Document:

JOINT VENTURE AGREEMENT

                                  BY AND AMONG

                             ECOSCIENCE CORPORATION,

                               AGRO DYNAMICS, INC.

                                       AND

                                  GRODANIA A/S

                                JANUARY 12, 2000

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                                TABLE OF CONTENTS

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                                                                                                               PAGE
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ARTICLE I             DEFINITIONS.................................................................................1
                      1.1     Definitions.........................................................................1

ARTICLE II            THE TRANSACTIONS............................................................................8
                      2.1     Formation of NEWCO..................................................................8
                      2.2     ADI Contribution of Assets and Liabilities..........................................8
                      2.3     Grodan Contribution................................................................10
                      2.4     Issuance of Common Stock...........................................................10
                      2.5     Timing.............................................................................10

ARTICLE III           CLOSING................................................................................... 10

ARTICLE IV            REPRESENTATIONS AND WARRANTIES OF ADI......................................................11
                      4.1     Organization; Capitalization.......................................................11
                      4.2     Subsidiaries.......................................................................11
                      4.3     Authorization of Agreements, No Conflict, Etc......................................12
                      4.4     Title to Properties................................................................12
                      4.5     Leases.............................................................................13
                      4.6     Condition of Property..............................................................13
                      4.7     Compliance with Laws, Etc..........................................................13
                      4.8     Intellectual Property..............................................................15
                      4.9     Books and Records..................................................................15
                      4.10    Receivables........................................................................15
                      4.11    Litigation.........................................................................15
                      4.12    Material Contracts.................................................................16
                      4.13    Labor Matters......................................................................17
                      4.14    Financial Statements...............................................................17
                      4.15    Absence of Certain Changes or Events...............................................17
                      4.16    Undisclosed Liabilities............................................................18
                      4.17    Tax Matters........................................................................18
                      4.18    Insurance..........................................................................19
                      4.19    Employee Benefits..................................................................19
                      4.20    Employees..........................................................................22
                      4.21    Environmental Matters..............................................................22
                      4.22    Affiliate Transactions.............................................................24
                      4.23    Authorization of Transaction by ES.................................................24
                      4.24    Ownership of Common Stock of Seller................................................25
                      4.25    Sufficiency of Purchased Assets....................................................25
                      4.26    Broker's or Finder's Fees..........................................................25
                      4.27    Disclosure.........................................................................25
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                                      (i)

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ARTICLE V             REPRESENTATIONS AND WARRANTIES OF GRODAN...................................................25
                      5.1     Organization of Grodan.............................................................25
                      5.2     Authorization of this Agreement, Etc...............................................26
                      5.3     Broker's or Finder's Fees..........................................................26

ARTICLE VI            COVENANTS..................................................................................26
                      6.1     Covenants of ES and ADI............................................................26
                      6.2     Filings and Governmental Consents..................................................28
                      6.3     Post Closing Cooperation/Further Assurances........................................28
                      6.4     Employment Matters.................................................................29
                      6.5     Financial Due Diligence............................................................30
                      6.6     Notification.......................................................................30
                      6.7     Non-Compete........................................................................31

ARTICLE VII           CONDITIONS TO OBLIGATIONS OF GRODAN........................................................31
                      7.1     Representations, Warranties and Covenants of ADI and ES............................31
                      7.2     Absence of Proceedings.............................................................32
                      7.3     Due Diligence......................................................................32
                      7.4     Opinion of Counsel to Seller.......................................................32
                      7.5     Consents or Approvals..............................................................33
                      7.6     Other Agreements...................................................................33
                      7.7     Bill of Sale.......................................................................34
                      7.8     Conveyance; Assignment and Assumption Agreement....................................34

ARTICLE VIII          CONDITIONS TO OBLIGATIONS OF ADI...........................................................35
                      8.1     Representations, Warranties and Covenants of Grodan................................35
                      8.2     Absence of Proceedings.............................................................35
                      8.3     Opinion of Grodan's Counsel........................................................35
                      8.4     Consent of Century.................................................................36
                      8.5     Other Agreements...................................................................36

ARTICLE IX            TERMINATION................................................................................37
                      9.1     Termination........................................................................37
                      9.2     Effect of Termination..............................................................37

ARTICLE X             INDEMNIFICATION............................................................................38
                      10.1    Indemnification of Grodania and NEWCO..............................................38
                      10.2    Indemnification of ADI and ES......................................................38
                      10.3    Claims for Indemnification.........................................................38
                      10.4    Materiality or Knowledge...........................................................39
                      10.5    Method of Payment of Indemnification...............................................39
                      10.6    Limitations on Indemnification.....................................................39

ARTICLE XI            MISCELLANEOUS..............................................................................40
                      11.1    Expenses...........................................................................40
                      11.2    Survival...........................................................................40
                      11.3    Notices............................................................................40
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                                      (ii)
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                      11.4    Assignment; Successors and Assigns.................................................42
                      11.5    Entire Agreement...................................................................42
                      11.6    Governing Law; Construction........................................................42
                      11.7    Construction.......................................................................42
                      11.8    Severability.......................................................................42
                      11.9    Arbitration........................................................................43
                      11.10   Captions...........................................................................43
                      11.11   Counterparts.......................................................................43
                      11.12   Publicity..........................................................................43
                      11.13   Waiver.............................................................................43
                      11.14   No Third Party Beneficiaries/No Partnership........................................44
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                              Exhibits & Schedules

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Exhibits
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<S>                  <C>
2.1                  Newco Certificate of Incorporation & By-Laws
2.2                  Assumption Agreement
6.1(g)               Terms of APD/NEWCO Supply Agreement
7.6(a)               Stockholders' Agreement
7.6(b)               Distribution Agreement between Newco and Grodan
7.6(e)               Michael DeGiglio Noncompetition Agreement
7.6(g)               Cost-Sharing Agreement

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Schedules
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<S>                  <C>
2.2.1                Contributed Assets of ADI
2.2.2                Excluded Assets of ADI
2.2.3                Assumed Liabilities of ADI
4.1                  ADI's jurisdiction of incorporation and the jurisdictions in which ADI is authorized to do
                     business; liens on ADI stock
4.2                  Liens on ADCI capital stock
4.3                  Conflicts/Necessary Consents of ADI
4.4                  Liens on property owned by ADI
4.5                  ADI & ADCI Leases
4.6                  Inventory of Property
4.7                  Governmental Authorizations held by ADI and ADCI
4.8                  Intellectual Property of ADI and ADCI
4.10                 Accounts Receivable of ADI and ADCI
4.11                 Litigation involving ADI
4.12                 Material Contracts of ADI
4.13(b)              Proceedings involving ADI Related to Labor Law
4.14                 Financial Statements of ADI
4.15                 Deviations form the Ordinary Course of Business by ADI and ADCI since
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                                     (iii)

<PAGE>

<TABLE>
<S>                  <C>
                     1/1/99
4.16                 Liabilities of ADI and ADCI
4.17                 Tax Issues Related to ADI and ADCI
4.18                 Insurance policies held by ADI and ADCI
4.19                 Employee Benefits Plans
4.20                 List of ADI employees
4.21                 Environmental Compliance
4.22                 Affiliate Transactions
4.24                 Ownership of Common Stock of ADI
6.4                  Terms and conditions of employment for individuals appointed by Grodan
</TABLE>

                                      (iv)

<PAGE>

                             JOINT VENTURE AGREEMENT

     JOINT VENTURE AGREEMENT, dated as of January 12, 2000, by and among
EcoScience Corporation, a Delaware corporation ("EcoScience" or "ES"), Agro
Dynamics, Inc., a Delaware corporation wholly owned by ES ("ADI") and Grodania
A/S, a Denmark corporation or its designee ("Grodan").

     WHEREAS, ADI and Grodan have had an ongoing business relationship pursuant
to which ADI has been a distributor of Grodan substrates products for the
horticultural and greenhouse farming industry; and

     WHEREAS, the parties wish to expand their business relationship and
establish a new entity to conduct the ongoing business operations of ADI which
is to be owned 51% by ADI and 49% by Grodan or a direct or indirect subsidiary
of Grodan;

     NOW, THEREFORE, in consideration of the mutual representations, warranties,
covenants and agreements contained herein, and upon the terms and subject to the
conditions hereinafter set forth, the parties hereto agree as follows:

                                   ARTICLE I
                                  DEFINITIONS.

     Section 1.1 Definitions. As used in this Agreement, the following terms
shall have the meanings set forth below:

     "Accounts Receivable" has the meaning set forth in Section 4.10.

     "Affiliate" means a Person that, directly or indirectly through one or more
intermediaries, Controls, is Controlled by or is under common Control with, the
first mentioned Person.

     "Affiliated Group" less has the meaning set forth in Section 4.17.

     "Applicable Labor Law" means any and all laws, regulations, ordinances,
statutes or codes enacted by any Governmental Body, regarding or pertaining to
labor, employment, hiring, firing, equal employment opportunity, discrimination,
layoffs, session of employment, leaves of absence, immigration, wages, hours,
benefits, collective bargaining, labor relations, payment of social security and
similar taxes, occupation safety and health, plant closing, employment loss (as
that term is used in the WARN Act), independent contracting, affirmative action,
or contribution or portability of insurance benefits.

     "Assumed Liabilities" has the meaning set forth in Section 2.2.

     "Balance Sheet" has the meaning set forth in Section 4.14.

     "Business Day" means any Day on which banks in the State of New Jersey are
not authorized or required to close.

<PAGE>

     "Closing" has the meaning set forth in Article III.

     "Closing Date" has the meaning set forth in Article III.

     "Closing Documents" means all agreements and documents to be executed or
delivered in connection with the closing of the transactions contemplated by
this Agreement, including, without limitation, the documents described in
Article VII.

     "COBRA" means the Consolidated Omnibus Budget Reconciliation Act of 1985,
as amended.

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

     "Company Other Benefit Obligation" means an Other Benefit Obligation owed,
adopted or followed by the EcoScience Group or an ERISA Affiliate of the
EcoScience Group.

     "Company Plan" means all Plans of which the EcoScience Group or an ERISA
Affiliate of the EcoScience Group is or was a Plan Sponsor, or to which the
EcoScience Group or an ERISA Affiliate of the EcoScience Group otherwise
contributes or has contributed, or in which the EcoScience Group or an ERISA
Affiliate of the EcoScience Group otherwise participates or has participated.
All references to Plans are to Company Plans unless the context requires
otherwise.

     "Contracts" has the meaning set forth in Section 4.12.

     "Contributed Assets" has the meaning set forth in Section 2.2.

     "Control" (including the terms "Controlled," "Controlled by" and "under
common Control with") means the possession, directly or indirectly or as trustee
or executor, of the power to direct or cause the direction of the management or
policies of a Person, whether through the ownership of stock or as trustee or
executor, by contract or credit arrangement or otherwise.

     "Covenant Properties" means land and buildings owned, occupied or used by
the EcoScience Group.

     "Day" means a calendar day.

     "EcoScience Business" means any business activity undertaken by the
EcoScience Group.

     "EcoScience Group" means, individually and collectively, EcoScience, ADI,
Agro Power Development, Inc., a Delaware corporation ("APD") and their
Affiliates.

     "Employee Benefit Plan" means any (a) bonus, incentive compensation, profit
sharing, retirement, pension, group insurance, death benefit, group health,
medical expense reimbursement, dependent care, stock option, stock purchase,
stock appreciation rights, phantom stock, savings, deferred compensation,
consulting, severance pay, termination pay, vacation pay, leave of absence,
layoff, life insurance, accident, disability, workers' compensation, welfare or

                                       2

<PAGE>

other employee benefit or fringe benefit plan, program, arrangement, practice or
policy, or (b) plan, program, arrangement, practice or policy, which is an
"employee pension benefit plan" as such term is defined in Section 3(2) of ERISA
or an "employee welfare benefit plan" as such term is defined in Section 3(1) of
ERISA, whether written or unwritten.

     "Environment" means soil, land surface or subsurface strata, surface waters
(including navigable waters, ocean waters, streams, ponds, drainage basins, and
wetlands), groundwaters, drinking water supply, stream sediments, ambient air
(including indoor air), plant and animal life, and any other environmental
medium or natural resource.

     "Environmental Claims" means any and all allegations, actions, orders,
decrees, suits, demands, demand letters, directives, claims, liens,
investigations, proceedings or notices of noncompliance or violation, or causes
of action for any damage or lost use of property, by any Person, alleging
potential Liability (a) arising out of the operation of the EcoScience Business
prior to Closing based upon the presence, Release, or Threat of Release of any
Hazardous Materials on the Covenant Properties or Former Properties, owned,
leased or operated by the EcoScience Group prior to Closing; (b) arising out of
any violation of any Environmental Law by the EcoScience Group prior to Closing;
or (c) arising out of Environmental Matters that would result in such Liability
based upon Environmental Laws.

     "Environmental Laws" means all applicable federal, state, district, local,
municipal, foreign, international, multinational or other law, administrative
order, constitution, ordinance, principal of common law, regulation, code,
statute or treaty, all rules or regulations promulgated thereunder, and all
orders, consent orders, judgments, notices, permits or demand letters issued,
promulgated or entered pursuant thereto, relating to pollution or protection of
the Environment and human health including (i) laws relating to emissions,
discharges, Releases or Threatened Releases of Hazardous Materials, pollutants,
contaminants, chemicals, industrial materials, wastes of all types or other
substances into the Environment; and (ii) laws relating to the identification,
generation, manufacture, processing, distribution, use, treatment, storage,
disposal, recycling, recovery, shipment, transport or other handling of
Hazardous Materials, pollutants, contaminants, chemicals, industrial materials,
wastes of all types or other substances. Environmental Laws include but are not
limited to the Comprehensive Environmental Response, Compensation and Liability
Act, as amended (42 U.S.C. ss. 9601 et seq.) and the regulations thereunder
("CERCLA"), the Resource Conservation and Recovery Act (42 U.S.C. ss. 6901 et.
seq.) and the regulations thereunder ("RCRA"), the Toxic Substances Control Act
(15 U.S.C. ss.ss. 2601, 2606) ("TSCA"), the Hazardous Materials Transportation
Act, the Federal Water Pollution Control Act ("FWPCA"), the Clean Air Act (42
U.S.C. ss. 7401, 7412) (the "Clean Air Act"), the Safe Drinking Water Act,
the Federal Insecticide, Fungicide and Rodenticide Act ("FIFRA"), and the
Occupational Safety and Health Act ("OSHA"), all as amended prior to Closing;

     "Environmental Losses" means any losses, damages, Liabilities, Harm,
penalties, charges and claims and reasonably and properly incurred costs and
expenses suffered or incurred pursuant to Environmental Laws (but for the
avoidance of doubt excluding consequential loss and loss of opportunity or
future profits) and "Loss" shall be construed accordingly.

     "Environmental Matters" means, in relation to the EcoScience Business and
the Covenant Properties and Former Properties, all matters relating to Releases,
Environmental

                                       3

<PAGE>

Losses, Liability or Harm to the Environment, whether by Releases or Threat of
Releases of Hazardous Materials or by other means;

     "Environmental Permits" means all permits, licenses, registrations,
authorizations, approvals, consents or orders of, or filings with, or
notifications to, any Governmental Body, or required under Environmental Laws or
necessary for the present and continued conduct of the EcoScience Business at
the Covenant Properties;

     "ERISA" means the Employee Retirement Income Security Act of 1974, as
amended, or any successor law, and regulations and rules issued pursuant to that
Act or any successor law.

     "ERISA Affiliate" means, with respect to the EcoScience Group, any other
person that, together with the EcoScience Group, would be or has been treated as
a single employer under Section 4001(b) of ERISA or Section 414 of the Code.

     "Excluded Assets" has the meaning set forth in Section 2.2.

     "Former Properties" means all land and buildings previously owned, occupied
or used by the EcoScience Group.

     "GAAP" means generally accepted accounting principles in the United States.

     "Grodan's Business" means the substrates business and services as such
services relate to the substrates business engaged in by Grodan.

     "Governmental Authorization" means any approval, consent, license,
variance, permit, conditional use permit, waiver or other authorization issued,
granted, given or otherwise made available by or under the authority of any
Governmental Body or pursuant to any Legal Requirement.

     "Governmental Body" means any (i) nation, state, county, city, town,
village, district, or other jurisdiction of any nature, (ii) federal, state,
local, municipal, foreign, or other government, (iii) governmental or
quasi-governmental authority of any nature (including any governmental agency,
branch, department, official, or entity and any court or other tribunal), (iv)
multi-national organization or body, or (v) body exercising, or entitled to
exercise, any administrative, executive, judicial, legislative, police,
regulatory, or taxing authority or power.

     "Green Meteor Agreement" means that certain distribution agreement, dated
March 10, 1998, between ADI and Green Meteor B.V.

     "Harm" means harm to the health of any living organism or other
interference with the ecological systems of which its forms a part and, in the
case of human beings, includes offense to any of the senses, impairment of
amenity and damage to property;

                                       4

<PAGE>

     "Hazardous Materials" means any

     (i) "hazardous substance," "pollutants" or "contaminant" (as defined in
     Sections 101(14) and (33) of CERCLA or the regulations issued pursuant to
     Section 102 of CERCLA and found at 40 C.F.R. ss. 302), including any
     element, compound, mixture, solution or substance that is or may be
     designated pursuant to Section 102 of CERCLA;

     (ii) substance that is or may be designated pursuant to Section
     311(b)(2)(A) of the FWPCA, as amended (33 U.S.C.ss. 125, 1321(b)(2)(A));

     (iii) hazardous waste having the characteristics identified under or listed
     pursuant to Section 3001 of RCRA or having characteristics that may
     subsequently be considered under RCRA to constitute a hazardous waste;

     (iv) substance containing petroleum, as that term is defined in Section
     9001(8) of RCRA;

     (v) toxic pollutant that is or may be listed under Section 307(a) of FWPCA;

     (vi) hazardous air pollutant that is or may listed under Section 112 of the
     Clean Air Act;

     (vii) imminently hazardous chemical substance or mixture with respect to
     which action has been or may be taken pursuant to Section 7 of TSCA; (viii)
     asbestos, asbestos-containing material;

     (ix) waste oil and other petroleum products; and

     (x) any other toxic materials, contaminants, or hazardous substances or
     wastes pursuant to any Environmental Law.

     "Hoogendoorn Agreement" means that certain distribution agreement, dated
March 10, 1995 between ADI and H. Hoogendoorn Automation B.V.

     "ICC" means the International Chamber of Commerce located in Paris, France.

     "ICC Rules" means the Rules of Arbitration of the ICC in effect on the date
that a dispute is submitted to the ICC for arbitration.

     "including" means including without limitation.

     "Indemnified Party" means the party or parties claiming a right to
indemnification pursuant to Article X.

     "Indemnifying Party" means the party or parties from whom indemnification
is sought pursuant to Article X.

                                       5

<PAGE>

     "Intellectual Property" means patents, trademarks, service marks, trade
dress, logos, trade names, corporate names assumed names, and copyrights
together with all translations, adaptations, derivations, and combinations
thereof and including all goodwill associated therewith, and all applications,
registrations, and renewals in connection therewith.

     "IRS" means the Internal Revenue Service.

     "Law" has the meaning set forth in Section 4.3.

     "Lease" or "Leases" means all of the right, title and interest of ADI and
ADCI in, to and under all leases, subleases, licenses and/or other occupancy
agreements affecting real property except as set forth on Schedule 2.2.2.

     "Legal Requirement" means any applicable federal, state, local, municipal,
foreign, international, multinational, or other administrative order,
constitution, law, ordinance, principle of common law, regulation, code,
statute, or treaty.

     "Liability" means any liability or obligation of any kind whatsoever,
whether known or unknown, asserted or unasserted, absolute or contingent,
accrued or unaccrued, liquidated or unliquidated, determined or indeterminable,
due or to become due.

     "Lien" means any lien, claim, pledge, security interest, mortgage, charge,
easement, right-of-way, encroachment, covenant and/or restriction restricting
use or the manner of use, lease, right of use or other encumbrance or third
party right of any kind, whether written or oral.

     "Litigation" has the meaning set forth in Section 10.3.

     "Losses" means any and all claims, demands, losses, costs, damages,
obligations, Liabilities, judgments, settlements, including interest and
penalties thereon, Taxes, costs and expenses of any nature whatsoever (including
reasonable attorneys fees).

     "Multiemployer Plan" has the meaning given in ERISA Section 3(37)(A).

     "NEWCO's Business" means sales, marketing and distribution of products and
services to the horticultural industry.

     "Ordinary Course of Business" means an action taken by a Person will be
deemed to have been taken in the "Ordinary Course of Business" only if (a) such
action is consistent with the past practices of such Person and is taken in the
ordinary course of the normal day-to-day operations of such Person, (b) such
action is not required to be authorized by the board of directors of such Person
(or by any Person or group of Persons exercising similar authority) and (c) such
action is similar in nature and magnitude to actions customarily taken, without
any authorization by the board of directors (or by any Person or group of
Persons exercising similar authority), in the ordinary course of the normal
day-to-day operations of other Persons that are in the same line of business as
such Person; provided, however, in no event shall transactions involving
Affiliates be deemed to be in the Ordinary Course of Business.

                                        6

<PAGE>

     "Other Benefit Obligation" means all obligations, arrangements, or
customary practices, whether or not legally enforceable, to provide benefits,
other than salary, as compensation for services rendered, to present or former
directors, employees, or agents, other than obligations, arrangements, and
practices that are Plans. Other Benefit Obligations include consulting
agreements under which the compensation paid does not depend upon the amount of
service rendered, sabbatical policies, severance payment policies, and fringe
benefits within the meaning of Code Section 132.

     "Person" means any individual, corporation (including any non-profit
corporation), general or limited partnership, limited liability company, joint
venture, estate, trust, association, organization, labor union, or other entity
or Governmental Body.

     "Plan" has the meaning given in ERISA Section 3(3).

     "Plan Sponsor" has the meaning given in ERISA 3(16)(B).

     "Proceeding" means any claims, lawsuits, charges, complaints, grievances,
investigations, audits, arbitrations, or disputes initiated or brought before
any Governmental Body.

     "Qualified Plan" means any Plan that meets or purports to meet the
requirements of Code Section 401(a).

     "Release" means any spilling, leaking, emitting, emptying, injection,
disposing, discharging, depositing, escaping, leaching, dumping, or other
releasing into the Environment, or within any building, structure, facility or
fixture whether intentional or unintentional.

     "SEC" means the U.S. Securities and Exchange Commission.

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

     "Subsidiary" means with respect to any Person, any corporation, association
or other business entity of which at least 50% of the total voting power in the
election of directors, managers or trustees thereof is at the time owned or
controlled, directly or indirectly, by such Person or one or more of the other
Subsidiaries of that Person.

     "Taxes" means any federal, state, local, or foreign income, gross receipts,
license, payroll, employment, excise, severance, stamp, occupation, premium,
windfall profits, environmental (including taxes under Section 59A of the Code),
customs duties, capital stock, franchise, profits, withholding, social security
(or similar), unemployment, disability, real property, gross income, personal
property, sales, use, transfer, registration, value added, alternative or add-on
minimum, estimated, or other tax, governmental Lien or other like assessment or
charge of any kind whatsoever, including any interest, surcharge, penalty, or
addition thereto, whether disputed or not.

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

                                       7
<PAGE>

     "Threat of Release" means a substantial likelihood of a Release that may
require action in order to prevent or mitigate damage to the Environment or
human health that may result from such Release.

     "Threatened" means a claim, proceeding, dispute, action, or other matter
will be deemed to have been "Threatened" if any demand or statement has been
made (orally or in writing) or any notice has been given (orally or in writing),
or if any other event has occurred or any other circumstances exist, that would
lead a prudent Person to conclude that such a claim, proceeding, dispute,
action, or other matter is likely to be asserted, commenced, taken, or otherwise
pursued in the future.

     "VEBA" means a voluntary employees' beneficiary association under Code
Section 501(c)(9).

     "WARN Act" means the U.S. Worker Adjustment Retraining and Notification
Act, including all amendments and Department of Labor Regulations promulgated
pursuant to such Act.

                                   ARTICLE II
                                THE TRANSACTIONS.

     Section 2.1 Formation of NEWCO. On or prior to the Closing Date, ADI shall
cause a new corporation to be incorporated in the State of Delaware ("NEWCO").
The Certificate of Incorporation and By-Laws of NEWCO shall be as set forth on
Exhibit 2.1.

     Section 2.2 ADI Contribution of Assets and Liabilities. (a) On the Closing
Date, ADI shall contribute, transfer, assign and deliver to NEWCO all of ADI's
right, title and interest in and to substantially all its assets, real, personal
and intangible which shall include all of the issued and outstanding capital
stock of ADCI (as hereinafter defined), Leases, Contracts and that certain
Single Block System Agreement, dated September 29, 1997 among ADI and Grodan
(collectively, the "Contributed Assets"). Schedule 2.2.1 sets forth a detailed
description of the classes and types of assets that comprise the Contributed
Assets and the cost basis of such assets on the financial and tax records of ADI
as of December 5, 1999. The Contributed Assets shall include the assets
reflected on Schedule 2.2.1 giving effect to the business operations of ADI in
the Ordinary Course of Business since December 5, 1999. The Contributed Assets
shall not include any receivables of ADI due from EcoScience and its
Subsidiaries, including APD, and such other assets as set forth on Schedule
2.2.2 (the "Excluded Assets").

     (b) On the Closing Date, ADI shall also transfer and assign to NEWCO all of
ADI's obligations with respect to the classes and types of Liabilities set forth
and described on Schedule 2.2.3. (the "Assumed Liabilities"). Schedule 2.2.3
sets forth the description and amount of all of the classes and types of
Liabilities that will comprise the Assumed Liabilities as of December 5, 1999.
The Assumed Liabilities shall include the Liabilities reflected on Schedule
2.2.3 giving effect to the business operations of ADI (increases and decreases)
in the Ordinary Course of Business with respect to such assets since December 5,
1999. Notwithstanding anything to the contrary, in no event shall the Assumed
Liabilities include:

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<PAGE>

     (i) the Liabilities of ADI arising under that certain Distribution
     Agreement dated September 29, 1997 between ADI and Grodan (the "Grodan
     Distribution Agreement");

     (ii) any Liabilities whatsoever that are not Assumed Liabilities;

     (iii) any Liabilities owed to EcoScience and its Subsidiaries including
     APD;

     (iv) Taxes accrued for, applicable to or arising from any period ending on
     or prior to the Closing or in connection with the consummation of the
     transactions contemplated hereby and any Liability of EcoScience, ADI and
     their Subsidiaries for the unpaid Taxes of any Person under Treasury
     Regulation ss.1.1502-6 (or any similar provision of state, local or foreign
     law), as a transferee or successor, by contract of otherwise, except for
     sales taxes accrued on Schedule 2.2.3 and incurred subsequent to December
     5, 1999 in the Ordinary Course of Business and to the extent that such
     Taxes are to be reimbursed after the Closing pursuant to the Cost Sharing
     Agreement;

     (v) any obligation of ADI to indemnify any Person by reason of the fact
     that such Person was a director, officer, employee or agent of ADI or was
     serving at the request of ADI as a partner, trustee, director, officer,
     employee or agent of another entity (whether such indemnification is for
     judgments, damages, penalties, fines, costs, amounts paid in settlement,
     losses, expenses or otherwise and whether such indemnification is pursuant
     to any statute, charter document, bylaw, agreement or otherwise);

     (vi) any Liability of ADI for costs and expenses incurred in connection
     with this Agreement and the transactions contemplated herein, except (1)
     for reasonable legal fees owed to Giordano, Halleran and Ciesla in an
     amount not to exceed $50,000 which shall be paid by NEWCO; and (2) the
     reasonable fees owed to Arthur Andersen in connection with advisory
     services rendered in connection with the transactions contemplated by this
     Agreement and the fiscal 1999 audit of ADI in an amount not to exceed
     $30,000 which shall be paid by NEWCO.

     (vii) any Liability or obligation of ADI under this Agreement and the
     transactions contemplated hereby or resulting from the consummation of such
     transactions;

     (viii) any Environmental Liability or Environmental Losses arising solely
     from occurrences, conditions or Environmental Matters which existed on or
     prior to the Closing Date, or, for any such Environmental Liability or
     Environmental Losses arising from occurrences, conditions or Environmental
     Matters which existed both before and after the Closing, the portion of any
     such Environmental Liability or Environmental Losses caused by said
     occurrences, conditions or Environmental Matters which existed prior to the
     Closing Date;

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<PAGE>

     (ix) any Liability or obligation relating to the Employee Benefit Plans of
     the EcoScience Group, including but not limited to any Liability or
     obligation with respect to COBRA or any Multiemployer Plan (as defined in
     Section 3(37) or 4001(a)(3) of ERISA) except as set forth on Schedule 2.2.3
     and incurred subsequent to December 5, 1999 in the Ordinary Course of
     Business and to the extent that such Liabilities are to be reimbursed after
     the Closing pursuant to the Cost Sharing Agreement; and

     (x) any Liability or obligation not expressly set forth on Schedule 2.2.3.

NEWCO shall at the Closing execute and deliver an Assignment and Assumption
Agreement substantially in the form set forth on Exhibit 2.2 (the "Assumption
Agreement").

     Section 2.3 Grodan Contribution. On the Closing Date, Grodan shall (A)
transfer to NEWCO an amount of cash equal to the difference between (i)
$3,087,000 and (ii) the total amount outstanding pursuant to the Grodan
Distribution Agreement which is estimated to be approximately $2,800,000 as of
the date of this Agreement and (B) execute a document assigning ADI the right to
collect the total amount outstanding pursuant to the Grodan Distribution
Agreement owed to Grodan pursuant to the Grodan Distribution Agreement.

     Section 2.4 Issuance of Common Stock. On the Closing Date, NEWCO shall
issue (A) 51 shares of common stock $.10 par value per share of NEWCO (the
"Common Stock") to ADI and (B) 49 shares of Common Stock to Grodan.

     Section 2.5 Timing. The transactions contemplated under Section 2.1 to 2.4
shall occur simultaneously and none of the transactions shall be deemed to occur
until all such transactions shall have occurred.

                                  ARTICLE III
                                    CLOSING.

     Except as otherwise set forth herein, the closing of the transactions
contemplated by this Agreement (the "Closing") shall take place at the law
offices Giordano, Halleran & Ciesla in Middletown, New Jersey, commencing at
10:00 a.m. local time on the later of (a) January 31, 2000, or (b) the second
Business Day following the satisfaction or waiver of all conditions to the
obligations of the parties to consummate the transactions contemplated hereby
(other than conditions with respect to actions the respective parties will take
at the Closing itself) or such other date as the parties may mutually determine
(the "Closing Date").

                                   ARTICLE IV
                     REPRESENTATIONS AND WARRANTIES OF ADI.

     To induce Grodan to enter into this Agreement, and to consummate the
transactions contemplated, each of ES and ADI represents and warrants to Grodan
as follows:

                                       10

<PAGE>

     Section 4.1 Organization; Capitalization.

     (a) ADI is a corporation duly organized, validly existing and in good
standing under the laws of its jurisdiction of formation, has all requisite
corporate power and authority to own and lease its properties and carry on its
business as it is now being conducted and is duly qualified and in good standing
to do business in each jurisdiction in which the nature of the business
conducted by it or the ownership or leasing of properties makes such
qualification necessary except where the failure to be so qualified would not
have a material adverse effect on ADI . Schedule 4.1 contains a complete and
accurate list of ADI's jurisdiction of incorporation and other jurisdictions in
which it is authorized to do business.

     (b) As of the date of this Agreement, the authorized and outstanding
capital stock of ADI is as set forth on Schedule 4.1. Except as set forth on
Schedule 4.1, there is outstanding no security, option to purchase, warrant,
right, call, subscription, pledge, agreement, commitment, right of first refusal
or understanding of any nature whatsoever, fixed or contingent, that directly or
indirectly (i) calls for the issuance, sale, pledge or other disposition of any
capital stock of ADI or any securities convertible into, or other rights to
acquire, any of the capital stock of ADI; (ii) obligates ADI to grant, offer to
grant or enter into any of the foregoing; or (iii) relates to the voting or
control of such capital stock, securities or rights. All of the issued and
outstanding shares of capital stock of ADI are owned by ES and held of record by
ES and are free and clear of all Liens except as set forth on Schedule 4.1.

     Section 4.2 Subsidiaries.

     (a) ADI does not own or have any right to acquire, directly or indirectly,
any capital stock of any corporation or have any direct or indirect equity or
ownership interest in any corporation, business trust, firm, association,
partnership, joint venture, entity or organization, except for Agro Dynamics
Canada, Inc., a corporation organized under Ontario law ("ADCI") of which all of
the issued and outstanding shares of capital stock are owned by ADI and held of
record by ADI and are free and clear of all Liens except as set forth on
Schedule 4.2. ADCI is a corporation duly organized, validly existing and in good
standing under the laws of its jurisdiction of formation, has all requisite
corporate power and authority to own and lease its properties and carry on its
business as it is now being conducted and is duly qualified and in good standing
to do business in each jurisdiction in which the nature of the business
conducted by it or the ownership or leasing of properties makes such
qualification necessary except where the failure to be so qualified would not
have a material adverse effect on ADCI. Ontario is the only jurisdiction in
which ADCI is authorized to do business. Except for ADCI, ADI does not now have
and has never had any Subsidiary.

     (b) There is outstanding no security, option to purchase, warrant, right,
call, subscription, pledge, agreement, commitment, right of first refusal or
understanding of any nature whatsoever, fixed or contingent, that directly or
indirectly (i) calls for the issuance, sale, pledge or other disposition of any
capital stock of ADCI or any securities convertible into, or other rights to
acquire, any of the capital stock of ADCI; (ii) obligates ADI or ADCI to grant,
offer to grant or enter into any of the foregoing; or (iii) relates to the
voting or control of such capital stock, securities or rights.

                                       11

<PAGE>

     Section 4.3 Authorization of Agreements, No Conflict, Etc.

     (a) Each of ES and ADI has the full legal right, power and authority to
execute and deliver this Agreement and the Closing Documents and to fully
perform its obligations hereunder and thereunder. The execution, delivery and
performance of this Agreement and the consummation of the transactions
contemplated hereby have been duly authorized by all necessary corporate action
on the part of ES and ADI. This Agreement has been duly executed and delivered
by ES and ADI and constitutes, and upon the execution and delivery of the
Closing Documents, each of the Closing Documents will constitute, the valid and
binding obligation of each of ES and ADI, enforceable in accordance with its
terms.

     (b) Except as set forth in Schedule 4.3, the execution, delivery and
performance of this Agreement and the Closing Documents by ES and ADI will not,
with or without the giving of notice and/or the passage of time, (i) violate or
conflict with the certificate of incorporation and by-laws of ES, ADI or ADCI or
any of their Affiliates (ii) violate or conflict with any domestic (federal,
state or local) or foreign law, rule, regulation, order, judgment or decree
(collectively, "Law" or "Laws") applicable to ES, ADI or ADCI or any of their
Affiliates or by which any property or asset of ES, ADI or ADCI or any of their
Affiliates is bound or affected, or (iii) result in any breach of or constitute
a default (or an event which with notice or lapse of time or both would become a
default) under, or give to others any right of termination, unilateral
amendment, acceleration or cancellation of, or give to others any right to
invalidate or terminate any rights, or result in the creation of a Lien on any
of the properties or assets of ES, ADI or ADCI or any of their Affiliates,
including the Contributed Assets or require the consent of any third party
pursuant to any note, bond, mortgage, indenture, contract, agreement, lease,
license, permit, franchise or other instrument or obligation to which ES, ADI or
ADCI or any of their Affiliates is a party or by which ES, ADI or ADCI or any of
their Affiliates or any property of ES, ADI or ADCI or any of their Affiliates
is bound or affected, or (iv) cause NEWCO to become subject to, or to become
liable for the payment of, any Tax imposed upon ES or ADI or any of their
Affiliates.

     (c) Except as set forth in Schedule 4.3, neither ES, ADI, ADCI nor any of
their Affiliates is, nor will any of them be, required to give any notice to or
obtain any consent from any Person in connection with the execution and delivery
of this Agreement or the consummation or performance of any of the transactions
contemplated herein.

     Section 4.4 Title to Properties. ADI owns and has good and marketable title
to all Contributed Assets (whether real, personal, or mixed and whether tangible
or intangible) free and clear of all Liens, except as set forth on Schedule 4.4.
Upon transfer of the Contributed Assets to NEWCO pursuant to this Agreement,
good and marketable title to the Contributed Assets will pass to NEWCO, free and
clear of any Liens, except as set forth on Schedule 4.4. ADCI owns and has good
and marketable title to all of its assets (whether real, personal, or mixed and
whether tangible or intangible) free and clear of all Liens, except as set forth
on Schedule 4.4.

     Section 4.5 Leases. ADI has delivered to Grodan a complete and true copy of
each Lease to which ADI or ADCI is a party or by which ADI or ADCI is bound, all
of which are listed in Schedule 4.5. All Leases are in full force and effect,
valid and binding in

                                       12

<PAGE>

accordance with their respective terms and, to the best of ADI's knowledge,
there are no existing defaults or events that, with notice or lapse of time or
both, would constitute a default under any Lease. To the best of ADI's
knowledge, no party to any Lease has repudiated any provision thereof. There are
no disputes, oral agreements or forbearance agreements in effect as to any
premises affected by any Lease. ADI and ADCI have not assigned, transferred,
conveyed, mortgaged, pledged, deeded in trust or encumbered any interest of ADI
or ADCI in any of the Leases or the estates covered therein. The execution of
this Agreement, the contribution of the Contributed Assets to NEWCO and the
assignment to NEWCO of the Leases will not constitute a default or breach of any
Lease, except as specifically indicated in Schedule 4.5 as requiring the consent
to the assignment of such Lease. ADI and ADCI do not have any obligations as
tenant, lessee, subtenant, sublessee or licensee under any Lease which have
accrued and which have not been performed in all material respects, nor have
they received notice of any claimed default with respect to any such Lease. The
only interest in real property held by ADI or ADCI are interests resulting from
the Leases.

     Section 4.6 Condition of Property. Schedule 4.6 sets forth a correct and
complete list of all items of machinery, equipment, computers, furniture, trade
fixtures and fixtures of ADI and ADCI with a value of $2,000 or more. All
machinery, equipment, computers, furniture, trade fixtures and fixtures of ADI
and ADCI are in a good state of repair and good working order, reasonable wear
and tear excepted, and are in conformity with all applicable Legal Requirements.
The operation and maintenance of said assets by ADI and ADCI comply in all
material respects with all applicable Legal Requirements.

     Section 4.7 Compliance with Laws, Etc.

     (a) Each of ADI and ADCI is, and at all times have been, in compliance in
all material respects with each Legal Requirement, including without limitation
any Applicable Labor and Environmental Law, that is or was applicable to it or
to the conduct or operation of its business or the ownership or use of any of
its assets, or to any conduct with respect to job applicants, employees and
independent contractors.

     (b) To the best of ADI's and ADCI's knowledge, no event has occurred or
circumstance exists that (with or without notice or lapse of time) (i) may
constitute or result in a violation by ADI or ADCI of, or a failure on the part
of ADI or ADCI to comply with, any Legal Requirement, or (ii) may give rise to
any obligation on the part of ADI or ADCI to undertake, or to bear all or any
portion of the cost of, any remedial action of any nature.

     (c) Except as set forth on Schedule 4.7, neither ADI nor ADCI has received
any actual or is aware of any Threatened notice or other communication (whether
oral or written) from any Governmental Body or other Person regarding any
actual, alleged, possible or potential (A) violation of, or failure to comply
with, any Legal Requirement, including without limitation any Applicable Labor
Law, or (B) obligation on the part of ADI or ADCI to undertake, or to bear all
or any portion of the cost of, any remedial action of any nature.

     (d) Schedule 4.7 contains a complete and accurate list of each Governmental
Authorization that is held by ADI and ADCI or that otherwise relates to the
business of, or to any of the assets owned or used by, ADI and ADCI. Each
Governmental Authorization listed or

                                       13

<PAGE>

required to be listed in Schedule 4.7 is valid and in full force and effect.
Except as set forth in Schedule 4.7:

     (i) each of ADI and ADCI is, and at all times has been, in compliance in
     all material respects with all of the terms and requirements of each
     Governmental Authorization identified or required to be identified in
     Schedule 4.7;

     (ii) To the best of ADI's and ADCI's knowledge, no event has occurred or
     circumstance exists that may (with or without notice or lapse of time) (A)
     constitute or result directly or indirectly in a violation of or a failure
     to comply with any term or requirement of any Governmental Authorization
     listed or required to be listed in Schedule 4.7, or (B) result directly or
     indirectly in the revocation, withdrawal, suspension, cancellation, or
     termination of, or any modification to, any Governmental Authorization
     listed or required to be listed in Schedule 4.7;

     (iii) neither ADI nor ADCI has received any notice or other communication
     (whether oral or written) from any Governmental Body or any other Person
     regarding (A) any actual, alleged, possible, or potential violation of or
     failure to comply with any term or requirement of any Governmental
     Authorization, or (B) any actual, proposed, possible, or potential
     revocation, withdrawal, suspension, cancellation, termination of, or
     modification to any Governmental Authorization; and

     (iv) all applications required to have been filed for the renewal of the
     Governmental Authorizations listed or required to be listed in Schedule 4.7
     have been duly filed on a timely basis with the appropriate Governmental
     Bodies, and all other filings required to have been made with respect to
     such Governmental Authorizations have been duly made on a timely basis with
     the appropriate Governmental Bodies.

     (e) The Governmental Authorizations listed in Schedule 4.7 collectively
constitute all of the Governmental Authorizations necessary to permit ADI and
ADCI to lawfully conduct and operate its business in the manner it currently
conducts and operates such business and to permit ADI to own and use its assets
in the manner in which it currently owns and uses such assets.

     (f) No consent of any Person is necessary for the transfer of any
Governmental Authorizations to NEWCO, except as indicated on Schedule 4.7.

     Section 4.8 Intellectual Property.

     (a) Set forth on Schedule 4.8 is a list and description of all of the
Intellectual Property used by each of ADI and ADCI in the conduct of its
business. Such Intellectual Property is the only Intellectual Property necessary
for the operation of the businesses of ADI and ADCI as presently conducted. Each
item of Intellectual Property owned or used by ADI will be transferred and
available for use by NEWCO on identical terms and conditions immediately

                                       14

<PAGE>

subsequent to the Closing Date. ADI and ADCI have taken all necessary and
commercially reasonable action to maintain and protect each material item of
Intellectual Property that it owns or uses.

     (b) To the best knowledge of ADI and ADCI neither ADI nor ADCI has
interfered with, infringed upon, misappropriated or otherwise come into conflict
with any Intellectual Property rights of third parties, and neither ADI nor ADCI
has ever received any charge, complaint, claim, demand or notice alleging any
such interference, infringement, misappropriation or violation (including any
claim that ADI or ADCI must license or refrain from using any Intellectual
Property rights of any third party). Except as set forth on Schedule 4.8, to the
best of the knowledge of ADI and ADCI, no third party has interfered with,
infringed upon, misappropriated or otherwise come into conflict with any
Intellectual Property rights of ADI or ADCI.

     Section 4.9 Books and Records. The books of account and other records of
ES, ADI and ADCI and their Affiliates, all of which have been made available to
Grodan, are complete and correct in all material respects and have been
maintained in accordance with sound business practices and the requirements of
Section 13(b)(2) of the Securities Exchange Act of 1934, as amended (regardless
of whether or not such entities are subject to that Section), including the
maintenance of an adequate system of internal controls. The books and records of
ADI and ADCI accurately reflect the bases for the financial condition and
results of operations of ADI and ADCI set forth in the financial statements
referred to in Section 4.14.

     Section 4.10 Receivables. Schedule 4.10 sets forth a list of the customers
that comprise the accounts receivable of ADI and ADCI as of December 5, 1999
together with an aging schedule (the "Accounts Receivable"). The Accounts
Receivable represent, and at the Closing Date, will represent legal, valid and
binding obligations of ADI or ADCI arising in the Ordinary Course of Business.
To the best of ADI's or ADCI's knowledge, there is no contest, claim, or right
of set-off, other than returns in the Ordinary Course of Business, under any
agreement with any obligor of any Accounts Receivable relating to the amount or
validity of such Accounts Receivable.

     Section 4.11 Litigation. Except as set forth in Schedule 4.11, there are no
civil or criminal claims, actions, suits, proceedings, audits, arbitrations,
grievances or, to the best of ES's, ADI's or ADCI's knowledge, investigations
pending or, to the best of ES's, ADI's or ADCI's knowledge, Threatened to be
brought before any Governmental Body involving ADI or ADCI or any claims
specifically relating to the properties or business of ADI or ADCI or to the
transactions contemplated by this Agreement. There is no order, decree or
judgment of any kind in existence enjoining or restraining ADI or ADCI or any
officer or employee of ADI or ADCI or requiring any of them to take any action
of any kind with respect to the operations or business of ADI or ADCI. All items
listed on Schedule 4.11 have been properly submitted to ADI's or ADCI's
insurance carrier as insured claims and have not been rejected by such carrier.

     Section 4.12 Material Contracts. Schedule 4.12 lists the following
contracts and other agreements to which either ADI or ADCI is a party (other
than intercompany arrangements) as of the date hereof (collectively, the
"Contracts"):

                                       15

<PAGE>

     (a) any agreement (or group of related agreements) for the lease of
personal property to or from any person providing for lease payments in excess
of $10,000 per annum and a term of more than one year;

     (b) any agreement (or group of related agreements) for the purchase or sale
of raw materials, commodities, supplies, products, or other personal property,
or for the furnishing or receipt of services, the performance of which has a
term of more than six months, and involves consideration in excess of $10,000;

     (c) any partnership or joint venture agreement;

     (d) any agreement (or group of related agreements) under which it has
created, incurred, assumed, or guaranteed any indebtedness for borrowed money,
or any capitalized lease obligation, in excess of $10,000, or under which it has
imposed a Lien, security interest or other encumbrance on any of its assets,
tangible or intangible, to secure such indebtedness or obligations;

     (e) any agreement which purports to limit in any material respect the
manner in which, or the localities in which, all or any portion of the business
of ADI or ADCI is conducted;

     (f) any profit sharing, stock option, stock purchase, stock appreciation,
deferred compensation, severance, or other material plan or arrangement
(including any Employee Benefit Plan) for the benefit of its current or former
directors, officers, and employees;

     (g) any other agreement (or group of related agreements) the performance of
which involves consideration in excess of $50,000.

Except as disclosed on Schedule 4.12, there is no contract or agreement that is
material to the business, financial condition or results of operations of ADI or
ADCI. To the best knowledge of ADI and ADCI, neither ADI nor ADCI is in
violation or default in any material respect under (nor does there exist any
condition which upon the passage of time or the giving of notice would cause a
violation or default under) any Contract. To the knowledge of ADI and ADCI, none
of the other parties to the Contracts are in violation of or in default under
(nor does there exist any condition which upon the passage of time or the giving
of notice would cause a violation or default under) any Contract.

     Section 4.13 Labor Matters. (a) Neither ADI nor ADCI is party to or bound
by any collective bargaining or other agreement with any labor union or
bargaining representative. In addition, throughout the past five (5) years,
there has not been, nor is there presently pending or existing, and to the best
knowledge of ADI and ADCI there is not Threatened nor has there been Threatened
(i) any strike, slowdown, picketing, work stoppage, employee grievance or
organizing effort or activity by any employees or labor unions at or relating to
ADI or ADCI; (ii) any unfair labor practice charge against or affecting ADI or
ADCI; or (iii) any petition for certification of a collective bargaining
representative regarding employees of ADI or ADCI.

     (b) Except as set forth on Schedule 4.13(b), each of ADI and ADCI is in
compliance in all material respects with all Applicable Labor Law. Except as set
forth in Schedule 4.13(b) throughout the past five years, there has not been,
nor is there presently

                                       16

<PAGE>

pending or existing, and to the best knowledge of ADI and ADCI there is not
Threatened nor has there been Threatened any Proceeding against or affecting ADI
or ADCI relating to any actual or alleged violation of any Applicable Labor Law,
including but not limited to any charge or complaint filed by any employee or
union with the National Labor Relations Board, the Equal Employment Opportunity
Commission, the Department of Labor, the Office of Federal Contract Compliance
Programs, the Immigration and Naturalization Service, the Occupational Safety
and Health Administration, or any comparable state or local governmental body.
ADI and ADCI have, and at all previous times have had, workers' compensation
insurance covering all of their employees, former employees and contractors.
Except as set forth in Schedule 4.13(b), ADI and ADCI have not caused and will
not cause any "employment loss" (as that term is used or defined in the WARN
Act) at any time from the date that is ninety days immediately preceding the
date hereof and continuing through the Closing Date. ADI and ADCI are not liable
for the payment of any compensation, damages, Taxes, fines, penalties or other
amounts, however designated, for failure to comply with any of the foregoing
laws.

     Section 4.14 Financial Statements. Set forth in Schedule 4.14 are the true,
complete and correct copies of the consolidated balance sheet of ADI as at
December 5, 1999 (the "Balance Sheet"), and the related consolidated statement
of income, for the fiscal period then ended, (the "Financial Statements"). The
Financial Statements fairly present the consolidated financial condition and the
results of operations of ADI as at the respective dates of and for the periods
referred to in the Financial Statements, all in accordance with generally
accepted accounting principles, consistently applied. Attached hereto as
Schedule 4.14 is a reconciliation of the amounts reflected on Schedules 2.2.1
and 2.2.3 and the amounts reflected on the Financial Statements.

     Section 4.15 Absence of Certain Changes or Events. Since January 1, 1999,
neither ADI nor ADCI has suffered any material adverse change or loss or
termination of, or breach or default of any Contract, and there has been no
material adverse change Threatened or anticipated in the results of operations
or business or assets of ADI, ADCI or in any of their properties, and neither
ADI nor ADCI knows of any event, in each case, which has had, or which might be
expected to have, a material adverse effect on the results of operations,
businesses or properties of ADI or ADCI. Except as set forth on Schedule 4.15,
since January 1, 1999, each of ADI and ADCI has conducted their business only in
the Ordinary Course of Business.

     Section 4.16 Undisclosed Liabilities. Except as set forth in Schedule 4.16,
neither ADI nor ADCI has any indebtedness, Liabilities or obligations of any
nature (whether absolute, accrued, contingent or otherwise) that would be
required to be reflected on the Balance Sheet or the footnotes thereto in
accordance with generally accepted accounting principles including those owed to
any Affiliate except indebtedness, Liabilities and obligations: (a) reflected or
reserved against on the Balance Sheet; or (b) incurred since the date of the
Balance Sheet in the Ordinary Course of Business.

     Section 4.17 Tax Matters.

     (a) All federal, state, local and foreign Tax Returns required to be filed
by or on behalf of ES, each of its Subsidiaries (including ADI and ADCI), and
each affiliated, combined, consolidated or unitary group of which ES or any of
its Subsidiaries (including ADI

                                       17

<PAGE>

and ADCI) is or was a member (the "Affiliated Group") have been timely filed,
and all returns filed are true, complete and accurate in all material respects.
All Tax Returns include any required disclosure of all positions taken therein
that could give rise to a substantial underpayment penalty within Section 6662
of the Code or similar provision of state, local, foreign or other law. All
Taxes due and owing by ES, any Subsidiary (including ADI and ADCI) or Affiliated
Group have been paid, without regard to whether such Taxes have been assessed,
or adequately reserved. There is no claim, assessment, investigation, audit
examination, deficiency, refund litigation, proposed adjustment or matter in
controversy with respect to any Taxes due and owing by ES, any Subsidiary
(including ADI and ADCI) or Affiliated Group. All assessments for Taxes due and
owing by ES, any Subsidiary (including ADI and ADCI) or Affiliated Group with
respect to completed and settled examinations or concluded litigation have been
paid. ES and each of its Subsidiaries (including ADI and ADCI) and Affiliated
Group have complied in all material respects with all rules and regulations
relating to the withholding of Taxes. There are no agreements in effect to
extend the period of limitations for the assessment or collection of any Taxes
for which ES, any Subsidiary (including ADI or ADCI) or Affiliated Group may be
liable.

     (b) Adequate provisions in accordance with GAAP will be made (see Section
4.14 Financial Statements) for the payment of all Taxes for which ADCI may be
liable for the periods that were not yet due and payable as of the date thereof,
regardless of whether the Liability for such Taxes is disputed.

     (c) There is no contract, agreement or intercompany account system in
existence under which NEWCO or ADCI has, or may at any time in the future have,
an obligation to contribute to the payment of any portion of a Tax (or pay any
amount calculated with reference to any portion of a Tax) determined with
respect to ES, each of its subsidiaries including ADI and ADCI or Affiliated
Group.

     (d) Except as set forth on Schedule 4.17, no claim (except for claims
disposed of to such claimant's satisfaction or by a court of competent
jurisdiction) has ever been made by a Governmental Body in a jurisdiction where
ADI or ADCI does not file Tax Returns that it is or may be subject to taxation
by that jurisdiction. There are no Liens on any of the assets of either ADI or
ADCI that arose in connection with any failure (or alleged failure) to pay any
Tax and the transaction contemplated by this Agreement will not give rise to:
(i) the creation of any lien in respect of any Contributed Assets or other
assets of NEWCO or ADCI or (ii) the assertion or assessment of any additional
Taxes against the Contributed Assets or other assets of NEWCO or ADCI.

     Section 4.18 Insurance. Schedule 4.18 sets forth the following information
with respect to each current insurance policy (including policies providing
property, casualty, Liability, and workers' compensation coverage and bond and
surety arrangements) to which ADI or ADCI is a party, a named insured or
otherwise the beneficiary of coverage (the "Insurance Policies"):

     (a) the name, address, and telephone number of the agent;

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<PAGE>

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

     (c) the type of coverage, the basis of coverage (i.e., "occurrence" or
"claims made"), the policy number and the period of coverage.

With respect to each such insurance policy, neither ADI nor ADCI has received
notice of any default or termination (including with respect to the payment of
premiums or the giving of notices) under the policy, nor has any suspension
thereof been Threatened, and no party to the policy has repudiated any provision
thereof. ADI and ADCI have been covered during the past three years by insurance
in scope and amount customary and reasonable for the businesses in which it has
engaged during the aforementioned period.

     Section 4.19 Employee Benefits.

     (a) Schedule 4.19 contains:

         (i) a complete and accurate list of all Company Plans and material
         Company Other Benefit Obligations.

         (ii) the financial cost of all obligations owed under any Company Plan
         or material Company Other Benefit Obligation that is not subject to the
         disclosure and reporting requirements of ERISA.

     (b) ES and ADI have delivered to Grodan:

         (i) all documents that set forth the terms of each Company Plan or
         material Company Other Benefit Obligation, and of any related trust,
         including all summary plan descriptions, summaries and descriptions
         furnished to participants and beneficiaries;

         (ii) all personnel, payroll, employment manuals and policies;

         (iii) a written description of any Company Plan or material Company
         Other Benefit Obligation that is not otherwise in writing;

         (iv) all registration statements filed with respect to any Company
         Plan;

         (v) all insurance policies purchased by or to provide benefits under
         any Company Plan;

         (vi) all reports submitted within the three years preceding the date of
         this Agreement by third party administrators, actuaries, investment
         managers, trustees, consultants, or other independent contractors with
         respect to any Company Plan or Company Other Benefit Obligation;

         (vii) the Form 5500 filed in each of the most recent three plan years
         with respect to each Company Plan and Company Other Benefit

                                       19

<PAGE>

         Obligation, including all schedules thereto and the opinions of
         independent accountants;

         (viii) all notices that were given by the EcoScience Group or any ERISA
         Affiliate of the EcoScience Group or any Company Plan to the IRS or any
         participant or beneficiary, pursuant to statute, within the three years
         preceding the date of this Agreement, including notices that are
         expressly mentioned elsewhere in this Section 4.19;

         (ix) all notices that were given by the IRS or the U.S. Department of
         Labor to the EcoScience Group, any ERISA Affiliate of the EcoScience
         Group, or any Company Plan within the three years preceding the date of
         this Agreement; and

         (x) with respect to Qualified Plans, the most recent determination
         letter for each Plan of the EcoScience Group that is a Qualified Plan.

     (c) (i) The EcoScience Group has performed in all material respects all of
         its respective obligations under all Company Plans and Company Other
         Benefit Obligations. The EcoScience Group has made appropriate entries
         in their financial records and statements for all obligations and
         Liabilities under such Plans and Obligations that have accrued but are
         not due.

         (ii) The EcoScience Group, with respect to all Company Plans and
         Company Other Benefit Obligations, is in material compliance with
         ERISA, the Code, other applicable Laws including the provisions of such
         Laws expressly mentioned in this Section 4.19, and with any applicable
         collective bargaining agreement.

             (A) No transaction prohibited by ERISA Section 406 and no
         "prohibited transaction" under Code Section 4975(c) has occurred with
         respect to any Company Plan.

             (B) The EcoScience Group does not have any Liability to the IRS
         with respect to any Plan, including any Liability imposed by Chapter 43
         of the Code.

             (C) All contributions and payments made or accrued with respect to
         all Company Plans and Company Other Benefit Obligations are deductible
         under Code Section 162 or Section 404.

         (iii) No event has occurred or, to the EcoScience Group's knowledge,
         circumstance exists that could result in a material increase in premium
         costs of Company Plans and Company Other Benefits Obligations that are
         insured or a material increase in benefit costs of such Plans and
         Obligations that are self-insured.

                                       20

<PAGE>

         (iv) Other than routine claims for benefits submitted by participants
         or beneficiaries, no claim against, or legal proceeding or
         investigation involving any Company Plan or Company Other Benefit
         Obligation is pending or, to the EcoScience Group's knowledge, is
         Threatened.

         (v) Each Qualified Plan of the EcoScience Group has received a
         favorable determination letter from the Internal Revenue Service that
         it is qualified under Code Section 401(a) and that its related trust is
         exempt from federal income tax under Code Section 501(a) and each such
         Plan complies in all material respects in form and in operation with
         the requirements of the Code and meets the requirements of a "qualified
         plan" under Section 401(a) of the Code. To the EcoScience Group's
         knowledge, no event has occurred or circumstance exists that will or
         could give rise to disqualification or loss of tax-exempt status of any
         Plan or trust.

         (vi) There is no unfunded Liability under any Company Plan.

         (vii) Neither the EcoScience Group nor any ERISA Affiliate of the
         EcoScience Group has ever established, maintained or contributed to, or
         had an obligation to maintain or contribute to, any Plan that is
         subject to Title IV of ERISA.

         (viii) The EcoScience Group has never established or contributed to, or
         had an obligation to contribute to, any VEBA, any organization or trust
         described in Code Section 501(c)(17) or Code Section 501(c)(20), or any
         welfare benefit fund as defined in Code Section 419(e).

         (ix) Neither the EcoScience Group nor any ERISA Affiliate of the
         EcoScience Group has ever established, maintained, or contributed to or
         otherwise participated in, or had an obligation to maintain, contribute
         to, or otherwise participate in, any Multiemployer Plan.

         (x) Neither the EcoScience Group nor any ERISA Affiliate of the
         EcoScience Group has withdrawn from any Multiemployer Plan with respect
         to which there is any outstanding Liability as of the date of this
         Agreement. To the EcoScience Group's knowledge, no event has occurred
         or circumstance exists that presents a risk of the occurrence of any
         withdrawal from, or the participation, termination, reorganization, or
         insolvency of, any Multiemployer Plan that could result in any
         Liability of either the EcoScience Group or NEWCO to a Multiemployer
         Plan.

         (xi) Except to the extent required under ERISA Section 601 et seq. and
         Code Section 4980B, the EcoScience Group does not provide health or
         welfare benefits for any retired or former employee nor is it obligated
         to provide health or welfare benefits to any active employee following
         such employee's retirement or other termination of service.

                                       21

<PAGE>

         (xii) The EcoScience Group has the right to modify and terminate
         benefits to retirees (other than pensions) with respect to both retired
         and active employees.

         (xiii) The EcoScience Group has complied in all material respects with
         the provisions of ERISA Section 601 et. seq. and Code Section 4980B and
         with the provisions of ERISA Section 701 et seq. and Subtitle K of the
         Code.

         (xiv) No payment that is owed or may become due to any director,
         officer, employee, or agent of the EcoScience Group will be
         non-deductible to the EcoScience Group under Code Section 280G or
         subject to tax under Code Section 4999; nor will the EcoScience Group
         be required to "gross up" or otherwise compensate any such person
         because of the imposition of any excise tax on a payment to such
         person.

         (xv) The consummation of the Agreement will not result in the payment,
         vesting, or acceleration of any benefit.

     Section 4.20 Employees. Schedule 4.20 sets forth a true and complete list
of all employees of ADI, their positions, locations, salaries or hourly wages
and severance arrangements (the "Employees"). Except as set forth on Schedule
4.20, there is no Liability for unpaid salary or wages, bonuses, vacation time
or other employee benefits, including, without limitation, retirement benefits,
due or accrued, nor Liability for withheld or deducted amounts from employees
earnings for the period ending on the Closing Date.

     Section 4.21 Environmental Matters. Except as disclosed in Schedule 4.21:

     (a) Environmental Laws. The EcoScience Group has complied with and is in
compliance in all material respects with, and is not in (material) violation of
any Environmental Laws. The EcoScience Group has not received any notice or
communication (written or oral) to the effect that (i) the EcoScience Group is
not in compliance with any Environmental Laws, or (ii) any currently existing
circumstances are likely to result in a failure of the EcoScience Group to
comply with any Environmental Laws.

     (b) Environmental Permits. The EcoScience Group has obtained and complied
in all material respects with, and is in compliance in all material respects
with, all Environmental Permits that are required pursuant to Environmental Laws
for the operation of its business. The consummation of the transactions
contemplated by this Agreement will not result in such Environmental Permits no
longer being valid and useable by NEWCO in accordance with their terms in
connection with the operation of NEWCO's Business after the Closing. The
EcoScience Group has not received any notice or communication (written or oral)
to the effect that (i) the EcoScience Group is not in compliance with, or is in
violation of, any Environmental Permits, or (ii) any currently existing
circumstances are likely to result in a failure of the EcoScience Group to
comply with any Environmental Permits.

                                       22

<PAGE>

     (c) Environmental Claims. There are no pending or to the best knowledge of
the EcoScience Group Threatened Environmental Claims against the EcoScience
Group, or any other Environmental Matters that to the best knowledge of the
EcoScience Group might trigger an Environmental Claim.

     (d) Releases. To the best knowledge of the EcoScience Group, during the
period in which the Covenant Properties or Former Properties were owned, leased
or operated by the EcoScience Group, there have been no Releases or Threatened
Releases of any Hazardous Materials (i) from any underground storage tank,
above-ground storage tank or other storage tank or receptacle, or related
piping, on, upon, into, from, or adjacent to the Covenant Properties or Former
Properties, owned, leased or operated by the EcoScience Group; (ii) that would
be reasonably likely to form the basis of any Environmental Claim against the
EcoScience Group; or (iii) that would be reasonably likely to form the basis of
any Environmental Matter which may trigger an Environmental Claim against the
EcoScience Group.

     (e) Storage Tanks. No underground storage tank, above-ground storage tank,
or other storage tank or receptacle for Hazardous Materials currently is or has
been located on the Covenant Properties or Former Properties, owned, leased or
operated by the EcoScience Group.

     (f) Miscellaneous. To the best knowledge of the EcoScience Group, none of
the following exists at the Covenant Properties or Former Properties, owned,
leased or operated by the EcoScience Group: (i) asbestos-containing material in
any form or condition; (ii) materials or equipment containing polychlorinated
biphenyls; (iii) surface impoundments; or (iv) wetlands.

     (g) The EcoScience Group has not treated, stored, disposed of, arranged for
or permitted the disposal of, transported, handled or released any substance,
including, without limitation, any Hazardous Material, or owned, leased or
operated any facility or property, which could reasonably be expected to result
in (i) any Environmental Claim against the EcoScience Group for response costs,
natural resource damages or attorneys fees pursuant to any Environmental Laws;
or (ii) any Environmental Matter that may trigger any Environmental Claim
against the EcoScience Group.

     (h) There are no Environmental Matters relating to the Covenant Properties
or Former Properties, or operations of the Business that will (i) prevent,
hinder or limit continued compliance in all material respects with Environmental
Laws; or (ii) give rise to any material investigatory, remedial or corrective
obligations pursuant to Environmental Laws.

     (i) The consummation of this Agreement does not and will not impose any
obligation for notification or consent of any Governmental Body or third
parties, pursuant to any Environmental Laws, or under any Environmental Permits.

     (j) The EcoScience Group has not, either expressly or contractually,
assumed or undertaken any Liability of any other Person for any (i)
Environmental Claim, (ii) corrective or remedial obligation, or (iii)
Environmental Matter relating to Environmental Laws.

                                       23

<PAGE>

     (k) No lien, either recorded or unrecorded, in favor of any Governmental
Body relating to any Environmental Claim against the EcoScience Group arising
under Environmental Laws has been attached to any property currently owned,
leased or operated by the EcoScience Group.

     (l) The EcoScience Group has delivered to Grodan true and complete copies
and results of any reports, studies, audits, analyses, tests or monitoring
possessed or initiated by the EcoScience Group pertaining to Hazardous
Materials, in, on, under or adjacent to the Covenant Properties or Former
Properties, or concerning compliance by the EcoScience Group with Environmental
Laws.

     Section 4.22 Affiliate Transactions. Except as set forth on Schedule 4.22,
since January 1998 neither ES, APD or their Affiliates, nor any of their
immediate family members, has been a party (either directly or through any
ownership, beneficial, contingent or other interest in an entity, business or
enterprise) to any transaction with or involving ADI or ADCI or any assets used
in the operation of the business of ADI and ADCI including, without limitation,
any arrangement (other than for services as officers, directors or employees of
ADI or ADCI) providing for (a) the furnishing of products or services by or to,
(b) the rental or lease of any real property, (c) any loan or other indebtedness
from or to, (d) the grant of any Lien from or to, or (e) otherwise requiring
payments or other consideration (including a promise of forbearance) from or to,
any such Person. All transactions listed on Schedule 4.22 have terms no less
favorable to ADI or ADCI than transactions entered into at arms'-length with
non-affiliated Persons. Schedule 4.22 sets forth a description of all sales made
by ADI or ADCI to APD during 1999. Neither ADI nor ADCI has made any payment
(whether by check, wire transfer or otherwise) or promised or otherwise
committed to make such payment to a creditor of ES or APD or any of their
Affiliates for or on behalf of ES, APD or any of their Affiliates (other than
ADI and ADCI).

     Section 4.23 Authorization of Transaction by ES. ES is a corporation duly
organized, validly existing and in good standing under the laws of the
jurisdiction of formation, has all requisite corporate power and authority to
own and lease its properties and carry on its business as it is now being
conducted. ES has full power and authority to execute and deliver this Agreement
and the other Closing Documents to which it is a party and to perform its
obligations hereunder and thereunder. This Agreement constitutes the valid and
legally binding obligation of ES enforceable in accordance with its terms and
conditions. The execution and delivery of this Agreement and the consummation of
the transactions contemplated hereby have been duly authorized by all necessary
corporate or other action; no other corporate or other proceeding on the part of
ES is necessary to authorize this Agreement or to consummate the transactions
contemplated hereby; and this Agreement has been duly delivered by ES. ES need
not give any notice to, make any filing with, or obtain any authorization,
consent, or approval of any Governmental Body in order to consummate the
transactions contemplated by this Agreement.

     Section 4.24 Ownership of Common Stock of ADI. ES is the record and
beneficial owner of 100 shares of Capital Stock of ADI which represents all of
the issued and outstanding shares of ADI free and clear of any restrictions on
transfer, Liens, options, warrants, purchase rights and rights of first refusal,
except as set forth on Schedule 4.24. ES is not a party

                                       24

<PAGE>

to any option, warrant, purchase right or other contract or commitment that
could require ES to sell, transfer, or otherwise dispose of any capital stock of
ADI. ES is not a party to any voting trust, proxy or other agreement or
understanding with respect to the voting of any capital stock of ADI.

     Section 4.25 Sufficiency of Contributed Assets. The Contributed Assets
include all right, title and interest of ADI in and to all assets, properties
and rights of ADI necessary for or used in the operation of ADI's business,
other than the Excluded Assets.

     Section 4.26 Broker's or Finder's Fees. No agent, broker, investment banker
or other Person or firm acting on behalf of ES, ADI or any of their Affiliates
or under its or their authority is or will be entitled to any broker's or
finder's fee or any other commission or similar fee, directly or indirectly, in
connection with the transactions contemplated by this Agreement or any of the
Closing Documents.

     Section 4.27 Disclosure. No representation or warranty by ES and ADI in
this Agreement and no other written statement, document, certificate or other
instrument or exhibit previously furnished to Grodan or which are being
furnished to Grodan pursuant hereto (including but not limited to all Schedules
or Exhibits hereto) contains any untrue statement of a material fact or omits
any material fact necessary in order to make the statements contained therein
not misleading in light of the circumstances in which they were made.

                                   ARTICLE V
                    REPRESENTATIONS AND WARRANTIES OF GRODAN.

     To induce ES and ADI to enter into this Agreement and to consummate the
transactions contemplated hereby, Grodan represents and warrants to ES and ADI
as follows:

     Section 5.1 Organization of Grodan. Grodan is a corporation duly organized,
validly existing and in good standing under the laws of the Kingdom of Denmark
and has all requisite power and authority to carry on its business as now being
conducted, and to perform its obligations hereunder.

     Section 5.2 Authorization of this Agreement, Etc. Grodan has full power to
execute this Agreement and the Closing Documents to be delivered by it. Grodan's
execution and delivery of this Agreement and the Closing Documents to be
delivered by it, and the consummation by it of all obligations on its part
contemplated hereby and thereby will have been duly authorized by all requisite
authority. Such execution, delivery and performance by Grodan with respect to
this Agreement and the Closing Documents and compliance with their terms and
provisions will not, with or without giving of notice and/or the passage of
time, conflict with or result in a breach of any provision of law applicable to
Grodan, the terms, conditions or provisions of its charter and or by laws or
other organizing documents or any judgment, order, injunction, decree,
regulation or ruling of any Governmental Body to which Grodan is subject; or any
agreement, mortgage, indenture, contract or other obligation to which Grodan is
subject, or any other judgment, decree, statute, regulation or any other
restriction of any kind or character to which Grodan is a party or by which any
of its assets may be bound.

                                       25

<PAGE>

     Section 5.3 Broker's or Finder's Fees. No agent, broker, investment banker
or other Person or firm acting on behalf of Grodan or under their authority is
or will be entitled to any broker's or finder's fee or any other commission or
similar fee, directly or indirectly, from Grodan in connection with the
transactions contemplated by this Agreement or any of the Closing Documents.

                                   ARTICLE VI
                                   COVENANTS.

     Section 6.1 Covenants of ES and ADI.

     (a) Between the date of this Agreement and the Closing Date, ADI and ADCI
shall, and ES shall cause them to:

          (i) continue to operate and conduct their businesses in the Ordinary
     Course of Business;

          (ii) use their commercially reasonable efforts to preserve, consistent
     with past custom and practice, their businesses and properties, including
     their present operations, physical facilities, permits, approvals,
     licenses, working conditions and relationships with Persons having
     significant business relations with them, including, without limitation,
     suppliers, customers, landlords, creditors, employees and agents except
     where the failure to maintain such relationships would not have a material
     adverse effect on ADI or ADCI or the ownership or operation of NEWCO of the
     Contributed Assets;

          (iii) confer with Grodan concerning operational matters of a material
     nature and otherwise report periodically to Grodan concerning the status of
     the business, operations and finances of ADI and ADCI;

          (iv) (A) keep in full force and effect insurance now carried, (B)
     perform all obligations under its contracts and agreements relating to or
     affecting its properties, assets and business, (C) maintain its books of
     account and records consistent with good business practices and (D) comply
     in all material respects with all laws applicable to them and to the
     conduct of their business; and

          (v) use their best efforts to ensure that the representations and
     warranties are true and correct at all times prior to the Closing.

     (b) Except as otherwise expressly set forth in this Agreement or the
Schedules, without the prior written consent of Grodan, neither ADI nor ADCI
shall (A) issue any shares of capital stock, grant any rights to purchase shares
of capital stock, split or reclassify any shares of its capital stock or
declare, set aside or pay any dividend or other distribution or payment in cash,
stock or property in respect of shares of its capital stock, (B) acquire any
assets or properties, or enter into any other transaction, other than in the
Ordinary Course of Business,

                                       26

<PAGE>

(C) sell, transfer or otherwise dispose of or encumber or mortgage any assets or
properties, other than in the Ordinary Course of Business, (D) waive, terminate,
release, grant or transfer any rights of value or modify or change any existing
license, lease, contract or other document, other than in the Ordinary Course of
Business, (E) enter into any agreement or engage in any transaction involving
more than $25,000, except for sales to unaffiliated customers in the Ordinary
Course of Business, and sales to APD consistent with past practice, if and only
if payment for such sales to APD is received prior to delivery, (F) enter into
any other contract or agreement other than in the Ordinary Course of Business,
(G) enter into any employment contract or collective bargaining agreement, or
modify the terms of any existing such contract or agreement, (H) establish any
new Employee Benefit Plan, or modify or terminate any existing Plan or any other
Employee Benefit Plan, (I) make any capital expenditures other than those which
would be consistent with usual and customary industry practice, or make any
capital expenditures in the aggregate in excess of $25,000, (J) take or agree to
take, or fail to take, any action if such action or failure to act would or is
likely to result in any of the representations and warranties contained in
Article IV being untrue or in any of the conditions to the Closing not being
satisfied, (K) amend its certificate of incorporation or bylaws, (L) incur or
assume any indebtedness for money borrowed except for borrowings under that
certain $4 million Credit Facility and Security Agreement dated June 29, 1999
(the "Century Loan") with Century Business Credit Corporation ("Century") (M)
guarantee any indebtedness, (N) change any of their accounting methods, (O)
enter into any contract, agreement, commitment or arrangement, whether oral or
written, with respect to any of the foregoing;

     (c) Between the date of this Agreement and the Closing Date, ES and ADI
shall (i) cause NEWCO to be insured on all of the Insurance Policies (ii) use
its best efforts to cause all conditions precedent to the obligations of Grodan
to be satisfied on or prior to the Closing, and (iii) comply with the notice
provisions of bulk sales laws applicable to this transaction.

     (d) ES, ADI and ADCI shall provide to Grodan such information with respect
to the business, operations, financial condition, prospects and management of
ADI and ADCI as Grodan may reasonably request.

     (e)  Each of ES and ADI shall, and shall cause each of its representatives
          and agents (including counsel and accountants) to afford Grodan and
          its representatives and agents full access during normal business
          hours to ES's, ADI's and ADCI's properties and contracts, books,
          records and other documents and data (including, without limitation,
          electronic and computer information and financial information), and
          Grodan and its representatives and agents shall be permitted to make
          copies of such contracts, books, records and other documents and data
          and extracts therefrom (including, without limitation, the preparation
          of financial audits) and to discuss the business of ADI and ADCI with
          the officers, representatives and employees of ADI and ADCI; provided,
          that no examination or investigation of the foregoing by Grodan or
          such representatives and agents pursuant to this subsection (e) shall
          affect any of the representations and warranties of ADI or ES set
          forth in this Agreement, and provided further, that (A) any
          examination or

                                       27

<PAGE>

          investigation of the foregoing shall be conducted in such manner as
          not to interfere unreasonably with the operation or the conduct of the
          businesses of or any other activities carried on by ES and ADI and (B)
          in the event of the termination of this Agreement for any reason
          whatsoever, Grodan will return to ES and ADI upon written request all
          documents, work papers, copies, extracts and other material obtained
          from ES and ADI in connection with the transactions contemplated
          hereby.

     (f)  On or before the Closing, ADI shall provide evidence of ownership of
          Trademark 1, 353, 543 for Agro Dynamics.

     (g)  On or before the Closing, EcoScience shall cause APD to enter into a
          supply agreement with NEWCO on such terms as set forth in Exhibit
          6.1(g).

     (h)  On or before the Closing ADI will provide NEWCO with a clearance
          certificate pursuant to Section 116 of the Income Tax Act of Canada.

     Section 6.2 Filings and Consents. After the execution and delivery of this
Agreement, each of ES, ADI, ADCI and Grodan shall use its best efforts to
consummate the transactions contemplated hereby to cooperate in obtaining any
consent, approval, authorization or order of, or in making any registration or
filing with, any Person required in connection with the execution, delivery or
performance of this Agreement or in connection with the transactions
contemplated hereby including those set forth on Schedule 4.3; provided that no
party hereto shall be required to pay any Person (other than a Governmental
Body) or undertake any additional obligation to such Person to obtain such
Person's consent to the transactions contemplated by this Agreement.

     Section 6.3 Post Closing Actions, Cooperation/Further Assurances/Other
Matters.

     (a) If any consents of other Persons to assignment of any of the Contracts,
Leases, Governmental Authorizations or other items to be assigned to NEWCO
hereunder are not obtained prior to Closing, ES and ADI shall use its reasonable
commercial efforts to obtain, or will assist NEWCO in obtaining, such consents
as may be necessary or appropriate to vest in NEWCO all of ADI's right, title
and interest therein. If such consent is not obtained or if an attempted
assignment would be ineffective or would impair NEWCO's rights thereunder, ES
and ADI will cooperate with NEWCO in any arrangement designed to provide for
NEWCO the benefits under any such Contracts, Leases, Governmental Authorizations
or other items. Each party hereto shall execute and deliver, and cooperate with
any other party in obtaining, such additional instruments, documents,
conveyances and assurances as reasonably have been requested by any other party
to confirm and assure the rights and obligations set forth herein. ES and ADI
shall file all necessary documentation and returns with respect to the Transfer
Taxes as defined in Section 11.1.

     (b) The obligation of Grodan to reimburse ADI and/or NEWCO with respect to
costs regarding the warehouse facilities in Ventura, California and Milton,
Canada shall

                                       28

<PAGE>

terminate as of the Closing and thereafter all costs related to these two
facilities shall be borne by NEWCO.

     Section 6.4 Employment Matters. (a) On the Closing Date, ADI shall use its
best efforts to cause all its employees to become employees of NEWCO on the same
terms and conditions of employment that ADI has in effect on the date hereof. On
or before the Closing Date, ADI shall send a written notice to all of its
employees regarding such employment. On or before the Closing Date NEWCO shall
hire the three individuals currently employed by Grodan on the terms and
conditions under which they are currently employed by Grodan. Schedule 6.4 sets
forth the identity of such individuals and the principal terms and conditions of
their employment.

     (b) Certain Employee Plans. To the extent that service is relevant for
purposes of eligibility, vesting or benefit accrual under any current or future
Employee Benefit Plan, program or arrangement established, maintained or
contributed to for the benefit of employees including employees who will become
employees of NEWCO on the Closing Date ("NEWCO Employees"), such plan, program
or arrangement shall credit such NEWCO Employees for service on or prior to the
Closing Date with the members of the EcoScience Group. Any such plan, program or
arrangement of NEWCO shall waive any pre-existing condition limitations and
actively at work requirements and shall honor any deductible out-of-pocket
expenses incurred under any Employee Benefit Plan maintained by the EcoScience
Group by the NEWCO Employees and their beneficiaries or dependents.

     (c) EcoScience Corporation 401(k) Retirement Savings Plan (the "ES 401(k)
Plan").

          (i) On or prior to the Closing Date, ES and ADI shall either (1) cause
the ES 401(k) Plan to be amended to permit NEWCO to be a participating employer
in such plan and to permit NEWCO employees to participate in the ES 401(k) Plan
after the Closing Date and to provide such benefits no less favorable than those
benefits enjoyed by such employees prior to the Closing Date (the "Amendment");
provided that such Amendment is reasonably satisfactory to Grodan; or (2) cause
NEWCO to establish a Code Section 401(k) plan (the "NEWCO 401(k) Plan") for
NEWCO Employees which shall provide benefits to NEWCO Employees no less
favorable than those currently provided to the NEWCO Employees under the ES
401(k) Plan. ES and ADI agree to submit either the NEWCO 401(k) Plan or the
Amendment to the IRS for a determination letter to the effect that the NEWCO
401(k) Plan (or Amendment) is qualified under Sections 401(a) and 401(k) of the
Code within the time prescribed by applicable law to enable NEWCO to make any
required changes to the NEWCO 401(k) Plan (or Amendment) effective retroactive
to the date of its adoption ("Adoption Date") so the determination letter will
apply effective as of the Adoption Date and ES and ADI shall agree to cause
NEWCO to make any amendments to the NEWCO 401(k) Plan that the IRS may require
as a condition of issuing such determination letter.

          (ii) Effective as of the Closing Date, NEWCO Employees will be fully
vested in their respective account balances under the ES 401(k) Plan.

     (d) EcoScience Corporation Flexible Benefits Plan (the "ES Flex Plan"). On
or prior to the Closing Date, ES and ADI shall cause NEWCO to establish a Code
Section 125

                                       29

<PAGE>

plan (the "NEWCO Flex Plan") for NEWCO Employees. The NEWCO Flex Plan shall
provide benefits to NEWCO Employees no less favorable than those provided to the
NEWCO Employees under the ES Flex Plan.

     Section 6.5 Financial Due Diligence. Grodan shall immediately commence a
financial due diligence investigation with the assistance of Ernst & Young which
shall involve a review and analysis of the Financial Statements and books and
records of ADI and to the extent relevant ES since January 1, 1998 (the
"Financial Due Diligence"). Grodan shall utilize its best efforts to complete
the Financial Due Diligence on or before January 28, 2000.

     Section 6.6 Notification. Between the date of this Agreement and the
Closing Date, ES or ADI will promptly notify Grodan in writing if ES or ADI
becomes aware of any fact or condition that causes or constitutes a breach of
any of the representations and warranties of ES or ADI as of the date of this
Agreement, or if ES or ADI becomes aware of the occurrence after the date of
this Agreement of any fact or condition that would (except as expressly
contemplated by this Agreement) cause or constitute a breach of any such
representation or warranty had such representation or warranty been made as of
the time of occurrence or discovery of such fact or condition. Should any such
fact or condition require any change in the Schedules if the Schedules were
dated the date of the occurrence or discovery of any such fact or condition, ES
or ADI will promptly deliver to Grodan a supplement to the Schedules specifying
such change. During the same period, ES or ADI will promptly notify Grodan of
the occurrence of any breach of any covenant of ES or ADI in this Article VI or
of the occurrence of any event that may make the satisfaction of the conditions
in Article VII or VIII impossible or unlikely. Notwithstanding the foregoing,
except as provided in Section 10.4, any such supplement or notification shall
not modify or alter the duties and obligations of ES or ADI hereunder or the
effect of any representation, warranty, covenant or indemnity made by ES or ADI
under this Agreement, or constitute a waiver by Grodan, modification or
alteration of any condition or obligation of ES or ADI.

     Section 6.7 Non-Compete. Each of ES and ADI covenants and undertakes for
the period of time that ADI or an Affiliate will be a stockholder of NEWCO and
for a two-year period thereafter, it shall not at any time, directly or
indirectly through any Affiliate or otherwise:

          (i) own, manage, operate, control or participate in the ownership,
management, operation or control of, or be connected with or have an interest
in, as a stockholder, director, officer, employee, promoter, consultant,
adviser, lender or otherwise, any business or enterprise that is in competition
with NEWCO's Business or Grodan's Business;

          (ii) solicit any Person who is a customer or prospective customer of
NEWCO for business that is within the scope of NEWCO's Business or Grodan's
Business;

          (iii) employ or retain, or knowingly arrange to have any other
business enterprise or person employ or retain, any person who is or (during the
term of this Agreement) was an employee, consultant or adviser of NEWCO,
provided, however, that this subsection (iii) shall not be applicable to (A) Tim
Mack, an individual residing at 16

                                       30

<PAGE>

Arboretum Drive, Jackson, New Jersey and (B) any person whose employment has
been terminated by NEWCO.

ES and ADI hereby acknowledge and agree that any default under this Section 6.7
will cause damage to Grodan as a stockholder of NEWCO in an amount that would be
extremely difficult or impossible to ascertain. Accordingly, in addition to any
other relief to which Grodan may be entitled, Grodan shall be entitled to such
temporary and/or permanent injunctive relief without the necessity for posting
bond and without the necessity of proving actual damages as may be ordered by a
court of competent jurisdiction, including without limitation, an injunction
restraining any violation of this Section 6.7.

                                  ARTICLE VII
                      CONDITIONS TO OBLIGATIONS OF GRODAN.

          The obligations of Grodan to consummate the acquisition purchase of
shares of NEWCO at the Closing are subject, at Grodan's option, to the
fulfillment, prior to or at the Closing, of each of the conditions set forth in
this Article VII. Grodan may waive any condition specified in this Article VII
by executing a writing so stating at or prior to the Closing or by electing to
proceed with the Closing with such condition unsatisfied. If Grodan waives any
such unsatisfied condition, Grodan shall not be deemed to have waived any other
rights or remedies it may have with respect to such condition.

     Section 7.1 Representations, Warranties and Covenants of ADI and ES.

     (a) Each and every representation and warranty of ADI and ES herein
contained shall be true and complete in all material respects at the Closing
Date, with the same effect as though made at such time except to the extent that
a different time is specifically stated in any such representation or warranty
and except where the breaches of the representations and warranties in the
aggregate do not have a material adverse effect on ADI or the business to be
conducted by NEWCO with the Contributed Assets or the financial condition or
prospects of NEWCO. ADI and ES shall each have performed and complied in all
material respects with all covenants and conditions required by this Agreement
to be performed or complied with by them at or prior to the Closing Date. Solely
for purposes of this Section 7.1(a) and in determining compliance with the
condition(s) set forth herein, any representation and warranty made by ADI and
ES in this Agreement shall be read and interpreted as if the qualification
stated therein with respect to materiality was not contained herein. Grodan
shall have received a certificate of the President of ADI to such effect.

     (b) The Chief Executive Officer of ADI and ES shall have executed and
delivered to Grodan a certificate, dated the Closing Date, as to the accuracy of
the matters set forth in subsection (a) above; and true and complete copies of
all resolutions of the board of directors of ADI and ES authorizing the
execution, delivery and performance of this Agreement, certified by the
Secretary or an Assistant Secretary of ADI and ES as of the Closing Date, shall
have been delivered to Grodan.

     Section 7.2 Absence of Proceedings. No party to this Agreement shall be
subject to any restraining order or injunction restraining or prohibiting the
consummation of the

                                       31

<PAGE>

transactions contemplated hereby or by any of the Closing Documents; and no
suit, action or proceeding shall have been instituted and remain pending before
a Governmental Body which would prohibit the continued operation or conduct of
the business of ADI, or adversely affect NEWCO's title or interest in the
Contributed Assets.

     Section 7.3 Financial Due Diligence. The Financial Due Diligence shall not
have revealed any facts or set of circumstances inconsistent with or omitted
from the information contained in Article IV hereof or in the Schedules
delivered by ES and ADI on the date hereof which additional facts or set of
circumstances in Grodan's reasonable judgment may have a material adverse effect
on the business, operations or financial condition or prospects of ADI and/or
NEWCO.

     Section 7.4 Opinion of Counsel to ES and ADI. Grodan shall have received
from counsel for ES and ADI an opinion, dated the Closing Date, in form and
substance satisfactory to Grodan, to the effect that:

     (a) Each of ES and ADI is a corporation duly organized, validly existing
and in good standing under the laws of its jurisdiction of formation, with all
requisite corporate power and authority to own and lease its properties and
carry on its business as conducted on the Closing Date and to effect the
transactions contemplated by this Agreement;

     (b) Each of ES and ADI has the right, power and authority to effect the
transactions contemplated by this Agreement and has taken all corporate action
and other action required by it to authorize the execution, delivery and
performance of this Agreement and to consummate the transactions contemplated
hereunder;

     (c) Each of this Agreement and the Stockholders Agreement has been duly
authorized, executed and delivered by each of ES and ADI. The Non-Competition
Agreement (assuming due and valid authorization, execution and delivery by the
other parties thereto) constitutes the valid and binding obligation of Michael
De Giglio enforceable in accordance with its terms, except as may be limited by
applicable bankruptcy, insolvency, reorganization, moratorium or similar laws
affecting the enforceability of creditors' rights, or by equitable principles
limiting the enforcement of creditors' rights generally;

     (d) The execution and delivery by each of ADI and ES of this Agreement and
the Closing Documents and compliance with the terms and provisions hereof or
thereof do not conflict or will not conflict with or result in a breach of any
of the terms, conditions or provisions of the Certificate of Incorporation or
By-Laws of each of ADI and ES or of any judgment, order, injunction, decree or
ruling of any Governmental Body known to such counsel to which each of ADI and
ES or any of the Contributed Assets is subject, or, to the knowledge of such
counsel, any agreement or contract to which ADI or ES is a party, or constitute
a default thereunder or give to others any rights of termination of the
transactions contemplated thereby; and

     (e) To such counsel's knowledge, all Governmental Authorizations required
in order to permit consummation by ADI of the transactions contemplated hereby
and by the Closing Documents have been obtained.

                                       32

<PAGE>

     Section 7.5 Consents or Approvals. All material consents, waivers,
approvals, licenses or authorizations of lessors, third parties, including
Century pursuant to the Century Loan, or Governmental Bodies (or any amendments
or modifications to existing agreements with third parties), including, without
limitation, those described in Schedule 4.3, required to transfer the
Contributed Assets and effect the transactions contemplated by this Agreement
and the Closing Documents, and to allow the business of ADI to be operated by
NEWCO after the Closing in the manner and to the extent that such business was
operated by ADI immediately prior to the Closing, have been obtained and
delivered to NEWCO.

     Section 7.6 Other Agreements.

     (a) ES and ADI shall have entered into the Stockholders Agreement
substantially in the form set forth on Exhibit 7.6(a);

     (b) NEWCO shall have entered into the Distribution Agreement substantially
in the form set forth on Exhibit 7.6(b);

     (c) Hoogendoorn shall have affirmatively consented to the assignment to
NEWCO of the Hoogendoorn Agreement on terms reasonably acceptable to Grodan;

     (d) Green Meteor B.V. shall have affirmatively consented to the assignment
to NEWCO of the Green Meteor Agreement on terms reasonably acceptable to Grodan;

     (e) Michael DeGiglio shall have entered into the Non-Compete Agreement
substantially in the form set forth on Exhibit 7.6(e);

     (f) NEWCO shall have received from American Rockwool written
acknowledgement indemnifying NEWCO from and against any and all product
liability exposure resulting from the sales of American Rockwool granules, in a
form reasonably satisfactory to Grodan;

     (g) ES, NEWCO and ADI shall have entered into the Cost-Sharing Agreement
substantially in the form set forth on Exhibit 7.6(g);

     (h) NEWCO shall have adopted the NEWCO 401(k) Plan or the Amendment
pursuant to Section 6.4; and

     (i) NEWCO shall have adopted the NEWCO Flex Plan pursuant to Section 6.4.

     Section 7.7 Bill of Sale. On or prior to the Closing Date, ADI shall have
executed and delivered to NEWCO a General Bill of Sale in a form reasonably
satisfactory to Grodan.

     Section 7.8 Conveyance; Assignment and Assumption Agreement. On or prior to
the Closing Date:

                                       33

<PAGE>

     (a) ADI shall deliver to NEWCO an assignment or assignments, in form and
substance satisfactory to Grodan, of ADI's right, title and interest to be
transferred hereby in and to all Intellectual Property of ADI;

     (b) ADI shall deliver to NEWCO an assignment or assignments of ADI's
interest in all Contracts and Leases included in the Contributed Assets to be
assumed by NEWCO and NEWCO shall assume same;

     (c) At or after the Closing, ADI shall also execute and deliver, at ADI's
expense, such further instruments of conveyance, sale, assignment or transfer,
and shall take or cause to be taken such other or further action, as Grodan
shall request at any time or from time to time in order to vest, confirm or
evidence in NEWCO title to all or any part of the Contributed Assets intended to
be contributed, sold, transferred, assigned and delivered to NEWCO under and in
accordance with this Agreement;

     (d) ADI shall deliver to NEWCO all original Leases, Governmental
Authorizations, Contracts, books and records and other Contributed Assets;

     (e) ES and ADI shall deliver to Grodan any and all necessary corporate
resolutions, authorizations or other instruments necessary or proper to evidence
the authority of ES or ADI and the Person(s) executing any Closing Documents on
ES or ADI's behalf to execute and/or deliver the same;

     (f) ES or ADI shall deliver any and all other documents, agreements,
certifications, affidavits and/or instruments to be executed and/or delivered by
them in accordance with the terms of this Agreement.

                                  ARTICLE VIII
                        CONDITIONS TO OBLIGATIONS OF ADI.

     The obligations of ADI to contribute, transfer and convey the Contributed
Assets at the Closing are subject, at ADI's option, to the fulfillment, prior to
or at the Closing, of each of the conditions set forth in this Article VIII. ADI
may waive any condition specified in this Article VIII by executing a writing so
stating at or prior to the Closing or by electing to proceed with the Closing
with such condition unsatisfied. If ADI waives any such unsatisfied condition,
ADI shall not be deemed to have waived any other rights or remedies it may have
with respect to such condition.

     Section 8.1 Representations, Warranties and Covenants of Grodan.

     (a) Except where the failure to satisfy such conditions would not have a
material adverse effect, (i) each and every representation and warranty of
Grodan herein contained shall be true and complete at the Closing Date, with the
same effect as though made at such time except to the extent that a different
time is specifically stated in any such representation or warranty, and (ii)
Grodan shall have performed and complied with all covenants and conditions
required by this Agreement to be performed or complied with by it at or prior to
the Closing Date.

                                       34

<PAGE>

     (b) Grodan shall have delivered to ADI a certificate, dated the Closing
Date and signed by its President or an executive vice president, as to the
accuracy of the matters set forth in subsection (a) above; and true and complete
copies of all resolutions of the boards of directors of Grodan authorizing the
execution, delivery and performance of this Agreement, certified by the
Secretary or an Assistant Secretary of Grodan as the case may be, as of the
Closing Date shall have been delivered to ADI.

     Section 8.2 Absence of Proceedings. No party to this Agreement shall be
subject to any restraining order or injunction restraining or prohibiting the
consummation of the transactions contemplated hereby or by the Closing Documents
and no suit, action or proceeding shall have been instituted and remain pending
before a Governmental Body that would prohibit such transactions.

     Section 8.3 Opinion of Grodan's Counsel. ADI shall have received from
Grodan's counsel an opinion, dated the Closing Date, in form and substance
satisfactory to counsel for ES and ADI, to the effect that:

     (a) Grodan is duly organized and validly existing in good standing under
the laws of its state of incorporation with all requisite corporate power and
authority to own and operate its properties and to conduct the business it is
conducting as of the Closing Date and to effect the transactions contemplated by
this Agreement;

     (b) Grodan has the right, power and authority to effect the transactions
contemplated by this Agreement and has taken all corporate action and other
action required by it to authorize the execution, delivery and performance of
this Agreement and to consummate the transactions contemplated hereunder;

     (c) This Agreement and the Closing Documents to which Grodan is to be a
party have each been duly executed and delivered by Grodan and all corporate
action by Grodan required to authorize the transactions contemplated hereby and
thereby have been taken; and

     (d) Neither the execution and delivery by Grodan of this Agreement or the
Closing Documents nor compliance with any terms and provisions thereof will
conflict with or result in a breach of any of the terms, conditions or
provisions of the respective Certificates of Incorporation or By-Laws of Grodan
or of any judgment, order, injunction, decree or ruling of any Governmental Body
to which Grodan is subject and of which Grodan's counsel has knowledge, or to
the knowledge of such counsel, any other agreement or contract to which Grodan
is a party or to which it is subject or constitute a default thereunder.

     (e) To such counsel's knowledge, all Governmental Authorizations required
in order to permit consummation by Grodan of the transactions contemplated
hereby and by the Closing Documents have been obtained.

     Section 8.4 Consent of Century. ADI shall have obtained the consent,
waiver, approval, or authorization of Century to effect the transactions
contemplated by this Agreement.

                                       35

<PAGE>

     Section 8.5 Other Agreements.

     (a)  Grodan shall have entered into the Stockholders Agreement
          substantially in the form set forth on Exhibit 7.6(a).

     (b)  Grodan shall have entered into the Distribution Agreement
          substantially in the form set forth on Exhibit 7.6(b).

     (c)  Grodan shall have entered into the Cost-Sharing Agreement
          substantially in the form set forth on Exhibit 7.6(g).

     (d)  Hoogendoorn shall have affirmatively consented to the assignment to
          NEWCO of the Hoogendoorn Agreement on terms reasonably acceptable to
          ADI.

     (e)  Green Meteor B.V. shall have affirmatively consented to the assignment
          to NEWCO of the Green Meteor Agreement on terms reasonably acceptable
          to ADI.

     (f)  NEWCO shall have executed and delivered the Assumption Agreement.

                                   ARTICLE IX
                                  TERMINATION.

     Section 9.1 Termination. Notwithstanding any other provision of this
Agreement, this Agreement may be terminated and abandoned before the Closing
Date:

     (a) by mutual written agreement of ES, ADI and Grodan;

     (b) by Grodan, if (i) the conditions set forth in Article VII have not all
been fulfilled (or waived by it) on or before June 30, 2000, and (ii) Grodan has
complied with all of the obligations applicable to it as set forth in this
Agreement;

     (c) by ES and ADI, if (i) the conditions set forth in Article VIII have not
all been fulfilled (or waived by ES and ADI) on or before June 30, 2000, and
(ii) ES and ADI have complied with all of the obligations applicable to them as
set forth in this Agreement;

     (d) by Grodan, in the event of a breach by ES or ADI of any representation,
warranty, covenant or other agreement contained in this Agreement which would
give rise to the failure of the conditions contained in Section 7.1 and ES or
ADI shall fail to remedy such breach within ten (10) business days after written
notice specifying such breach in reasonable detail and demanding that the same
be remedied;

     (e) by ES and ADI, in the event of a breach by Grodan of any
representation, warranty, covenant or other agreement contained in this
Agreement which would give rise to the failure of the conditions contained in
Section 8.1 and Grodan shall fail to remedy such breach within ten (10) business
days after written notice specifying such breach in reasonable detail and
demanding that the same be remedied; and

                                       36

<PAGE>

     (f) by Grodan, on or before January 28, 2000 in the event that the
Financial Due Diligence investigation shall have revealed any fact or set of
circumstances inconsistent with or omitted from the information contained in the
Schedules delivered by ES and ADI on the date hereof which additional facts or
set of circumstances in Grodan's reasonable judgment may have a material adverse
effect on the business, operations or financial condition or prospects of the
ADI or NEWCO.

     Section 9.2 Effect of Termination. Each party's right of termination under
Section 9.1 is in addition to any other rights it may have under this Agreement
or otherwise, and the exercise of a right of termination will not be an election
of remedies. If this Agreement is terminated pursuant to Section 9.1, all
further obligations of the parties under this Agreement will terminate, except
that the obligations in Sections 6.1(e), 9.2, 11.1, 11.3, 11.6, 11.9 and 11.14
shall survive.

                                   ARTICLE X
                                INDEMNIFICATION.

     Section 10.1 Indemnification of Grodan and NEWCO.

     (a) ES and ADI jointly and severally agree to indemnify, defend and hold
harmless Grodan and its successors and assigns from and against any and all
Losses, directly or indirectly occasioned by, arising out of, related to, based
on or resulting from (i) any breach or default of any of the representations,
warranties, covenants or agreements of ES or ADI contained in this Agreement or
in any Exhibit or Schedule hereto or any Closing Document, (ii) Liabilities
whether or not addressed by a representation and warranty which were created,
incurred or arose from facts, events, conditions or circumstances existing on or
before the Closing Date, to the extent that, but only to the extent that, such
Liabilities were not reflected or reserved against on the Balance Sheet adjusted
for Liabilities incurred in the Ordinary Course of Business since December 5,
1999, (iii) Liabilities, Taxes, fees and expenses related to this Agreement and
the transactions contemplated hereby or resulting therefrom, and (iv) the
Liabilities not directly assumed by NEWCO pursuant to this Agreement (including,
without limitation, Environmental, Health and Safety Liabilities).

     Section 10.2 Indemnification of ADI and ES. Grodan agrees to indemnify,
defend and hold harmless ES and ADI from and against any and all Losses,
directly or indirectly occasioned by, arising out of, related to, based on or
resulting from any breach or default of any of the representations, warranties,
covenants or agreements of Grodan contained in this Agreement or in any Exhibit,
Schedule or Closing Document.

     Section 10.3 Claims for Indemnification.

     (a) Promptly after the receipt by an Indemnified Party of notice of (i) any
claim, (ii) Environmental Claim or (iii) the commencement of any action,
proceeding or litigation (collectively, "Litigation") which may entitle an
Indemnified Party to indemnification, such party shall give the Indemnifying
Party written notice of such claim or the commencement of such Litigation. The
Indemnified Party shall permit the Indemnifying Party to assume the defense of
any such claim or Litigation if (i) the Indemnifying Party gives written notice
to the

                                       37

<PAGE>

Indemnified Party acknowledging the Indemnified Party's right to indemnification
for such claim or Litigation pursuant to this Article X, (ii) counsel to the
Indemnifying Party is reasonably satisfactory to the Indemnified Party and (iii)
the claim or Litigation seeks only money damages (including reimbursement of
response clean up costs) and does not seek injunctive or other equitable relief.
The failure to give the Indemnifying Party timely notice under this clause shall
not preclude the Indemnified Party from seeking indemnification from the
Indemnifying Party unless such failure has materially prejudiced the
Indemnifying Party's ability to defend such claim or Litigation.

     (b) If the Indemnifying Party assumes the defense of any such claim or
Litigation as set forth in subsection (a), the obligations of the Indemnifying
Party as to such claim or Litigation shall be limited to taking all steps
necessary in the defense or settlement of such claim or Litigation and to
holding the Indemnified Party harmless from and against any Losses, caused by or
arising out of any settlement approved by the Indemnifying Party or any judgment
in connection with such claim or Litigation; however, the Indemnified Party may
participate, at its or his expense, in the defense of such claim or Litigation
provided that the Indemnifying Party shall direct and control the defense of
such claim or Litigation. The Indemnified Party shall cooperate and make
available all books and records reasonably necessary and useful in connection
with the defense. Neither the Indemnifying Party nor the Indemnified Party shall
consent to entry of any judgment, or enter into any settlement with respect to
any Loss without the written consent of the other party, which consent shall not
be unreasonably withheld.

     (c) If the Indemnifying Party does not assume the defense of any such claim
or Litigation, the Indemnified Party may, but shall have no obligation to,
defend against such claim or Litigation in such manner as it may deem
appropriate. The Indemnifying Party shall promptly reimburse the Indemnified
Party for the amount of all reasonable expenses, legal or otherwise, incurred by
the Indemnified Party in connection with the defense against or settlement of
such claim or Litigation. If no settlement of the claim or Litigation is made,
the Indemnifying Party shall promptly reimburse the Indemnified Party for the
amount of any judgment rendered with respect to such claim or in such Litigation
and of all reasonable expenses, legal or otherwise, incurred by the Indemnified
Party in the defense against such claim or Litigation.

     Section 10.4 Materiality or Knowledge. Solely for the purposes of
calculating the amount of Losses arising from any breach or default of any of
the representations, warranties, covenants and agreements contained in this
Agreement or any Exhibit or Schedule, or any Closing Document, the applicable
provisions thereof shall be read and interpreted as if any qualification stated
therein with respect to materiality or material adverse effect or knowledge was
not contained therein, provided, however, in no event shall any party hereto be
indemnified for Losses resulting from events occurring during the period
beginning on the date hereof and ending on the Closing Date, if and only if, the
breaching or defaulting party shall notify the other party of such event in
writing at least three Business Days prior to the Closing Date.

     Section 10.5 Method of Payment of Indemnification. All amounts payable
pursuant to this Article X shall be paid in cash to the Indemnified Party or to
such Person as the Indemnified Party may direct.

                                       38

<PAGE>

     Section 10.6 Limitations on Indemnification. Each party will have no
Liability for indemnification pursuant to this Article X until the aggregate
total of all Losses for which such party is the Indemnifying Party exceeds
$200,000 (at which time such party shall indemnify the Indemnified Party for the
entire amount of Damages). Notwithstanding anything to the contrary, if Grodan
shall be the Indemnified Party, ES and ADI shall be jointly and severally liable
to Grodan for 49% of such Losses and if ES and ADI shall be the Indemnified
Party, Grodan shall be liable to ES and ADI for 51% of such Losses. In no event
shall any party have Liability for indemnification pursuant to this Article X in
excess of $3,000,000 after giving effect to the percentages set forth in the
preceding sentence.

                                   ARTICLE XI
                                 MISCELLANEOUS.

     Section 11.1 Expenses. Each of the parties hereto shall bear its own
expenses, including fees of any attorneys and accountants engaged by such party,
except for (a) if, and only if, the transactions contemplated hereby are
consummated, then NEWCO shall pay the (i) reasonable legal fees owed to
Giordano, Halleran and Ciesla in an amount not to exceed $50,000 which shall be
paid by NEWCO; and (ii) reasonable fees owed to Arthur Andersen in connection
with advisory services rendered in connection with the transactions contemplated
by this Agreement and the fiscal 1999 audit of ADI in an amount not to exceed
$30,000; (b) any Taxes or filing, registration or recording fees applicable to
or arising out of or in connection with the transactions described in Sections
2.1 - 2.4 ("Transfer Taxes") shall be borne by ES and ADI; and (c) in the event
of termination of this Agreement, the obligation of each party to pay its own
expenses will be subject to any rights of such party arising from a breach of
this Agreement by another party.

     Section 11.2 Survival. The representations, warranties, covenants,
indemnities and agreements of the parties to this Agreement shall survive the
Closing and shall survive any investigation by the other party; provided,
however, that the representations and warranties contained in Articles IV and V
shall survive until the second anniversary of the Closing Date, except for
Sections 4.2, 4.17, 4.19, 4.21 and 4.24 which shall survive indefinitely.

     Section 11.3 Notices. All notices, demands or other communications required
or permitted hereunder shall be in writing and shall be sufficiently given if
personally delivered, mailed or transmitted, and shall be effective upon receipt
if delivered personally on the third Business Day following the date mailed by
registered or certified mail (postage prepaid, return receipt requested) to the
parties at the following addresses (or at such other address for a party as
shall be specified by like changes of address) or the first Business Day
following being sent by electronic transmission to the telecopier number
specified below:

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<PAGE>

                 (a)    if to ES:

                         EcoScience Corporation
                         10 Alvin Ct. Road
                         East Brunswick, NJ  08816
                         Attn: Michael DeGiglio
                               Chief Executive Officer
                         Telecopier No.:  (732) 257-2326

                 (b)     if to ADI:

                         Agro Dynamics, Inc.
                         10 Alvin Ct. Road
                         East Brunswick, NJ  08816
                         Attn: Michael DeGiglio
                               Chief Executive Officer
                         Telecopier No.:  (732) 257-2326

                         with a copy to:

                         Giordano, Halleran & Ciesla
                         125 Half Mile Road
                         P.O. Box 190
                         Middletown, NJ  07748
                         Attn: John Aiello
                         Telecopier No.:  (732) 224-6599

                 (c)     if to Grodan:

                         Grodania A/S
                         Hovedgaden 501
                         DK 2640 Hedehusene
                         Denmark
                         Attn: Henrik Frank Nielsen
                               Managing Director
                         Telecopier No.: (011) 45 46 56 12 11

                         with a copy to:

                         Pedersen & Jantzen
                         Nyropsgade 45
                         DK 1602 K0benhavn
                         Denmark
                         Attn: Dan Terkildsen
                         Telecopier No.: (011) 4533 1295 15

                                       40
<PAGE>

                         with a copy to:

                         Baker & McKenzie
                         805 Third Avenue
                         New York, New York  10022
                         Attn:  Howard M. Berkower
                         Telecopier No.: (212) 759-9133

     Section 11.4 Assignment; Successors and Assigns. Neither this Agreement nor
any interest herein may be assigned or transferred by any party hereto or by
operation of law or otherwise without the consent in writing of the other
parties, provided, however, that Grodan may assign this Agreement in whole or in
part to a separate entity, directly or indirectly, wholly owned by Rockwool
International A/S formed for the purpose of consummating the transactions
contemplated hereby in which case Grodan shall remain liable under the terms of
this Agreement. Subject to the foregoing, the provisions of this Agreement shall
be binding upon and inure to the benefit of the parties hereto and their
respective successors, permitted assigns, heirs and legal representatives.

     Section 11.5 Entire Agreement. This Agreement, the Schedules and Exhibits
referred to herein and the Closing Documents constitute the entire agreement
among the parties hereto with respect to the subject matter hereof and supersede
all prior agreements and understandings both written and oral among such parties
and constitute the whole and entire basis upon which the respective rights,
duties, obligations, representations and warranties contained herein and therein
are based. No term or provision of this Agreement may be changed, waived,
discharged or terminated orally, but only by an instrument in writing signed by
the party against whom the enforcement of such change, waiver, discharge or
termination is sought.

     Section 11.6 Governing Law; Construction. This Agreement shall be governed
by and construed in accordance with the laws of the State of Delaware in all
respects, including all matters of construction, validity and performance,
without regard to their conflict of law principles.

     Section 11.7 Construction. THE PARTIES HAVE PARTICIPATED JOINTLY IN THE
NEGOTIATION AND DRAFTING OF THIS AGREEMENT. IF AN AMBIGUITY OR QUESTION OF
INTENT OR INTERPRETATION ARISES, THIS AGREEMENT SHALL BE CONSTRUED AS IF DRAFTED
JOINTLY BY THE PARTIES, AND NO PRESUMPTION OR BURDEN OF PROOF SHALL ARISE
FAVORING OR DISFAVORING ANY PARTY BY VIRTUE OF THE AUTHORSHIP OF ANY OF THE
PROVISIONS OF THIS AGREEMENT. Any reference to any federal, state, local or
foreign statute or law shall be deemed also to refer to all rules and
regulations promulgated thereunder, unless the context requires otherwise.
Nothing in the Schedules hereto shall be deemed adequate to disclose an
exception to a representation or warranty made herein unless the Schedule
identifies the exception with reasonable particularity and describes the
relevant facts in reasonable detail. Without limiting the generality of the
foregoing, the mere listing (or inclusion of a copy) of a document or other item
shall not be deemed adequate to disclose an exception to a representation or
warranty made herein (unless the representation or warranty concerns the
existence of the

                                       41

<PAGE>

document or other item itself). The parties intend that each representation,
warranty and covenant contained herein shall have independent significance. All
references to Schedules and Exhibits shall mean the Schedules and Exhibits
attached hereto and made a part hereof.

     Section 11.8 Severability. If any term or other provision of this Agreement
is invalid, illegal or incapable of being enforced by any rule of law or public
policy, all other conditions and provisions of this Agreement shall nevertheless
remain in full force and effect so long as the economic or legal substance of
the transactions contemplated hereby is not affected in any manner adverse to
any party. Furthermore, in lieu of such illegal, invalid or unenforceable
provision, there shall be added automatically as a part of this Agreement a
provision as similar in terms to such illegal, invalid or unenforceable
provision as may be possible and be legal, valid and enforceable.

     Section 11.9 Arbitration. All disputes arising in connection with this
Agreement shall be finally settled by an institutional arbitration under the ICC
Rules by three (3) arbitrators, one (1) appointed by ES and/or ADI, another one
(1) appointed by Grodan, and the third arbitrator shall be selected by the two
(2) party-appointed arbitrators, or failing agreement, by the ICC in accordance
with its rules. The place of the arbitration shall be the City of New York,
State of New York, United States of America. The language of the arbitration
shall be English and the arbitrators shall issue their awards reasoned and in
writing. Any decision or award resulting from such arbitration shall be final
and binding on the parties and the expenses of the arbitration shall be borne by
the parties in such proportion and manner as may be provided in the arbitration
award. The parties agree that any monetary award will be made and paid
exclusively in dollars of the United States of America.

     Section 11.10 Captions. The captions in this Agreement are for convenience
of reference only and shall not be deemed to constitute part of this Agreement
or to affect the construction hereof.

     Section 11.11 Counterparts. This Agreement may be executed in any number of
counterparts, and by any party on separate counterparts, each of which as so
executed and delivered shall be an original, and it shall not be necessary in
making proof of this Agreement as to any party hereto to produce or account for
more than one such counterpart executed by such party.

     Section 11.12 Publicity. Each of the parties hereto agrees that, until the
Closing it will consult with the other party before issuing any press release or
otherwise making any public statement with respect to this Agreement or the
transactions contemplated hereby and that, subject to the requirements of
applicable law or, neither party will make any such press release or public
statement without the prior consent of the other party.

     Section 11.13 Waiver. All of the original rights and powers of any party
hereunder shall remain in force notwithstanding any neglect, forbearance or
delay in enforcement thereof, and no party shall be deemed to have waived any of
its rights, any provision of this Agreement or any notice given hereunder unless
such waiver is in a writing signed by an officer of the waiving party. No such
waiver by a party of any breach by another party of any provision of this
Agreement shall be deemed a waiver of any continuing, future or

                                       42

<PAGE>

recurring breach of such provision or any other provision of this Agreement. No
action taken pursuant to this Agreement, including, without limitation, any
investigation by or on behalf of any party, shall be deemed to constitute a
waiver by the party taking such action or compliance with any representations,
warranties, covenants or agreements contained in this Agreement.

     Section 11.14 No Third Party Beneficiaries/No Partnership. This Agreement
shall not confer any rights or remedies upon any Person other than the parties
hereto and their respective successors and permitted assigns. Nothing contained
or implied in this Agreement shall constitute a partnership between the parties
and, except as specifically provided herein, none of the parties shall have any
authority to bind or commit any other.

                                       43

<PAGE>

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

AGRO DYNAMICS INC.

By:
   ------------------------------------
   Name:
   Title:

ECOSCIENCE CORPORATION

By:
   ------------------------------------
   Name:
   Title:

GRODANIA A/S

By:
   ------------------------------------
   Name: Jack de Jonge
   Title: Chairman of the Board

By:
   ------------------------------------
   Name: Henrik Frank Nielsen
   Title: Managing Director

                                       44<PAGE>

                                WARRANT AGREEMENT

         AGREEMENT, dated as of this    day of         , 2000, by and between
Activeworlds.com, Inc., a Delaware corporation (the "Company"), and         , as
Warrant Agent (the "Warrant Agent").

                              W I T N E S S E T H:
                               - - - - - - - - - -
         WHEREAS, in connection with a public offering of 1,200,000 units (the
"Units"), each Unit consisting of one share of common stock, par value $.001 per
share ("Common Stock"), and a Series B Redeemable Common Stock Purchase Warrant
(collectively, the "Warrants") to purchase one share of Common Stock, pursuant
to an underwriting agreement (the "Underwriting Agreement") dated as of , 2000,
between the Company and the several underwriters named therein of which HD Brous
& Co., Inc. ("Brous") Solid ISG Capital Markets, LLC ("Solid ISG") and First
Colonial Securities, Inc. ("First Colonial") are the representatives (the
"Representatives"), the Company may issue Warrants to purchase up to One Million
Two Hundred Thousand (1,200,000) shares of Common Stock; and
         WHEREAS, in connection with the issuance, pursuant to the Underwriting
Agreement, to the Representatives and their designees of options (the "Unit
Purchase Options" and each a "Unit Purchase Option") to purchase up to one
hundred twenty thousand (120,000) Units, the Company may issue Warrants to
purchase up to one hundred twenty thousand (120,000) shares of Common Stock; and
         WHEREAS, the Company desires the Warrant Agent to act on behalf of the
Company, and the Warrant Agent is willing to so act, in connection with the
issuance, registration, transfer, exchange and redemption of the Warrants, as
hereinafter defined, the issuance of certificates representing the Warrants, the
exercise of the Warrants, and the rights of the holders thereof;
         NOW, THEREFORE, in consideration of the premises and the mutual
agreements hereinafter set forth and for the purpose of defining the terms and
provisions of the Warrants and the certificates representing the Warrants and
the respective rights and obligations thereunder of the Company, the holders of
certificates representing the Warrants and the Warrant Agent, the parties hereto
agree as follows:
               1. Definitions.  As used in this Agreement, the following terms
shall have the following meanings, unless the context shall otherwise require:
                  (a) "Corporate Office" shall mean the office of the Warrant
Agent (or its successor) at which at any particular time its principal business
shall be administered, which office is located at the date of this Agreement
at                       .
                  (b) "Effective Date" shall mean the date that the Registration
Statement is declared effective by the Securities and Exchange Commission (the
"Commission").

<PAGE>

                  (c) "Exercise Date" shall mean, as to any Warrant, the date on
which the Warrant Agent shall have received both (a) the Warrant Certificate
representing such Warrant, with the exercise form thereon duly executed by the
Registered Holder thereof or his attorney duly authorized in writing, and (b)
payment in cash, or by official bank or certified check made payable to the
Company, of an amount in lawful money of the United States of America equal to
the Purchase Price; provided, however, that, subject to Paragraph 4 of this
Agreement, if payment shall be made by personal or corporate check, the exercise
of the Warrant shall not be effective until the Warrant Agent shall be satisfied
that the check shall have cleared; provided, further, that if such payment is
made prior to the Warrant Expiration Date or the expiration of a period during
which a reduced Purchase Price is in effect pursuant to Paragraph 9(f) of this
Agreement and the check shall not have cleared until after the Warrant
Expiration Date or such other date, then the Warrant shall be deemed to have
been exercised immediately prior to 5:00 P.M. New York City time on the Warrant
Expiration Date.
                  (d) "Purchase Price" shall mean the purchase price per share
to be paid upon exercise of each Warrant in accordance with the terms hereof,
which price shall be and /100 dollars ($   ) per share for the Warrants, subject
to adjustment from time to time pursuant to the provisions of Paragraph 9 of
this Agreement.
                  (e) "Redemption Price" shall mean the price at which the
Company may, at its option, redeem the Warrants, in accordance with the terms of
this Agreement, which price shall be ten cents ($.10) per Warrant. The
Redemption Price shall not be subject to adjustment pursuant to this Agreement.
                  (f) "Registration Statement" shall mean the Company's
registration statement on Form SB-2, File No. 333-85095, which was declared
effective by the Commission on           , 2000.
                  (g) "Registered Holder" shall mean, as to any Warrant and as
of any particular date, the person in whose name the certificate representing
the Warrant shall be registered on that date on the books maintained by the
Warrant Agent pursuant to Paragraph 6 of this Agreement.
                  (h) "Transfer Agent" shall mean           , as the Company's
transfer agent, or its authorized successor, as such.
                  (i) "Warrant Certificate" shall mean the certificate for the
Warrants in the form attached as Exhibit A to this Agreement.
                  (j) "Warrant Expiration Date" shall mean 5:00 P.M. New York
City time on the first to occur of (i)          , 2005, or (ii) the business day
immediately preceding the Redemption Date, as defined in Paragraph 8(c) of this
Agreement; provided, that if such date shall in the State

                                      - 2 -

<PAGE>

of New York be a holiday or a day on which banks are authorized or required to
close, the Warrant Expiration Date shall be the next day which is not such a
date. Upon notice to all warrant holders the Company shall have the right to
extend the Warrant Expiration Date.
                  (k) "Warrant Shares" shall mean the shares of Common Stock
issuable upon exercise of the Warrants.
               2. Warrants and Issuance of Warrants Certificates.
                  (a) Each Warrant initially shall entitle the Registered Holder
of the Warrant Certificate representing such Warrant to purchase, upon the
exercise thereof, in accordance with the terms of this Agreement, subject to
modification and adjustment as provided in Paragraph 9 of this Agreement, such
number of shares of Common Stock as is set forth on the certificate representing
the Warrants.
                  (b) Upon execution of this Agreement, Warrant Certificates
representing the number of Warrants initially issuable pursuant to the
Underwriting Agreement shall be executed by the Company and delivered to the
Warrant Agent. Upon written order of the Company signed by its President or
Chairman or a Vice President and by its Secretary or an Assistant Secretary or
its Treasurer or an Assistant Treasurer, the Warrant Certificates shall be
countersigned, issued and delivered by the Warrant Agent.
                  (c) From time to time, up to the Warrant Expiration Date, the
Transfer Agent shall countersign and deliver stock certificates in required
whole number denominations representing the shares of Common Stock issuable upon
the exercise of Warrants in accordance with this Agreement.
                  (d) From time to time, up to the Warrant Expiration Date, the
Warrant Agent shall countersign and deliver Warrant Certificates in required
whole number denominations to the persons entitled thereto in connection with
any transfer or exchange permitted under this Agreement; provided that no
Warrant Certificates shall be issued except (i) those initially issued hereunder
or otherwise issuable pursuant to the Underwriting Agreement, including those
issuable in exchange for certain outstanding warrants, (ii) those issued on or
after the date of this Agreement, upon the exercise of fewer than all Warrants
represented by any Warrant Certificate, to evidence any unexercised Warrants
held by the exercising Registered Holder, (iii) those issued upon any transfer
or exchange pursuant to Paragraph 6 of this Agreement, (iv) those issued in
replacement of lost, stolen, destroyed or mutilated Warrant Certificates
pursuant to Paragraph 7 of this Agreement, (v) those issued pursuant to the
Representatives' Option, and (vi) at the option of the Company, in such form as
may be approved by the Board of Directors, to reflect any adjustment or change
in the Purchase Price or the number of shares of Common Stock purchasable upon
exercise of the Warrants made pursuant to Paragraph 9 of this Agreement.

                                      - 3 -

<PAGE>

In addition, at the discretion of the Company, the Company may authorize the
issuance of additional Warrants, which shall be subject to the provisions of
this Agreement.
               3. Form and Execution of Warrant Certificates.
                  (a) The Warrant Certificates for the Warrants shall be
substantially in the form annexed as Exhibit A to this Agreement, (the
provisions of which are hereby incorporated herein) and may have such letters,
numbers or other marks of identification or designation and such legends,
summaries or endorsements printed, lithographed or engraved thereon as the
Company may deem appropriate and as are not inconsistent with the provisions of
this Agreement, or as may be required to comply with any law or with any rule or
regulation made pursuant thereto or with any rule or regulation of any stock
exchange on which the Warrants may be listed, or to conform to usage or to the
requirements of Paragraph 2(b) of this Agreement. The Warrant Certificates shall
be dated the date of issuance thereof (whether upon initial issuance, transfer
or exchange in lieu of mutilated, lost, stolen, or destroyed Warrant
Certificates) and issued in registered form. Warrant Certificates shall be
numbered serially with the letter M or other letters acceptable to the Company
and the Warrant Agent.
                  (b) Warrant Certificates shall be executed on behalf of the
Company by its Chairman of the Board, President or any Vice President and by its
Secretary or an Assistant Secretary, by manual signatures or by facsimile
signatures printed thereon, and shall have imprinted thereon a facsimile of the
Company's seal. Warrant Certificates shall be manually countersigned by the
Warrant Agent and shall not be valid for any purpose unless so countersigned. In
case any officer of the Company who shall have signed any of the Warrant
Certificates shall cease to be an officer of the Company or to hold the
particular office referenced in the Warrant Certificate before the date of
issuance of the Warrant Certificates or before countersignature by the Warrant
Agent and issue and delivery thereof, such Warrant Certificates may nevertheless
be countersigned by the Warrant Agent, issued and delivered with the same force
and effect as though the person who signed the Warrant Certificates had not
ceased to be an officer of the Company or to hold such office. After
countersignature by the Warrant Agent, Warrant Certificates shall be delivered
by the Warrant Agent to the Registered Holder without further action by the
Company, except as otherwise provided by Paragraph 4 of this Agreement.
               4. Exercise. Each Warrant may be exercised by the Registered
Holder thereof at any time after the issuance thereof, but not after the Warrant
Expiration Date, upon the terms and subject to the conditions set forth herein
and in the Warrant Certificate. A Warrant shall be deemed to have been exercised
immediately prior to the close of business on the Exercise Date and the person
entitled to receive the securities deliverable upon such exercise shall be
treated for all purposes as the holder of those securities upon the exercise of
the Warrant as of the close

                                      - 4 -

<PAGE>

of business on the Exercise Date. As soon as practicable on or after the
Exercise Date, the Warrant Agent shall deposit the proceeds received from the
exercise of a Warrant and shall notify the Company in writing of the exercise of
the Warrant. Promptly following, and in any event within five (5) days after the
date of such notice from the Warrant Agent, the Warrant Agent, on behalf of the
Company, shall cause to be issued and delivered by the Transfer Agent, to the
person or persons entitled to receive the same, a certificate or certificates
for the securities deliverable upon such exercise, (plus a certificate for any
remaining unexercised Warrants of the Registered Holder) unless prior to the
date of issuance of such certificates the Company shall instruct the Warrant
Agent to refrain from causing such issuance of certificates pending clearance of
checks received in payment of the Purchase Price pursuant to such Warrants.
Notwithstanding the foregoing, in the case of payment made in the form of a
check drawn on an account of the Representatives or such other investment banks
and brokerage houses as the Company shall approve in writing to the Warrant
Agent, by the Representatives or such other investment bank or brokerage house,
certificates shall immediately be issued without prior notice to the Company or
any delay. Upon the exercise of any Warrant and clearance of the funds received,
the Warrant Agent shall promptly remit the payment received for the Warrant (the
"Warrant Proceeds") to the Company or as the Company may direct in writing.
               5. Reservation of Shares; Listing; Payment of Taxes.
                  (a) The Company covenants that it will at all times reserve
and keep available out of its authorized Common Stock, solely for the purpose of
issue upon exercise of Warrants, such number of shares of Common Stock as shall
then be issuable upon the exercise of all outstanding Warrants. The Company
covenants that all Warrant Shares shall, at the time of delivery in accordance
with this Agreement, be duly and validly issued, fully paid, nonassessable and
free from all taxes, liens and charges with respect to the issue thereof (other
than those which the Company shall promptly pay or discharge), and that upon
issuance such shares shall be listed on each national securities exchange or
eligible for inclusion in each automated quotation system, if any, on which the
other shares of outstanding Common Stock of the Company are then listed or
eligible for inclusion.
                  (b) The Company covenants that if any securities to be
reserved for the purpose of exercise of Warrants hereunder require registration
with, or approval of, any governmental authority under any Federal securities
law before such securities may be validly issued or delivered upon such
exercise, then the Company will in good faith and as expeditiously as reasonably
possible, endeavor to secure such registration or approval. The Company will use
reasonable efforts to obtain appropriate approvals or registrations under state
"blue sky" securities laws. With respect to any such securities, however,
Warrants may not be exercised by, or shares

                                      - 5 -

<PAGE>

of Common Stock issued to, any Registered Holder in any state in which such
exercise would be unlawful.
                  (c) The Company shall pay all documentary, stamp or similar
taxes and other governmental charges that may be imposed with respect to the
issuance of Warrants, or the issuance, or delivery of any shares upon exercise
of the Warrants; provided, however, that if the shares of Common Stock are to be
delivered in a name other than the name of the Registered Holder of the Warrant
Certificate representing any Warrant being exercised, then no such delivery
shall be made unless the person requesting the same has paid to the Warrant
Agent the amount of transfer taxes or charges incident thereto, if any.
                  (d) The Warrant Agent is hereby irrevocably authorized to
requisition the Company's Transfer Agent from time to time for certificates
representing shares of Common Stock issuable upon exercise of the Warrants, and
the Company will authorize the Transfer Agent to comply with all such proper
requisitions. The Company will file with the Warrant Agent a statement setting
forth the name and address of the Transfer Agent of the Company for shares of
Common Stock issuable upon exercise of the Warrants.
               6. Exchange and Registration of Transfer.
                  (a) Warrant Certificates may be exchanged for other Warrant
Certificates representing an equal aggregate number of Warrants of the same
class or may be transferred in whole or in part. Warrant Certificates to be
exchanged shall be surrendered to the Warrant Agent at its Corporate Office, and
upon satisfaction of the terms and provisions of this Agreement, the Company
shall execute and the Warrant Agent shall countersign, issue and deliver in
exchange therefor the Warrant Certificate or Certificates which the Registered
Holder making the exchange shall be entitled to receive.
                  (b) The Warrant Agent shall keep at its office books in which,
subject to such reasonable regulations as it may prescribe, it shall register
Warrant Certificates and the transfer thereof in accordance with its regular
practice. Upon due presentment for registration of transfer of any Warrant
Certificate at such office, the Company shall execute and the Warrant Agent
shall issue and deliver to the transferee or transferees a new Warrant
Certificate or Certificates representing an equal aggregate number of Warrants.
                  (c) With respect to all Warrant Certificates presented for
registration or transfer, or for exchange or exercise, the subscription form on
the reverse thereof shall be duly endorsed, or be accompanied by a written
instrument or instruments of transfer and subscription, in form satisfactory to
the Company and the Warrant Agent, duly executed by the Registered Holder or his
attorney-in-fact duly authorized in writing.

                                      - 6 -

<PAGE>

                  (d) A reasonable service charge may be imposed by the Warrant
Agent for any exchange or registration of transfer of Warrant Certificates. In
addition, the Company may require payment by such holder of a sum sufficient to
cover any tax or other governmental charge that may be imposed in connection
with any exchanges, registration or transfer of Warrant Certificates.
                  (e) All Warrant Certificates surrendered for exercise or for
exchange in case of mutilated Warrant Certificates shall be promptly canceled by
the Warrant Agent and thereafter retained by the Warrant Agent until termination
of this Agreement or resignation as Warrant Agent, or, with the prior written
consent of the Representatives, disposed of or destroyed, at the direction of
the Company.
                  (f) Prior to due presentment for registration of transfer
thereof, the Company and the Warrant Agent may deem and treat the Registered
Holder of any Warrant Certificate as the absolute owner thereof and of each
Warrant represented thereby (notwithstanding any notations of ownership or
writing thereon made by anyone other than a duly authorized officer of the
Company or the Warrant Agent) for all purposes and shall not be affected by any
notice to the contrary.
                  (g) Notwithstanding any other provisions of this Agreement, no
Warrants issued upon exercise of the Unit Purchase Option and no shares of
Common Stock issuable upon exercise of such Warrants may be sold, transferred,
assigned or hypothecated for a period of one year from the Effective Date except
to the officers of the Representatives or to selling group members or officers
or partners thereof, all of whom shall be bound by such restrictions. Until the
expiration of such one-year period, Warrant Certificates and stock certificates
shall be marked with a legend referring to such restriction.
               7. Loss or Mutilation. Upon receipt by the Company and the
Warrant Agent of evidence satisfactory to them of the ownership of and loss,
theft, destruction or mutilation of any Warrant Certificate and (in case of
loss, theft or destruction) of indemnity satisfactory to them, and (in the case
of mutilation) upon surrender and cancellation thereof, the Company shall
execute and the Warrant Agent shall (in the absence of notice to the Company
and/or Warrant Agent that the Warrant Certificate has been acquired by a bona
fide purchaser) countersign and deliver to the Registered Holder in lieu thereof
a new Warrant Certificate of like tenor representing an equal aggregate number
of Warrants. Applicants for a substitute Warrant Certificate shall comply with
such other reasonable regulations and pay such other reasonable charges as the
Warrant Agent may prescribe.

                                      - 7 -

<PAGE>

               8. Redemption.
                  (a) Commencing twelve (12) months from the Effective Date or
earlier with the consent of the Representatives, the Company shall have the
right, on not less than thirty (30) nor more than sixty (60) days notice given
prior to the Redemption Date, as hereinafter defined, at any time to redeem the
then outstanding Warrants at the Redemption Price, provided that the Market
Price of the Common Stock shall equal or exceed the "Target Price" with respect
to the class of Warrants as to which the Company is exercising its right of
redemption. The "Target Price" shall mean one hundred fifty percent (150%) of
the Purchase Price with respect to the applicable class of Warrants. Market
Price for the purpose of this Paragraph 8 shall mean, if the Common Stock is
listed on the Nasdaq Stock Market or the New York or American Stock Exchange,
the average last reported sales price (or, if no sale is reported on any such
trading day, the average of the closing bid and asked prices) on the principal
market for the Common Stock or, if the Common Stock is not so listed or traded,
the average of the last reported bid prices of the Common Stock, during the
twenty (20) day period ending within three (3) days of the date the Warrants are
called for redemption. Notice of redemption shall be mailed by first class mail,
postage prepaid, not later than five (5) business days (or such longer period to
which the Representatives may consent) after the date the Warrants are called
for redemption. All Warrants of any class of Warrants must be redeemed if any
Warrants of such class are redeemed.
                  (b) If the conditions set forth in Paragraph 8(a) of this
Agreement are met, and the Company desires to exercise its right to redeem the
Warrants, it shall request the Representatives or the Warrant Agent to mail the
notice of redemption referred to in said Paragraph 8(a) to each of the
Registered Holders of the Warrants to be redeemed, first class, postage prepaid,
not earlier than the sixtieth (60th) day nor later than the thirtieth (30th) day
before the date fixed for redemption, at their last addresses as shall appear on
the records maintained pursuant to Paragraph 6(b) of this Agreement. Any notice
mailed in the manner provided herein shall be conclusively presumed to have been
duly given whether or not the Registered Holder receives such notice. The
Warrant Agent agrees to mail such notice if requested by the Company or the
Representatives.
                  (c) The notice of redemption shall specify (i) the Redemption
Price, (ii) the date fixed for redemption, (iii) the place where the Warrant
Certificates shall be delivered and the redemption price to be paid, and (iv)
that the right to exercise the Warrants shall terminate at 5:00 p.m. (New York
City time) on the business day immediately preceding the date fixed for
redemption. The date fixed for the redemption of the Warrants shall be the
Redemption Date. No failure to mail such notice nor any defect therein or in the
mailing thereof shall affect the validity of the proceedings for such redemption
except as to a Registered Holder (A) to whom

                                      - 8 -

<PAGE>

notice was not mailed, or (B) whose notice was defective. An affidavit of the
Warrant Agent or of the Secretary or an Assistant Secretary of either of the
Representatives or the Company that notice of redemption has been mailed shall,
in the absence of fraud, be prima facie evidence of the facts stated therein.
                  (d) If either class of Warrant shall have been redeemed, any
right to exercise a Warrant of such class shall terminate at 5:00 p.m. (New York
City time) on the business day immediately preceding the Redemption Date. After
such time, Holders of the Warrants shall have no further rights except to
receive, upon surrender of the Warrant, the Redemption Price without interest,
subject to the provisions of applicable laws relating to the treatment of
abandoned property. In the event that the Warrants or the Warrant Shares shall
not be subject to a current and effective registration statement under the
Securities Act of 1933, as amended, at any time subsequent to the date the
Warrants are called for redemption, the notice of redemption shall not be
effective and shall be deemed for all purposes not to have been given. Nothing
in the preceding sentence shall be construed to prohibit or restrict the Company
from thereafter calling the Warrants for redemption in the manner provided for,
and subject to the provisions of, this Paragraph 8.
                  (e) From and after the Redemption Date with respect to the
Warrants, the Company shall, at the place specified in the notice of redemption,
upon presentation and surrender to the Company by or on behalf of the Registered
Holder thereof of one or more Warrant Certificates evidencing Warrants to be
redeemed, deliver or cause to be delivered to or upon the written order of such
Holder a sum in cash equal to the Redemption Price of each such Warrant. From
and after the Redemption Date and upon the deposit or setting aside by the
Company of a sum sufficient to redeem all the Warrants called for redemption,
such Warrants shall expire and become void and all rights hereunder and under
the Warrant Certificates, except the right to receive payment of the Redemption
Price, shall cease.
                  (f) Notwithstanding any other provision of this Agreement, the
Company shall not call the Warrants for redemption unless there is, at the time
the Warrants are called for redemption, a current and effective registration
statement or a post-effective amendment to the registration statement covering
the issuance of the shares of Common Stock issuable upon exercise of the
Warrants.
                  (g) In the event that the Representatives' Option is exercised
at a time subsequent to the redemption of the Warrants but prior to the Warrant
Expiration Date, as defined in Paragraph 1(j) of this Agreement, then,
notwithstanding any other provisions of this Agreement, the Warrants issued upon
such exercise may be redeemed by the Company at any time after issuance.

                                      - 9 -

<PAGE>

               9. Adjustment of Exercise Price and Number of Securities Issuable
upon Exercise of Warrants.
                  (a) In case the Company shall, at any time or from time to
time after the date of this Agreement, pay a dividend or make a distribution on
its shares of Common Stock in shares of Common Stock, subdivide or reclassify
its outstanding Common Stock into a greater number of shares, or combine or
reclassify its outstanding Common Stock into a smaller number of shares or
otherwise effect a combination of shares or reverse split, the Purchase Price in
effect at the time of the record date for such dividend or distribution or of
the effective date of such subdivision, combination or reclassification shall be
proportionately adjusted so that the holder of any Warrant exercised after such
date shall be entitled to receive the aggregate number and kind of shares which,
if such Warrant had been exercised immediately prior to such time, he would have
owned upon such exercise and been entitled to receive upon such dividend,
subdivision, combination or reclassification. Such adjustment shall be made
successively whenever any event listed in this Paragraph 9(a) shall occur.
                  (b) In case the Company shall, at any time or from time to
time after the date of this Agreement, issue rights or warrants to all holders
of its Common Stock entitling them to subscribe for or purchase shares of Common
Stock (or securities convertible into Common Stock) at a price (or having a
conversion price per share) less than the current market price of the Common
Stock (as defined in Paragraph 9(e) of this Agreement) on the record date
mentioned below, the Purchase Price shall be adjusted so that the same shall
equal the price determined by multiplying the Purchase Price in effect
immediately prior to the date of such issuance by a fraction, of which the
numerator shall be the number of shares of Common Stock outstanding on the
record date mentioned below plus the number of additional shares of Common Stock
which the aggregate offering price of the total number of shares of Common Stock
so offered (or the aggregate conversion price of the convertible securities so
offered) would purchase at such current market price per share of the Common
Stock, and of which the denominator shall be the number of shares of Common
Stock outstanding on such record date plus the number of additional shares of
Common Stock offered for subscription or purchase (or into which the convertible
securities so offered are convertible). Such adjustment shall be made
successively whenever such rights or warrants are issued and shall become
effective immediately after the record date for the determination of
stockholders entitled to receive such rights or warrants; and to the extent that
shares of Common Stock are not delivered (or securities convertible into Common
Stock are not delivered) after the expiration of such rights or warrants, the
Purchase Price shall be readjusted to the Purchase Price which would then be in
effect had the adjustments made upon the issuance of such rights or warrants
been made upon the basis of delivery of only

                                     - 10 -

<PAGE>

the number of shares of Common Stock (or securities convertible into Common
Stock) actually delivered.
                  (c) In case the Company shall, at any time or from time to
time after the date hereof, distribute to all holders of Common Stock evidences
of its indebtedness or assets (excluding cash dividends or distributions paid
out of current earnings and dividends or distributions referred to in Paragraph
9(a) of this Agreement) or subscription rights or warrants (excluding those
referred to in Paragraph 9(b) of this Agreement), then in each such case the
Purchase Price in effect thereafter shall be determined by multiplying the
Purchase Price in effect immediately prior thereto by a fraction, of which the
numerator shall be the total number of shares of Common Stock outstanding
multiplied by the current market price per share of Common Stock (as defined in
Paragraph 9(e) of this Agreement), less the fair market value (as determined by
the Company's Board of Directors) of said assets or evidences of indebtedness so
distributed or of such rights or warrants, and of which the denominator shall be
the total number of shares or Common Stock outstanding multiplied by such
current market price per share of Common Stock. Such adjustment shall be made
whenever any such distribution is made and shall become effective immediately
after the record date for the determination of stockholders entitled to receive
such distribution.
                  (d) Whenever the Purchase Price payable upon exercise of each
Warrant is adjusted pursuant to Paragraphs 9(a), (b) or (c) of this Agreement,
the number of shares of Common Stock purchasable upon exercise of each Warrant
shall simultaneously be adjusted by multiplying the number of shares issuable
upon exercise of each Warrant in effect on the date thereof by the Purchase
Price in effect on the date thereof and dividing the product so obtained by the
Purchase Price, as adjusted.
                  (e) For the purpose of any computation pursuant to Paragraphs
9(b) and (c) of this Agreement, the current market price per share of Common
Stock at any date shall be deemed to be the average of the daily closing prices
for thirty (30) consecutive business days commencing fifteen (15) business days
before such date. The closing price for each day shall be the reported last sale
price regular way or, in case no such reported sale takes place on such day, the
average of the last reported high bid and low asked prices regular way, in
either case on the principal national securities exchange on which the Common
Stock is admitted to trading or listed, if the Common Stock is admitted to
trading or listing on the New York or American Stock Exchange or on The Nasdaq
Stock Market if included in such system or if not listed or admitted to trading
on such exchange or system, the average of the highest bid and lowest asked
prices as reported by Nasdaq, or the National Quotation Bureau, Inc. or another
similar organization if Nasdaq is no

                                     - 11 -

<PAGE>

longer reporting such information, or if not so available, the fair market price
as determined by the Board of Directors of the Company.
                  (f) No adjustment in the Purchase Price shall be required
unless such adjustment would require an increase or decrease of at least five
cents ($0.05) in such price; provided, however, that any adjustments which by
reason of this Paragraph 9(f) are not required to be made shall be carried
forward and taken into account in any subsequent adjustment. All calculations
under this Paragraph 9 shall be made to the nearest cent or to the nearest
one-tenth of a share, as the case may be. Anything in this Paragraph 9 to the
contrary notwithstanding, the Company may, upon notice to the record holders of
the Warrants, in its sole discretion, reduce the Purchase Price of the Warrants,
and, if such reduction is not otherwise required by this Paragraph 9, such
reduction (i) will not, unless the Board of Directors otherwise determines,
result in any change in the number or class of shares of Common Stock issuable
upon exercise of such Warrants, and (ii) may be of limited duration, in which
event the reduction in Purchase Price shall not apply to any Warrants exercised
after the expiration of the time during which the reduced Purchase Price is in
effect.
                  (g) The Company may retain a firm of independent public
accountants (who may be the regular accountants employed by the Company) of
recognized standing selected by the Board of Directors of the Company to make
any computation required by this Paragraph 9, and a certificate signed by such
firm shall be conclusive evidence of the correctness of such adjustment.
                  (h) In the event that at any time, as a result of an
adjustment made pursuant to Paragraph 9(a) of this Agreement, the holder of any
Warrant thereafter shall become entitled to receive any shares of the Company,
other than Common Stock, thereafter the number of such other shares so
receivable upon exercise of any Warrant shall be subject to adjustment from time
to time in a manner and on terms as nearly equivalent as practicable to the
provisions with respect to the Common Stock contained in Paragraphs 9(a) to (f),
inclusive, of this Agreement.
                  (i) The Company may elect, upon any adjustment of the Purchase
Price hereunder, to adjust the number of Warrants outstanding, in lieu of the
adjustment in the number of shares of Common Stock purchasable upon the exercise
of each Warrant as hereinabove provided, so that each Warrant outstanding after
such adjustment shall represent the right to purchase one share of Common Stock.
Each Warrant held of record and each Warrant issuable upon exercise of the
Representatives' Option prior to such adjustment of the number of Warrants shall
become that number of Warrants or an Representatives' Option to purchase that
number of Warrants (calculated to the nearest tenth) determined by multiplying
the number one by a fraction, the numerator of which shall be the Purchase Price
in effect immediately prior to such

                                     - 12 -

<PAGE>

adjustment and the denominator of which shall be the Purchase Price in effect
immediately after such adjustment. Upon each adjustment of the number of
Warrants pursuant to this Paragraph 9, the Company shall, as promptly as
practicable, cause to be distributed to each Registered Holder of Warrant
Certificates on the date of such adjustment Warrant Certificates evidencing,
subject to Paragraph 10 of this Agreement, the number of additional Warrants to
which such Holder shall be entitled as a result of such adjustment or, at the
option of the Company, cause to be distributed to such Holder in substitution
and replacement for the Warrant Certificates held by him prior to the date of
adjustment (and upon surrender thereof, if required by the Company) new Warrant
Certificates evidencing the number of Warrants to which such Holder shall be
entitled after such adjustment. With respect to the Representative's Option, the
Company shall give the registered holders of the Representative's Option notice
as to the number of Warrants issuable in respect of such Representative's Option
reflecting such adjustment. Any Warrants or notice to registered holders of
Representative's Option may be mailed by the Warrant Agent or by first class
mail, postage prepaid.
                  (j) In case of any reclassification, capital reorganization or
other change of outstanding shares of Common Stock, or in case of any
consolidation or merger of the Company with or into another corporation (other
than a consolidation or merger in which the Company is the continuing
corporation and which does not result in any reclassification, capital
reorganization or other change of outstanding shares of Common Stock), or in
case of any sale or conveyance to another corporation of the property of the
Company as, or substantially as, an entirety (other than a sale/leaseback,
mortgage or other financing transaction), the Company shall cause effective
provision to be made so that each holder of a Warrant then outstanding shall
have the right thereafter, by exercising such Warrant, to purchase the kind and
number of shares of stock or other securities or property (including cash)
receivable upon such reclassification, capital reorganization or other change,
consolidation, merger, sale or conveyance by a holder of the number of shares of
Common Stock that might have been purchased upon exercise of such Warrant
immediately prior to such reclassification, capital reorganization or other
change, consolidation, merger, sale or conveyance. Any such provisions shall
include provision for adjustments that shall be as nearly equivalent as may be
practicable to the adjustments provided for in this Paragraph 9. The Company
shall not effect any such consolidation, merger or sale unless, prior to or
simultaneously with the consummation thereof, the successor (if other than the
Company) resulting from such consolidation or merger or the corporation
purchasing assets or other appropriate corporation or entity shall assume, by
written instrument executed and delivered to the Warrant Agent, the obligation
to deliver to the holder of each Warrant such shares of stock, securities or
assets as, in accordance with the foregoing provisions, such holders may be
entitled

                                     - 13 -

<PAGE>

to purchase and the other obligations under this Agreement. The foregoing
provisions shall similarly apply to successive reclassifications, capital
reorganizations and other changes of outstanding shares of Common Stock and to
successive consolidations, mergers, sales or conveyances. In the event that, as
a result of any merger, consolidation or similar transaction, all of the holders
of Common Stock receive and are entitled to receive no consideration other than
cash in respect of their shares of Common Stock, then, at the effective time of
the transaction, the rights to purchase Common Stock pursuant to the Warrants
shall terminate, and the holders of the Warrants shall, notwithstanding any
other provisions of this Agreement or the Warrants, receive in respect of each
Warrant to purchase one (1) share of Common Stock, upon presentation of the
Warrant Certificate, the amount by which the consideration per share of Common
Stock payable to the holders of Common Stock at such effective time exceeds the
Purchase Price in effect on such effective date, without giving effect to the
transaction. In the event that, subsequent to the effective time, additional
cash or other consideration is payable to the holders of Common Stock of record
as of the effective time, the same consideration shall be payable to the holders
of the Warrants to the extent that the total cash then received by the holders
of Common Stock exceeds the Purchase Price in effect at such effective date,
without giving effect to the transaction, with the same effect as if the
Warrants had been exercised on and as of such effective time. In the event of
any merger, consolidation, sale or lease of substantially all of the Company's
assets or reorganization whereby the Company is not the surviving corporation,
in lieu of the foregoing provisions of this Paragraph 9(j), the Company may
provide in the agreement relating to the transaction that each Warrant shall
become, be converted into or be exchanged for, such securities of the surviving
or acquiring corporation or other entity as has a value equal to the value of
the Warrants (which shall not exceed the amount by which the consideration to be
received per share of Common Stock (valued on such date as the Company's Board
of Directors shall determine) exceeds the exercise price of the Warrant), the
value of the Warrants and securities being issued in exchange therefor to be
determined by the Company's Board of Directors, such determination to be final,
binding and conclusive on the Company and the holders of the Warrants. In the
event that, in such a transaction, the value of the consideration to be received
per share of Common Stock is not greater than the exercise price of the
Warrants, the Warrants shall terminate and no consideration will be paid with
respect thereof.
                  (k) Irrespective of any adjustments or changes in the Purchase
Price or the number of shares of Common Stock purchasable upon exercise of the
Warrants, the Warrant Certificates theretofore and thereafter issued shall,
unless the Company shall exercise its option to issue new Warrant Certificates
pursuant to Paragraphs 2(e) and 9(i) of this Agreement, continue to express the
Purchase Price per share, the number of shares purchasable thereunder

                                     - 14 -

<PAGE>

and the Redemption Price therefor as to the Purchase Price per share, and the
number of shares purchasable and the Redemption Price therefore were expressed
in the Warrant Certificates when the same were originally issued.
                  (l) After any adjustment of the Purchase Price pursuant to
this Paragraph 9, the Company will promptly prepare a certificate signed by the
Chairman, President, Vice President or Treasurer, of the Company setting forth:
(i) the Purchase Price as so adjusted, (ii) the number of shares of Common Stock
purchasable upon exercise of each Warrant after such adjustment, and, if the
Company shall have elected to adjust the number of Warrants, the number of
Warrants to which the registered holder of each Warrant shall then be entitled,
and (iii) a brief statement of the facts accounting for such adjustment. The
Company will promptly file such certificate with the Warrant Agent and cause a
brief summary thereof to be sent by first class mail to each Representative and
to each registered holder of Warrants at his last address as it shall appear on
the registry books of the Warrant Agent. No failure to mail such notice nor any
defect therein or in the mailing thereof shall affect the validity thereof. The
affidavit of an officer of the Warrant Agent or the Secretary or an Assistant
Secretary of the Company that such notice has been mailed shall, in the absence
of fraud, constitute prima facie evidence of the facts stated therein.
                  (m) As used in this Paragraph 9, the term "Common Stock" shall
mean and include the Company's Common Stock authorized on the Effective Date and
shall also include any capital stock of any class of the Company thereafter
authorized which shall not be limited to a fixed sum or percentage in respect of
the rights of the holders thereof to participate in dividends and in the
distribution of assets upon the voluntary liquidation, dissolution or winding up
of the Company; provided, however, that the shares issuable upon exercise of the
Warrants shall include only shares of such class designated in the Company's
Certificate of Incorporation as Common Stock on the Effective Date or, in the
case of any reclassification, change, consolidation, merger, sale or conveyance
of the character referred to in Paragraph 9(j) of this Agreement, the stock,
securities or property provided for in such section or, in the case of any
reclassification or change in the outstanding shares of Common Stock issuable
upon exercise of the Warrants as a result of a subdivision or combination or
consisting of a change in par value, or from par value to no par value, or from
no par value to par value, such shares of Common Stock as so reclassified or
changed.
                  (n) Any determination as to whether an adjustment in the
Purchase Price in effect hereunder is required pursuant to this Paragraph 9, or
as to the amount of any such adjustment, if required, shall be binding upon the
holders of the warrants and the Company if made in good faith by the Board of
Directors of the Company.

                                     - 15 -

<PAGE>

                  (o) In lieu of an adjustment pursuant to Paragraph 9(b) of
this Agreement, if the Company shall grant to the holders of Common Stock, as
such, rights or warrants to subscribe for or to purchase Common Stock or
securities convertible into or exchangeable for or carrying a right or warrant
to purchase Common Stock, the Company may concurrently therewith grant to each
Registered Holder as of the record date for such transaction of the Warrants
then outstanding, the rights or warrants to which each Registered Holder would
have been entitled if, on the record date used to determine the stockholders
entitled to the rights or warrants being granted by the Company, the Registered
Holder were the holder of record of the number of whole shares of Common Stock
then issuable upon exercise of his Warrants. If the Company exercises such right
no adjustment which otherwise might be called for pursuant to said Paragraph
9(b) shall be made.
               10. Fractional Warrants and Fractional Shares. If the number of
shares of Common Stock purchasable upon the exercise of each Warrant is adjusted
pursuant to Paragraph 9 of this Agreement, the Company nevertheless shall not be
required to issue fractions of shares, upon exercise of the Warrants or
otherwise, or to distribute certificates that evidence fractional shares. With
respect to any fraction of a share called for upon any exercise hereof, the
Company, at its option, shall either issue a whole share in lieu of such
fractional share or pay to the Holder an amount in cash equal to such fraction
multiplied by the current market value of such fractional share, determined as
follows:
                  (a) If the Common Stock is listed on the New York or American
Stock Exchange or admitted to unlisted trading privileges on such exchange or
listed for trading on the Nasdaq Stock Market, the current value shall be the
reported last sale price of the Common Stock on such exchange or system on the
last business day prior to the date of exercise of this Warrant, or if no such
sale is made on such day, the average closing bid and asked prices for such day
on such exchange or system; or
                  (b) If the Common Stock is not listed or admitted to unlisted
trading privileges, the current value shall be the last reported bid price
reported by the National Quotation Bureau, Inc. on the last business day prior
to the date of the exercise of this Warrant; or
                  (c) If the Common Stock is not so listed or admitted to
unlisted trading privileges and bid prices are not so reported, the current
value shall be an amount determined in such reasonable manner as may be
prescribed by the Board of Directors of the Company.
               11. Warrant Holders Not Deemed Stockholders. No holder of
Warrants shall, as such, be entitled to vote or to receive dividends or be
deemed the holder of Common Stock that may at any time be issuable upon exercise
of such Warrants for any purpose whatsoever, nor shall anything contained in
this Agreement be construed to confer upon the holder of Warrants, as

                                     - 16 -

<PAGE>

such, any of the rights of a stockholder of the Company or any right to vote for
the election of directors or upon any matter submitted to stockholders at any
meeting thereof, or to give or withhold consent to any corporate action (whether
upon any recapitalization, issue or reclassification of stock, change of par
value or change of stock to no par value, consolidation, merger or conveyance or
otherwise), or to receive notice of meetings, or to receive dividends or
subscription rights, until such Holder shall have exercised such Warrants and
been issued shares of Common Stock in accordance with the provisions hereof
               12. Rights of Action. All rights of action with respect to this
Agreement are vested in the respective Registered Holders of the Warrants, and
any Registered Holder of a Warrant, without consent of the Warrant Agent or of
the holder of any other Warrant, may, in his own behalf and for his own benefit,
enforce against the Company his right to exercise his Warrants for the purchase
of shares of Common Stock in the manner provide in the Warrant Certificate and
this Agreement.
               13. Agreement of Warrant Holders. Every holder of a Warrant, by
his acceptance of the Warrants, consents and agrees with the Company, the
Warrant Agent and every other holder of a Warrant that:
                  (a) The warrants are transferable only on the registry books
of the Warrant Agent by the Registered Holder thereof in person or by his
attorney duly authorized in writing and only if the Warrant Certificates
representing such Warrants are surrendered at the office of the Warrant Agent,
duly endorsed or accompanied by a proper instrument of transfer satisfactory to
the Warrant Agent and the Company in their sole discretion, together with
payment of any applicable transfer taxes; and
                  (b) The Company and the Warrant Agent may deem and treat the
person in whose name the Warrant Certificate is registered as the holder and as
the absolute, true and lawful owner of the Warrants represented thereby for all
purposes, and neither the Company nor the Warrant Agent shall be affected by any
notice or knowledge to the contrary, except as otherwise expressly provided in
Paragraph 6 of this Agreement.
               14. Cancellation of Warrant Certificates. If the Company shall
purchase or acquire any Warrant or Warrants, the Warrant Certificate or Warrant
Certificates evidencing the same shall thereupon be delivered to the Warrant
Agent and canceled by it and retired.
               15. Concerning the Warrant Agent.
                   (a) The Warrant Agent acts hereunder as agent and in a
ministerial capacity for the Company, and its duties shall be determined solely
by the provisions of this Agreement. The Warrant Agent shall not, by issuing and
delivering Warrant Certificates or by any other act hereunder be deemed to make
any representations as to the validity, value or authorization of the

                                     - 17 -

<PAGE>

Warrant Certificates or the Warrants represented thereby or of any securities or
other property delivered upon exercise of any Warrant or whether any stock
issued upon exercise of any Warrant is fully paid and nonassessable.
                  (b) The Warrant Agent shall not at any time be under any duty
or responsibility to any holder of Warrant Certificates to make or cause to be
made any adjustment of the Purchase Price or the Redemption Price provided in
this Agreement, or to determine whether any fact exists which may require any
such adjustments, or with respect to the nature or extent of any such
adjustment, when made, or with respect to the method employed in making the
same. It shall not (i) be liable for any recital or statement of facts contained
herein or for any action taken, suffered or omitted by it in reliance on any
Warrant Certificate or other document or instrument believed by it in good faith
to be genuine and to have been signed or presented by the proper party or
parties, (ii) be responsible for any failure on the part of the Company to
comply with any of its covenants and obligations contained in this Agreement or
in any Warrant Certificate, or (iii) be liable for any act or omission in
connection with this Agreement except for its own negligence or wilful
misconduct.
                  (c) The Warrant Agent may at any time consult with counsel
satisfactory to it (who may be counsel for the Company) and shall incur no
liability or responsibility for any action taken, suffered or omitted by it in
good faith in accordance with the opinion or advice of such counsel.
                  (d) Any notice, statement, instrument, request, direction,
order or demand of the Company shall be sufficiently evidenced by an instrument
signed by the Chairman of the Board, President, any Vice President, its
Secretary, or Assistant Secretary, unless other evidence in respect thereof is
specifically prescribed in this Agreement. The Warrant Agent shall not be liable
for any action taken, suffered or omitted by it in accordance with such notice,
statement, instruction, request, direction, order or demand believed by it to be
genuine.
                  (e) The Company agrees to pay the Warrant Agent reasonable
compensation for its services hereunder and to reimburse it for its reasonable
expenses hereunder; it further agrees to indemnify the Warrant Agent and hold it
harmless against any and all costs and counsel fees, for anything done or
omitted by the Warrant Agent in the execution of its duties and powers hereunder
except losses, expenses and liabilities arising as a result of the Warrant
Agent's negligence or wilful misconduct.
                  (f) The Warrant Agent may resign its duties and be discharged
from all further duties and liabilities hereunder (except liabilities arising as
a result of the Warrant Agent's own negligence or wilful misconduct), after
giving thirty (30) days' prior written notice to the Company. At least fifteen
(15) days prior to the date such resignation is to become effective, the Warrant

                                     - 18 -

<PAGE>

Agent shall cause a copy of such notice of resignation to be mailed to the
Registered Holder of each Warrant Certificate at the Company's expense. Upon
such resignation, or any inability of the Warrant Agent to act as such under
this Agreement, the Company shall appoint a new warrant agent in writing. If the
Company shall fail to make such appointment within a period of fifteen (15) days
after it has been notified in writing of such resignation by the resigning
Warrant Agent, then the Registered Holder of any Warrant Certificate may apply
to any court of competent jurisdiction for the appointment of a new warrant
agent. Any new warrant agent, whether appointed by the Company or by such a
court, shall be a bank or trust company having a capital and surplus, as shown
by its last published report to its stockholders, of not less than $10,000,000
or a stock transfer company. After acceptance in writing of such appointment by
the new warrant agent is received by the Company, such new warrant agent shall
be vested with the same powers, rights, duties and responsibilities as if it had
been originally named herein as the Warrant Agent, without any further
assurance, conveyance, act or deed; but if for any reason, it shall be necessary
or expedient to execute and deliver any further assurance, conveyance, act or
deed, the same shall be done at the expense of the Company and shall be legally
and validly executed and delivered by the resigning Warrant Agent. Not later
than the effective date of any such appointment the Company shall file notice
thereof with the resigning Warrant Agent and shall forthwith cause a copy of
such notice to be mailed to the Registered Holder of each Warrant Certificate.
                  (g) Any corporation into which the Warrant Agent or any new
warrant agent may be converted or merged or any corporation resulting from any
consolidation to which the Warrant Agent or any new warrant agent shall be a
party or any corporation succeeding to the trust business of the Warrant Agent
shall be a successor warrant agent under this Agreement without any further act,
provided that such corporation is eligible for appointment as successor to the
Warrant Agent under the provisions of the preceding paragraph. Any such
successor warrant agent shall promptly cause notice of its succession as warrant
agent to be mailed to the Company and to the Registered Holder of each Warrant
Certificate.
                  (h) The Warrant Agent, its subsidiaries and affiliates, and
any of its or their officers or directors, may buy and hold or sell Warrants or
other securities of the Company and otherwise deal with the Company in the same
manner and to the same extent and with like effects as though it were not
Warrant Agent. Nothing herein shall preclude the Warrant Agent from acting in
any other capacity for the Company or for any other legal entity.
               16. Modification of Agreement. The Warrant Agent and the Company
may, by supplemental agreement, make any changes or corrections in this
Agreement (i) that they shall deem appropriate to cure any ambiguity or to
correct any defective or inconsistent provision or manifest mistake or error
herein contained; or (ii) that they may deem necessary or desirable and

                                     - 19 -

<PAGE>

which shall not adversely affect the interests of the holders of Warrant
Certificates; provided, however, that this Agreement shall not otherwise be
modified, supplemented or altered in any respect except with the consent in
writing of the Registered Holders of Warrant Certificates representing not less
than fifty percent (50%) of the Warrants then outstanding; and provided,
further, that no change in the number or nature of the securities purchasable
upon the exercise of any Warrant, or the Purchase Price therefor, or the
acceleration of the Warrant Expiration Date, shall be made without the consent
in writing of the Registered Holder of the Warrant Certificate representing such
Warrant, other than such changes as are specifically prescribed by this
Agreement as originally executed or are made in compliance with applicable law;
and provided, further, that Paragraphs 4(b) and 4(c) may not be modified or
amended without the consent of the Representatives.
               17. Notices. All notices provided for in this Agreement shall be
in writing signed by the party giving such notice, and, unless otherwise
expressly provided in this Agreement, delivered personally or sent by overnight
courier or messenger against receipt thereof or sent by registered or certified
mail (air mail if overseas), return receipt requested, or by facsimile
transmission or similar means of communication. Notices sent by facsimile
transmission or similar means of communication shall be confirmed by
acknowledged receipt or by registered or certified mail, return receipt
requested. Notices shall be deemed to have been received on the date of personal
delivery or telecopy or, if sent by certified or registered mail, return receipt
requested, shall be deemed to be delivered on the third business day after the
date of mailing. Notices shall be sent to the Registered Holders at their
respective addresses on the Warrant Agent's warrant register, to the Company at
95 Parker Street, Newburyport, MA 01950, telecopier (978) 499-0221, Attention:
Richard F. Noll, President and Chief Executive Officer, and to the Warrant Agent
at its Corporate Office, telecopier (  )          . Either party may, by like
notice, change the address, person or telecopier number to which notice should
be given.
               18. Governing Law. This Agreement shall be governed by and
construed in accordance with the laws of the State of New York applicable to
agreements entered and to be performed wholly within such State, without regard
to principles of conflicts of laws. The parties hereby (a) irrevocably consent
and agree that any legal or equitable action or proceeding arising under or in
connection with this Agreement shall be brought exclusively in any Federal or
state court situated in New York County, New York, (b) irrevocably submit to and
accept, with respect to their respective properties and assets, generally and
unconditionally, the in personam jurisdiction of the aforesaid courts, and (c)
agree that any process in any action commenced in such court under this
Agreement may be served upon such party personally, by certified or registered
mail, return receipt requested, or by overnight courier service which obtains
evidence of delivery, with the

                                     - 20 -

<PAGE>

same full force and effect as if personally served upon such party in New York
City, in addition to any other method of service permitted by law.
               19. Binding Effect. This Agreement shall be binding upon and
inure to the benefit of the Company and, the Warrant Agent and their respective
successors and assigns, and the holders from time to time of Warrant
Certificates. Nothing in this Agreement is intended or shall be construed to
confer upon any other person any right, remedy or claim, in equity or at law, or
to impose upon any other person any duty, liability or obligation.
               20. Termination. This Agreement shall terminate at the close of
business on the Expiration Date of all the Warrants or such earlier date upon
which all Warrants have been exercised, except that the Warrant Agent shall
account to the Company for cash held by it, and the provisions of Paragraph 15
of this Agreement shall survive any such termination.
               21. Counterparts. This Agreement may be executed in several
counterparts, which taken together shall constitute a single document.
               IN WITNESS WHEREOF, the parties hereto have caused this Agreement
to be duly executed as of the date first above written.

                                   ACTIVEWORLDS.COM, INC.

                                   By:_______________________________________
                                         Richard F. Noll, President and CEO

                                   __________________________________________

                                   By:_______________________________
                                                 , Authorized Officer

                                     - 21 -

<PAGE>
                                                                       EXHIBIT A

                      [FORM OF FACE OF WARRANT CERTIFICATE]

No. A-                                                     Warrant to Purchase
                                                               -----------
                                                          Shares of Common Stock

           Void after             , 2005 (or earlier upon redemption).

                              ACTIVEWORLDS.COM, INC

                SERIES B REDEEMABLE COMMON STOCK PURCHASE WARRANT

         This certifies that FOR VALUE RECEIVED                            or
registered assigns (the "Registered Holder") is the owner of the number of
Series B Redeemable Common Stock Purchase Warrants ("Warrants") specified above.
Each Warrant initially entitles the Registered Holder to purchase, subject to
the terms and conditions set forth in this Certificate and the Warrant Agreement
(as hereinafter defined), one (1) fully paid and nonassessable share of Common
Stock, par value $.001 per share ("Common Stock"), of Activeworlds.com, Inc., a
Delaware corporation (the "Company"), at any time during the period commencing
with the issuance of this Warrant and ending on the Expiration Date, as
hereinafter defined, by delivery of this Warrant, with the Subscription Form on
the reverse hereof duly executed, at the corporate office of
                          , as Warrant Agent, or its successor (the "Warrant
Agent"), accompanied by payment of $               , subject to adjustment as
provided in the Warrant Agreement (the "Purchase Price") in lawful money of the
United States of America in cash or by official bank or certified check made
payable to the order of the Company.

         This Warrant Certificate and each Warrant represented hereby are issued
pursuant to and are subject in all respects to the terms and conditions set
forth in the Warrant Agreement (the "Warrant Agreement"), dated as of
      , 2000, by and between the Company and the Warrant Agent.

         In the event of certain contingencies provided for in the Warrant
Agreement, the Purchase Price or the number of shares of Common Stock subject to
purchase upon the exercise of each Warrant represented hereby are subject to
modification or adjustment.

         Each Warrant represented hereby is exercisable at the option of the
Registered Holder, but no fractional shares of Common Stock will be issued. In
the case of the exercise of less than all the Warrants represented hereby, the
Company shall cancel this Warrant Certificate upon the surrender hereof and
shall execute and deliver a new Warrant Certificates or Warrant Certificates of
like tenor, which the Warrant Agent shall countersign, for the balance of such
Warrants.

         The term "Expiration Date" shall mean 5:00 P.M. (New York City time)
on            , 2005 or earlier upon redemption as hereinafter provided. If such
date shall in the State of New York be a holiday or a day on which the banks are
authorized or required to close, then the Expiration Date shall mean 5:00 P.M.
(New York City time) the next following day which in the State of New York is
not a holiday or a day on which banks are authorized or required to close. Under
certain circumstances as provided in the Warrant Agreement, the period during
which the Warrant may be exercised may be extended.

         The Company shall not be obligated to deliver any securities pursuant
to the exercise of this Warrant unless a registration statement under the
Securities Act of 1933, as amended, with respect to such securities is
effective. The Company has covenanted and agreed that it will file a
registration statement and will use its commercially reasonably efforts to cause
the same to become effective and to keep such registration statement current
while any of the Warrants are outstanding. This Warrant shall not be exercisable
by a Registered Holder in any state where such exercise would be unlawful.

         This Warrant Certificate is exchangeable, upon the surrender hereof by
the Registered Holder at the corporate office of the Warrant Agent, for a new
Warrant Certificate or Warrant Certificates of like tenor representing an equal
aggregate number of Warrants, each of such new Warrant Certificates to represent
such number of Warrants as shall

                                       A-1

<PAGE>

be designated by such Registered Holder at the time of such surrender. Upon
payment by the Registered Holder of any tax or other governmental charge imposed
in connection therewith, for registration of transfer of this Warrant
Certificate at such office, a new Warrant Certificate or Warrant Certificates
representing an equal aggregate number of Warrants will be issued to the
transferee in exchange therefor, subject to the limitations provided in the
Warrant Agreement.

         Prior to the exercise of any Warrant represented hereby, the Registered
Holder shall not be entitled to any rights of a stockholder of the Company,
including, without limitation, the right to vote or to receive dividends or
other distributions, and shall not be entitled to receive any notice of any
proceedings of the Company, except as provided in the Warrant Agreement.

         Commencing    , 2000, or earlier as provided in the Warrant Agreement,
this Warrant may be redeemed at the option of the Company, at a redemption price
of $.10 per Warrant at any time, provided the average market price for the
Common Stock issuable upon exercise of such Warrant shall equal or exceed 150%
of the Purchase Price for the twenty day period ending within three days of the
date the Warrants are called for redemption. Notice of redemption shall be given
not earlier than the thirtieth (30th) nor later than the sixtieth (60th) day
before the date fixed for redemption, all as provided in the Warrant Agreement.
On and after 5:00 P.M. (New York City time) on the business day immediately
preceding the date fixed for redemption, the Registered Holder shall have no
rights with respect to this Warrant except to receive the $.10 per Warrant upon
surrender of this Certificate. This Warrant may only be called for redemption
if, on the date the Warrant is called for redemption, the issuance of the shares
of Common Stock upon exercise of this Warrant is subject to a current and
effective registration statement.

         Prior to due presentment for registration of transfer hereof, the
Company and the Warrant Agent may deem and treat the Registered Holder as the
absolute owner hereof and of each Warrant represented hereby (notwithstanding
any notations of ownership or writing hereon made by anyone other than a duly
authorized officer of the Company or the Warrant Agent) for all purposes and
shall not be affected by any notice to the contrary.

         This Warrant Certificate shall be governed by and construed in
accordance with the laws of the State of New York applicable to agreements
executed and to be performed wholly within such State, without regard to
principles of conflicts of laws.

         This Warrant Certificate is not valid unless countersigned by the
Warrant Agent.

         IN WITNESS WHEREOF, the Company has caused this Warrant Certificate to
be duly executed, manually or in facsimile by two of its officers thereunto duly
authorized and a facsimile of its corporate seal to be imprinted hereon.

                                                  ACTIVEWORLDS.COM, INC.

Dated:_____________                               By:_________________________

                                                  By:_________________________

Countersigned:

____________________________                      [Seal]
  as Warrant Agent

By:_______________________________
       Authorized Officer

                                      A-2

<PAGE>
                             ACTIVEWORLDS.COM, INC.

                                SUBSCRIPTION FORM

      To Be Executed by the Registered Holder in Order to Exercise Warrants

         THE UNDERSIGNED REGISTERED HOLDER hereby irrevocably elects to
exercise______________ Warrants represented by this Warrant Certificate to
purchase the securities issuable upon the exercise of such Warrants, and
requests that certificates for such securities shall be issued in the name of

_______________________________________________________________________________

_______________________________________________________________________________

_______________________________________________________________________________

_______________________________________________________________________________
                     (please print or type name and address)

Please insert Social Security
or other identifying number

______________________________

and be delivered to

_______________________________________________________________________________

_______________________________________________________________________________

_______________________________________________________________________________

_______________________________________________________________________________
                     (please print or type name and address)

and if such number of Warrants shall not be all the Warrants evidenced by this
Warrant Certificate, that a new Warrant Certificate for the balance of such
Warrants be registered in the name of, and delivered to, the Registered Holder
at the address stated below.

Date:__________________________     X__________________________________________

                                    ___________________________________________

                                    ___________________________________________

                                    ___________________________________________
                                    Address

                                    ___________________________________________
                                    Taxpayer Identification Number

                                    ___________________________________________
                                    Signature Medallion Guaranteed

                                      A-3

<PAGE>

                                   ASSIGNMENT

       To Be Executed by the Registered Holder in Order to Assign Warrants

         FOR VALUE RECEIVED, ___________________________________________________
hereby sells, assigns and transfers onto

Please insert social security
or other identifying number

_____________________________

_______________________________________________________________________________

_______________________________________________________________________________

_______________________________________________________________________________

_______________________________________________________________________________
                     (please print or type name and address)

______________________________ of the Warrants represented by this Warrant
Certificate, and hereby irrevocably constitutes and appoints _________________

_______________________________________________________________________Attorney
to transfer this Warrant Certificate on the books of the Company, with full
power of substitution in the premises.

Date:________________________________    X_____________________________________
                                            Signature Medallion Guaranteed

                                         ______________________________________

THE SIGNATURE TO THE ASSIGNMENT OR THE SUBSCRIPTION FORM MUST CORRESPOND TO THE
NAME AS WRITTEN UPON THE FACE OF THIS WARRANT CERTIFICATE IN EVERY PARTICULAR,
WITHOUT ALTERATION OR ENLARGEMENT OR ANY CHANGE WHATSOEVER. AND MUST BE
GUARANTEED BY AN ELIGIBLE INSTITUTION (AS DEFINED IN RULE 17Ad-15 UNDER THE
SECURITIES AND EXCHANGE ACT OF 1934) WHICH MAY INCLUDE A COMMERCIAL BANK OR
TRUST COMPANY, SAVINGS ASSOCIATION, CREDIT UNION OR A MEMBER FIRM OF THE
AMERICAN STOCK EXCHANGE, NEW YORK STOCK EXCHANGE, PACIFIC STOCK EXCHANGE OR
MIDWEST STOCK EXCHANGE

                                      A-4

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