the  case  of  any  Company
Certificate  which is lost, stolen, destroyed  or  mutilated,  an
affidavit in form and substance satisfactory to Othnet.   Subject
to  applicable  law,  following surrender  of  any  such  Company
Certificates or delivery of such affidavit, Othnet shall  deliver
to  the  record  holders thereof, without  interest,  the  Merger
Shares  hereof  and  the amount of any such  dividends  or  other
distributions with a record date after the Effective Time payable
with respect to such whole shares of Othnet Preferred Stock.

      (b)  Transfers of Ownership.  If certificates for shares of
Othnet Preferred Stock are to be issued in a name other than that
in which the Company Certificates surrendered in exchange
therefore are registered, it will be a condition of the issuance
thereof that the Company Certificates so surrendered will be
properly endorsed and otherwise in proper form for transfer and
that the persons requesting such exchange will have paid to
Othnet or any agent designated by it any transfer or other taxes
required by reason of the issuance of certificates for shares of
Othnet Preferred Stock in any name other than that of the
registered holder of the Company Certificates surrendered, or
established to the satisfaction of Othnet or any agent designated
by it that such tax has been paid or is not payable.

   (c)  Required Withholding.  In connection with any payment to any
holder or former holder of the Company Common Stock, each of
Othnet and the Surviving Corporation shall be entitled to deduct
and withhold from any consideration payable or otherwise
deliverable pursuant to this Agreement to any holder or former
holder of the Company Common Stock such amounts as may be
required to be deducted or withheld therefrom under the Code or
under any provision of state, local or foreign tax law or under
any other applicable laws.  To the extent such amounts are so
deducted or withheld, such amounts shall be treated for all
purposes under this Agreement as having been paid to the person
to whom such amounts would otherwise have been paid.

   (d)  No Liability.  Notwithstanding anything to the contrary in
this Section 2.6, neither Othnet, the Surviving Corporation nor
any party hereto shall be liable to any Person for any amount
properly paid to a public official pursuant to any applicable
abandoned property, escheat or similar law.  If any Company
Certificate shall not have been surrendered prior to the date
immediately prior to the date on which such property would
otherwise escheat to or become the property of any Governmental
or Regulatory Authority, any such property, to the extent
permitted by applicable law, shall become the property of the
Surviving Corporation, free and clear of all claims or interest
of any person previously entitled thereto.

    (e)  Termination.  Any holders of the Company Certificates who
have  not complied with this ARTICLE II shall look only to Othnet
or  the  Surviving Corporation for, and Othnet and the  Surviving
Corporation shall remain liable for, payment of their  claim  for
Merger Shares and any dividends or distributions with respect  to
Othnet Common Stock, without interest thereon.

     2.7  Stock Transfer Books.  At the Effective Time, the stock
transfer books of the Company shall be closed, and there shall be
no  further registration of transfers of shares of Company Common
Stock thereafter on the records of the Company.

      2.8   Dissenting  Shares.  Shares of Company  Common  Stock
which  are  issued  and  outstanding  immediately  prior  to  the
Effective  Time and which are held by persons who  have  properly
exercised,  and  not withdrawn or waived, appraisal  rights  with
respect  thereto  in  accordance with the  GCL  (the  "Dissenting
Shares"),  will  not be converted into the right to  receive  the
Merger Shares, and holders of such shares of Company Common Stock
will  be  entitled, in lieu thereof, to receive  payment  of  the
appraised  value  of  such  shares of  Company  Common  Stock  in
accordance  with the provisions of the GCL unless and until  such
holders  fail  to perfect or effectively withdraw or  lose  their
rights  to  appraisal and payment under the GCL.  If,  after  the
Effective  Time, any such holder fails to perfect or  effectively
withdraws  or  loses such right, such shares  of  Company  Common
Stock will thereupon be treated as if they had been converted  at
the  Effective Time into the right to receive the Merger  Shares,
without  any  interest  thereon.  The Company  will  give  Othnet
prompt  notice  of  any  demands  received  by  the  Company  for
appraisal  of  shares  of Company Common  Stock.   Prior  to  the
Effective  Time,  the  Company will not, except  with  the  prior
written  consent of Othnet make any payment with respect  to,  or
settle or offer to settle, any such demands.

      2.9  Restriction on Transfer.  The Merger Shares may not be
sold,  transferred, or otherwise disposed of without registration
under  the Act or an exemption therefrom, and that in the absence
of an effective registration statement covering the Merger Shares
or  any available exemption from registration under the Act,  the
Merger   Shares   must   be  held  indefinitely.    The   Company
Shareholders  are aware that the Merger Shares may  not  be  sold
pursuant to Rule 144 promulgated under the Act unless all of  the
conditions of that Rule are met.  Among the conditions for use of
Rule  144 may be the availability of current information  to  the
public about Othnet.

      2.10 Restrictive Legend.  All certificates representing the
Merger Shares shall contain the following legend:

          "THE    SECURITIES   REPRESENTED   BY    THIS
          CERTIFICATE, ARE SUBJECT TO THE TERMS  OF  AN
          AGREEMENT  AND PLAN OF MERGER,  DATED  AS  OF
          [THE  DATE HEREOF], AMONG OTHNET INC., OTHNET
          MERGER SUB, INC. AND [THE COMPANY], A COPY OF
          WHICH  IS ON FILE IN THE PRINCIPAL OFFICE  OF
          THE    ISSUER.    FURTHER,   THE   SECURITIES
          REPRESENTED BY THIS CERTIFICATE  MAY  NOT  BE
          SOLD,  TRANSFERRED, OR OTHERWISE DISPOSED  OF
          WITHOUT  REGISTRATION UNDER  THE  ACT  OR  AN
          EXEMPTION THEREFROM."

      2.11 Closing.  The closing of the transactions contemplated
by  this  Agreement and the Collateral Documents (the  "Closing")
shall  take place at the offices of the Company, or at such other
location as the parties may agree at 11:00 a.m., Pacific Time  on
the agreed date, which, shall be four (4) weeks after delivery to
Othnet  of  the Company Audited Financial Statements pursuant  to
Section  3.8,  but no earlier than August 31, 2004 (the  "Closing
Date").

                           ARTICLE III
          REPRESENTATIONS AND WARRANTIES OF THE COMPANY

     The  Company  represents and warrants  to  Othnet  that  the
statements contained in this ARTICLE III are correct and complete
as  of  the  date  of this Agreement and, except as  provided  in
Section  7.1,  will  be  correct and  complete  in  all  material
respects  as  of  the Closing Date (as though made  then  and  as
though  the  Closing Date were substituted for the date  of  this
Agreement  throughout this ARTICLE III, except  in  the  case  of
representations and warranties stated to be made as of  the  date
of  this  Agreement or as of another date and except for  changes
contemplated or permitted by this Agreement).

     3.1   Organization and Qualification.  The Company and  each
of  its  Subsidiaries, collectively referred  to  herein  as  the
Company, is a corporation duly organized, validly existing and in
good  standing  under the laws of its respective jurisdiction  of
organization.  The Company has all requisite power and  authority
to  own,  lease  and use its assets as they are currently  owned,
leased  and  used and to conduct its business as it is  currently
conducted.   The  Company is duly qualified  or  licensed  to  do
business in and is in good standing in each jurisdiction in which
the  character of the properties owned, leased or used by  it  or
the   nature  of  the  activities  conducted  by  it  make   such
qualification necessary, except any such jurisdiction  where  the
failure  to be so qualified or licensed would not have a Material
Adverse Effect on the Company or a material adverse effect on the
validity,  binding effect or enforceability of this Agreement  or
the Collateral Documents or the ability of the Company to perform
its  obligations  under this Agreement or any of  the  Collateral
Documents.

     3.2  Capitalization.

    (a)  The authorized, issued and outstanding capital stock and
other  ownership interests of the Company consists of  22,110,000
shares   of  common  stock,  of  which  14,233,672  shares   were
outstanding as of the date hereof and 4,950,000 shares of  Series
A  Preferred  Stock, all of which were outstanding  as  the  date
hereof.   All of the outstanding Company capital stock  has  been
duly   authorized  and  are  validly  issued,  fully   paid   and
nonassessable.

(b)  Listed in Item 3.2(b) to the disclosure schedule delivered
by the Company to Othnet (the "Company Disclosure Schedule") are
all outstanding or authorized options, warrants, purchase rights,
preemptive rights or other contracts or commitments that could
require the Company to issue, sell, or otherwise cause to become
outstanding any of its capital stock or other ownership interests
(collectively "Options").

  (c)  All of the issued and outstanding shares of Company Common
Stock  have  been  duly  authorized and are  validly  issued  and
outstanding, fully paid and nonassessable and have been issued in
compliance  with applicable securities laws and other  applicable
Legal  Requirements  or  transfer restrictions  under  applicable
securities laws.

      3.3  Authority and Validity.  The Company has all requisite
corporate   power  to  execute  and  deliver,  to   perform   its
obligations   under,   and   to   consummate   the   transactions
contemplated by, this Agreement (subject to the approval  of  the
Company  Shareholders  as contemplated  by  Section  5.6  and  to
receipt  of  any  consents, approvals,  authorizations  or  other
matters  referred to in Section 5.2).  The execution and delivery
by  the  Company  of,  the performance  by  the  Company  of  its
obligations  under, and the consummation by the  Company  of  the
transactions  contemplated  by, this  Agreement  have  been  duly
authorized by all requisite action of the Company (subject to the
approval   of   the  Company  Shareholders  as  contemplated   by
Section  5.6).   This  Agreement  has  been  duly  executed   and
delivered by the Company and (assuming due execution and delivery
by  the  Othnet Parties and approval by the Company Shareholders)
is  the  legal,  valid, and binding obligation  of  the  Company,
enforceable against it in accordance with its terms, except  that
such  enforcement  may be subject to (i) bankruptcy,  insolvency,
reorganization,  moratorium or other similar  laws  affecting  or
relating  to enforcement of creditors' rights generally and  (ii)
general equitable principles.  Upon the execution and delivery of
the  Collateral Documents by each Person (other than  the  Othnet
Parties) that is required by this Agreement to execute,  or  that
does  execute, this Agreement or any of the Collateral Documents,
and  assuming  due execution and delivery thereof by  the  Othnet
Parties,  the Collateral Documents will be the legal,  valid  and
binding  obligations  of  the Company,  enforceable  against  the
Company  in  accordance with their respective terms, except  that
such  enforcement  may be subject to (i) bankruptcy,  insolvency,
reorganization,  moratorium or other similar  laws  affecting  or
relating  to enforcement of creditors' rights generally and  (ii)
general equitable principles.

      3.4   No  Breach  or Violation.  Subject to  obtaining  the
consents, approvals, authorizations, and orders of and making the
registrations  or  filings with or giving notices  to  Regulatory
Authorities   and  Persons  identified  herein,  the   execution,
delivery and performance by the Company of this Agreement and the
Collateral Documents to which it is a party, and the consummation
of the transactions contemplated hereby and thereby in accordance
with the terms and conditions hereof and thereof, do not and will
not   conflict  with,  constitute  a  violation  or  breach   of,
constitute a default or give rise to any right of termination  or
acceleration of any right or obligation of the Company under,  or
result in the creation or imposition of any Encumbrance upon  the
Company, the Company Assets, the Company Business or the  Company
Common  Stock  by  reason of the terms of  (i)  the  articles  of
incorporation,   by-laws  or  other  charter  or   organizational
document  of  the Company or any Subsidiary of the Company,  (ii)
any  material  contract,  agreement, lease,  indenture  or  other
instrument to which the Company is a party or by or to which  the
Company, or the Assets may be bound or subject and a violation of
which  would result in a Material Adverse Effect on the  Company,
(iii)  any  order, judgment, injunction, award or decree  of  any
arbitrator or Regulatory Authority or any statute, law,  rule  or
regulation  applicable to the Company or (iv) any Permit  of  the
Company,  which  in the case of (ii), (iii) or (iv)  above  would
have  a  Material  Adverse Effect on the Company  or  a  material
adverse  effect on the validity, binding effect or enforceability
of  this Agreement or the Collateral Documents or the ability  of
the  Company  to perform its obligations under this Agreement  or
any of the Collateral Documents.

      3.5   Consents  and  Approvals.   Except  for  requirements
described  in  Item  3.5 of the Company Disclosure  Schedule,  no
consent,  approval,  authorization or order of,  registration  or
filing with, or notice to, any Regulatory Authority or any  other
Person  is necessary to be obtained, made or given by the Company
in connection with the execution, delivery and performance by the
Company  of this Agreement or any Collateral Document or for  the
consummation  by  the  Company of the  transactions  contemplated
hereby or thereby, except to the extent the failure to obtain any
such  consent, approval, authorization or order or  to  make  any
such  registration  or filing would not have a  Material  Adverse
Effect  on  the  Company  or a material  adverse  effect  on  the
validity,  binding effect or enforceability of this Agreement  or
the Collateral Documents or the ability of the Company to perform
its  obligations  under this Agreement or any of  the  Collateral
Documents.

      3.6  Intellectual Property.  The Company has good title  to
or  the  right to use all material company intellectual  property
rights and all material inventions, processes, designs, formulae,
trade  secrets  and know-how necessary for the operation  of  the
Company  Business without the payment of any royalty  or  similar
payment.   Item 3.6 of the Company Disclosure Schedule lists  all
patents,  trade names, trademarks and service marks, all  patent,
trademark   and   service  mark  registrations  or  applications,
presently owned, possessed, used or held by the Company  and  all
copyrights and copyright applications and registrations, relating
to  the  business  of the Company, all of which are  collectively
referred to as the "Proprietary Rights".  Item 3.6 of the Company
Disclosure Schedule also lists all licenses, if any granted by or
to  the  Company.  Except as set forth in Item 3.6 of the Company
Disclosure  Schedule, the Company has not granted to any  person,
firm  or corporation, any right, license or privilege in  any  of
the  Proprietary Rights or the know-how used in the  business  of
the  Company  nor have such Proprietary Rights or  know-how  been
revealed  to any persons other that its employees, customers  and
consultants.  No Proprietary Rights or applications or grants  of
licenses set forth in Item 3.6 of the Company Disclosure Schedule
are subject to any pending or threatened challenge.

      3.7   Compliance with Legal Requirements.  The Company  has
operated  the  Company  Business in  compliance  with  all  Legal
Requirements applicable to the Company except to the  extent  the
failure  to  operate  in  compliance  with  all  material   Legal
Requirements  would  not have a Material Adverse  Effect  on  the
Company  or  Material  Adverse Effect on  the  validity,  binding
effect  or  enforceability of this Agreement  or  the  Collateral
Documents.

       3.8   Financial  Statements.   Item  3.8  of  the  Company
Disclosure  Schedule  includes  (i)  an  unaudited  statement  of
operations  of the Company as of December 31, 2003  and  (ii)  an
unaudited balance sheet of the Company as of March 31, 2004. Such
financial   statements    (the   "Company   Unaudited   Financial
Statements") have been prepared in accordance with U.S. generally
accepted  accounting  principles  (GAAP)  applied  on   a   basis
consistent  throughout all periods presented, present  fairly  in
all  material respects the financial condition of the Company and
its  results  of  operations as of the date and for  the  periods
indicated  subject to year-end adjustments based on the Company's
outside  auditors'  review  of  such  Financial  Statements  with
respect  to the unaudited financial statements.  At the  earliest
possible  time, the Company shall deliver to Othnet the following
financial statements of the Company which shall have been audited
by  an independent certified public accounting firm (the "Company
Auditors") and which shall be presented in accordance with United
States  generally  accepted accounting principles  applied  on  a
basis  consistent  throughout all the  years  presented:  Balance
Sheet  as  at  December  31,  2003,  and  Statements  of  Income,
Statements of Cash Flows and Changes in Stockholder's Equity  for
the  years  ended  December 31, 2002  and  2003,  and  the  notes
relating  thereto  (the "Company Audited Financial  Statements").
In  addition thereto, at the earliest possible time but prior  to
the  Effective Time, the Company shall deliver to the Company the
unaudited  Balance Sheet of the Company as at June 30,  2004  and
the  related Statements of Income, Statements of Cash  Flows  for
the  period then ended which will be prepared in accordance  with
U.S.  generally  accepted accounting principles applicable  on  a
basis consistent throughout all periods presented and which  will
include  a  report of the Company Auditors confirming  that  they
have   reviewed  such  financial  statements  using  professional
standards   and  procedures  for  conducting  such   reviews   as
established   by  generally  accepted  auditing  standards   (the
"Company  June  30,  2004  Financial Statements").   All  of  the
financial  statements  to be delivered pursuant  hereto  will  be
complete  and accurate and present fairly the financial  position
of  the Company and the results of its operations and changes  in
its  financial  positions as of the dates  and  for  the  periods
indicated as being covered thereby.

      3.9   Litigation.  Except as set forth on Item 3.9  of  the
Company  Disclosure Schedule, there are no outstanding  judgments
or  orders  against  or otherwise affecting  or  related  to  the
Company, the Company Business or the Company Assets and there  is
no   action,   suit,  complaint,  proceeding  or   investigation,
judicial, administrative or otherwise, that is pending or, to the
Company's  knowledge,  threatened that, if adversely  determined,
would have a Material Adverse Effect on the Company or a material
adverse  effect on the validity, binding effect or enforceability
of this Agreement or the Collateral Documents.

     3.10 Taxes.  The Company has duly and timely filed in proper
form all Tax Returns for all Taxes required to be filed with  the
appropriate Regulatory Authority, and has paid all Taxes required
to be paid in respect thereof except where such failure would not
have a Material Adverse Effect on the Company.

      3.11  Books  and  Records.  The books and  records  of  the
Company accurately and fairly represent the Company Business  and
its results of operations in all material respects.  All accounts
receivable  and inventory of the Company Business  are  reflected
properly on such books and records in all material respects.

     3.12 Brokers or Finders. Except as set forth on Item 3.12 of
the  Company  Disclosure Schedule, all negotiations  relative  to
this Agreement and the transactions contemplated hereby have been
carried out by the Company or any of its Affiliates in connection
with the transactions contemplated by this Agreement, and neither
the   Company,  nor  any  of  its  Affiliates  has  incurred  any
obligation  to  pay  any  brokerage  or  finder's  fee  or  other
commission  in  connection with the transaction  contemplated  by
this Agreement.

      3.13  Proxies.  Company management holds, or prior  to  the
Closing   will  hold,  irrevocable  proxies  from   the   Company
Shareholders adequate to ensure Company Shareholder  approval  of
the Merger as required by applicable law.

      3.14  No  Undisclosed Liabilities.  Except as set forth  as
Item 3.14 of the Company Disclosure Schedule, the Company is  not
subject  to  any  material  liability  (including,  to  Company's
knowledge, unasserted claims), absolute or contingent,  which  is
not  shown or which is in excess of amounts shown or reserved for
in  the  March 31, 2004 balance sheet, other than liabilities  of
the  same  nature  as  those set forth in the  Company  Financial
Statements and reasonably incurred in the ordinary course of  its
business after March 31, 2004.

     3.15 Absence of Certain Changes. Except as set forth as Item
3.15  of  the Company Disclosure Schedule hereto since March  31,
2004,  the  Company  has not: (a) suffered any  material  adverse
change  in  its  financial  condition,  assets,  liabilities   or
business;   (b)  except  in  the  ordinary  course  of  business,
contracted for or paid any capital expenditures; (c) incurred any
indebtedness or borrowed money, issued or sold any debt or equity
securities, declared any dividends or discharged or incurred  any
liabilities  or  obligations except in  the  ordinary  course  of
business  as  heretofore  conducted; (d)  mortgaged,  pledged  or
subjected  the Company to any lien, lease, security  interest  or
other charge or encumbrance any of its properties or assets;  (e)
paid  any  material amount on any indebtedness prior to  the  due
date,   forgiven  or  cancelled  any  material  amount   on   any
indebtedness  prior to the due date, forgiven  or  cancelled  any
material  debts  or  claims or released or  waived  any  material
rights  or claims; (f) suffered any damage or destruction  to  or
loss  of  any  assets (whether or not covered by insurance);  (g)
except  in the ordinary course of business, acquired or  disposed
of  any  assets  or incurred any liabilities or obligations;  (h)
made  any payments to its affiliates or associates or loaned  any
money to any person or entity; (i) formed or acquired or disposed
of   any   interest  in  any  corporation,  partnership,  limited
liability  company, joint venture or other entity; (j) except  in
the  ordinary  course of business, entered into  any  employment,
compensation,  consulting or collective bargaining  agreement  or
any  other  agreement of any kind or nature with  any  person  or
group,  or  modified or amended in any respect the terms  of  any
such existing agreement; (k) entered into any other commitment or
transaction  or  experience any other event that  relates  to  or
affect   in  any  way  this  Agreement  or  to  the  transactions
contemplated  hereby,  or  that has affected,  or  may  adversely
affect the Company's business, operations, assets, liabilities or
financial   condition;  or  (1)  amended   its   certificate   of
incorporation  or  By-laws,  except  as  otherwise   contemplated
herein.

      3.16  Contracts.   Item  3.16  of  the  Company  Disclosure
Schedule   is  a  true  and  complete  list  of  all   contracts,
agreements,  leases,  commitments  or  other  understandings   or
arrangements, written or oral, express or implied, to  which  the
Company is a party or by which it or any of its property is bound
or  affected  requiring  payments to or  from,  or  incurring  of
liabilities   by,   the  Company  in  excess  of   $25,000   (the
"Contracts").  Except as set forth as Item 3.16  of  the  Company
Disclosure Schedule, the Company has complied with and performed,
in  all material respects, all of its obligations required to  be
performed under and is not in default with respect to any of  the
Contracts,  as  of  the date hereof, nor has any  event  occurred
which  has  not been cured which, with or without the  giving  of
notice, lapse of time, or both, would constitute a default in any
respect  thereunder. To the best knowledge  of  the  Company,  no
other party has failed to comply with or perform, in all material
respects,  any of its obligations required to be performed  under
or  is in material default with respect to any such Contracts, as
of  the  date hereof, nor has any event occurred which,  with  or
without  the  giving  of notice, lapse of  time  or  both,  would
constitute  a  material  default in any  respect  by  such  party
thereunder.  Except  as set forth as Item  3.16  of  the  Company
Disclosure Schedule, the Company knows of no and has no reason to
believe  that  there are any facts or circumstances  which  would
make  a  material  default  by  any  party  to  any  contract  or
obligation likely to occur subsequent to the date hereof.

      3.17 Permits and Licenses. The Company has all certificates
of    occupancy,   rights,   permits,   certificates,   licenses,
franchises, approvals and other authorizations as are  reasonably
necessary to conduct its business and to own, lease, use, operate
and  occupy  its  assets, at the places and  in  the  manner  now
conducted  and operated, except those the absence of which  would
not materially adversely affect its business. The Company has not
received  any written or oral notice or claim pertaining  to  the
failure  to  obtain  any  material permit, certificate,  license,
approval or other authorization required by any federal, state or
local  agency or other regulatory body, the failure of  which  to
obtain would materially and adversely affect its business.

      3.18  Assets  Necessary to Business. The  Company  owns  or
leases  all  properties and assets, real,  personal,  and  mixed,
tangible and intangible, and is a party to all licenses,  permits
and  other  agreements necessary to permit it  to  carry  on  its
business  as  presently  conducted.  Item  3.18  of  the  Company
Disclosure  Schedule  lists all of the  material  properties  and
assets of the Company and all material contracts to which it is a
party  or  by  which it is bound.  Prior to Closing, the  Company
will  make  all records available to Othnet with respect  to  all
such material contracts.

      3.19 Labor Agreements and Labor Relations. The Company  has
no  collective bargaining or union contracts or agreements.   The
Company  is  in  compliance with all applicable  laws  respecting
employment  and  employment practices, terms  and  conditions  of
employment and wages and hours, and is not engaged in any  unfair
labor practices; to the Company's knowledge, there are no charges
of  discrimination or unfair labor practice charges or complaints
against the Company pending or threatened before any governmental
or regulatory agency or authority; and, there is no labor strike,
dispute,  slowdown  or  stoppage actually pending  or  threatened
against or affecting the Company.

      3.20  Employment Arrangements. Except as set forth as  Item
3.20  of the Company Disclosure Schedule hereto, the Company  has
no  employment or consulting agreements or arrangements,  written
or  oral, which are not terminable at the will of the Company, or
any pension, profit-sharing, option, other incentive plan, or any
other  type  of employment benefit plan as defined  in  ERISA  or
otherwise,  or  any obligation to or customary  arrangement  with
employees   for   bonuses,  incentive  compensation,   vacations,
severance  pay, insurance or other benefits. No employee  of  the
Company   is   in  violation  of  any  employment  agreement   or
restrictive covenant.

      3.21  Affiliate Transactions.  Except as set forth in  Item
3.21 of the Company Disclosure Schedule, no officer, director  or
employee of the Company (or any of the relatives or affiliates of
any  of  the aforementioned persons) is a party to any agreement,
contract, commitment or transaction with the Company or affecting
the business of the Company, or has any interest in any property,
whether real, personal or mixed, or tangible or intangible,  used
in  or necessary to the Company which will subject the Company to
any liability or obligation from and after the Effective Time.

      3.22       Restrictive Agreements.  There is  no  agreement
(non-compete  or  otherwise), commitment,  judgment,  injunction,
order  or  decree  to which the Company is a party  or  otherwise
binding  upon  the  Company which would have a  material  adverse
effect  on the Company's business.  Except as set forth  in  Item
3.22  of  the  Company Disclosure Schedule, the Company  has  not
entered  into any agreement under which the Company is restricted
from  selling,  licensing or otherwise distributing  any  of  its
products  to  or  providing services to, customers  or  potential
customers  or  any  class of customers, in any geographic  areas,
during any period of time or in any segment of the market.

      3.23  Disclosure.   No representation or  warranty  of  the
Company in this Agreement or in the Collateral Documents  and  no
statement in any certificate furnished or to be furnished by  the
Company  pursuant to this Agreement contained, contains  or  will
contain  on  the  date such agreement or certificate  was  or  is
delivered,  or  on the Closing Date, any untrue  statement  of  a
material  fact, or omitted, omits or will omit on  such  date  to
state any material fact necessary in order to make the statements
made,  in light of the circumstances under which they were  made,
not misleading.

                           ARTICLE IV
      REPRESENTATIONS AND WARRANTIES OF THE OTHNET PARTIES

     Each of the Othnet Parties, jointly and severally, represent
and  warrant to the Company that the statements contained in this
ARTICLE  IV  are  correct and complete as of  the  date  of  this
Agreement and, except as provided in Section 8.1, will be correct
and  complete in all material respects as of the Closing Date (as
though  made then and as though the Closing Date were substituted
for the date of this Agreement throughout this ARTICLE IV, except
in  the case of representations and warranties stated to be  made
as of the date of this Agreement or as of another date and except
for changes contemplated or permitted by the Agreement).

     4.1   Organization and Qualification.  Each  of  Othnet  and
Merger Sub is a corporation duly organized, validly existing  and
in  good  standing  under  the laws of Delaware  and  California,
respectively.   Each of Othnet and Merger Sub has  all  requisite
power and authority to own, lease and use its assets as they  are
currently  owned, leased and used and to conduct its business  as
it  is currently conducted.  Both Othnet and Merger Sub are  duly
qualified  or  licensed to do business in and are  each  in  good
standing  in  each  jurisdiction in which the  character  of  the
properties  owned,  leased or used by it or  the  nature  of  the
activities  conducted  by it makes such qualification  necessary,
except any such jurisdiction where the failure to be so qualified
or  licensed  and  in  good standing would not  have  a  Material
Adverse  Effect  on Othnet or a Material Adverse  Effect  on  the
validity,  binding effect or enforceability of this Agreement  or
the Collateral Documents or the ability of the Company or any  of
the  Othnet  Parties  to  perform their  obligations  under  this
Agreement or any of the Collateral Documents.

     4.2  Capitalization.

      (a)  As of the date hereof, the authorized capital stock of
Othnet consists of 2,000,000 shares of Preferred Stock, $.001 par
value  of  which  there are no shares outstanding and  40,000,000
shares  of  common  stock $0.001 par value  of  which  there  are
17,794,279  shares outstanding.  The shares of  Othnet  Preferred
Stock  included in the Merger Shares, when issued  in  accordance
with  this  Agreement,  will have been duly  authorized,  validly
issued and outstanding and will be fully paid and nonassessable.

      (b)  As of the date hereof, the authorized capital stock of
Merger Sub consists of 100 shares of common stock no par value of
which there are 100 shares outstanding.  Each outstanding share
of Merger Sub is duly authorized, validly issued and outstanding
and will be fully paid and nonassessable and is owned by Othnet.

      (c)  Listed in Item 4.2(c) to the disclosure schedule delivered
by Othnet to the Company (the "Othnet Disclosure Schedule") are
all outstanding or authorized options, warrants, purchase rights,
preemptive rights or other contracts or commitments that could
require Othnet or any of its Subsidiaries to issue, sell, or
otherwise cause to become outstanding any of its capital stock or
other ownership interests.

      (d)  All of the issued and outstanding shares of Othnet Capital
Stock,  and  all  outstanding  ownership  interests  of  each  of
Othnet's  Subsidiaries have been duly authorized and are  validly
issued  and  outstanding,  fully  paid  and  nonassessable  (with
respect  to  Subsidiaries that are corporations)  and  have  been
issued  in  compliance with applicable securities laws and  other
applicable Legal Requirements.

      4.3   Authority and Validity.  Each Othnet  Party  has  all
requisite   power  to  execute  and  deliver,  to   perform   its
obligations   under,   and   to   consummate   the   transactions
contemplated  by,  this  Agreement and the Collateral  Documents.
The   execution  and  delivery  by  each  Othnet  Party  of,  the
performance  by  each Othnet Party of its respective  obligations
under,  and  the  consummation  by  the  Othnet  Parties  of  the
transactions  contemplated by, this Agreement and the  Collateral
Documents  have been duly authorized by all requisite  action  of
each  Othnet  Party.  This Agreement has been duly  executed  and
delivered  by  each  of  the  Othnet Parties  and  (assuming  due
execution  and delivery by the Company) is the legal,  valid  and
binding obligation of each Othnet Party, enforceable against each
of them in accordance with its terms except that such enforcement
may  be  subject  to (i) bankruptcy, insolvency,  reorganization,
moratorium  or  other  similar  laws  affecting  or  relating  to
enforcement  of  creditors'  rights generally  and  (ii)  general
equitable principles.  Upon the execution and delivery by each of
the  Othnet Parties of the Collateral Documents to which each  of
them  is a party, and assuming due execution and delivery thereof
by  the  other parties thereto, the Collateral Documents will  be
the legal, valid and binding obligations of each such Person,  as
the  case  may be, enforceable against each of them in accordance
with  their respective terms except that such enforcement may  be
subject to (i) bankruptcy, insolvency, reorganization, moratorium
or  other  similar laws affecting or relating to  enforcement  of
creditors'   rights   generally  and   (ii)   general   equitable
principles.

      4.4   No  Breach  or Violation.  Subject to  obtaining  the
consents, approvals, authorizations, and orders of and making the
registrations  or  filings with or giving notices  to  Regulatory
Authorities   and  Persons  identified  herein,  the   execution,
delivery  and performance by the Othnet Parties of this Agreement
and  the  Collateral Documents to which each is a party  and  the
consummation of the transactions contemplated hereby and  thereby
in  accordance with the terms and conditions hereof and  thereof,
do  not  and  will not conflict with, constitute a  violation  or
breach  of,  constitute a default or give rise to  any  right  of
termination  or  acceleration of any right or obligation  of  any
Othnet  Party  under, or result in the creation or imposition  of
any  Encumbrance  upon the property of Othnet or  Merger  Sub  by
reason of the terms of (i) the articles of incorporation, by-laws
or  other charter or organizational document of any Othnet Party,
(ii)   any   contract,  agreement,  lease,  indenture  or   other
instrument to which any Othnet Party is a party or by or to which
any Othnet Party or their property may be bound or subject and  a
violation  of which would result in a Material Adverse Effect  on
Othnet  taken as a whole, (iii) any order, judgment,  injunction,
award or decree of any arbitrator or Regulatory Authority or  any
statute,  law, rule or regulation applicable to any Othnet  Party
or  (iv) any Permit of Othnet or Merger Sub, which in the case of
(ii), (iii) or (iv) above would have a Material Adverse Effect on
Othnet  or  a  material adverse effect on the  validity,  binding
effect  or  enforceability of this Agreement  or  the  Collateral
Documents  or  the  ability of any Othnet Party  to  perform  its
obligations hereunder or thereunder.

      4.5  Consents and Approvals.  Except for requirements under
applicable  United States or state securities laws,  no  consent,
approval, authorization or order of, registration or filing with,
or  notice  to, any Regulatory Authority or any other  Person  is
necessary  to be obtained, made or given by any Othnet  Party  in
connection with the execution, delivery and performance  by  them
of  this  Agreement  or  any  Collateral  Documents  or  for  the
consummation by them of the transactions contemplated  hereby  or
thereby, except to the extent the failure to obtain such consent,
approval, authorization or order or to make such registration  or
filings  or to give such notice would not have a Material Adverse
Effect  on  Othnet or a material adverse effect on the  validity,
binding  effect  or  enforceability  of  this  Agreement  or  the
Collateral Documents or the ability of the Company or any of  the
Othnet Parties to perform its obligations under this Agreement or
any of the Collateral Documents.

      4.6   Compliance with Legal Requirements.  Othnet  and  its
Subsidiaries have operated the Othnet Business in compliance with
all  material  Legal Requirements including, without  limitation,
the  Exchange Act and the Securities Act applicable to Othnet and
its Subsidiaries, except to the extent the failure to operate  in
compliance with all material Legal Requirements, would not have a
Material Adverse Effect on Othnet or a Material Adverse Effect on
the  validity, binding effect or enforceability of this Agreement
or the Collateral Documents.

      4.7   Litigation.  There  are no outstanding  judgments  or
orders  against or otherwise affecting or related to Othnet,  any
of its Subsidiaries, or their business or assets; and there is no
action,  suit, complaint, proceeding or investigation,  judicial,
administrative  or otherwise, that is pending  or,  to  the  best
knowledge  of  any  Othnet Party, threatened that,  if  adversely
determined, would have a Material Adverse Effect on Othnet  or  a
material  adverse  effect  on  the validity,  binding  effect  or
enforceability of this Agreement or the Collateral Documents.

      4.8   Ordinary Course.  Since the date of the balance sheet
included  in  the  most  recent Othnet Securities  Filings  filed
through  the  date  hereof, there has not  been  any  occurrence,
event,  incident, action, failure to act or transaction involving
Othnet  or  any  of its Subsidiaries which is reasonably  likely,
individually  or  in  the aggregate, to have a  Material  Adverse
Effect on Othnet.

      4.9   Assets  and  Liabilities.  As of  the  date  of  this
Agreement,  neither  Othnet nor any of its Subsidiaries  has  any
Assets  or  Liability, except for the (i) Assets and  Liabilities
disclosed in the balance sheet included in the most recent Othnet
Securities Filings filed through the date hereof or disclosed  on
Item  4.9 to the Company Disclosure Schedule and (ii) Liabilities
incurred  in  connection with this Agreement, the Financings  and
expenses referred to in Sections 6.10 and 8.10.

      4.10 Taxes.  Othnet has, and each of its Subsidiaries  has,
duly  and  timely  filed in proper form all Tax Returns  for  all
Taxes  required  to  be  filed with the appropriate  Governmental
Authority,  except where such failure to file would  not  have  a
Material Adverse Effect on Othnet.

     4.11 Books and Records.  The books and records of Othnet and
its  Subsidiaries  accurately  and fairly  represent  the  Othnet
Business  and its results of operations in all material respects.
All  accounts receivable and inventory of the Othnet Business are
reflected  properly  on such books and records  in  all  material
respects.

     4.12 Financial and Other Information.

          (a)  The historical financial statements (including the
notes  thereto) contained (or incorporated by reference)  in  the
Othnet  Securities Filings have been prepared in accordance  with
GAAP applied on a consistent basis throughout the periods covered
thereby  (except as may be indicated in the notes  thereto),  and
present  fairly the financial condition of Othnet and its results
of  operations  as  of the dates and for the  periods  indicated,
subject in the case of the unaudited financial statements only to
normal  year-end adjustments (none of which will be  material  in
amount) and the omission of footnotes.

          (b)  To the knowledge of current management, the Othnet
Securities  Filings  did not, as of their filing  dates,  contain
(directly  or by incorporation by reference) any untrue statement
of  a material fact or omit to state a material fact required  to
be stated therein or necessary to make the statements therein (or
incorporated therein by reference), in light of the circumstances
under which they were or will be made, not misleading.

       4.13  Brokers  or  Finders.   Except  as  contemplated  in
connection  with  the Financings, no broker or finder  has  acted
directly  or indirectly for Othnet, any Othnet Party  or  any  of
their Affiliates in connection with the transactions contemplated
by  this Agreement, and neither Othnet, any Othnet Party nor  any
of  their  Affiliates  has incurred any  obligation  to  pay  any
brokerage or finder's fee or other commission in connection  with
the  transaction  contemplated by this  Agreement.   The  Company
shall have no liability regarding any broker or finder engaged by
Othnet.

     4.14 Disclosure.  No representation or warranty of Othnet in
this Agreement or in the Collateral Documents and no statement in
any  certificate furnished or to be furnished by Othnet  pursuant
to this Agreement contained, contains or will contain on the date
such  agreement  or certificate was or is delivered,  or  on  the
Closing  Date,  any  untrue statement  of  a  material  fact,  or
omitted,  omits or will omit on such date to state  any  material
fact necessary in order to make the statements made, in light  of
the circumstances under which they were made, not misleading.

      4.15  Filings.   To  the knowledge of  current  management,
Othnet has made all of the filings required by the Securities Act
of  1933,  as amended, and the Exchange Act of 1934, as  amended,
required  to  be  made  and no such filing  contains  any  untrue
statement  of  a material fact or omits to state a material  fact
necessary to make the statements made, not misleading.

                            ARTICLE V
                    COVENANTS OF THE COMPANY

     Between the date of this Agreement and the Closing Date:

      5.1  Additional Information.  The Company shall provide  to
Othnet  and  its  Representatives such financial,  operating  and
other  documents, data and information relating to  the  Company,
the  Company  Business and the Company Assets and Liabilities  of
the  Company,  as  Othnet or its Representatives  may  reasonably
request.   In  addition,  the  Company  shall  take  all   action
necessary  to  enable Othnet and its Representatives  to  review,
inspect  and  audit the Company Assets, the Company Business  and
Liabilities  of the Company and discuss them with  the  Company's
officers,    employees,   independent   accountants,   customers,
licensees,  and counsel.  Notwithstanding any investigation  that
Othnet  may  conduct  of the Company, the Company  Business,  the
Company  Assets  and the Liabilities of the Company,  the  Othnet
Parties may fully rely on the Company's warranties, covenants and
indemnities set forth in this Agreement.

      5.2   Consents and Approvals.  As soon as practicable after
execution  of  this Agreement, the Company shall use commercially
reasonable  efforts  to obtain any necessary  consent,  approval,
authorization or order of, make any registration or  filing  with
or  give any notice to, any Regulatory Authority or Person as  is
required  to  be  obtained,  made or  given  by  the  Company  to
consummate  the transactions contemplated by this  Agreement  and
the Collateral Documents.

     5.3  Non-circumvention.  It is understood that in connection
with  the  transactions contemplated hereby, the  Othnet  Parties
have  been  and  will  be seeking to find  investors  willing  to
provide loans and/or capital investments to finance the Company's
business plans.  In connection therewith, during the term of this
Agreement, and for a period of one year thereafter in  the  event
this  Agreement is terminated prior to consummation, the  Company
will  not,  and it will cause its directors, officers, employees,
agents   and   representatives  not  to,  attempt,  directly   or
indirectly, (i) to contact any party introduced to it by  any  of
the  Othnet  Parties,  or  (ii) deal with,  or  otherwise  become
involved  in  any  transaction with  any  party  which  has  been
introduced  to  it  by  any of the Othnet  Parties,  without  the
express  written permission of the introducing party and  without
having  entered into a commission agreement with the  introducing
party.   Any violation of the covenant shall be deemed an attempt
to circumvent the Othnet parties, and the party so violating this
covenant shall be liable for damages in favor of the circumvented
party.

      5.4   No  Solicitations.  From and after the date  of  this
Agreement  until  the  Effective  Time  or  termination  of  this
Agreement pursuant to ARTICLE X, the Company will not,  nor  will
it  permit any of its officers, directors or agents acting on its
behalf to: (a) take any action to solicit, initiate, encourage or
assist the submission of any proposal, negotiation or offer  from
any  person  or entity other than Othnet, and other person(s)  or
entities  for  purposes  of  soliciting  their  participation  as
investors  or  co-investors with the  Company,  relating  to  the
acquisition, sale or transfer of any of the capital stock of  the
Company  or  any material part of the assets of the Company;  (b)
offer to sell or transfer any of the capital stock of the Company
or  any  material part of the assets of the Company to any person
other  than  Othnet  and/or  other  person(s)  or  entities   who
participate  as  investors  or  co-investors  with   Othnet;   or
(c)  disclose  financial  or other information  relating  to  the
Company  other  than in the ordinary course of  business  to  any
person   or  entity  other  than  Othnet,  Othnet's  agents   and
representatives, and other person(s) or entities for purposes  of
soliciting their participation as investors or co-investors  with
Othnet,  except with the written consent of Othnet.  The  Company
acknowledges  and  agrees that the legal  remedies  available  to
Othnet  in  the  event the Company violates any of the  foregoing
covenants  would be inadequate and that Othnet shall be  entitled
to  specific  performance, injunctive relief and other  equitable
remedies  in  the event of any such violation.  The Company  will
immediately  notify  Othnet regarding  any  contact  between  the
Company,  any  of its directors, officers, employees,  agents  or
representatives  and  any  other  person  regarding  any   offer,
proposal or inquiry during this exclusivity period.

      5.5   Notification  of Adverse Change.  The  Company  shall
promptly  notify  Othnet of any material adverse  change  in  the
condition (financial or otherwise) of the Company.

      5.6   Meeting of the Company Shareholders.  Promptly  after
the  date  hereof, the Company will take all action necessary  in
accordance with its articles of incorporation and by-laws, and in
accordance with federal and state securities laws, to  convene  a
meeting  of  the Company's shareholders to consider the  adoption
and  approval of this Agreement and approval of the Merger to  be
held  as  promptly  as  practicable.  The Company  will  use  its
reasonable  efforts to solicit from its shareholders  proxies  in
favor  of  the  adoption and approval of this Agreement  and  the
approval  of the Merger and will take all other action  necessary
or  advisable  to secure the vote or consent of its  shareholders
required  by the GCL to obtain such approvals.  In lieu  of  such
meeting,  the  adoption and approval of this  Agreement  and  the
Merger may be approved by shareholder consent.

      5.7   Notification of Certain Matters.  The  Company  shall
promptly notify Othnet of any fact, event, circumstance or action
known to it that is reasonably likely to cause the Company to  be
unable  to perform any of its covenants contained herein  or  any
condition precedent in ARTICLE VII not to be satisfied, or  that,
if  known on the date of this Agreement, would have been required
to  be  disclosed  to Othnet pursuant to this  Agreement  or  the
existence or occurrence of which would cause any of the Company's
representations  or  warranties under this Agreement  not  to  be
correct  and/or complete.  The Company shall give prompt  written
notice  to Othnet of any adverse development causing a breach  of
any  of the representations and warranties in ARTICLE III  as  of
the date made.  In the event that the Company Disclosure Schedule
is  not  delivered contemporaneously with the execution  of  this
Agreement,  it shall be delivered as soon as practicable  but  no
later  than the date of delivery to Othnet of the Company Audited
Financial Statements pursuant to Section 3.8.

      5.8   Company Disclosure Schedule.  The Company shall, from
time  to time prior to Closing, supplement the Company Disclosure
Statement with additional information that, if existing or  known
to  it on the date of delivery to the Othnet Parties, would  have
been   required  to  be  included  therein.   For   purposes   of
determining  the  satisfaction of any of the  conditions  to  the
obligations  of  the Othnet Parties in ARTICLE VII,  the  Company
Disclosure  Statement  shall be deemed to include  only  (a)  the
information  contained therein on the date of this Agreement  and
(b)  information  added  to the Company Disclosure  Statement  by
written  supplements delivered prior to Closing  by  the  Company
that  (i)  are  accepted in writing by Othnet,  or  (ii)  reflect
actions taken or events occurring after the date hereof prior  to
Closing.

     5.9  State Statutes.  The Company and its Board of Directors
shall, if any state takeover statute or similar law is or becomes
applicable  to  the  Merger,  this  Agreement  or  any   of   the
transactions  contemplated by this Agreement, use all  reasonable
efforts  to  ensure  that the Merger and the  other  transactions
contemplated by this Agreement may be consummated as promptly  as
practicable  on  the  terms contemplated by  this  Agreement  and
otherwise to minimize the effect of such statute or regulation on
the  Merger,  this  Agreement and the  transactions  contemplated
hereby.

      5.10  Conduct of Business.  Prior to the Closing Date,  the
Company  shall  conduct its business in the  normal  course,  and
shall  not sell, pledge, or assign any assets, without the  prior
written  approval  of  Othnet, except in the  regular  course  of
business.  Except as otherwise provided herein, the Company shall
not  amend  its  Articles  of Incorporation  or  Bylaws:  declare
dividends,  redeem  or  sell  stock or  other  securities;  incur
additional  or  newly-funded liabilities; acquire or  dispose  of
fixed  assets;  change employment terms; except in  the  ordinary
course   of  business,  enter  into  any  material  or  long-term
contract;  guarantee obligations of any third  party;  settle  or
discharge  any balance sheet receivable for less than its  stated
amount  or  pay more on any liability than its stated amount;  or
enter into any other transaction other than in the regular course
of business.

     5.11 Private Placement.  Promptly after the date hereof, the
Company  and Othnet shall complete the preparation of  a  private
placement   memorandum  (the  "Memorandum"),   which   shall   be
reasonably  acceptable  to both parties, for  the  offering  (the
"Private  Placement") of up to $6,300,000 (net of any  conversion
of Notes as defined in Section 6.10) (or such other lesser amount
as the parties shall mutually agree) of Othnet Series B Preferred
Stock  based upon a valuation of the Company of $42,000,000.  The
Memorandum  shall be prepared in accordance with  the  applicable
requirements of the Securities Act of 1933, as amended,  and  any
applicable  state  or foreign securities laws, and  Othnet  shall
cause such offering to be made to "accredited investors" only and
to be conducted in compliance with all such laws. Othnet shall be
responsible for any and all required filings with the  Securities
and  Exchange  Commission and shall make any  required  blue  sky
filing  in  any applicable state in connection with the  offering
contemplated by the Memorandum.  The information contained in the
Memorandum  relating  to  each of Othnet  and  the  Company,  its
business and its prospects shall not contain any untrue statement
of a material fact or omit to state any material fact required to
be  stated  therein or necessary in order to make the  statements
therein not misleading.

      5.12  Employment Agreements.  Prior to the Effective  Time,
the   AVP  will  use  its  best  efforts  to  execute  employment
agreements with its key members of management on terms reasonably
acceptable to Othnet.

                           ARTICLE VI
                 COVENANTS OF THE OTHNET PARTIES

     Between the date of this Agreement and the Closing Date,

     6.1   Additional Information.  Othnet shall provide  to  the
Company  and  its Representatives such financial,  operating  and
other documents, data and information relating to Othnet and  its
Subsidiaries, the Othnet Business and the Othnet Assets  and  the
Liabilities of Othnet and its Subsidiaries, as the Company or its
Representatives may reasonably request.  In addition, the Company
shall  take  all action necessary to enable the Company  and  its
Representatives  to  review and inspect the  Othnet  Assets,  the
Othnet   Business  and  the  Liabilities  of   Othnet   and   its
Subsidiaries  and  discuss  them  with  the  Company's  officers,
employees,  independent accountants and counsel.  Notwithstanding
any  investigation that the Company may conduct of Othnet and its
Subsidiaries,  the  Othnet Business, the Othnet  Assets  and  the
Liabilities of Othnet and its Subsidiaries, the Company may fully
rely on the Othnet Parties' warranties, covenants and indemnities
set forth in this Agreement.

      6.2   No  Solicitations.  From and after the date  of  this
Agreement  until  the  Effective  Time  or  termination  of  this
Agreement  pursuant to ARTICLE X, Othnet will  not  nor  will  it
authorize or permit any of its officers, directors, affiliates or
employees or any investment banker, attorney or other advisor  or
representative  retained  by  it,  directly  or  indirectly,  (i)
solicit or initiate the making, submission or announcement of any
other  acquisition proposal, (ii) participate in any  discussions
or   negotiations  regarding,  or  furnish  to  any  person   any
non-public  information  with respect to  any  other  acquisition
proposal,  (iii)  engage  in discussions  with  any  Person  with
respect  to  any  other acquisition proposal, except  as  to  the
existence of these provisions, (iv) approve, endorse or recommend
any other acquisition proposal, (v) offer to sell or transfer any
of  the capital stock of the Company or any material part of  the
assets  of  the Company, except as contemplated hereby,  for  the
purpose of consummating the transactions contemplated hereby;  or
(vi)  enter into any letter of intent or similar document or  any
contract  agreement  or  commitment  contemplating  or  otherwise
relating to any of the foregoing.

      6.3  Notification of Adverse Change.  Othnet shall promptly
notify  the  Company  of  any  material  adverse  change  in  the
condition (financial or otherwise) of Othnet.

      6.4   Consents and Approvals.  As soon as practicable after
execution  of this Agreement, the Othnet Parties shall use  their
commercially reasonable efforts to obtain any necessary  consent,
approval,  authorization or order of, make  any  registration  or
filing with or give notice to, any Regulatory Authority or Person
as is required to be obtained, made or given by any of the Othnet
Parties  to  consummate  the transactions  contemplated  by  this
Agreement and the Collateral Documents.

     6.5  Notification of Certain Matters.  Othnet shall promptly
notify  the  Company of any fact, event, circumstance  or  action
known  to it that is reasonably likely to cause any Othnet  Party
to  be unable to perform any of its covenants contained herein or
any  condition precedent in ARTICLE VIII not to be satisfied,  or
that,  if  known on the date of this Agreement, would  have  been
required  to  be  disclosed  to  the  Company  pursuant  to  this
Agreement or the existence or occurrence of which would cause any
of  the Othnet Parties' representations or warranties under  this
Agreement not to be correct and/or complete.  The Othnet  Parties
shall  give  prompt written notice to the Company of any  adverse
development  causing  a breach of any of the representations  and
warranties in ARTICLE IV.

      6.6  Othnet Disclosure Schedule.  The Othnet Parties shall,
from  time  to  time  prior  to Closing,  supplement  the  Othnet
Disclosure  Statement  with  additional  information   that,   if
existing or known to it on the date of this Agreement, would have
been   required  to  be  included  therein.   For   purposes   of
determining  the  satisfaction of any of the  conditions  to  the
obligations of the Company in ARTICLE VIII, the Othnet Disclosure
Statement  shall  be deemed to include only (a)  the  information
contained therein on the date of delivery to the Company and  (b)
information added to the Othnet Disclosure Statement  by  written
supplements delivered prior to Closing by the Othnet Parties that
(i)  are  accepted  in  writing by the Company  or  (ii)  reflect
actions taken or events occurring after the date hereof and prior
to Closing.

      6.7   State  Statutes.  Othnet and its Board  of  Directors
shall, if any state takeover statute or similar law is or becomes
applicable  to  the  Merger,  this  Agreement  or  any   of   the
transactions  contemplated by this Agreement, use all  reasonable
efforts  to  ensure  that the Merger and the  other  transactions
contemplated by this Agreement may be consummated as promptly  as
practicable  on  the  terms contemplated by  this  Agreement  and
otherwise to minimize the effect of such statute or regulation on
the  Merger,  this  Agreement and the  transactions  contemplated
hereby.

      6.8   Securities  Filings.  Othnet  will  timely  file  all
reports  and other documents relating to the operation of  Othnet
required to be filed with the Securities and Exchange Commission,
which reports and other documents do not and will not contain any
misstatement of a material fact, and do not and will not omit any
material  fact  necessary  to  make the  statements  therein  not
misleading.

      6.9   Election  to  Othnet's Board of  Directors.   At  the
Effective  Time  of  the  Merger, Othnet  shall  take  all  steps
necessary  so that there will be a seven member board  consisting
of   Jeffrey  Wattenberg,  Leonard  Armato,  Bruce  Binkow,  Phil
Guarascio,  Scott Painter, a designee of Fox Sports  Net,  and  a
designee  of  NBC,  in addition to which Corwin  Corpuz  will  be
granted permission to attend any and all meetings of the Board of
Directors  as  an  observer  for so long  as  Jeffrey  Wattenberg
remains  a director of Othnet, provided, however, that the  Board
of  Directors shall have the right to exclude Mr. Corpuz from any
such meetings when deemed reasonably appropriate by the Board.

      6.10  Financings.   Othnet will use  its  best  efforts  to
complete as soon as reasonably possible following the date hereof
a  private  placement offering of up to $2,300,000  (the  "Bridge
Financing")  wherein Othnet is offering to sell up  to  23  units
with each unit consisting of a $100,000 principal amount of a 10%
Convertible  Promissory  Note (the "Notes"),  200,000  shares  of
Common  Stock  (the  "Bridge Shares") and 200,000  warrants  (the
"Bridge Warrants"), and will loan to the Company $2,000,000  (the
"Bridge Proceeds") of the proceeds therefrom, net to the Company,
pursuant to the Company's issuance of debentures in form mutually
acceptable  to  the  parties.  Any of the  proceeds  received  by
Othnet  in the Bridge Financing in excess of the Bridge  Proceeds
shall  be  used  by  Othnet as it shall  determine  in  its  sole
discretion to pay existing liabilities, commissions, placement or
referral  fees to third parties, legal and accounting  fees,  and
other  out-of-pocket expenses.  Following the completion  of  the
Bridge  Financing, and subject to Section 5.11, Othnet shall  use
its  best  efforts to complete the Private Placement as  soon  as
reasonably possible.

      6.11 Othnet Liabilities.  Othnet shall use its best efforts
to   eliminate  its  balance  sheet  liabilities  to  the  extent
reasonably practicable prior to the Effective Time.

                           ARTICLE VII
    CONDITIONS PRECEDENT TO OBLIGATIONS OF THE OTHNET PARTIES

     All  obligations of the Othnet Parties under this  Agreement
shall  be  subject to the fulfillment at or prior to  Closing  of
each  of  the following conditions, it being understood that  the
Othnet  Parties  may,  in their sole discretion,  to  the  extent
permitted by applicable Legal Requirements, waive any or  all  of
such conditions in whole or in part.

     7.1   Accuracy of Representations.  All representations  and
warranties  of  the  Company contained  in  this  Agreement,  the
Collateral Documents and any certificate delivered by any of  the
Company  at  or  prior  to  Closing  shall  be,  if  specifically
qualified  by materiality, true in all respects and,  if  not  so
qualified, shall be true in all material respects, in  each  case
on  and as of the Closing Date with the same effect as if made on
and  as  of  the  Closing  Date, except for  representations  and
warranties  expressly stated to be made as of the  date  of  this
Agreement or as of another date other than the Closing  Date  and
except  for  changes contemplated or permitted by this Agreement.
The  Company  shall have delivered to Othnet  and  Merger  Sub  a
certificate dated the Closing Date to the foregoing effect.

     7.2    Covenants.   The  Company  shall,  in  all   material
respects, have performed and complied with each of the covenants,
obligations  and agreements contained in this Agreement  and  the
Collateral Documents that are to be performed or complied with by
them at or prior to Closing.  The Company shall have delivered to
Othnet and Merger Sub a certificate dated the Closing Date to the
foregoing effect.

     7.3   Consents  and  Approvals.   All  consents,  approvals,
permits, authorizations and orders required to be obtained  from,
and  all  registrations, filings and notices required to be  made
with  or given to, any Regulatory Authority or Person as provided
herein.

     7.4    Delivery  of  Documents.   The  Company  shall   have
delivered,  or caused to be delivered, to Othnet and  Merger  Sub
the following documents:

(i)  Certified copies of the Company articles of incorporation
     and by-laws and certified resolutions of the board of directors
     and Shareholders of the Company authorizing the execution of this
     Agreement and the Collateral Documents to which it is a party and
     the consummation of the transactions contemplated hereby and
     thereby.
(ii) Such other documents and instruments as Othnet may
reasonably request: (A) to evidence the accuracy of the Company's
representations and warranties under this Agreement, the
Collateral Documents and any documents, instruments or
certificates required to be delivered thereunder; (B) to evidence
the performance by the Company of, or the compliance by the
Company with, any covenant, obligation, condition and agreement
to be performed or complied with by the Company under this
Agreement and the Collateral Documents; or (C) to otherwise
facilitate the consummation or performance of any of the
transactions contemplated by this Agreement and the Collateral
Documents.

      7.5   No  Material Adverse Change.  Since the date  hereof,
there  shall have been no material adverse change in the  Company
Assets,  the  Company  Business or  the  financial  condition  or
operations of the Company, taken as a whole.

      7.6   Additional  Disclosure.  There  shall  have  been  no
disclosure  in any Company Disclosure Schedule or any  supplement
to  the Company Disclosure Schedule or documents set forth in  or
attached thereto delivered after the execution of this Agreement,
which,  in  the  opinion of Othnet, does or may have  a  Material
Adverse Effect on the Company.

      7.7   Company  Financial Statements.  The  Company  Audited
Financial  Statements  and the Company June  30,  2004  Financial
Statements  shall  show no material deviation  from  the  Company
Unaudited Financial Statements.

      7.8  Consulting Agreement.   The Company shall have entered
into  a  Management Consulting Agreement with  an  entity  to  be
formed  and  controlled by Jeffrey Wattenberg, Corwin Corpuz  and
Robert  Richman which agreement will be for a term of  one  year,
provide  for  an  monthly fee of $20,000 and contain  such  other
terms mutually acceptable.

      7.9   Directors and Officers Insurance.  The Company  shall
have  obtained,  if  commercially reasonable  and  acceptable,  a
commitment  to issue Directors and Officers Insurance for  Othnet
and  the  Company to be effective upon the Closing Date  in  such
amount  and  on  terms  and conditions reasonably  acceptable  to
Othnet .

      7.10  Satisfaction  with Company.  Othnet  shall  be  fully
satisfied in the exercise of its sole discretion with the results
of   the  investigation  and  review  it  conducts  (or  has  its
representatives  conduct), prior to  the  Closing  Date,  of  the
business, properties or affairs of the Company.

      7.11 Election to the Company's Board of Directors.  At  the
Effective  Time of the Merger, the Company shall take  all  steps
necessary  so that there will be a seven member board  consisting
of   Jeffrey  Wattenberg,  Leonard  Armato,  Bruce  Binkow,  Phil
Guarascio,  Scott Painter, a designee of Fox Sports  Net,  and  a
designee  of  NBC,  in addition to which Corwin  Corpuz  will  be
granted permission to attend any and all meetings of the Board of
Directors  as  an  observer  for so long  as  Jeffrey  Wattenberg
remains  a director of the Company, provided, however,  that  the
Board  of  Directors shall have the right to exclude  Mr.  Corpuz
from any such meetings when deemed reasonably appropriate by  the
Board.

      7.12  Director Nomination.  Leonard Armato,  Bruce  Binkow,
Phil  Guarascio  and  Scott Painter shall have  entered  into  an
agreement,  in  form acceptable to Othnet, which agreement  shall
provide that for a period of two years from the Closing Date, (i)
they  will,  at  any time that directors are to be  elected,  use
their  best  efforts to cause the Board of Directors to  nominate
and recommend to all stockholders of Othnet and the Company, as a
proposed  member of the Board of Directors of each of Othnet  and
the Company, Jeffrey Wattenberg, and (ii) Leonard Armato shall in
his  capacity  as a stockholder of Othnet, at any time  directors
are  to  be  elected,  vote in favor of the election  of  Jeffrey
Wattenberg  as a member of the Board of Directors.

                          ARTICLE VIII
       CONDITIONS PRECEDENT TO OBLIGATIONS OF THE COMPANY

     All obligations of the Company under this Agreement shall be
subject  to  the  fulfillment  at or  prior  to  Closing  of  the
following  conditions, it being understood that the Company  may,
in  its  sole  discretion, to the extent permitted by  applicable
Legal  Requirements, waive any or all of such conditions in whole
or in part.

     8.1   Accuracy of Representations.  All representations  and
warranties of the Othnet Parties contained in this Agreement  and
the  Collateral Documents and any other document,  instrument  or
certificate delivered by any of the Othnet Parties at or prior to
the  Closing  shall be, if specifically qualified by materiality,
true  and correct in all respects and, if not so qualified, shall
be true and correct in all material respects, in each case on and
as  of the Closing Date with the same effect as if made on and as
of  the  Closing Date, except for representations and  warranties
expressly  stated to be made as of the date of this Agreement  or
as  of  another date other than the Closing Date and  except  for
changes contemplated or permitted by this Agreement.  The  Othnet
Parties  shall have delivered to the Company a certificate  dated
the Closing Date to the foregoing effect.

     8.2   Covenants.  The Othnet Parties shall, in all  material
respects,  have  performed  and complied  with  each  obligation,
agreement, covenant and condition contained in this Agreement and
the  Collateral Documents and required by this Agreement and  the
Collateral  Documents  to be performed or complied  with  by  the
Othnet Parties at or prior to Closing.  The Othnet Parties  shall
have  delivered  to the Company a certificate dated  the  Closing
Date to the foregoing effect.

     8.3   Consents  and  Approvals.   All  consents,  approvals,
authorizations and orders required to be obtained from,  and  all
registrations, filings and notices required to be  made  with  or
given to, any Regulatory Authority or Person as provided herein.

     8.4    Delivery  of  Documents.   The  Othnet  Parties,   as
applicable,  shall have executed and delivered, or caused  to  be
executed and delivered, to the Company the following documents:

(i)  Certified copies of the articles of incorporation and
     by-laws of Othnet and certified resolutions by the board  of
     directors authorizing the execution of this Agreement and the
     Collateral Documents and the consummation of the transactions
     contemplated hereby.
(ii) Such other documents and instruments as the Company may
reasonably request: (A) to evidence the accuracy of the
representations and warranties of the Othnet Parties under this
Agreement and the Collateral Documents and any documents,
instruments or certificates required to be delivered thereunder;
(B) to evidence the performance by the Othnet Parties of, or the
compliance by the Othnet Parties with, any covenant, obligation,
condition and agreement to be performed or complied with by the
Othnet Parties under this Agreement and the Collateral Documents;
or (C) to otherwise facilitate the consummation or performance of
any of the transactions contemplated by this Agreement and the
Collateral Documents.
(iii)     Letters of resignation from Othnet's current officers
to be effective upon the Closing.
(iv) Board resolutions from Othnet's current directors appointing
the designees of the Company to Othnet's board of directors.

      8.5  No Material Adverse Change.  There shall have been  no
material  adverse change in the business, financial condition  or
operations of Othnet and its Subsidiaries taken as a whole.

      8.6  No Litigation.  No action, suit or proceeding shall be
pending  or threatened by or before any Regulatory Authority  and
no  Legal  Requirement  shall have been enacted,  promulgated  or
issued   or   deemed  applicable  to  any  of  the   transactions
contemplated by this Agreement and the Collateral Documents  that
would:  (i)  prevent  consummation of  any  of  the  transactions
contemplated by this Agreement and the Collateral Documents; (ii)
cause any of the transactions contemplated by this Agreement  and
the  Collateral Documents to be rescinded following consummation;
or (iii) have a Material Adverse Effect on Othnet.

     8.7  No Assets and Liabilities.  Othnet and its Subsidiaries
shall  have no assets other than cash or cash equivalents and  no
liabilities  except for Notes which have not been converted  into
Common Stock pursuant to the Bridge Financing.

      8.8   Dissenters' Rights.  Not more than $150,000 in claims
shall have been asserted in connection with dissenters' appraisal
rights under the GCL in connection with the Merger.

      8.9   Exchange  Act Requirements.  The Company  shall  have
complied  with the provisions of Rule 14f-1 of the Exchange  Act,
if necessary.

     8.10 Financings.  The Company shall have received the Bridge
Proceeds from Othnet as follows:  (a) $1,000,000 on or before the
date hereof, (b) $500,000 on or before two (2) business days from
the  date hereof, and (c) $500,000 on or before five (5) business
thereafter.   The  sum  of  the principal  amount  of  the  Notes
converted  into Common Stock and the net proceeds of the  Private
Placement  referred  to  in Section 5.11 (after  the  payment  of
commissions,  placement or referral fees to third parties,  other
expenses,  including legal and accounting fees, and any remaining
existing liabilities, which together shall not exceed 10% of  the
gross  proceeds of the Private Placement), less the amount  which
equals  the difference between the amount of the Bridge Financing
raised  by Othnet and the Bridge Proceeds loaned to the  Company,
shall be at least $4,000,000 in the aggregate.

     8.11 Certificates    of   Designation.     Certificates    of
Designation creating the Othnet Preferred Stock shall  have  been
filed by the Delaware Secretary of State.

                           ARTICLE IX
                         INDEMNIFICATION

      9.1   Indemnification by the Company.   The  Company  shall
indemnify,  defend  and hold harmless (i) Othnet,  (ii)  each  of
Othnet's  assigns  and  successors in  interest  to  the  Company
Shares,  and (iii)  each of their respective current, former  and
future  shareholders,  members,  partners,  directors,  officers,
managers, employees, agents, attorneys and representatives,  from
and  against any and all Losses which may be incurred or suffered
by  any such party and which may arise out of or result from  any
inaccuracy in or breach of any material representation, warranty,
covenant  or agreement of the Company contained in this Agreement
or  in  any document or other writing delivered pursuant thereto,
insofar  as  total  Losses exceed $250,000.   All  claims  to  be
asserted hereunder must be made by the first anniversary  of  the
Closing.

      9.2   Indemnification by the Othnet  Parties.   The  Othnet
Parties  shall  indemnify,  defend  and  hold  harmless  (i)  the
Company,  (ii)  each  of  the  Company  Shareholders  and   their
respective  assigns  and  successors in interest  to  the  Othnet
Series  A  Convertible Preferred Stock, and (iii) each  of  their
respective  current,  former  and future  shareholders,  members,
partners,  directors,  officers,  managers,  employees,   agents,
attorneys  and  representatives  from and  against  any  and  all
Losses which may be incurred or suffered by any such party hereto
and  which may arise out of or result from any inaccuracy  in  or
any breach of any material representation, warranty, covenant  or
agreement of the Othnet Parties contained in this Agreement or in
any document or other writing delivered pursuant thereto, insofar
as  total  Losses  exceed $250,000.  All claims  to  be  asserted
hereunder must be made by the first anniversary of the Closing.

      9.3   Notice  to  Indemnifying Party.  If  any  party  (the
"Indemnified  Party")  receives notice  of  any  claim  or  other
commencement  of any action or proceeding with respect  to  which
any  other  party  (or  parties) (the  "Indemnifying  Party")  is
obligated to provide indemnification pursuant to Sections 9.1  or
9.2,  the  Indemnified Party shall promptly give the Indemnifying
Party  written  notice  thereof, which notice  shall  specify  in
reasonable  detail, if known, the amount or an  estimate  of  the
amount  of the liability arising therefrom and the basis  of  the
claim.   Such  notice  shall  be a  condition  precedent  to  any
liability   of   the   Indemnifying  Party  for   indemnification
hereunder,  but  the  failure of the Indemnified  Party  to  give
prompt  notice  of  a  claim  shall  not  adversely  affect   the
Indemnified Party's right to indemnification hereunder unless the
defense  of that claim is materially prejudiced by such  failure.
The Indemnified Party shall not settle or compromise any claim by
a  third  party  for  which  it  is entitled  to  indemnification
hereunder  without the prior written consent of the  Indemnifying
Party  (which  shall  not be unreasonably  withheld  or  delayed)
unless  suit  shall  have  been instituted  against  it  and  the
Indemnifying  Party  shall not have taken control  of  such  suit
after notification thereof as provided in Section 9.4.

      9.4  Defense by Indemnifying Party.  In connection with any
claim  giving  rise  to  indemnity hereunder  resulting  from  or
arising out of any claim or legal proceeding by a Person  who  is
not a party to this Agreement, the Indemnifying Party at its sole
cost  and  expense  may, upon written notice to  the  Indemnified
Party,  assume the defense of any such claim or legal  proceeding
(i)  if  it acknowledges to the Indemnified Party in writing  its
obligations  to indemnify the Indemnified Party with  respect  to
all  elements of such claim (subject to any limitations  on  such
liability  contained in this Agreement) and (ii) if  it  provides
assurances,  reasonably  satisfactory to the  Indemnified  Party,
that  it will be financially able to satisfy such claims in  full
if  the  same  are decided adversely.  If the Indemnifying  Party
assumes the defense of any such claim or legal proceeding, it may
use  counsel of its choice to prosecute such defense, subject  to
the  approval  of  such counsel by the Indemnified  Party,  which
approval  shall  not be unreasonably withheld  or  delayed.   The
Indemnified  Party shall be entitled to participate in  (but  not
control) the defense of any such action, with its counsel and  at
its  own  expense;  provided, however, that  if  the  Indemnified
Party,  in  its sole discretion, determines that there  exists  a
conflict  of  interest  between the Indemnifying  Party  (or  any
constituent  party  thereof)  and  the  Indemnified  Party,   the
Indemnified Party (or any constituent party thereof)  shall  have
the  right  to engage separate counsel, the reasonable costs  and
expenses of which shall be paid by the Indemnified Party.  If the
Indemnifying Party assumes the defense of any such claim or legal
proceeding, the Indemnifying Party shall take all steps necessary
to pursue the resolution thereof in a prompt and diligent manner.
The  Indemnifying  Party  shall  be  entitled  to  consent  to  a
settlement  of, or the stipulation of any judgment arising  from,
any  such  claim  or legal proceeding, with the  consent  of  the
Indemnified  Party,  which  consent  shall  not  be  unreasonably
withheld  or  delayed; provided, however, that  no  such  consent
shall  be  required  from  the  Indemnified  Party  if  (i)   the
Indemnifying  Party pays or causes to be paid all Losses  arising
out   of  such  settlement  or  judgment  concurrently  with  the
effectiveness  thereof (as well as all other  Losses  theretofore
incurred  by  the Indemnified Party which then remain  unpaid  or
unreimbursed),  (ii) in the case of a settlement, the  settlement
is  conditioned  upon a complete release by the claimant  of  the
Indemnified Party and (iii) such settlement or judgment does  not
require the encumbrance of any asset of the Indemnified Party  or
impose any restriction upon its conduct of business.

                            ARTICLE X
                           TERMINATION

     10.1 Termination.  This Agreement may be terminated, and the
transactions contemplated hereby may be abandoned,  at  any  time
prior to the Effective Time.

(a)  by mutual written agreement of Othnet and the Company hereto
duly  authorized  by  action taken  by  or  on  behalf  of  their
respective Boards of Directors;
(b)  upon ten (10) days written notice by the Company (provided
it is not in material breach of its obligations under this
Agreement) if Othnet fails to provide the Bridge Proceeds in
accordance with Section 8.10, and such failure or failures are
not cured within such ten (10) day period after notice thereof;
or
(c)  by either the Company or Othnet upon notification to the
non-terminating party by the terminating party:

(i)  if the terminating party is not in material breach of its
     obligations under this Agreement and there has been a material
     breach of any representation, warranty, covenant or agreement on
     the part of the non-terminating party set forth in this Agreement
     such that the conditions in Sections 7.1, 7.2, 8.1 or 8.2 will
     not be satisfied; provided, however, that if such breach  is
     curable by the non-terminating party and such cure is reasonably
     likely  to  be  completed prior to  the  date  specified  in
     Section 10.1(b)(ii), then, for so long as the non-terminating
     party continues to use commercially reasonable efforts to effect
     and cure, the terminating party may not terminate pursuant to
     this Section 10.1(b)(i);
(ii) if the Closing has not transpired within the period referred
to in Section 2.11 or by September 30, 2004, whichever is
earlier; or

(iii)     if any court of competent jurisdiction or other
     competent Governmental or Regulatory Authority shall have issued
     an order making illegal or otherwise permanently restricting,
     preventing or otherwise prohibiting the Merger and such order
     shall have become final and nonappealable.

      10.2  Effect of Termination.  If this Agreement is  validly
terminated  by either the Company or Othnet pursuant  to  Section
10.1,  this  Agreement will forthwith become null  and  void  and
there  will  be  no liability or obligation on the  part  of  the
parties  hereto other than the obligations under Section 5.3  and
Section 11.12, except that nothing contained herein shall relieve
any  party  hereto  from  liability for  willful  breach  of  its
representations, warranties, covenants or agreements contained in
this Agreement nor relieve the Company from the repayment of  the
Bridge Proceeds pursuant to debentures issued by the Company.

                           ARTICLE XI
                          MISCELLANEOUS

      11.1 Parties Obligated and Benefited.  This Agreement shall
be  binding  upon the Parties and their respective successors  by
operation  of  law and shall inure solely to the benefit  of  the
Parties and their respective successors by operation of law,  and
no  other  Person  shall  be entitled  to  any  of  the  benefits
conferred by this Agreement, except that the Company Shareholders
shall  be  third party beneficiaries of this Agreement.   Without
the prior written consent of the other Party, no Party may assign
this  Agreement or the Collateral Documents or any of its  rights
or  interests or delegate any of its duties under this  Agreement
or the Collateral Documents.

      11.2 Publicity.  The initial press release shall be a joint
press  release  and  thereafter until the termination  hereof  or
consummation  of  the  transactions contemplated  hereby  neither
party   shall issue any press releases or otherwise making public
announcements   with  respect  to  the  Merger  and   the   other
transactions contemplated by this Agreement without  the  consent
of  the  other,  and prior to making any filings with  any  third
party  and/or any Regulatory Authorities (including any  national
securities  interdealer quotation service) with respect  thereto,
each  shall party shall consult with the other, except as may  be
required  by  law  or  by  obligations pursuant  to  any  listing
agreement  with  or rules of any national securities  interdealer
quotation service.

     11.3 Notices.  Any notices and other communications required
or permitted hereunder shall be in writing and shall be effective
upon  delivery  by hand or upon receipt if sent by  certified  or
registered mail (postage prepaid and return receipt requested) or
by    a   nationally   recognized   overnight   courier   service
(appropriately   marked   for   overnight   delivery)   or   upon
transmission  if  sent by telex or facsimile  (with  request  for
immediate  confirmation  of receipt in  a  manner  customary  for
communications of such respective type and with physical delivery
of  the  communication  being made by  one  or  the  other  means
specified in this Section as promptly as practicable thereafter).
Notices shall be addressed as follows:

          (a)  If to the Othnet Parties to:

               Othnet, Inc.
               1187 Coast Village Road, Suite 319
               Santa Barbara, California 93108
               Attention: Jeffrey Wattenberg
               Facsimile No:  (805) 969-2913

          With a copy to:

               Danzig, Kaye, Cooper, Fiore and Kay LLP
               30A Vreeland Road
               Florham Park, New Jersey 09732
               Attention: David Kaye, Esq.
               Facsimile No.  (973) 443-0609

          If to the Company to:

               Association of  Volleyball Professionals, Inc.
               6100 Center Drive, 9th Floor
               Los Angeles, California 90045
               Attention: Leonard Armato
               Facsimile No.  (310) 426-8010

          With a copy to:

               Loeb & Loeb LLP
               345 Park Avenue
               New York NY  10154-0037
               Attention: David C. Fischer
               Facsimile No.  (212) 407-4990

Any Party may change the address to which notices are required to
be sent by giving notice of such change in the manner provided in
this Section.

      11.4  Attorneys' Fees.  In the event of any action or  suit
based  upon or arising out of any alleged breach by any Party  of
any representation, warranty, covenant or agreement contained  in
this  Agreement or the Collateral Documents, the prevailing Party
shall be entitled to recover reasonable attorneys' fees and other
costs of such action or suit from the other Party.

      11.5  Headings.  The Article and Section headings  of  this
Agreement  are  for convenience only and shall not  constitute  a
part  of  this  Agreement or in any way  affect  the  meaning  or
interpretation thereof.

      11.6  Choice of Law.  This Agreement and the rights of  the
Parties  under  it  shall be governed by  and  construed  in  all
respects  in accordance with the laws of the State of California,
without  giving  effect to any choice of law  provision  or  rule
(whether  of  the  State of California or any other  jurisdiction
that  would cause the application of the laws of any jurisdiction
other than the State of California).

      11.7 Rights Cumulative.  All rights and remedies of each of
the  Parties  under this Agreement shall be cumulative,  and  the
exercise of one or more rights or remedies shall not preclude the
exercise  of  any  other  right or remedy  available  under  this
Agreement or applicable law.

     11.8 Further Actions.  The Parties shall execute and deliver
to  each  other,  from time to time at or after Closing,  for  no
additional  consideration  and  at  no  additional  cost  to  the
requesting   party,   such  further  assignments,   certificates,
instruments, records, or other documents, assurances or things as
may be reasonably necessary to give full effect to this Agreement
and  to  allow each party fully to enjoy and exercise the  rights
accorded  and acquired by it under this Agreement.  In  addition,
each  of  the  Parties  shall  use  its  best  efforts  to  cause
satisfaction of conditions under its control to the other party's
obligations  to  close  and  otherwise  to  cooperate  to   cause
consummation of the transactions contemplated hereunder.

     11.9 Time of the Essence.  Time is of the essence under this
Agreement.   If  the  last day permitted for the  giving  of  any
notice or the performance of any act required or permitted  under
this  Agreement falls on a day which is not a Business  Day,  the
time for the giving of such notice or the performance of such act
shall be extended to the next succeeding Business Day.

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

      11.11     Entire Agreement.  This Agreement (including  the
Exhibits, the Company Disclosure Statement, the Othnet Disclosure
Statement  and any other documents, instruments and  certificates
referred  to  herein, which are incorporated in and constitute  a
part  of  this  Agreement) contains the entire agreement  of  the
Parties.

      11.12      Expenses.   Each party will be  responsible  for
payment  of  its  expenses in connection  with  the  transactions
contemplated  by  this  Agreement, except as  otherwise  provided
elsewhere herein.

       11.13       Survival  of  Representations  and  Covenants.
Notwithstanding any right of the Othnet Parties, on the one hand,
or  the Company on the other, fully to investigate the affairs of
the  other  side,  and  notwithstanding any  knowledge  of  facts
determined or determinable by the investigating side pursuant  to
such  investigation or right of investigation, the  investigating
side shall have the right to rely fully upon the representations,
warranties,  covenants and agreements of the other  contained  in
this Agreement.

      11.14      Rule  144.  The Company shall  cause  Othnet  to
continue to file in a timely manner all required reports pursuant
to the Securities Exchange Act of 1934 as amended.  Additionally,
the  Company  shall  cause  Othnet to promptly  comply  with  any
request  of any current stockholder of Othnet to sell any  shares
of  the  Common Stock pursuant to Rule 144 subject to the receipt
of appropriate paperwork.

      11.15      Warrants.  Upon the Closing, the  Parties  shall
cause  Othnet to issue warrants to acquire up to such  number  of
shares  of  capital stock of Othnet which equals 15% of  Othnet's
fully  diluted capital stock as of the Effective Time (the "Joint
Warrant Pool") which warrants will be issued as follows:  60%  of
such  warrants will be issued to the AVP management team in  such
amounts  determined by AVP prior to the Effective Time,  and  40%
will  be issued to designees of Othnet in such amounts determined
by  Othnet prior to the Effective Time.  Such warrants  shall  be
exercisable for a term of five years, be exercisable  for  Common
Stock  only for cash at $0.28 per share, be transferable  to  the
extent  permitted under applicable law and will  have  piggy-back
registration  rights.    Notwithstanding the  foregoing,  in  the
event the sum of the principal amount of the Notes converted into
Common  Stock  and  the gross proceeds raised by  Othnet  in  the
Private  Placement referred to in Section 5.11  less  the  amount
which  equals  the difference between the amount  of  the  Bridge
Financing raised by Othnet and the Bridge Proceeds loaned to  the
Company (the total of which is referred to herein as the "Closing
Proceeds"), does not equal or exceed $6,000,000 at the  Effective
Time,  then the percentage of the Joint Warrant Pool to be issued
to   designees  of  Othnet  shall  be  reduced  by  a  percentage
calculated  as  follows: (x) 100% minus (y) the percentage  which
equals the Closing Proceeds divided by $6,000,000.  Prior to  the
Closing, each of the Parties shall use its best efforts to reduce
the  number  of  any other options and/or warrants  it  may  have
outstanding (other than as contemplated by the Joint Warrant Pool
and the Bridge Warrants contemplated by the Bridge Financing)  to
such amount which will entitle the holders thereof of each of the
Parties  to  acquire in the aggregate no more  than  5%  each  of
Othnet's fully diluted capital stock as of the Effective Time.

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

                         OTHNET, INC., A DELAWARE CORPORATION

                         By:  /s/ Jeffrey Wattenberg
                         Name:    Jeffrey Wattenberg
                         Title:   President

                         OTHNET MERGER SUB, INC., A DELAWARE
                         CORPORATION

                         By:  /s/ Jeffrey Wattenberg
                         Name:    Jeffrey Wattenberg
                         Title:   President

                         ASSOCIATION OF VOLLEYBALL PROFESSIONALS,
                         INC., A DELAWARE CORPORATION

                         By:  /s/ Leonard Armato
                         Name:    Leonard Armato
                         Title:   President0840_001

 

Exhibit 10.1 

 PartnerRe Ltd. 

Director Stock Option Agreement 

 <Name> 

<Date>  

       This Option Agreement
    (the "Agreement") is made effective as of <Date>, by
    and between PartnerRe Ltd. (the "Company"), and <Name> (the "Optionee"),
    a non-employee Director of the Company. 

       WHEREAS, the Company
    desires to afford the Optionee the opportunity to purchase common shares,
    $1.00 par value, for the Company ("Shares”).  

       NOW, THEREFORE,
    in connection with the mutual covenants hereinafter set forth and for other
    good and valuable consideration, the receipt and adequacy of which is hereby
    acknowledged, the parties hereto agree as follows:  

      1. Definitions;
        Conflicts. Capitalized terms used and not
        otherwise defined herein shall have the meanings ascribed thereto in
        the PartnerRe Ltd. 2003 Non-Employee Directors Stock Plan (the "Plan").
        The terms and provisions of the Plan are incorporated herein by reference.
        In the event of a conflict or inconsistency between the terms and provisions
        of the Plan and the terms and provisions of this Agreement, the terms
        and provisions of the Plan shall govern and control.  

      2. Grant
        of Options. The Company hereby grants to
        the Optionee the right and option (the "Option") to purchase up to, but
        not exceeding in the aggregate, the number of Shares as set forth in
        the attachment to this Agreement, for each Option award on each date
        of grant as so indicated, on the terms and conditions herein set forth.  

       3. Purchase
        Price. The purchase price per Share of
        the Options shall be the Grant Price provided in the Notice of Grant. 

      4. Term
        of Options. The term of the Option shall
        be ten (10) years from the date of grant of such award as so indicated
        in the attachment to this Agreement, subject to earlier termination as
        provided in Section 6 hereof.  

      5. Vesting
        of Options. The Option set forth in the
        attachment to this  Agreement,
        subject to the terms, conditions and limitations contained herein, shall
        be fully vested and exercisable as of the date hereof. 

      6. Termination
        of Directorship. In the event the Optionee
        ceases to be a member of the board of Directors of the Company for any
        reason, any then unexercised portion of the Option may be exercised within
        a period of one year following the date of such cessation, but in no
        event later than the expiration of the Option.  

 1 

      

     7.
        No Rights as a Shareholder.  The Optionee
        shall have no rights as a shareholder with respect to any Shares issuable
        upon the exercise of the Option until the date of issuance to the Optionee
        of a certificate evidencing such Shares. No adjustments, other than as
        provided in Section 6(d) of the Plan, shall be made for dividends (ordinary
        or extraordinary, whether in cash, securities or other property) or distributions
        for which the record date is prior to the date the certificate for such
        Shares is issued. 

      8. Method
        of Exercising Options. 

      (a) Notice
        of Exercise. Subject to the terms and conditions of this Agreement,
        Options may be exercised by written notice to the Company at its principal
        executive offices located in Pembroke Parish, Bermuda, Attn: Group HR.
        Such notice shall state the election to exercise Options and the number
        of Shares in respect of which the Options are being exercised, shall
        be signed by the person or persons so exercising the Options and shall
        be accompanied by payment in full of the Purchase Price for such Shares.  

      (b) Payment
        of Purchase Price for Shares. 

 Payment for shares of Stock acquired pursuant
    to Options granted hereunder shall be made in full, upon exercise of the
    Options either: 

	 	(A)	in immediately available
        funds in United States dollars, by wire transfer, certified or bank cashier’s
        check; or  
	 	 	 
	 	(B)	 by surrender to
        the Company of shares of Stock which have either (I) have been held by
        the Holder for at least six-months, or (II) were acquired from a person
        other than the Company, and have a Fair Market Value equal to such aggregate
        purchase price; or  
	 	 	 
	 	(C)  	 unless otherwise
        blocked by sale or transfer, by delivering to the Company a copy of irrevocable
        instructions to a stockbroker to deliver promptly to the Company an amount
        of sale or loan proceeds sufficient to pay the aggregate exercise price;
        or  
	 	 	 
	 	(D)	 by any combination of (A),
        (B), or (C) above; or 
	 	 	 
	 	(E)  	 by any other means approved
        by the Committee.  

The certificate for Shares acquired upon exercise
    of Options shall be registered in the name of the person or persons so exercising
    the Options. All Shares purchased upon the exercise of Options as provided
    herein shall be fully paid and non-assessable. 

 2 

    

      9. Non-Qualified
        Stock Options. Options granted hereunder
        are not intended to be an "incentive stock option" within the meaning
        of Section 422 of the U.S. Internal Revenue Code of 1986 as amended.  

      10. Binding
        Effect. This Agreement shall be binding
        upon the heirs, executors, administrators and successors of the parties
        hereto.  

      11. Governing
        Law. This Agreement shall be construed
        and interpreted in accordance with the laws of Bermuda without reference
        to the principles of conflicts of laws thereof.  

      12. Headings. Headings
      are for the convenience of the parties and are not deemed to be part of
      this Agreement.  

      13. Transferability. This
      option shall not be transferable except in accordance with the provisions
      of Section 11(e) of the Plan.  

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

  

 

	PARTNERRE
            LTD.  
	 	 	 
	 	By:	 
	 	 	
    
	 	Name: 	Diana Wilson
	 	Title: 	Group Human
            Resources
	 	 	 
	OPTIONEE	 
	 	 	 
	 	By:	 
	 	 	
    
	 	Name: 	<Name>

 

 3 

  

  

	Notice of Grant	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	<name> 	 	 	Option Number:	0000__________
	<address>	 	 	Option Plan:	DlR2
	 	 	 	ID:	#
	 	 	 	 	 
	
    
	 	 	 	 	 
	 	Grant Date: 	 	<date> 	 
	 	Type of Option:	 	Non-Qualified Stock Option	 
	 	Number of Options:	 	#	 
	 	Grant Price:	 	$	 
	 	 	 	 	 
	 	 	 	 	 
	Vesting Schedule:				
		Shares	Vest Type	Full Vest 	Expiration
	 	 	 	 	 
	 	#	On Vest Date 	<date> 	<date> 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	

    
	 	 	 	 	 
	By your signature and the Company's signature below, you and the Company agree that these Options are granted under and are governed by the terms and conditions of the Company’s Stock Option Plan and the Stock Option Agreement.  
	 	 	 	 	 
	

    
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	
    	
    
	PartnerRe Ltd. 	 	 	Date	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	

    	

    
	<name> 	 	 	Date	 
	 	 	 	 	 

 

	Wellesley House South, 90 Pitts Bay Road	Telephone 	(1 441) 292 0888	 
	Pembroke HM 08, Bermuda	Telefax	(1 441) 296 2250	http://www.partnerre.com

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