Document:

FY2000 10K Ex10.55

Exhibit 10.55

Asset Purchase Agreement

This Asset Purchase Agreement (the "Agreement") is
entered into as of December 8, 2000, by and between JBII Corporation, a Delaware
corporation ("Buyer"), PopMail.com, Inc.
("PopMail"), a Minnesota corporation and IZ.com, Inc., a
Delaware corporation and wholly owned subsidiary of PopMail
("IZ" and together with PopMail, the
"Seller").

RECITALS

IZ conducts a business, which among other things provides content
creation and development for publication on multiple electronic platforms
through the use of the Vignette StoryServer software, both under IZ's own brand
and for clients on a client branded basis (the "IZ Business").
For all purposes of this Agreement, "IZ Business" shall exclude all
the assets and liabilities of PopMail Network, Inc., a Texas company based in
Dallas, Texas and Fan Asylum, Inc., a California company based in San Francisco,
California.  Buyer desires to acquire from Seller, and Seller desires to sell to
Buyer, substantially all of the assets of the IZ Business on the terms and
subject to the conditions set forth in this Agreement.

AGREEMENT

In consideration of the mutual agreements, representations,
warranties and covenants set forth below, Buyer and Seller agree as follows:

1.Definitions.

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

(a)"Affiliate" means with respect
to any Person, a Person directly or indirectly controlling or controlled by or
under common control with such Person.

(b)"Closing" means the
consummation of the transactions contemplated hereby.

(c)"Closing Date" means the date
of the Closing.

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

(e)"Environmental Laws" shall
mean all federal, regional, state, county or local laws, statutes, ordinances,
decisional law, rules, regulations, codes, orders, decrees, directives and
judgments relating to public health or safety, pollution, damage to or
protection of the environment, any environmental contamination or pollution or
threatened contamination or pollution of, or the release or threatened release
of hazardous materials into the environment, whether existing in the past or
present or hereafter enacted, rendered, adopted or promulgated.  Environmental
Laws shall include, but are not limited to, the following laws, and the
regulations promulgated thereunder, as the same may be amended from time to
time:  the Comprehensive Environmental Response Compensation and Liability Act
(42 U.S.C. 9601 et seq.) ("CERCLA"); the Resource
Conservation and Recovery Act (42 U.S.C. 6901 et seq.)
("RCRA"); the Clean Air Act (42 U.S.C. 7401 et
seq.); the Clean Water Act (33 U.S.C. 1251 et seq.); and
state environmental laws.

(f)"GAAP" means generally
accepted accounting principles of the United States of America.

(g)"Governmental Authorizations"
means the permits, authorizations, consents or approvals of any Governmental
Entity which are a condition to the lawful consummation of the transactions
contemplated hereby listed on Schedule 1.1(g) to this Agreement.

(h)"Governmental Entity" means
any court, or any federal, state, municipal or other governmental authority,
department, commission, board, agency or other instrumentality (domestic or
foreign).

(i)"Lien" means any mortgage,
pledge, lien, security interest or agreement, option, covenant, condition,
restriction, encumbrance, lease, conditional sales contract, title retention
device, charge or other third-party claim of any kind.

(j)"Material Adverse Effect" with
respect to a Person means any event, change or effect that is materially adverse
to the condition (financial or otherwise), properties, assets, liabilities,
business, operations or results of operations of such Person and its Affiliates,
taken as a whole.

(k)"Person" means an individual,
corporation, partnership, association, trust, government or political
subdivision or agent or instrumentality thereof, or other entity or
organization.

(l)"Taxes" means all taxes,
however denominated, including any interest, penalties or other additions to tax
that may become payable in respect thereof, (i) imposed by any federal,
territorial, state, local or foreign government or any agency or political
subdivision of any such government, for which Buyer could become liable as
successor to or transferee of the IZ Business or the Purchased Assets or which
could become a charge against or lien on any of the Purchased Assets, which
taxes shall include, without limiting the generality of the foregoing, all sales
and use taxes, ad valorem taxes, excise taxes, business license taxes,
occupation taxes, real and personal property taxes, stamp taxes, environmental
taxes, real property gains taxes, transfer taxes, payroll and employee
withholding taxes, unemployment insurance contributions, social security taxes,
and other governmental charges, and other obligations of the same or of a
similar nature to any of the foregoing, which are required to be paid, withheld
or collected, or (ii) any liability for amounts referred to in (i) as a result
of any obligations to indemnify another person or as a result of being a member
of a consolidated, combined or unitary group.

2.Sale and Purchase

2.1  Transfer of Assets.  Subject to the terms and
conditions of this Agreement, Seller shall sell, assign, grant, transfer, and
deliver (or cause to be sold, assigned, granted, transferred and delivered) to
Buyer, or to any Affiliate of Buyer designated by Buyer, and Buyer shall
purchase and accept from Seller as of the Closing Date, free and clear of all
Liens, all of the Seller's rights, title and interest in and to all of the
assets enumerated below as the same shall exist on the Closing Date (the
"Purchased Assets"): 

(a)all tangible personal property and leases of and other
interests in tangible personal property used in connection with the IZ Business
as set forth on Schedule 2.1(a);

(b)all rights under the contracts, agreements, leases and
other interests in personal property, licenses, commitments, sales and purchase
orders and other instruments, listed on Schedule 2.1(b) (collectively the
"Contracts");

(c)all of the accounts receivable, notes receivable and
other receivables listed on Schedule 2.1(c);

(d)all prepaid expenses relating to the operation of the
IZ Business including, but not limited to Taxes, leases and rentals, and Seller
will use its commercially reasonable best efforts to take all action necessary
with appropriate third parties to transfer such prepaid expenses to Buyer as of
the Closing Date;

(e)all of Seller's rights, claims, credits, causes of
action or rights of set-off against third parties relating to the Purchased
Assets, including, without limitation, unliquidated rights under warranties;

(f)all copyrights, copyright registrations, proprietary
processes, trade secrets, license rights, specifications, technical manuals and
data, drawings, inventions, designs, patents, patent applications, trade names,
trademarks, service marks, product information and data, know-how and
development work-in-progress, customer lists, software, business and marketing
plans and other intellectual or intangible property embodied in or pertaining to
the IZ Business, whether pending, applied for or issued, whether filed in the
United States or in other countries, including without limitation the items
listed in Schedule 2.1(f), together with all associated goodwill;

(g)all things authored, discovered, developed, made,
perfected, improved, designed, engineered, acquired, produced, conceived or
first reduced to practice by Seller or any of its employees or agents that are
embodied in, derived from or otherwise directly related to the IZ Business, in
any stage of development, including, without limitation, modifications,
enhancements, designs, concepts, techniques, methods, ideas, flow charts, coding
sheets, notes and all other information relating to the IZ Business;

(h)any and all design and code documentation,
methodologies, processes, trade secrets, copyrights, design information, product
information, technology, formulae, routines, engineering specifications,
technical manuals and data, drawings, inventions, know-how, techniques,
engineering work papers, and notes, development work-in-process, and other
proprietary information and materials of any kind relating to, used in, or
derived from the Purchased Assets (collectively with subsections (f) and (g),
the "Intellectual Property");

(i)all permits, authorizations, consents and approvals of
any Governmental Entity affecting or relating in any way to the IZ Business,
including without limitation, the items listed on Schedule 2.1(i) (the
"Permits");

(j)all books, records, files and papers, whether in hard
copy or electronic format, used in the IZ Business, including without
limitation, engineering information, sales and promotional literature, manuals
and data, sales and purchase correspondence, lists of present, former and
prospective suppliers or customers, personnel and employment records, and any
information relating to Taxes imposed on the IZ Business or Purchased
Assets;

(k)all computer software programs, data and associated
licenses used in connection with the IZ Business;

(l)all goodwill associated with the IZ Business or the
Purchased Assets, together with the right to represent to third parties that
Buyer is the successor to the IZ Business; and

(m)all subscriber and customer lists associated with the
IZ Business or the Purchased Assets. 

2.2Excluded Assets.  Buyer agrees that notwithstanding any
provision of Section 2.1 the assets of Seller listed on Schedule 2.2 (the
"Excluded Assets") shall be excluded from the Purchased
Assets.

2.3Transfer of Liabilities. Subject to the terms and
conditions of this Agreement, Buyer or an Affiliate of Buyer designated by Buyer
agrees, effective as of the Closing Date, to assume the following liabilities
(the "Assumed Liabilities"):

(a)the liabilities set forth on Schedule 2.3(a) to
the extent set forth thereon; and

(b)the obligations of Seller arising under the Contracts,
other than any and all payment obligations arising or existing under the
Contracts prior to the Closing Date which are identified within 120 days
following the Closing Date.

2.4Excluded Liabilities.  Except for those liabilities
expressly assumed by Buyer or any Affiliate designated by Buyer pursuant to
Section 2.3, Buyer shall not assume and shall not be liable for, and Seller
and its direct or indirect subsidiaries shall retain and remain solely liable
for and obligated to discharge, all of the debts, contracts, agreements,
commitments, obligations and other liabilities of any nature whatsoever of
Seller and its direct and indirect subsidiaries, whether known or unknown,
accrued or not accrued, fixed or contingent, including without limitation, the
following:

(a)Any liability for breaches by Seller or any of its
respective direct or indirect subsidiaries on or prior to the Closing Date of
any contract or any other instrument, contract or purchase order, or any
liability for payments or amounts due under any Contract or any other
instrument, contract or purchase order on or prior to the Closing Date; 

(b)Any liability or obligation for Taxes attributable to
or imposed upon Seller or any of its direct or indirect subsidiaries, or
attributable to or imposed upon the Purchased Assets for any period (or portion
thereof) through and including the Closing Date, including, without limitation,
any Taxes attributable to or arising from the transactions contemplated by this
Agreement;

(c)Any liability or obligation for or in respect of any
loan, other indebtedness for money borrowed, or account payable of Seller or any
of its direct or indirect subsidiaries, including any such liabilities owed to
Affiliates of Seller;

(d)Any liability or obligation arising as a result of any
legal or equitable action or judicial or administrative proceeding initiated at
any time, to the extent relating to any action or omission on or prior to the
Closing Date by or on behalf of Seller or any of its direct or indirect
subsidiaries, including, without limitation, any liability for infringement of
intellectual property rights, breach of product warranty, injury or death caused
by products, or violations of federal or state securities or other laws;

(e)Any liability or obligation arising on or prior to the
Closing Date out of any "employee benefit plan," as such term is
defined by the Employee Retirement Income Security Act of 1974
("ERISA") or other employee benefit plans; 

(f)Any liability or obligation for making payments of any
kind (including as a result of the sale of Purchased Assets or as a result of
the termination of employment by Seller of employees, or other claims arising
out of the terms and conditions of employment with Seller, or for vacation or
severance pay or otherwise) to employees of Seller or in respect of payroll
taxes for employees of Seller; 

(g)Any liability of Seller incurred in connection with
the making or performance of this Agreement and the transactions contemplated
hereby;

(h)Any liability of Seller arising out of the violation
of or failure to comply with any Environmental Laws applicable to any aspect of
the IZ Business; and

(i)Any costs or expenses of Seller incurred in connection
with shutting down, deinstalling and removing equipment not purchased by Buyer,
and the costs associated with all contracts and agreements not assumed by
Buyer.

2.5Consideration.  Subject to the performance by Seller of
all of its obligations under this Agreement (including delivering all documents
required to be delivered) at the Closing, in consideration of the acquisition of
the Purchased Assets under Section 2.1, Buyer agrees (i) to deliver to Seller a
non-interest bearing promissory note (the "Note") in the form
attached hereto as Exhibit A in the stated principal amount of
$2,250,000, subject to adjustment as provided in Section 2.6 (collectively with
the Warrant (as defined below, the "Consideration"); and (ii)
to assume the Assumed Liabilities, and Seller agrees to deliver to Buyer a
warrant to purchase 840,000 shares of PopMail common stock (the
"Warrant") in the form attached hereto as Exhibit B.

2.6Adjustments to Consideration; Certain Third Party
Payments.

(a)In the event that either (i) Buyer makes any
payment to any of the third parties listed on Schedule 2.6(a) due to Seller's
failure to pay amounts due or liabilities incurred under Contracts with these
third parties or (ii) Seller does not transfer all prepaid expenses
relating to the IZ Business to Buyer as of the Closing Date pursuant to
Section 2.1(d) hereof, then Seller shall promptly deliver to Buyer, either
in cash or written evidence acceptable to Buyer of Seller's partial forgiveness
of the Note, an amount equal to 175% of the Damages (as defined in Section 10.2)
attributable to such agreements and/or prepaid expenses, respectively (the
"Consideration Adjustment"). Damages shall include any amounts
paid by Buyer plus attorneys fees and expenses and other expenses and costs
incurred by Buyer that are reasonably related to paying these third parties the
amounts due them by Seller prior to Closing.  In the event Seller elects to pay
such Consideration Adjustment through partial forgiveness of the Note, Buyer and
Seller hereby agree to take all action necessary to amend the principal amount
due under the Note to reflect such Consideration Adjustment.  

(b)In the event Buyer makes any payment in respect of any
Taxes described in Section 6.5 below as a result of Seller's failure to pay such
Taxes when due, Seller shall promptly deliver to Buyer written evidence
acceptable to Buyer of Seller's partial forgiveness of the Note in an amount
equal to the amount of Damages (defined in Section 10.2 below) Buyer incurs
in respect of such Taxes, and Buyer and Seller hereby agree to take all action
necessary to amend the principal amount due under the Note to reflect such
forgiveness.

(c)In the event Seller fails to include the shares of
PopMail common stock purchased or purchasable by Buyer upon the exercise of the
Warrant in the first registration statement covering PopMail's stock filed by
the Company subsequent to November 30, 2000 under the Securities Act of 1933, as
amended (other than any registration statement on Form S-4, S-8 or any other
similarly inappropriate form, or any successor forms thereto, but including,
without limitation, the registration statement on Form S-3 that PopMail was
preparing as of November 30, 2000), Seller shall promptly deliver to Buyer
written evidence acceptable to Buyer of Seller's partial forgiveness of the Note
in an amount such that the Consideration (not taking into account any other
adjustments that may also be made pursuant to this Section 2.6) shall equal One
Million Five Hundred Thousand Dollars ($1,500,000.00), and Buyer and Seller
hereby agree to take all action necessary to amend the principal amount due
under the Note to reflect such forgiveness.

(d)Seller agrees to remit to Buyer in cash within 10
business days after the Closing Date, the amount of Seller's deferred revenue
attributable to the IZ Business as of the Closing Date determined in accordance
with GAAP.

2.7Allocation of Consideration.  The Consideration shall be
allocated among the Purchased Assets and other expenses as provided in
Exhibit C prepared by Buyer for purposes of complying with
the requirements of Section 1060 of the Code and the regulations thereunder.
Buyer and Seller agree to each prepare and file on a timely basis with the
Internal Revenue Service (and applicable state tax authorities) substantially
identical and supplemental Internal Revenue Service Forms 8594 (and
corresponding state tax forms) consistent with Buyer's reasonable and lawful
allocation of the Consideration and which gives effect to any Consideration
Adjustment or the actual dates on which payment is made under the Note.  If any
Tax authority challenges such allocation, the party receiving notice of such
challenge shall give the other prompt written notice thereof and the parties
shall cooperate in order to preserve the effectiveness of such allocation.

3.Closing

3.1  Closing.  Subject to the terms and conditions
of this Agreement, the Closing shall take place on such date, as soon as
practicable after all conditions precedent in Sections 8 and 9 have been
satisfied or waived, as the parties may agree, but in any case, no later than
December 8, 2000 (the "Closing Date").

3.2  Actions at the Closing.  At the Closing, Seller shall
deliver the Purchased Assets to Buyer, Buyer shall deliver the Consideration to
Seller, and Buyer and Seller shall take such actions and execute and deliver
such agreements, bills of sale, and other instruments and documents as necessary
or appropriate to effect the transactions contemplated by this Agreement in
accordance with its terms, including without limitation the following:

(a)Bill of Sale; Assignment and Assumption
Agreement.  Seller shall deliver to Buyer a general Bill of Sale
substantially in the form attached as Exhibit D and with respect
to each Contract, or item of Intellectual Property, an Assignment and Assumption
Agreement substantially in the form attached as Exhibit E (the
"Transfer Documents") in each case duly executed by Seller, and
in the aggregate assigning to Buyer all of Seller's right, title and interest in
and to the Purchased Assets.  Buyer may designate one or more of its Affiliates
as the recipient of certain of the Purchased Assets, and as the party to assume
certain of the Assumed Liabilities, in which case Seller shall transfer such
Purchased Assets and Assumed Liabilities to Buyer or the Affiliate(s) designated
by Buyer pursuant to such Transfer Documents.  

(b)Consideration.  Buyer shall deliver the
Consideration to Seller.

(c)Title.  Seller shall provide reasonable
evidence of valid title to such of the Purchased Assets as Buyer may reasonably
request in writing prior to the Closing, in form and substance reasonably
satisfactory to Buyer.

(d)Third Party Consents and Assignments.
Seller shall deliver to Buyer any assignments, and any required consents to
assignment, that it has obtained in respect of the Contracts, duly executed by
parties having the authority to so assign or consent to assign, in form and
substance as Buyer shall reasonably request, as well as a written confirmation
from such third parties that the Contracts are in good standing.

(e)Seller Documents.  At the Closing,
Seller shall deliver to Buyer any and all documents required to satisfy the
conditions set forth in Section 9 of this Agreement and any other closing
documents reasonably requested by Buyer.

(f)Buyer Documents.  At the Closing, Buyer
shall deliver to Seller any and all documents required to satisfy the conditions
set forth in Section 8 of this Agreement and any other closing documents
reasonably requested by Seller.

(g)Post-Closing Actions.  Subsequent to the
Closing Date, Seller shall, and shall cause any Affiliate of Seller to, from
time to time execute and deliver, upon the request of Buyer, all such other and
further materials and documents and instruments of conveyance, transfer or
assignment as may reasonably be requested by Buyer to effect, record or verify
the transfer to and vesting in Buyer of Seller's and any of Seller's Affiliates'
right, title and interest in and to the Purchased Assets, free and clear of all
Liens in accordance with the terms of this Agreement.

4.Representations and Warranties of
Seller.

Each representation and warranty set forth below is qualified by any
exception or disclosures set forth in the Seller Disclosure Schedule attached
hereto, which exceptions specifically reference the Section(s) to be qualified.
In all other respects, each representation and warranty set out in this Section
4 is not qualified in any way whatsoever, will not merge on Closing or by reason
of the execution and delivery of any agreement, document or instrument at the
Closing, will remain in force on and after the Closing Date, is given with the
intention that liability is not confined to breaches discovered before Closing,
is separate and independent and is not limited by reference to any other
representation or warranty or any other provision of this Agreement, and is made
and given with the intention of inducing the Buyer to enter into this Agreement.
Seller represents and warrants to Buyer as follows:

4.1Organization, Standing and Power.  Seller is a
corporation duly organized, validly existing and in good standing under the laws
of its jurisdiction of organization. Seller has the requisite corporate power
and authority and all necessary permits, authorizations, consents, and approvals
of all Governmental Entities to own, lease and operate its properties and to
carry on the IZ Business as now being conducted and as proposed to be conducted,
except where the failure to have such power, authority and governmental
approvals would not, individually or in the aggregate, have a Material Adverse
Effect on the IZ Business. Seller is duly qualified or licensed as a foreign
corporation to do business, and is in good standing, in each jurisdiction where
the character of the properties owned, leased or operated by it or the nature of
its business makes such qualification or licensing necessary, except for
failures to be so qualified or licensed and in good standing that would not,
individually or in the aggregate, have a Material Adverse Effect on the IZ
Business.

4.2Authority.  The execution and delivery of this Agreement
(and all other agreements and instruments contemplated under this Agreement) by
Seller, the performance by Seller of its obligations hereunder and thereunder,
and the consummation by Seller of the transactions contemplated hereby and
thereby have been duly authorized by all necessary action by the Board of
Directors and shareholders of Seller, and no other act or proceeding on the part
of or on behalf of Seller or its shareholders is necessary to approve the
execution and delivery of this Agreement and such other agreements and
instruments, the performance by Seller of its obligations hereunder and
thereunder and the consummation of the transactions contemplated hereby and
thereby.  The signatory officers of Seller have the power and authority to
execute and deliver this Agreement and all of the other agreements and
instruments to be executed and delivered by Seller pursuant hereto, to
consummate the transactions hereby and thereby contemplated and to take all
other actions required to be taken by Seller pursuant to the provisions hereof
and thereof.

4.3Execution and Binding Effect.  This Agreement has been
duly and validly executed and delivered by Seller and constitutes, and the other
agreements and instruments to be executed and delivered by Seller pursuant
hereto, upon their execution and delivery by Seller, will constitute (assuming,
in each case, the due and valid authorization, execution and delivery thereof by
Buyer), legal, valid and binding agreements of Seller, enforceable against
Seller in accordance with their respective terms.

4.4Consents and Approvals of Governmental Entities. Other
than the Governmental Authorizations, there is no requirement applicable to
Seller to make any filing, declaration or registration with, or to obtain any
permit, authorization, consent or approval of, any Governmental Entity as a
condition to the lawful consummation by Seller of the transactions contemplated
by this Agreement and the other agreements and instruments to be executed and
delivered by Seller pursuant hereto or the consummation by Seller of the
transactions contemplated herein or therein.

4.5No Violation.  Neither the execution, delivery and
performance of this Agreement and all of the other agreements and instruments to
be executed and delivered pursuant hereto, nor the consummation of the
transactions contemplated hereby or thereby, will, with or without the passage
of time or the delivery of notice or both, (a) conflict with, violate or
result in any breach of the terms, conditions or provisions of the Articles of
Incorporation or Bylaws of Seller, (b) conflict with or result in a
violation or breach of, or constitute a default or require consent of any Person
(or give rise to any right of termination, cancellation or acceleration) under,
any of the terms, conditions or provisions of any contract, notice, bond,
mortgage, indenture, license, franchise, permit, agreement, lease or other
instrument or obligation to which Seller is a party or by which Seller or any of
the Purchased Assets may be bound, (c) violate any statute, ordinance or
law or any rule, regulation, order, writ, injunction or decree of any
Governmental Entity applicable to Seller or by which any properties or assets of
Seller may be bound, or (d) result in any cancellation of, or obligation to
repay, any grant, loan or other financial assistance received by Seller from any
Governmental Entity.  No "bulk sales" legislation applies to the
transactions contemplated by this Agreement.

4.6Consents.  Schedule 4.6 sets forth each
agreement, contract or other instrument binding upon Seller requiring a consent
as a result of the execution, delivery and performance of this Agreement or the
consummation of the transactions contemplated hereby, except such consents as
would not, individually or in the aggregate, have a Material Adverse Effect if
not received by the Closing Date (each a "Required
Consent").

4.7Financial Statements.  The Seller has made available to
Buyer the audited consolidated financial statements of PopMail (including
balance sheet, income statement and statement of cash flows) as of January 2,
2000, for the fiscal year then ended together with the consolidated financial
statements of PopMail contained in PopMail's Quarterly Reports on Form 10-Q for
fiscal year 2001 filed with the Securities and Exchange Commission
(collectively, the "Financial Statements").  The Financial
Statements have been prepared in accordance with generally accepted accounting
principles applied on a consistent basis throughout the periods indicated.  The
Financial Statements fairly present the financial condition and operating
results of the Seller as of the dates, and for the periods, indicated therein,
subject, in the case of interim financial statements, to normal year-end audit
adjustments. Except as set forth in the Financial Statements, the Seller has no
material liabilities, contingent or otherwise, other than (i) liabilities
incurred in the ordinary course of business subsequent to October 1, 2000
and (ii) obligations under contracts and commitments incurred in the
ordinary course of business and not required under generally accepted accounting
principles to be reflected in the Financial Statements, which, in both cases,
individually or in the aggregate are not material to the financial condition or
operating results of the Seller.

4.8Absence of Certain Changes.  Since November 1, 2000
Seller has conducted the IZ Business in the ordinary course consistent with past
practice and Seller:  

(a)has not created, incurred or assumed (i) any
borrowings under capital leases, or (ii) any obligation which in any
material way affect the IZ Business, the Purchased Assets or Buyer's ability to
conduct the IZ Business in substantially the same manner and condition as
conducted by Seller on the date of this Agreement;

(b)has not changed in any manner the compensation of, or
agreed to provide additional benefits to, or enter into any employment agreement
with, any Employee (as defined in Section 7.1);

(c)has maintained insurance coverage in amounts adequate
to cover the reasonably anticipated risks of the business conducted with the
Purchased Assets;

(d)has not acquired or agreed to acquire by merging or
consolidating with, or by purchasing any assets or equity securities of, or by
any other manner, any business or any corporation, partnership, association or
other business organization or division thereof, or otherwise acquire or agree
to acquire any assets which are material, individually or in the aggregate, to
the IZ Business;

(e)has not sold, disposed of or encumbered any of the
Purchased Assets or licensed any Purchased Assets to any Person except for the
sale of Inventory in the normal course of business consistent with past
practice;

(f)has not engaged in any special promotion, which
promotes the sale of Inventory with highly discounted terms;

(g) has not entered into any agreements or commitments
relating to the business conducted with the Purchased Assets, except on
commercially reasonable terms in the ordinary course of business;

(h)has complied in all material respects with all laws
and regulations applicable to the IZ Business;

(i)has not entered into any agreement with any third
party for the distribution of any of the Purchased Assets;

(j)has not changed or announced any change to the
products or services sold by the IZ Business except with Buyer's written consent
or at Buyer's request;

(k)has not violated, amended or otherwise change in any
way the terms of any of the Contracts;

(l)has not commenced a lawsuit related to or involving
the Purchased Assets other than (i) for the routine collection of bills; or (ii)
for a breach of this Agreement;

(m)has not assigned, sold or otherwise conveyed to any
third party, any of its accounts receivable prior to the Closing Date; or

(n)made any agreement to do any of the foregoing.

4.9  Assets Generally.

(a)The Purchased Assets include all properties, tangible
and intangible, and only such properties, currently used by Seller in operating
the IZ Business and necessary for Buyer to operate the IZ Business after the
Closing Date in a manner substantially equivalent to the manner in which Seller
has operated the IZ Business  prior to and through the Closing Date. Other than
the Required Consents and the Governmental Approvals, no licenses or other
consents from, or payments to, any other Person are or will be necessary for
Buyer to operate the IZ Business and use the Purchased Assets in the manner in
which Seller has operated the same.

(b)Seller holds good and marketable title, license to or
leasehold interest in  all of the Purchased Assets and has the complete and
unrestricted power and the unqualified right to sell, assign and deliver the
Purchased Assets to Buyer.  Upon consummation of the transactions contemplated
by this Agreement, Buyer will acquire good and marketable title, license or
leasehold interest to the Purchased Assets free and clear of any Liens and there
exists no restriction on the use or transfer of the Purchased Assets, except as
may be assumed hereunder by Buyer as an Assumed Liability.  No Person other than
Seller has any right or interest in the Purchased Assets, including the right to
grant interests in the Purchased Assets to third parties, except for Purchased
Assets licensed or leased from third parties which are set forth in the Seller
Disclosure Schedule and identified as such.

(c)Except as provided in this Agreement, no restrictions
will exist on Buyer's right to sell, resell, license or sublicense any of the
Purchased Assets or engage in the IZ Business, nor will any such restrictions be
imposed on Buyer as a consequence of the transactions contemplated by this
Agreement or by any agreement referenced in this Agreement.

(d)All of the Purchased Assets are in good operating
condition and repair, as required for their use in the IZ Business as presently
conducted, and conform to all applicable laws, and no notice of any violation of
any law relating to any of the Purchased Assets or Assumed Liabilities has been
received by Seller.

4.10Intellectual Property.

(a)The execution, delivery and performance of this
Agreement and the consummation of the transactions contemplated hereby
(including without limitation the continued conduct by Buyer after the Closing
Date of the IZ Business as presently conducted by Seller and the incorporation
of any Intellectual Property in any product of Buyer or an affiliate of Buyer)
will not breach, violate or conflict with any instrument or agreement governing
any Intellectual Property necessary or required for, or used in, the conduct of
the IZ Business as presently conducted and will not cause the forfeiture or
termination or give rise to a right of forfeiture or termination of any such
Intellectual Property or in any material way impair the right of Buyer or any of
its Affiliates to use, sell, license or dispose of, or to bring any action for
the infringement of, any such Intellectual Property or portion thereof;

(b)Neither the development, manufacture, marketing,
license, sale or use of any product or Intellectual Property currently licensed,
used or sold by Seller or currently under development violates or will violate
any license or agreement to which Seller is a party or infringes or will
infringe any copyright, patent, trademark, service mark, trade secret or other
intellectual property or other proprietary right of any other party.  All
registered trademarks, service marks, patents and copyrights held by Seller are
valid and subsisting.  There is no pending or threatened claim or litigation
contesting the validity, ownership or right to use, sell, license or dispose of
any of the Purchased Assets (including without limitation the Intellectual
Property) necessary or required for, or used in, the conduct of the business of
Seller as presently conducted nor is there any basis for any such claim, nor has
Seller received any notice asserting that any such Purchased Asset (including
without limitation the Intellectual Property) or the proposed use, sale, license
or disposition thereof conflicts or will conflict with the rights of any other
party, nor is there any basis for any such assertion.  To the best of Seller's
knowledge, there is no unauthorized use, infringement or misappropriation on the
part of any third party of the Purchased Assets (including without limitation
the Intellectual Property); and

(c)Seller has taken reasonable steps (including, without
limitation, entering into confidentiality and non-disclosure agreements with all
officers and employees of and consultants to Seller with access to or knowledge
of the Purchased Assets (including without limitation the Intellectual
Property)) to maintain the secrecy and confidentiality of, and its proprietary
rights in, the Purchased Assets (including without limitation the Intellectual
Property) necessary or required for, or used in, the conduct of the business of
Seller as presently conducted.  The Seller Disclosure Schedule contains a
complete and accurate list of all applications, filings and other formal actions
made or taken pursuant to federal, state, local and foreign laws by Seller to
perfect or protect its interest in the Purchased Assets, including, without
limitation, all patents, patent applications, trademarks, trademark
applications, service marks and copyright or mask work registrations.

(d)All fees to maintain Seller's rights in the
Intellectual Property, including, without limitation, patent and trademark
registration and prosecution fees and all professional fees in connection
therewith pertaining to the Intellectual Property due and payable on or before
the Closing Date, have been paid by Seller or will be paid by Seller within a
reasonable period after the Closing.

4.11Supply Agreements.  

(a)The only obligations of Seller to deliver or supply
products or services are identified in Schedule 2.1(b) as Co-publishing
or Content Agreements (such agreements, as supplemented below, are referred to
collectively as the "Supply Agreements").  Seller has provided
a true and complete copy of all Supply Agreements to Buyer.  All such Supply
Agreements are in full force and effect and are valid and effective in
accordance with their respective terms against Seller, as the case may be, and
against the other party thereto.  Seller holds right, title and interest under
the terms of each Supply Agreement free of all Liens.  Seller is not in default
under any such Supply Agreements (or has caused an event which with notice or
lapse of time, or both, would constitute a default), nor, to the best of
Seller's knowledge, is the other party thereto in default (or has caused an
event which with notice or lapse of time, or both, would constitute a default)
under any such Supply Agreements.

(b)Seller has not entered into any agreement under which
Seller is restricted from selling, licensing or otherwise distributing any
products or services to any class of customers, in any geographic area, during
any period of time or in any segment of the market.

(c)After the Closing, Buyer will not be prevented by any
act of Seller from changing prices charged to existing or future customers of
any products or services.

(d)Seller has not granted any third party the right to
supply any products or services of the IZ Business to any other third party.  No
agreement for supply of the products or services by Seller obligates Seller, and
no agreement would obligate Buyer after the Closing Date, to provide any change
in specification of such products or services or to provide new products or
services.  No agreement pursuant to which Seller has licensed the use of any
products to any third party obligates Seller to provide any change in
specification in the performance of such products or to provide new products or
services.

4.12Warranties and Indemnities.  The Seller Disclosure
Schedule sets forth a summary of all warranties and indemnities, express or
implied, relating to products sold or services rendered by Seller, and no
warranty or indemnity has been given by Seller which is not listed on the Seller
Disclosure Schedule or which differs therefrom in any respect.  Seller is in
compliance with all warranties described in the Seller Disclosure Schedule.  The
Seller Disclosure Schedule also indicates all warranty and indemnity claims
currently pending against Seller.

4.13Accounts Receivable.  All accounts receivable, notes
receivable and other receivables included in the Purchased Assets are valid,
genuine and fully collectible in the aggregate amount thereof, net of Seller's
allowances for doubtful accounts attributable to the IZ Business determined in
accordance with GAAP.

4.14Licenses and Permits. Seller holds all consents,
approvals, registrations, certifications, authorizations, permits and licenses
of, and has made all filings with, or notifications to, all Governmental
Entities pursuant to applicable requirements of all federal, state, local and
foreign laws, ordinances, governmental rules or regulations applicable to the
business, including, but not limited to, all such laws, ordinances, governmental
rules or regulations relating to registration of the products of the IZ Business
(at their current level of development and use) and certification of the
facilities of the IZ Business, except where the failure to hold any such
consent, approval, registration, certification, authorization, permit or license
of, or make any filing with, or notification to, any Governmental Entity would
not have a Material Adverse Effect on the IZ Business.  The IZ Business is in
compliance with all federal, state, local and foreign laws, ordinances,
governmental rules and regulations relating to the products manufactured by the
IZ Business or otherwise related to the IZ Business, except where the failure to
comply with any such federal, state, local or foreign law, ordinance,
governmental rule or regulation would not have a Material Adverse Effect on the
IZ business, and Seller has no reason to believe that any consents, approvals,
authorizations, registrations, certifications, permits, filings or notifications
that it has received or made to operate the IZ Business are invalid or have been
or are being suspended, canceled, revoked or questioned.  There is no
investigation or inquiry to which Seller is a party or, to Seller's knowledge,
pending or threatened, relating to the IZ Business and its compliance with
applicable foreign, state, local or foreign laws, ordinances, governmental rules
or regulations.  Each such consent, approval, registration, certification,
authorization, permit or license is transferable and shall be transferred to
Buyer in accordance with the terms of this Agreement.

4.15Employees.

(a)Schedule 4.15 sets forth the names and job
titles of all of the Employees.  All employees, consultants, officers, directors
and shareholders of Seller or any Seller subsidiary that have had access to the
Purchased Assets are parties to a written agreement (a "Confidentiality
Agreement"), under which each such person or entity (i) is
obligated to disclose and transfer to Seller, without the receipt by such person
of any additional value therefor (other than normal salary or fees for
consulting services), all inventions, developments and discoveries which, during
the period of employment with or performance of services for Seller, he or she
makes or conceives of either solely or jointly with others, that relate to any
subject matter with which his or her work for Seller may be concerned, or relate
to or are connected with the IZ Business, products or projects of Seller, or
involve the use of the time, material or facilities of Seller, and (ii) is
obligated to maintain the confidentiality of proprietary information of Seller.
None of Seller's employees, consultants, officers or directors is obligated
under any contract (including licenses, covenants or commitments of any nature)
or other agreement, or to the best of Seller's knowledge subject to any
judgment, decree or order of any court or administrative agency, that would
conflict with their obligation to promote the interests of Seller with regard to
the IZ Business or the Purchased Assets or that would conflict with the IZ
Business or the Purchased Assets.  Neither the carrying on of the IZ Business by
its employees and consultants, nor to the best of Seller's knowledge the
execution or the delivery of this Agreement, will conflict with or result in a
breach of the terms, conditions or provisions of, or constitute a default under,
any contract, covenant or instrument under which any of such persons or entities
are now obligated.  It is currently not necessary nor will it be necessary for
Seller to utilize in the IZ Business any inventions of any of such persons or
entities (or people it currently intends to hire) made or owned prior to their
employment by or affiliation with Seller, nor is it or will it be necessary to
utilize any other assets or rights of any such persons or entities (or people it
currently intends to hire) made or owned prior to their employment with or
engagement by Seller, in violation of any registered patents, trade names,
trademarks or copyrights or any other limitations or restrictions to which any
such persons or entity is a party or to which any of such assets or rights may
be subject.  To the Seller's knowledge, none of Seller's employees, consultants,
officers, directors or shareholders that has had knowledge or access to
information relating to the Purchased Assets has taken, removed or made use of
any proprietary documentation, manuals, products, materials, or any other
tangible item from his or her previous employer relating to the Purchased Assets
by such previous employer which has resulted in Seller's access to or use of
such proprietary items included in the Purchased Assets, and Seller will not
gain access to or make use of any such proprietary items in the IZ Business,
except to the extent that any such activities would not have a material adverse
effect on the Purchased Assets or the IZ Business.

(b)Except for the Confidentiality Agreement, there are no
written or oral contracts of employment between Seller and any Employee.

(c)Seller is not a party to any collective bargaining
agreement covering any employee and Seller knows of no effort to organize any of
its employees as a part of any collective bargaining unit.  Seller's employees
are not members of a trade union certified as a bargaining agent with the Seller
and, to the best of Seller's knowledge, no proceedings to implement any such
certifications are pending.

4.16Employee Benefit and Compensation Plans.  Buyer will
incur no liability with respect to, or on account of, and Seller will retain any
liability for, and on account of, any employee benefit plan of Seller, any of
its Affiliates or any predecessor employer of any employee, including, but not
limited to, liabilities Seller may have to such employees under all employee
benefit schemes, incentive compensation plans, bonus plans, pension and
retirement plans, profit-sharing plans (including any profit-sharing plan with a
cash-or-deferred arrangement) share purchase and option plans, savings and
similar plans, medical, dental, travel, accident, life, disability and other
insurance and other plans or arrangements, whether written or oral and whether
"qualified" or "non-qualified," or to any employee as a
result of termination of employment by Seller as contemplated by this Agreement
(including any liabilities under the Consolidated Omnibus Budget Reconciliation
Act ("COBRA")).  Seller has not, with respect to any employee,
maintained or contributed to, or been obligated or required to contribute to,
any retirement or pension plan or any employee benefit plan.  The Seller has
complied with all of its obligations (including obligations to make
contributions) in respect of the retirement or pension funds of which its
employees are beneficiaries, there is no outstanding liability of the Seller or
any of its Affiliates to any such funds and all such funds are fully funded to
meet all potential claims for benefits by any and all such employees and any
former employee.  

4.17Taxes.  All Taxes have been or will be paid by
Seller which are due or properly accrued with respect to all periods (or
portions thereof) prior to and including the Closing Date, and at the request of
Buyer, Seller shall provide Buyer with proof of such payment.  Seller and any
other person required to file returns or reports of Taxes have duly and timely
filed (or will file prior to the Closing Date) all returns and reports of Taxes
required to be filed prior to such date, and all such returns and reports are
true, correct, and complete.  There are no liens for Taxes on any of the
Purchased Assets.  Seller has complied with all record keeping and tax reporting
obligations relating to income and employment taxes due with respect to
compensation paid to employees or independent contractors providing services to
the IZ Business.  Seller is not a "foreign person" within the meaning
of Section 1445(f)(3) of the Code.  There are no pending or, to Seller's
knowledge, threatened proceedings with respect to Taxes, and there are no
outstanding waivers or extensions of statutes of limitations with respect to
assessments of  Taxes.  No agreement or arrangement regarding compensation of
any employee providing services to the IZ Business provides for any payments
which could result in a nondeductible expense to the Buyer pursuant to
Section 280G of the Code or an excise tax to the recipient of such payment
pursuant to Section 4999 of the Code.

 4.18Compliance with Law.  The operation of the IZ Business
has been conducted in all material respects in accordance with all applicable
laws, regulations and other requirements of Governmental Entities having
jurisdiction over the same.

4.19Material Contracts.

(a)Schedule 2.1(b) contains a list of all Contracts which
are material to the Business.

(b)Except as would not, individually or in the aggregate,
have a Material Adverse Effect on the IZ Business, each Contract is a legal,
valid and binding agreement, and none of the Contracts is in default by its
terms or has been canceled by the other party; Seller is not in receipt of any
claim of default under any such Contract; and Seller does not anticipate any
termination or change to, or receipt of a proposal with respect to, any such
Contract as a result of the transactions contemplated hereby.  Seller has
furnished Buyer with true and complete copies of all such Contracts together
with all amendments, waivers or other changes thereto.  

4.20Litigation; Other Claims.

(a)There are no claims, actions, suits, inquiries,
proceedings, or investigations against Seller, or any of its officers, directors
or shareholders, relating to the IZ Business, the Purchased Assets or Seller's
employees which are currently pending or, to the best of Seller's knowledge,
threatened, at law or in equity or before or by any Governmental Entity, or
which challenges or seeks to prevent, enjoin, alter or materially delay any of
the transactions contemplated hereby, nor is Seller aware of any basis for such
claims, actions, suits, inquiries, proceedings, or investigations; and no
Governmental Entity has at any time challenged or questioned the legal right of
Seller to manufacture, offer or sell any of its products or services in the
present manner or style thereof.

(b)There are no grievance or arbitration proceedings
pending or threatened, and there are no actual or threatened strikes or work
stoppages with respect to the IZ Business, the Purchased Assets or Seller's
employees, nor is Seller aware of any basis for such proceedings or events.

4.21Defaults.  Seller is not in default under or with
respect to any judgment, order, writ, injunction or decree of any court or any
Governmental Entity which could reasonably be expected to have a Material
Adverse Effect on the IZ Business or any of the Purchased Assets.  There does
not exist any default by Seller or by any other Person, or event that, with
notice or lapse of time, or both, would constitute a default under any agreement
entered into by Seller as part of the operations of the IZ Business which could
reasonably be expected to have a Material Adverse Effect on the IZ Business or
the Purchased Assets, and no notices of breach thereof have been received by
Seller.

4.22Schedules.  The schedules describing the Purchased
Assets are complete and accurate and describe the assets in the possession of,
or used by Seller in connection with the IZ Business.  The property listed in
such Schedules constitutes all of the tangible and intangible property necessary
for the conduct by Seller of the IZ Business.

4.23Full Disclosure.  Seller is not aware of any facts
pertaining to the Purchased Assets which affect the IZ Business or the Purchased
Assets in a materially adverse manner or which will in the future affect the IZ
Business or the Purchased Assets in a materially adverse manner.  Neither this
Agreement nor any other agreement, exhibit, schedule or officer's certificate
being entered into or delivered pursuant to this Agreement contains any untrue
statement of a material fact or omits to state any material fact necessary in
order to make the statements contained in such document not misleading.

4.24Brokers and Finders.  Neither Seller nor any of its
officers, directors or employees has employed any broker or finder or incurred
any liability for any brokerage fee, commission or finder's fee in connection
with the transactions contemplated by this Agreement.

4.25Fair Consideration; No Fraudulent Conveyance.  The sale
of the Purchased Assets pursuant to this Agreement is made in exchange for fair
and equivalent consideration.  Seller is not now insolvent and will not be
rendered insolvent by the sale, transfer and assignment of the Purchased Assets
pursuant to the terms of this Agreement.  Seller is not entering into this
Agreement or any of the other agreements referenced in this Agreement with the
intent to defraud, delay or hinder its creditors and the consummation of the
transactions contemplated by this Agreement, and the other agreements referenced
in this Agreement, will not have any such effect.  The transactions contemplated
in this Agreement or any agreements referenced in this Agreement will not
constitute a fraudulent conveyance, or otherwise give rise to any right of any
creditor of Seller to any of the Purchased Assets after the Closing.

4.26Insurance.  The Seller Disclosure Schedule lists all
insurance policies and fidelity bonds covering the Purchased Assets.  There is
no claim by Seller pending under any of such policies or bonds as to which
coverage has been questioned, denied or disputed by the underwriters of such
policies and bonds.  All premiums due and payable under all such policies and
bonds have been paid and Seller is otherwise in material compliance with the
terms of such policies and bonds (or other policies and bonds providing
substantially similar insurance coverage).  There is no threatened termination
of, or material premium increase with respect to, any of such policies.

5.Representations and Warranties of Buyer

Buyer represents and warrants to Seller as follows:

5.1Organization.  Buyer is a corporation duly formed and
validly existing under the laws of Delaware and has full corporate power and
authority and the legal right to execute and deliver this Agreement and all of
the other agreements and instruments to be executed and delivered by Buyer
pursuant hereto, and to consummate the transactions contemplated hereby and
thereby.

5.2Authority.  The execution and delivery of this Agreement
(and all other agreements and instruments contemplated hereunder) by Buyer, the
performance by Buyer of its obligations hereunder and thereunder, and the
consummation by Buyer of the transactions contemplated hereby and thereby have
been duly authorized by all necessary action by the Board of Directors of Buyer,
and no other act or proceeding on the part of Buyer or its shareholders is
necessary to approve the execution and delivery of this Agreement and such other
agreements and instruments, the performance by Buyer of its obligations
hereunder and thereunder and the consummation of the transactions contemplated
hereby and thereby.  The signatory officers of Buyer have the power and
authority to execute and deliver this Agreement and all of the other agreements
and instruments to be executed and delivered by Buyer pursuant hereto, to
consummate the transactions hereby and thereby contemplated and to take all
other actions required to be taken by Buyer pursuant to the provisions hereof
and thereof.

5.3Execution and Binding Effect.  This Agreement and the
Note have been duly and validly executed and delivered by Buyer and constitutes,
and the other agreements and instruments to be executed and delivered by Buyer
pursuant hereto, upon their execution and delivery by Buyer, will constitute
(assuming, in each case, the due and valid authorization, execution and delivery
thereof by Seller), legal, valid and binding agreements of Buyer, enforceable
against Buyer in accordance with their respective terms, except as
enforceability may be limited by bankruptcy, insolvency, moratorium, or other
laws affecting the enforcement of creditors' rights generally or provisions
limiting competition, and by equitable principles.

5.4Consent and Approvals.  There is no requirement
applicable to Buyer to make any filing, declaration or registration with, or to
obtain any permit, authorization, consent or approval of, any Governmental
Entity as a condition to the lawful consummation by Buyer of the transactions
contemplated by this Agreement and the other agreements and instruments to be
executed and delivered by Buyer pursuant hereto, except for filings (a) which
are referred to in the Seller Disclosure Schedule or (b) the failure of making
which would not have a Material Adverse Effect on the transactions contemplated
hereby.

5.5No Violation.  Neither the execution, delivery and
performance of this Agreement and of all the other agreements and instruments to
be executed and delivered pursuant hereto, nor the consummation of the
transactions contemplated hereby or thereby, will, with or without the passage
of time or the delivery of notice or both, (a) conflict with, violate or
result in any breach of the terms, conditions or provisions of the Certificate
of Incorporation or Bylaws of Buyer, (b) conflict with or result in a
violation or breach of, or constitute a default or require consent of any Person
(or give rise to any right of termination, cancellation or acceleration) under,
any of the terms, conditions or provisions of any notice, bond, mortgage,
indenture, license, franchise, permit, agreement, lease or other instrument or
obligation to which Buyer is a party or by which Buyer or any of its properties
or assets may be bound, or (c) violate any statute, ordinance or law or any
rule, regulation, order, writ, injunction or decree of any Governmental Entity
applicable to Buyer or by which any of its properties or assets may be
bound.

6.Covenants.

6.1Access to Information.

(a)Prior and subsequent to the Closing, Seller will
permit Buyer to make a full and complete investigation of the Purchased Assets
and to receive from Seller all information of Seller relating to the Purchased
Assets or reasonably related to Seller's conduct of the IZ Business.  Without
limiting this right, Seller will give to Buyer and its accountants, legal
counsel, and other representatives full access, during normal business hours, at
a mutually agreeable location arranged in advance, to all of the books, records,
files, documents, properties, and contracts of Seller relating to the Purchased
Assets or reasonably related to Seller's conduct of the IZ Business and allow
Buyer and any such representatives to make copies thereof, all of which shall be
made available in an organized fashion and so as to facilitate an orderly
review.  This Section 6.1 shall not affect or be deemed to modify any
representation or warranty contained herein or the conditions to the obligations
of the parties to consummate the transactions contemplated by this Agreement.
Seller shall maintain and make available the information and records specified
in this Section 6.1(a) in the ordinary course of Seller's business and document
retention policies, as if the transactions contemplated by this Agreement had
not occurred.

(b)At all times following the Closing, each party shall
provide the other party (at such other party's expense) with such reasonable
assistance, including the provision of available relevant records or other
information and reasonable access to and cooperation of any employees, as may be
reasonably requested by either of them in connection with the preparation of any
financial statement or tax return, any audit or examination by any taxing
authority, or any judicial or administrative proceeding relating to liability
for Taxes.

6.2Third Party Consents.  Seller and Buyer shall use
commercially reasonable efforts to obtain, within the applicable time periods
required, all Required Consents, waivers, permits, consents and approvals and to
effect all registrations, filings and notices with or to third parties or
Governmental Entities which are necessary to consummate the transactions
contemplated by this Agreement so as to preserve all rights of, and benefits to,
the Buyer in the Purchased Assets.  Nothing in this Agreement shall be construed
as an assignment of, or an attempt to assign to Buyer, any contract (or rights
therein) or Governmental Entity authorization which, as a matter of law or by
its terms, is (i) not assignable, or (ii) not assignable without the
approval or consent of the issuer thereof or the other party or parties thereto,
without first obtaining such approval or consent (collectively, "Non-
Assignable Rights").  In connection with such Non-Assignable Rights, and
without prejudice to the rights of Buyer elsewhere in this Agreement, Seller
shall, at the request of Buyer:

(a)apply for and use all reasonable efforts to obtain all
consents or approvals contemplated by the Purchased Assets (or rights therein)
or Governmental Entity authorization, in a form satisfactory to Buyer acting
reasonably;

(b)co-operate with Buyer in any reasonable and lawful
arrangements designed to provide the benefits of such Non-Assignable Rights to
Buyer, including holding any such Non-Assignable Rights in trust for Buyer or
acting as agent for Buyer;

(c)enforce any rights of Seller arising from such Non-
Assignable Rights against the issuer thereof or the other party or parties
thereto;

(d)take all such actions and do, or cause to be done, all
such things at the request of Buyer as shall reasonably be necessary and proper
in order that the value of any Non-Assignable Rights shall be preserved and
shall enure to the benefit of Buyer; and

(e)pay over to Buyer, all monies collected by or paid to
Seller in respect of such Non-Assignable Rights. 

If Seller is unable to lawfully provide the benefit of any Non-Assignable
Right to Buyer, it shall not, at any time, use such Non-Assignable Right for its
own purposes or assign or provide the benefit of such Non-Assignable Right to
any other party. 

6.3Certain Notifications.  At all times prior to the
Closing, Seller and Buyer shall promptly notify the other party in writing of
the occurrence of any event which will result, or has a reasonable prospect of
resulting, in the failure to satisfy any of the conditions specified in Section
8 or Section 9 of this Agreement.

6.4Best Efforts.  The Seller shall use its commercially
reasonable best efforts (i) to cause to be fulfilled and satisfied all of
the conditions to the Closing set forth in Section 8 below, (ii) to cause
to be performed all of the matters required of it at the Closing and
(iii) to cause the Contracts to be assigned to Buyer.

6.5Tax Returns.  Seller shall, to the extent that failure
to do so could adversely affect Buyer, the IZ Business or the Purchased Assets
following Closing, (a) continue to file in a timely manner all returns and
reports relating to Taxes, and such returns and reports shall be true, correct
and complete and shall be subject to the review and consent of Buyer which
consent shall not be unreasonably withheld, and (b) be responsible for and
pay when due any and all Taxes attributable to or imposed upon Seller or any of
its direct or indirect subsidiaries, or attributable to or imposed upon the
Purchased Assets for any period (or portion thereof) through and including the
Closing Date, including, without limitation, any Taxes attributable to or
arising from the transactions contemplated by this Agreement.  In the event
Buyer makes any payment in respect of such Taxes as a result of Seller's failure
to pay such Taxes when due, there shall be a partial forgiveness of the Note as
set forth in Section 2.6(b) above.

6.6Post-Closing Access to Information.  If, after the
Closing Date, in order properly to operate the IZ Business or prepare documents
or reports required to be filed with governmental authorities or Buyer's
financial statements, it is necessary that Buyer obtain additional information
within Seller's possession relating to the Purchased Assets or the IZ Business,
Seller will furnish or cause its representatives to furnish such information to
Buyer.  Such information shall include, without limitation, all agreements
between Seller and any Person relating to the IZ Business. Seller shall maintain
and make available the information and records specified in this Section 6.6 for
a period of five (5) years after the Closing Date.

6.7Post-Closing Cooperation.  Seller agrees that, if
reasonably requested by Buyer, it will cooperate with Buyer, at Buyer's expense,
in enforcing the terms of any agreements between Seller and any third party
involving the IZ Business, including without limitation terms relating to
confidentiality and the protection of intellectual property rights.  In the
event that Buyer is unable to enforce its intellectual property rights against a
third party as a result of a rule or law barring enforcement of such rights by a
transferee of such rights, Seller agrees to reasonably cooperate with Buyer by
assigning to Buyer such rights as may be required by Buyer to enforce its
intellectual property rights in its own name.  If such assignment still does not
permit Buyer to enforce its intellectual property rights against the third
party, Seller agrees to initiate proceedings against such third party in
Seller's name, provided that Buyer shall be entitled to participate in such
proceedings and provided further that Buyer shall be responsible for the
expenses of such proceedings.

6.8No Post-Closing Retention of Copies.  Immediately after
the Closing, Seller shall deliver to Buyer or destroy copies of Purchased Assets
in Seller's possession that are in addition to copies delivered to Buyer as part
of the Closing, whether such copies are in paper form, on computer media or
stored in another form; provided, however, that Seller may retain and use
copies of financial books and records relating to the IZ Business as well as
other documents required by law to be kept by Seller for the sole purpose of
preparing its financial statements and other reports required by applicable law.
The Seller shall not be permitted to use the financial books and records of the
IZ Business for any other reason.

6.9Public Announcements.  On and prior to the Closing Date,
Buyer and Seller shall advise and confer with each other prior to the issuance
of any reports, statements or releases concerning this Agreement (including the
exhibits and schedules hereto) and the transactions contemplated herein.
Neither Buyer nor Seller will make any public disclosure prior to the Closing or
with respect to the Closing unless both parties agree on the text and timing of
such public disclosure; provided, however, that nothing contained herein
shall prevent either party at any time from furnishing any information to any
Governmental Entity.  Immediately after this Agreement is signed, both parties
will make public announcements to their respective share exchanges; the text of
such public announcements will be reviewed by the parties prior to release.

6.10Post-Closing Actions.  Subsequent to the Closing Date,
Seller shall, from time to time, execute and deliver, upon the request of Buyer,
all such other and further materials and documents and instruments of
conveyance, transfer or assignment as may reasonably be requested by Buyer to
effect, record or verify the transfer to, and vesting in Buyer, of Seller's
right, title and interest in and to the Purchased Assets, free and clear of all
Liens, in accordance with the terms of this Agreement.

6.11Financial Statements.  In the event
Buyer is required by the rules and regulations promulgated by the U.S.
Securities and Exchange Commission to produce any financial statements covering
a period or periods prior to the Closing Date, then Seller at Buyer's expense
shall assist Buyer in the preparation thereof as reasonably requested by Buyer.

6.12Permits.  Seller will assist Buyer in
obtaining any licenses, permits or authorizations required for carrying on the
IZ Business but which are not transferable.

6.13Taxes. Seller shall be responsible for
paying, shall promptly discharge when due, and shall reimburse, indemnify and
hold harmless Buyer from, any sales or use, transfer, real property gains,
excise, stamp, or other similar Taxes arising from, imposed on or attributable
to the transactions contemplated by this Agreement, and any other Taxes which
are due or properly accrued with respect to all periods (or portions thereof)
prior to and including the Closing Date, and at the request of Buyer, Seller
shall provide Buyer with proof of such payment.

7.Employee Matters

7.1Transferred Employees.

(a)Offer of Employment.  Subject to and
in accordance with the provisions of this Section 7, Buyer may offer employment
to any or all of the employees who are employed by Seller in the IZ Business as
of the date of this Agreement (the "Employees").  Seller agrees
that it will cooperate with Buyer to identify those employees of Seller who are
necessary for the conduct the IZ Business.  Prior to the Closing, Buyer, after
notice to Seller as to the timing and method of contact, shall have the right to
contact any or all of the Employees for the purposes of making offers of
employment with Buyer (or any Affiliate designated by Buyer) after the Closing
Date and receiving written acceptances of such employment (in each case
contingent on consummation of the transactions contemplated by this Agreement).
Upon Closing, Buyer (or any Affiliates designated by Buyer) shall hire those
Employees to whom it has made an offer in accordance with this Section 7.1 and
who accept such offer in the manner and within the time frame reasonably
established by Buyer. Each such Employee who is employed by Seller on the
Closing Date and who actually transfers to employment with Buyer (or any
Affiliate designated by Buyer) at or after the Closing Date as a result of an
offer of employment made by Buyer is hereafter referred to as a
"Transferred Employee."  Transferred Employees shall not
include any person on a disability leave of more than twenty-six (26) weeks.  On
a periodic basis following the date of this Agreement and prior to the Closing,
Buyer shall advise Seller of its intentions with respect to the employees it
desires to extend or has extended offers to and the general status of
discussions with such employees.  Buyer hereby notifies Seller of Buyer's intent
to offer employment to all Employees set forth on Schedule 7.1(a) on terms
and conditions substantially equivalent to, or greater than, such Employees'
current terms and conditions of employment.  Notwithstanding such periodic
disclosures made to Seller, Buyer shall not be obligated to hire any employee
unless an offer of employment is subsequently made to, and accepted by, such
employee; in addition, Buyer shall have no obligation to hire any employees of
Seller after the Closing Date.

(b)Transition.  Seller hereby agrees that
it will not terminate the employment of any Employee prior to the Closing;
provided, however, that Seller will terminate the employment of Ronald Dan Berst
and Philip Bane immediately prior to the Closing.  The employment by Seller of
the Transferred Employees shall end at the close of business on the Closing Date
and the employment of the Transferred Employees by Buyer shall commence at
12:01 a.m. on the day after the Closing Date.  The terms of employment with
Buyer (or Buyer's Affiliates) shall be as mutually agreed to between each
Transferred Employee and Buyer (or Buyer's Affiliate, as the case may be),
subject to the provisions of this Section 7.1.  Between the date of this
Agreement and the Closing Date, Seller will provide each Transferred Employee
with the same level of compensation as that currently provided by Seller.  Buyer
shall have no obligation with respect to payments of salary, compensation,
wages, health or similar benefits, commissions, bonuses (deferred or otherwise),
severance (including any severance pay owed to Ronald Dan Berst and Philip
Howard Bane), stock or stock options or any other sums due to any Transferred
Employee that accrued as of or before the Closing Date.  Other than as listed on
Schedule 7.1(b), Seller will be fully responsible for all amounts payable
to any employee who is not a Transferred Employee, including (without
limitation) all termination payments, redundancy compensation, severance pay,
accrued vacation pay and other amounts payable in respect of the termination of
employment of any employee in connection with the sale of the Purchased Assets
to the Buyer.  In addition, Seller will be fully responsible for all amounts
owing to Transferred Employees prior to Closing.

(c)Retention of Employees Prior to Closing.
Seller agrees to use reasonable efforts to retain the Employees as employees of
the IZ Business until the Closing Date, and to assist Buyer in securing the
employment after the Closing Date of those Employees to whom Buyer (or
designated by Buyer) makes or intends to make offers of employment under
subsection (a) above.  Seller shall not transfer any Employee to employment with
Seller outside of the IZ Business prior to the Closing or without the consent of
Buyer.  Seller shall notify Buyer promptly if, notwithstanding the foregoing,
any Employee terminates employment with Seller after the date of this Agreement
but prior to the Closing.  Buyer may request Seller to hire additional employees
for the IZ Business, in which case Seller will use commercial reasonable efforts
to identify and hire such employees.

7.2Compensation and Benefits of Transferred Employees.
Coverage for Transferred Employees under Buyer's compensation and benefit plans
and other programs shall commence as of 12:01 a.m. on the day after the Closing
Date.  Buyer shall be free to establish its own employee benefit plans; Buyer
shall have no obligation to offer benefit plans of the same type or with terms
similar to or better than the terms of Seller's current employee benefit plans.
Buyer may, at its option, give each Transferred Employee credit for such
Transferred Employee's years of most recent continuous service with Seller for
purposes of determining participation and benefit levels under all of Buyer's
vacation policies and benefit plans and programs.

7.3Other Employees of the IZ Business.  With respect to
each employee of the IZ Business as of the Closing Date who is not a Transferred
Employee (each a "Non-Transferred Employee"), Seller agrees to
either terminate such Non-Transferred Employee's employment with Seller,
effective prior to the Closing or offer such Non-Transferred Employee continued
employment with Seller other than in the IZ Business.  Seller further
acknowledges that the Non-Transferred Employees shall not be employees of Buyer
after the Closing.

7.4No Right to Continued Employment or Benefits.  No
provision in this Agreement shall create any third party beneficiary or other
right in any Person (including any beneficiary or dependent thereof) for any
reason, including, without limitation, in respect of continued, resumed or new
employment with Seller or Buyer (or any Affiliate of Seller or Buyer) or in
respect of any benefits that may be provided, directly or indirectly, under any
plan or arrangement maintained by Seller, Buyer or any Affiliate of Seller or
Buyer.  Except as otherwise expressly provided in this Agreement, Buyer is under
no obligation to hire any employee of Seller, provide any employee with any
particular benefits, or make any payments or provide any benefits to those
employees of Seller whom Buyer chooses not to employ.

8.Conditions to Buyer's Obligations

The obligations of Buyer under this Agreement are subject to the
fulfillment, prior to or on the Closing Date, of each of the following
conditions, all or any of which may be waived by Buyer in writing, except as
otherwise provided by law:

8.1Representations and Warranties True; Performance;
Certificate. 

(a)The representations and warranties of Seller contained
in this Agreement shall be true and correct in all material respects as of the
Closing Date with the same effect as though such representations and warranties
had been made or given again at and as of the Closing Date;

(b)Seller shall have performed and complied with all of
its agreements, covenants and conditions required by this Agreement to be
performed or complied with by them prior to or on the Closing Date;

(c)The conditions set forth in this Section 8 have been
fulfilled or satisfied, unless otherwise waived in writing by Buyer; and

(d)Buyer shall have received a certificate, dated as of
the Closing Date, signed and verified by an officer of Seller on behalf of
Seller certifying to the matters set forth in Sections 8.1(a) and 8.1(b)
above.

8.2Consents.  All Governmental Authorizations, Required
Consents and consents required to transfer the Contracts to Buyer on the terms
and conditions provided to Seller, without change as a result of the transfer to
Buyer, shall have been obtained.

8.3No Proceedings or Litigation.

(a)  No preliminary or permanent injunction or other order
shall have been issued by any Governmental Entity, nor shall any statute, rule,
regulation or executive order be promulgated or enacted by any Governmental
Entity which prevents the consummation of the transactions contemplated by this
Agreement.

(b)  No suit, action, claim, proceeding or investigation
before any Governmental Entity shall have been commenced and be pending against
any of the parties, or any of their respective Affiliates, associates, officers
or directors, seeking to prevent transactions contemplated by this Agreement,
including, without limitation, the sale of the Purchased Assets or asserting
that the sale of the Purchased Assets would be illegal or create liability for
damages or which may have a Material Adverse Effect on the IZ Business or the
Purchased Assets.

8.4Documents.  This Agreement, the exhibits and schedules
attached hereto, and any other instruments of conveyance and transfer and all
other documents to be delivered by Seller at the Closing and all actions of
Seller required by this Agreement and the exhibit agreements, or incidental
thereto, and all related matters, shall be in form and substance reasonably
satisfactory to Buyer and Buyer's counsel and shall be in full force and
effect.

8.5Governmental Filings.  The parties shall have made any
required filing with Governmental Entities in connection with this Agreement and
the exhibit agreements, and any approvals related thereto shall have been
obtained or any applicable waiting periods shall have expired.  If a proceeding
or review process by a Governmental Entity is pending in which a decision is
expected, Buyer shall not be required to consummate the transactions
contemplated by this Agreement until such decision is reached or rendered,
notwithstanding Buyer's legal ability to consummate the transactions
contemplated by this Agreement prior to such decision being reached or rendered.

8.6No Material Adverse Change.  There shall have been no
material adverse change in the financial condition or results of operations of
the IZ Business on the Closing Date as compared with the date of this
Agreement.

8.7Termination of Benefit Plans.  Seller shall have
provided Buyer with evidence, reasonably satisfactory to Buyer as to the
termination of all benefit plans and payments owing by Seller relating to all
Employees and the termination of all Non-Transferred Employees' benefit
plans.

8.8Legal Opinion.  Buyer shall have
received a legal opinion from Maslon Edelman Borman & Brand, LLP, legal
counsel to Seller, dated the Closing Date, in a form satisfactory to Buyer.

8.9Outside Financing.  Buyer shall have received equity
financing in an amount of no less than $1,000,000 in aggregate proceeds and on
terms satisfactory to Buyer prior to the Closing Date. 

8.10Operations Manual.  Prior to the Closing Date, Buyer
shall have received and been assigned ownership of a written manual, produced by
PopMail at its own cost, detailing the operations of the IZ Publishing System
that is in form and substance satisfactory to Buyer.

8.11Severance Due Transferred Employees. Seller shall have
agreed in writing to pay any Transferred Employee (including Ronald Dan Berst
and Philip Howard Bane) 50% of the severance due from Seller within ten (10)
business days of Closing and the remaining 50% within twenty (20) business days
of Closing.

9.Conditions to Seller's Obligations

The obligations of Seller under this Agreement are subject to the
fulfillment, prior to or on the Closing Date, of each of the following
conditions, all or any of which may be waived in writing by Seller, except as
otherwise provided by law:

9.1Representations and Warranties True; Performance.

(a)The representations and warranties of Buyer contained
in this Agreement shall be true and correct in all material respects as of the
Closing Date with the same effect as though such representations and warranties
had been made or given again at and as of the Closing Date;

(b)Buyer shall have performed and complied with all of
its agreements, covenants and conditions required by this Agreement to be
performed or complied with by them prior to or on the Closing Date;

(c)Seller shall have received a certificate, dated as of
the Closing Date, signed and verified by an officer of Buyer on behalf of Buyer
certifying to the matters set forth in Sections 9.1(a) and 9.1(b) above.

9.2No Proceeding or Litigation.

(a)  No preliminary or permanent injunction or other order
shall have been issued by any Governmental Entity, nor shall any statute, rule,
regulation or executive order be promulgated or enacted by any Governmental
Entity which prevents the consummation of the transactions contemplated by this
Agreement.

(b)  No suit, action, claim, proceeding or investigation
before any Governmental Entity shall have been commenced and be pending against
any of the parties, or any of their respective Affiliates, associates, officers
or directors, seeking to prevent the sale of the Purchased Assets or asserting
that the sale of the Assets would be illegal or create liability for
damages.

9.3Documents.  This Agreement, any other instruments of
conveyance and transfer and all other documents to be delivered by Buyer to
Seller at the Closing and all actions of Buyer required by this Agreement or
incidental thereto, and all related matters, shall be in form and substance
reasonably satisfactory to Seller and Seller's counsel.

9.4Governmental Filings.  The parties shall have made any
filing required with Governmental Entities, and any approvals shall have been
obtained or any applicable waiting periods shall have expired.  If a proceeding
or review process by a Governmental Entity is pending in which a decision is
expected, Seller shall not be required to consummate the transactions
contemplated by this Agreement until such decision is reached or rendered,
notwithstanding Seller's legal ability to consummate the transactions
contemplated by this Agreement prior to such decision being reached or
rendered.

9.5Fairness Opinion.   Seller shall have received an
opinion from its financial adviser, Duff & Phelps, stating that in the
opinion of such financial adviser, the terms of the Purchase are fair and
reasonable to the shareholders of Seller from a financial point of view.  Seller
shall bear all costs of obtaining such an opinion. 

9.6Legal Opinion.  Seller shall have received a legal
opinion from Venture Law Group, A Professional Corporation, legal counsel to
Buyer, dated the Closing Date, in a form satisfactory to Seller.

10.Indemnification.

10.1Survival of Representations and Warranties.  All
covenants to be performed prior to the Closing Date, and all representations and
warranties in this Agreement or in any instrument delivered pursuant to this
Agreement shall survive the consummation of the transactions contemplated hereby
and continue until the two (2) year anniversary of the Closing Date (the
"Indemnification Termination Date"); provided that if
any claims for indemnification have been asserted with respect to any such
representations, warranties and covenants prior to the Indemnification
Termination Date, the representations, warranties and covenants on which any
such claims are based shall continue in effect until final resolution of any
claims, and provided, further, that representations, warranties
and covenants relating to Taxes shall survive until 30 days after expiration of
all applicable statutes of limitations relating to such  Taxes.  All covenants
to be performed after the Closing Date shall continue indefinitely.
Notwithstanding the foregoing, all representations, warranties and covenants in
this Agreement relating to Taxes shall continue until 30 days after expiration
of all applicable statutes of limitations. 

10.2Indemnification of Buyer.  Subject to the limitations
set forth in this Section 10, from and after the Effective Time, Seller shall
protect, defend, indemnify and hold harmless Buyer and Buyer's Affiliates,
officers, directors, employees, representatives and agents (each of the
foregoing Persons is hereinafter referred to individually as a "Buyer
Indemnified Person" and collectively as "Buyer Indemnified
Persons") from and against any and all losses, costs, damages,
liabilities, fees (including without limitation reasonable attorneys' fees) and
expenses (collectively, the "Damages"), that any of the Buyer
Indemnified Persons incurs by reason of or in connection with any claim, demand,
action or cause of action alleging misrepresentation, breach of, or default in
connection with, any of the representations, warranties, covenants or agreements
of the Seller contained in this Agreement, including any exhibits or schedules
attached hereto, known to Buyer prior to the Indemnification Termination Date.
Damages in each case shall be net of the amount of any insurance proceeds and
indemnity and contribution actually recovered by Buyer.

10.3Indemnification of Seller.  Subject to the limitations
set forth in this Section 10, from and after the Effective Time, Buyer shall
protect, defend, indemnify and hold harmless Seller and Seller's Affiliates,
officers, directors, employees, representatives and agents (each of the
foregoing Persons is hereinafter referred to individually as a "Seller
Indemnified Person" and collectively as "Seller Indemnified
Persons") from and against any and all Damages that any of the Seller
Indemnified Persons incurs by reason of or in connection with any claim, demand,
action or cause of action alleging misrepresentation or breach of any of the
representations or warranties of the Buyer contained in Section 5 of this
Agreement known to Seller prior to the Indemnification Termination Date.
Damages in each case shall be net of the amount of any insurance proceeds and
indemnity and contribution actually recovered by Seller.

10.4Method of Asserting Claims.  All claims
for indemnification pursuant to this Section 10 shall be made in accordance with
the following provisions: 

Buyer or Seller, as applicable, shall deliver to Seller or
Buyer, respectively, at any time on or before the Indemnification Termination
Date, a certificate signed by any officer of Buyer or Seller, as applicable (an
"Officer's Certificate"):

(i)stating that Buyer or Seller, as applicable, or any
other Buyer Indemnified Person or Seller Indemnified Person, respectively, has
paid or incurred Damages and

(ii)specifying in reasonable detail the individual items
of Damages included in the amount so stated, the date each such item was paid or
incurred and the nature of the misrepresentation, breach of warranty or claim to
which such item is related.

Seller or Buyer, as applicable, shall have thirty (30) days to object in
writing to any claim or claims made in such Officer's Certificate pursuant to
Section 10.5 below.  After the expiration of such thirty-day period, if Seller
or Buyer, as applicable, has raised no objections, Seller or Buyer, as
applicable, shall deliver to Buyer or Seller, respectively, as promptly as
practicable, either cash or, in the case of Seller, written evidence of Seller's
partial forgiveness of the Note, in each case in an amount equal to such
Damages.

10.5Resolution of Conflicts; Arbitration.

(i)In case Seller or Buyer, as applicable, shall
object in writing to any claim or claims made in any Officer's Certificate,
Seller and Buyer shall attempt in good faith to agree upon the rights of the
respective parties with respect to each of such claims within 45 days after
Buyer's or Seller's receipt of the other party's written objection to the claim
pursuant to Section 10  (the "Negotiation Period").  If Seller
and Buyer should so agree during the Negotiation Period, a memorandum setting
forth such agreement shall be prepared and signed by both parties and funds
shall be distributed in accordance with the terms thereof.

(ii)If no such agreement has been reached by the end of
the Negotiation Period, either Buyer or Seller may demand arbitration of the
matter unless the amount of the Damages is at issue in pending litigation with a
third party, in which event arbitration shall not be commenced until such amount
is ascertained by settlement or a non-appealable decision of a court of
competent jurisdiction or both parties agree to binding arbitration.  The
binding arbitration shall be conducted in King County, Washington if brought by
Seller and in Dallas County, Texas if brought by Buyer, in accordance with the
then-current Commercial Arbitration Rules of the American Arbitration
Association by one arbitrator appointed in accordance with said rules.  The
Arbitrator shall apply Washington law, without reference to rules of conflicts
of law or rules of statutory arbitration, to the resolution of any dispute. The
written decision of the arbitrator as to the validity and amount of any claim in
such Officer's Certificate shall be binding and conclusive upon the parties to
this Agreement, and notwithstanding anything in Section 10 hereof, the
parties shall be entitled to act in accordance with such decision and make or
withhold payments in accordance therewith.  The arbitrator shall award
reimbursement to the prevailing party in the arbitration of its reasonable
expenses of the arbitration (including costs and reasonable attorneys' fees).
The award of the arbitrator shall be the sole and exclusive monetary
remedy of the parties and shall be enforceable in any court of competent
jurisdiction.  Notwithstanding the foregoing, any party shall be entitled to
seek injunctive relief or other equitable remedies from any court of competent
jurisdiction.

10.6Third Party Claims.  In the event either party becomes
aware of a third-party claim which such party believes may result in a demand
against the other party, such party shall notify the other party of such claim,
and the other party shall be entitled, at the other party's expense, to
participate in any defense of such claim; provided, however, that failure to so
notify the other party shall not relieve such other party from any liability it
has under this Agreement with respect to such third party claim.  Each party
shall have the right in its discretion to settle any such claim; provided,
however, that except with the written consent of the other party, no settlement
of any such claim with third-party claimants shall alone be determinative of the
validity of any claim against such other party.  In the event such other
party has consented in writing to any such settlement, such other party shall
have no power or authority to object under any provision hereof to the amount of
any claim by consistent with such settlement.

10.7Exclusive Contractual Remedy.  Indemnification pursuant
to this Section 10 shall be the exclusive contractual remedy of Buyer and
Seller for any Damages; provided, however, that nothing herein shall limit the
liability of any officer or director of Seller for such person's fraud or
intentional misrepresentation.

11.Miscellaneous.

11.1Amendments and Waivers.  Any term
of this Agreement may be amended or waived with the written consent of the
parties or their respective successors and assigns.  Any amendment or waiver
effected in accordance with this Section 11.1 shall be binding upon the
parties and their respective successors and assigns.

11.2Successors and Assigns.  The
terms and conditions of this Agreement shall inure to the benefit of and be
binding upon the respective successors and assigns of the parties.
Nothing in this Agreement, express or implied, is intended to confer upon any
party other than the parties hereto or their respective successors and assigns
any rights, remedies, obligations, or liabilities under or by reason of this
Agreement, except as expressly provided in this Agreement.

11.3Governing Law; Jurisdiction.  This
Agreement and all acts and transactions pursuant hereto and the rights and
obligations of the parties hereto shall be governed, construed and interpreted
in accordance with the laws of the State of Washington, without giving effect to
principles of conflicts of law.  

11.4Counterparts.  This Agreement may be
executed in two or more counterparts, each of which shall be deemed an original
and all of which together shall constitute one instrument.

11.5Titles and Subtitles.  The titles and
subtitles used in this Agreement are used for convenience only and are not
to be considered in construing or interpreting this Agreement.

11.6Notices.  Any notice required or
permitted by this Agreement shall be in writing and shall be deemed sufficient
upon receipt, when delivered personally or by courier, overnight delivery
service or confirmed facsimile, or forty-eight (48) hours after being deposited
in the regular mail as certified or registered mail (airmail if sent
internationally) with postage prepaid, if such notice is addressed to the party
to be notified at such party's address or facsimile number as set forth below,
or as subsequently modified by written notice, and (a) if to Buyer,  with a
copy to Craig E. Sherman, 4750 Carillon Point, Kirkland, Washington 98033 or
(b) if to Seller, with a copy to Philip J. Tilton, Maslon Edelman Borman
& Brand, LLP, 3300 Wells Fargo Center, Minneapolis, Minnesota 55402.

11.7Berst Attorneys Fees.  PopMail agrees
to reimburse Ronald Dan Berst for reasonable legal fees and expenses as owed in
connection with the registration, drafting and execution of this Agreement, up
to a maximum of $10,000.

11.8Severability.  If one or more
provisions of this Agreement are held to be unenforceable under applicable law,
the parties agree to renegotiate such provision in good faith, in order to
maintain the economic position enjoyed by each party as close as possible to
that under the provision rendered unenforceable.  In the event that the parties
cannot reach a mutually agreeable and enforceable replacement for such
provision, then (i) such provision shall be excluded from this Agreement,
(ii) the balance of the Agreement shall be interpreted as if such provision
were so excluded and (iii) the balance of the Agreement shall be
enforceable in accordance with its terms.

11.9Entire Agreement.  This Agreement
and the documents referred to herein are the product of all of the parties
hereto, and constitute the entire agreement between such parties pertaining to
the subject matter hereof and thereof, and merge all prior negotiations and
drafts of the parties with regard to the transactions contemplated herein and
therein.  Any and all other written or oral agreements existing between the
parties hereto regarding such transactions are expressly canceled.

11.10Advice of Legal Counsel.  Each party
acknowledges and represents that, in executing this Agreement, it has had the
opportunity to seek advice as to its legal rights from legal counsel and that
the person signing on its behalf has read and understood all of the terms and
provisions of this Agreement.  This Agreement shall not be construed against any
party by reason of the drafting or preparation thereof.

 

 

[Signature pages follow]

This Agreement has been duly executed and delivered by the duly
authorized officers of Seller and Buyer as of the date first above written.

 
JBII CORPORATION

 

By:  

Name:  

Title:  

 

 

POPMAIL.COM, INC.

 

By:  

Name:  

Title:  

 
IZ.com, Inc.

 

By:  

Name:FY2000 10K Ex10.56

Exhibit 10.56

LOAN AGREEMENT

THIS LOAN AGREEMENT ("Agreement")
is made by and among GSI VENTURES, LLC, an Ohio limited liability company
("Lender"), POPMAIL.COM, INC., a Minnesota corporation
(the "Borrower"), SDK INVESTMENTS, INC., an Ohio
corporation ("SDKI"), POPMAIL NETWORKS, INC., a Texas
corporation ("PNI"), FAN ASYLUM, INC., a California corporation
("FAI") and CAFÉ ODYSSEY, LLC, a Minnesota limited liability
company ("COL") this 1st day of December, 2000.

RECITALS

A.Lender has agreed to loan Borrower up to the
principal amount of $1,200,000 and at Lender's option, in its sole and absolute
discretion, an additional principal amount of $2,800,000.

B.Borrower has agreed to borrow up to $1,200,000
from Lender and the additional $2,800,000 from Lender, to the extent that Lender
makes that amount available to Borrower.  

C.SDKI has acted as a finder in connection with the
loan to be made by Lender to Borrower and, as a result, Borrower has agreed to
pay SDKI a finder's fee consisting of cash and warrants to purchase Borrower's
common stock.  

D.PNI, FAI and COL are wholly owned subsidiaries of
Borrower and will materially benefit from the loan Borrower will receive from
Lender.

E.As a condition to Lender making a loan to Borrower,
Lender requires PNI, FAI and COL to execute this Agreement and be bound by
certain terms of this Agreement.

IN CONSIDERATION of the premises, the mutual
covenants and agreements contained herein and other good and valuable
consideration, the receipt, sufficiency and adequacy of which are hereby
acknowledged, Lender, Borrower PNI, FAI, COL, and SDKI hereby covenant and agree
as follows:  

ARTICLE I

THE LOAN

	Agreement to Borrow and Lend.  Subject
to all of the terms, provisions, conditions, covenants and agreements contained
in this Agreement, Lender agrees to make a loan to Borrower (the
"Loan") in the principal amount of at least Four Hundred
Thousand Dollars ($400,000) and for a period of 270 days from the date hereof,
at Lender's option and in its sole and absolute discretion, an additional
principal amount of Three Million Eight Hundred Thousand Dollars ($3,600,000)
(collectively, the "Loan Proceeds"), which shall be used in
accordance with the terms set forth herein.  Subject to all of the terms,
provisions, conditions, covenants and agreements contained in this Agreement,
Borrower agrees to borrow from Lender Loan Proceeds that Lender offers to
Borrower within 270 days from the date hereof.

	Closing.  The Loan Proceeds shall be distributed
in increments as determined by the Lender, in its sole and absolute discretion
of at least $100,000, at one or more closings (each a
"Closing"), the first of which shall occur on November 30,
2000, or on such other date as the parties shall agree (the "Initial
Closing").   

	Convertible Promissory Notes.  The Loan will be
evidenced by a series of convertible promissory notes (the
"Notes", or singularly a "Note") in the form
attached hereto as Exhibit A that will be executed by Borrower and
delivered to Lender.  

	Interest.  The outstanding principal balance of
the Notes shall bear interest at a rate of Twelve Percent (12%) per annum as set
forth in the Notes. 

	Payment Terms.  Accrued interest under the
Notes shall be due and payable in quarterly installments on February 1, 2001,
May 1, 2001, August 1, 2001 and November 1, 2001 and the entire outstanding
principal balance of the Loan, together with all accrued but unpaid interest
thereon, shall be due and payable in full on January 5, 2002 (the
"Maturity Date"). Notwithstanding anything to the contrary
contained herein, upon Lender's consent, which shall be made in its sole and
absolute discretion, Borrower may pay any portion of the quarterly installments
of accrued interest of the Loan with shares of Borrower's common stock, par
value $.01 per share (the "Common Stock").  The value of the
Common Stock used to pay any quarterly installments of accrued interest shall be
determined by the closing sale price of the Common Stock as reported by Nasdaq
on the preceding trading day before the quarterly installment is paid.

	Conversion Right.  The Lender shall have the right
to convert all or any portion of the debt evidenced by the Notes into Borrower's
Common Stock in accordance with the terms of the Notes.

ARTICLE II

WARRANTS TO PURCHASE COMMON STOCK

2.1.Warrant to Purchase Common Stock to
Lender.  The Borrower hereby agrees to issue to Lender as a part of
the consideration for Lender making the Loan to Borrower, a warrant to purchase
the number of shares of Common Stock equal to fifty percent (50%) of the
aggregate face value of each Note and in the form attached hereto as Exhibit
B (the "Lender Warrant"). 

	Warrant to Purchase Common Stock to SDKI.
As partial consideration for introducing the Borrower to the Lender, the
Borrower hereby agrees to issue to SDKI a warrant to purchase the number of
shares of Common Stock equal to ten percent (10%) of the aggregate face value of
each Note and in the form attached hereto as Exhibit C ("SDKI
Warrant" and together with the Lender Warrant, the
"Warrants").  

	Share Calculation For Warrants; Strike Price;
Issuance.  For purposes only of determining the number of shares which shall
be granted upon exercise of the Warrants, the Common Stock shall be deemed to
have a value of $1.00 per share.  The strike price for each Lender Warrant shall
be 120% of the Market Price (as that term is defined in the Notes), and the
strike price for each SDKI Warrant shall be the Market Price.  The Borrower
shall issue each Warrant at the Initial Closing and each subsequent Closing.
The Warrants shall be exercisable for a period of at least five
years.

ARTICLE III

BORROWER'S REPRESENTATIONS AND WARRANTIES

The Borrower hereby represents and warrants to
Lender that the following are true and correct as of the date hereof and shall
be true and correct as of the date of the Initial Closing and any subsequent
Closing and shall remain true and correct during the term of all of the Loan
Documents (as defined below):  

3.1Borrower and each of its subsidiaries and affiliates
(a) is a duly organized and validly existing corporation in good standing under
the laws of the jurisdiction of its formation, (b) has the power and authority
and the legal right to own its property and assets and to transact the business
in which it is engaged and (c) is duly qualified as a foreign corporation  or
otherwise licensed and authorized to transact business and in good standing in
each jurisdiction where the ownership, leasing or operation of property or the
conduct of its business requires such qualification and where the failure to be
so qualified, licensed or authorized would have a material adverse effect on the
condition (financial or otherwise), prospects, assets or properties of Borrower,
any subsidiary or affiliate. All subsidiaries and affiliates of the Borrower are
listed on Item 3.1 of the Disclosure Schedule.  The term
"affiliate" shall have the meaning ascribed thereto under Rule 12b-2
promulgated under the Exchange Act of 1934, as amended.

3.2  The execution, delivery and performance of this Agreement, the Notes and
the Warrants and any and all other security agreements, pledge agreements,
financing statements, certificates or instruments contemplated herein
(collectively "Loan Documents") executed and delivered by the
Borrower or its affiliates have been authorized by all necessary corporate
actions and do not and will not contravene any legal or contractual restriction
binding on the Borrower or any of its property or its assets.

3.3  The Borrower and each of its subsidiaries and affiliates has the power
to take all actions contemplated hereby (including but not limited to the
issuance of the Warrants and Notes, the right of first refusal granted to Lender
to participate in any security issuances and the granting of the security
interests in the Collateral (as defined below)) to execute, deliver and carry
out the terms and provisions of each Loan Document to which it is a party and
has taken all necessary actions to authorize the execution, delivery and
performance by it of each Loan Document to which it is a party and all acts
contemplated hereby. The Loan Documents when executed and delivered by the
Borrower and its subsidiaries and affiliates will constitute the legal, valid
and binding obligation of the Borrower and its subsidiaries and affiliates (as
the case may be) and is, or will be upon execution, enforceable against the
Borrower and its subsidiaries and affiliates (as the case may be) in accordance
with their respective terms, except to the extent that enforcement may be
limited by applicable bankruptcy, insolvency, reorganization or other similar
laws affecting creditors rights generally.  

3.4  The execution, delivery or performance by the Borrower and its
subsidiaries and affiliates of each Loan Document, and compliance by the
Borrower and its subsidiaries and affiliates with the terms and provisions
hereof and thereof, (a) do not contravene any provision of any law, statute,
rule or regulation or any order, writ, injunction or decree of any court or
governmental instrumentality applicable to the Borrower, any subsidiary or
affiliate, (b) do not conflict with or result in any breach of any of the terms,
covenants, conditions or provisions of, or constitute a default under, or result
in the creation or imposition of (or the obligation to create or impose) any
lien (other than as contemplated by the Loan Documents) upon any of the property
or assets of the Borrower, any subsidiary or affiliate pursuant to the terms of
any material indenture, mortgage, deed of trust, credit agreement, loan
agreement or other agreement, contract or instrument to which the Borrower, any
subsidiary or affiliate is a party or by which the Borrower, any subsidiary or
affiliate or any of their respective properties or assets is bound or to which
the Borrower, any subsidiary or affiliate may be subject and (c) do no violate
any provision of the Certificate of Incorporation, Articles of Organization,
operating agreement, bylaws or regulations of the Borrower, any subsidiary and
affiliate. 

3.5  The authorization, issuance, sale and delivery of the shares of Common
Stock issuable upon conversion of the Notes and upon exercise of the Warrants
has been duly authorized by all requisite corporate action on the part of the
Borrower.  The shares of the Common Stock issuable upon conversion of the Notes
and upon exercise of the Warrants upon their issuance in accordance with the
Notes and the Warrants, respectively, will be validly issued, fully paid and
nonassessable.  Any shares of Common Stock issued in accordance with the terms
of the Notes for payment of quarterly installments of acquired interest will be
validly issued, fully paid and nonassessable.

3.6  Except as disclosed in Schedule 3.6, there are no actions, suits or
proceedings pending or, to the  knowledge of the Borrower, threatened against
Borrower, any subsidiary  or affiliate  (a) with respect to the Loan Documents,
any of the Collateral (as defined below) or the transactions contemplated hereby
or (b) that are, either individually or in the aggregate, reasonably likely to
have a material adverse effect on the condition (financial or otherwise),
prospects, assets or properties of Borrower, any subsidiary or affiliate.

3.7  All balance sheets, income statements, financial statements, operating
statements and other financial data pertaining to Borrower or its subsidiaries
or affiliates (the "Financial Information") that have been
delivered (or will be delivered) to Lender by or on behalf of Borrower are or
will be accurate and complete in all material respects, are or will be in
accordance with the books and records of Borrower and its subsidiaries and
affiliates, and accurately present or will present the financial condition,
results of operations and changes in financial position of the person or entity
to which they pertain as of their respective dates and there has been no
material change with respect thereto.  All Financial Information delivered to
Lender is and shall be prepared in accordance with the generally accepted
accounting principles, consistently applied.

3.8  None of the Borrower's reports and documents heretofore filed with the
Securities and Exchange Commission pursuant to the Securities Act of 1933, as
amended, and the Securities Exchange Act of 1934, as amended, contained at the
time they were filed  any untrue statement of a material fact or omitted to
state any material fact required to be stated therein or necessary to make the
statements made therein, in light of the circumstances under which they were
made, not misleading.

3.9  The Borrower and its subsidiaries and affiliates own and
possess adequate and enforceable rights to use all patents, patent applications,
trademarks, trademark applications, trade names, service marks, logos,
copyrights, copyright applications, licenses, inventions, software, programs,
know-how (including trade secrets and other unpatented and/or unpatentable
proprietary or confidential information, systems or procedures) and other
similar rights and proprietary knowledge (collectively,
"Intangibles") necessary for the conduct of their respective
businesses.  Borrower and its subsidiaries and affiliates have the unrestricted
right to use all of the Intangibles.  Borrower and its subsidiaries and
affiliates are not infringing upon or in conflict with any right of any other
person or entity with respect to any Intangibles and the Borrower and its
subsidiaries and affiliates are not subject to any outstanding order, decree,
judgment or stipulation with respect to the Intangibles.  No proceedings have
been instituted or are pending or, to Borrower's knowledge, threatened which
challenge the validity or rights of Borrower or its subsidiaries and affiliates
to any of the Intangibles, and Borrower has no knowledge of any infringement by
others of any of the Intangibles.  All of the Intangibles are valid, enforceable
and free and clear of any attachments or liens and all claims, restrictions and
demands of any other person, firm or corporation, including attorneys' fees for
past services, expenses and government fees.  None of the past or present
employees, officers, directors, or shareholders of Borrower, any subsidiary or
affiliate has any rights in any Intangibles.  Borrower and its subsidiaries and
affiliates have not granted any outstanding license or other rights to any of
the Intangibles, except those licenses granted in the ordinary course of
business, and are not liable, and have not made any contract or arrangement
whereby they may become liable, to any person for any royalty or other
compensation for the use of any Intangibles.  The trade secrets and processes
and procedures of Borrower and its subsidiaries and affiliates which are
necessary to the operation of Borrower and its subsidiaries and affiliates have
been reduced to writing, to the extent practical, and will remain available for
use by Borrower and its subsidiaries and affiliates after the date of the
Initial Closing and any subsequent Closing. 

3.10All factual information heretofore or
contemporaneously furnished by the Borrower, any subsidiary or affiliate to
Lender (including, without limitation, all information contained in this
Agreement) for purposes of this Agreement or any transaction contemplated hereby
or thereby is, and all other such factual information hereafter furnished by the
Borrower, any subsidiary or affiliate to Lender for purposes of this Agreement
or any transaction contemplated herein will be, true and accurate in all
material respects on the date as of which such information is given and the
Borrower in good faith believes such information is not incomplete by omitting
to state any fact necessary to make such information not misleading at such time
in light of the circumstances under which such information was provided.

3.11  The Borrower, each subsidiary and affiliate has filed all tax
returns required to be filed by it and has paid all income and franchise taxes
payable by it which have become due pursuant to such tax returns and all other
taxes and assessments payable by it which have become due, other than those not
yet delinquent and except for those contested in good faith and by appropriate
proceedings. The amounts shown on those tax returns fairly present the tax
position of the Borrower and such subsidiaries and the Borrower does not expect
any material adjustments or any amounts shown on such tax returns. Each of the
Borrower and each subsidiary or affiliate has paid, or has provided adequate
reserves (in the good faith judgment of the management of the Borrower) for the
payment of, all foreign, federal and state income and franchise taxes applicable
for all prior fiscal years of the Borrower and for the current fiscal year to
the date hereof. As of the date hereof, no tax lien has been filed, and, to the
knowledge of the Borrower, no claim is being asserted, with respect to any tax,
fee or other charge.

3.12  All employee benefit plans, as defined in Section 3(3) of ERISA
(defined below) and which are maintained for employees by the Borrower, a
subsidiary or an ERISA Affiliate (defined below) ("Plan"), comply with
all relevant provisions of the Internal Revenue Code of 1986 (the
"Code") and ERISA; no Plan is insolvent or in reorganization; no Plan
has an accumulated or waived funding deficiency or has applied for an extension
of any amortization period within the meaning of Section 412 of the Code;
neither the Borrower nor any subsidiary nor any ERISA Affiliate has incurred any
liability to or on account of a Plan which is a single-employer plan as defined
in Section 4001 (a) (15) of ERISA pursuant to Section 4062, 4063, 4064 or a
multi employer plan pursuant to Sections 515, 4201 or 4204, of ERISA; no
proceedings have been instituted to terminate any plan; and no condition exists
which constitutes a prohibited transaction (as defined in Section 406 of ERISA
or Section 4975 of the Code) or a reportable event (as defined in Section 4043
of ERISA), or which is reasonably expected will result in the Borrower, any
subsidiary or an ERISA Affiliate of incurring a liability to or on account of a
Plan pursuant to any of the foregoing Sections of ERISA or the Code.  As of the
date of this Agreement, the aggregate present value of all accrued benefit
liabilities (as defined in Section 4001(a)(6) of ERISA) of all Plans which were
single-employer plans did not exceed the aggregate current value of all assets
of such Plans based upon estimated actuarial data that has been provided to the
Borrower by the consulting actuaries of the Plans, and as of the date of this
Agreement, there was no withdrawal liability (and would be no withdrawal
liability assuming a complete withdrawal from all such Plans) to any Plan which
is a multi employer plan.

"ERISA" means the Employee Retirement Income
Security Act of 1974, as amended, and any successor statute of similar import,
together with regulations thereunder, in each case as in effect from time to
time. References to sections of ERISA also refer to any successor sections.

"ERISA Affiliate" means any person (as defined
in Section 3 (9) of ERISA) (including each trade or business (whether or not
incorporated)) which together with the Company or any Subsidiary would be deemed
to be a "single employer" or a member of the same "controlled
group" of "contributing sponsors" within the meaning of Section
4001 of ERISA

3.13  The Borrower and its subsidiaries and affiliates
are in compliance with all applicable statutes, regulations and orders of, and
all applicable restrictions imposed by, all governmental bodies, domestic or
foreign, in respect of the conduct of their businesses and the ownership of
their properties, except such noncompliance as would not, in the aggregate,
reasonably be expected to have a material adverse effect on the condition
(financial or otherwise), prospects,  assets or properties of Borrower or any
subsidiary or affiliate.

3.14  The Borrower and its subsidiaries and affiliates have
never conducted business under any names other than those set forth in Item
3.14 of the Disclosure Schedule. The addresses of all offices where any of
the Collateral is located is listed in Item 3.14 of the Disclosure
Schedule.  The chief executive office and the chief place of business for the
Borrower, each of its subsidiaries, and affiliates and the office where each
thereof keeps its books and records, is located at the address specified in
Item 3.14 of the Disclosure Schedule.

3.15    As of the date the last Financial Information was
received by Lender from Borrower, except to the extent disclosed, reflected or
reserved against therein or in Item 3.15 of the Disclosure Schedule,
Borrower did not have any material liabilities or obligations, known or unknown,
secured or unsecured, whether accrued, absolute, contingent or otherwise. 

3.16  Since the date the last Financial Information was
received by Lender from Borrower, there has been no material adverse change in
or to the business of Borrower or its subsidiaries or affiliates, or to the
operations, earnings, prospects, liabilities or relationships with suppliers,
distributors or customers of Borrower or its subsidiaries or affiliates.  There
is no presently existing condition with respect to Borrower or its subsidiaries
or affiliates which might be expected to have a material adverse effect on the
business or prospects of Borrower or its subsidiaries or affiliates or the
continued conduct of the business of Borrower or its subsidiaries or Affiliates
after the date of the Initial Closing or any subsequent Closing. 

3.17  No order, consent, approval, license, authorization
or validation of, or filing, recording or registration with, or exemption by, or
other act by (except as have been obtained or made), any governmental or public
body or authority, or any subdivision thereof, is required to authorize, or is
required in connection with, (a) the execution, delivery and performance by the
Borrower or its subsidiaries or affiliates of any Loan Document or (b) the
legality, validity, binding effect or enforceability against the Borrower or its
subsidiaries or affiliates of any Loan Document.

3.18  Borrower shall use the Loan Proceeds exclusively for commercial reasons
that are expressly approved by Lender in accordance with Section 4.2 below.

3.19    Borrower or its subsidiaries and affiliates (as the case may be) are
the legal and beneficial owner of the Collateral, and the Collateral is free and
clear of all mortgages, security interests, liens, equities, encumbrances and
claims of every kind (collectively, the "Encumbrances") except
for the Encumbrances set forth on Item 4.7 of the Disclosure Schedule and
the liens of the Lender as set forth in this Agreement.  The Collateral is and
will remain free and clear of all Encumbrances of any nature whatsoever, except
for those set forth on Item 4.7 of the Disclosure Schedule and the liens
of the Lender as set forth in this Agreement.

	All of the subsidiaries and affiliates of Borrower are wholly owned by
Borrower.

3.21  The security interest and leasehold mortgage in favor of the Borrower
on the real and personal property located at Kenwood Mall, Cincinnati, Ohio, is
a first and best lien on such personal property and leasehold and Borrower has
not and will not allow any Encumbrances on such property to be superior to
Borrower's mortgage and security interest.

ARTICLE IV

ADDITIONAL COVENANTS AND OTHER AGREEMENTS

4.1.Finder's Fee. Borrower shall pay to
SDKI a cash fee of ten percent (10%) of all the Loan Proceeds disbursed to
Borrower, which amount shall be paid from the proceeds disbursed to
Borrower.

	Disbursement Approval.  All disbursements of Loan
Proceeds shall be approved in writing in advance by Lender, in its sole and
absolute discretion.  Prior to any use by the Borrower of the Loan Proceeds, or
any portion thereof, Borrower shall have received Lender's prior written
approval of such use, with such approval being determined by Lender in its sole
and absolute discretion.  Notwithstanding the foregoing provisions of this
Section 4.2, Borrower shall not need any approval from Lender with respect to
its use of the first $50,000 of Loan Proceeds received by Borrower.

	Registration Rights.  Within 60 days of the date
hereof, Borrower shall have used its best efforts to cause a registration
statement covering the resale of the shares of Common Stock issuable upon
conversion of the Notes, exercise of the purchase rights under the Notes, used
for payment of the accrued interest on the Notes and  exercise of the Warrants
to have been declared effective by the Securities and Exchange Commission.  All
expenses of such registration, except fees for underwriting discounts and
selling commissions applicable to the resale of such Common Stock by Lender or
the holder of the Warrants, shall be borne by Borrower.  Lender and SDKI (and
their respective assigns) each agree to cooperate with the Borrower in the
preparation and filing of any such registration statement and in the furnishing
of information for inclusion therein, or in any efforts by the Borrower to
establish that the proposed sale is exempt under the Securities Act of 1933, as
amended, as to any proposed distribution.

4.4Right of First Refusal.  As long as their
exists any principal or interest outstanding under the Notes, the Borrower
grants to the Lender a right of first refusal to participate as an investor in
any offering of Borrower's Common Stock, securities convertible into Common
Stock or any other equity securities of the Borrower (collectively, the
"Securities"). If the Borrower receives an executed letter of
intent or term sheet from any third party with respect to a sale or transfer of
Securities that the Borrower is willing to accept, the Borrower shall promptly
give written notice thereof to the Lender, including all essential terms and
conditions of such proposed offering.  The Lender shall then have ten (10) days
after receipt of such written notice to elect to enter into an agreement with
the Borrower to participate in the proposed offering on the same terms and
conditions as set forth in the Borrower's written notice.  If the Lender
declines to exercise its right of first refusal upon written notice from the
Borrower or fails to notify the Borrower within a 10-day period of an election
to invoke its right of first refusal, the Borrower shall have a period of 30
days to enter into an agreement with such third party from whom it has received
an executed letter of intent for the sale or transfer of the Securities on the
exact terms and conditions that were provided to Borrower in the notice.  In the
event that Borrower does not effect a transfer or sale of the Securities within
the specified thirty-day period, the Lender's right of first refusal shall
continue to be applicable to any subsequent sale or transfer of the Securities
by the Borrower. 

4.5.Approval of Equity and Debt Issuances.
Borrower and its subsidiaries and affiliates shall not issue any securities,
including options to purchase  securities, or take on any debt (other than the
debt reflected by the Notes and trade payables incurred in the ordinary course
of business), without Lender's prior written approval, which approval shall be
given in Lender's sole and absolute discretion. 

4.6 Board Seats.  Upon Lender's request, the Board
of Directors of Borrower (the "Board") shall take all necessary
and appropriate action to create up to two (2) new director seats of the Board
and appoint such persons as designated by Lender.  Additionally, for each
$1,400,000 of principal amount of Notes purchased by Lender in excess of
$1,200,000, Lender may, at its election, designate one (1) additional member of
the Board and the Board shall take all necessary and appropriate action to
create such director seats and appoint such persons designated by Lender;
provided, however, that Lender's election to designate such new members must be
made, if at all, within 30 days of the closing of the purchase of such
additional principal amounts of Notes.

4.7 Security Agreements.  In connection with the
Loan made pursuant to this Agreement, the Notes shall be secured by a first and
best lien in all of the assets of the Borrower and its subsidiaries and
affiliates, including the shares of capital stock and membership interest in
Popmail Network, Inc., Fan Asylum, Inc. and Café Odyssey, LLC
(collectively, the "Collateral"); except for the Collateral set forth
in Item 4.7 of the Disclosure Schedule, which Lender shall have a lien
and security interest in, which shall be subordinated only to those persons or
entities identified in Item 4.7 of the Disclosure Schedule.  Borrower and
its subsidiaries and affiliates shall execute and deliver security agreements,
financing statements, pledge agreements and all other instruments and agreements
required by Lender that provide for a grant by Borrower and its subsidiaries and
affiliates to Lender of a security interest in all of the Collateral.   Borrower
shall take all other steps  necessary to keep such security interest in Lender
perfected and shall take no action to subordinate Lender's security interest to
any other person or entity without Lender's prior written approval.

4.8 Default Under Loan Document.  In the event
that a default shall exist under any of the Loan Documents, Lender shall be
authorized to proceed with any and all remedies available to Lender thereunder.
A default under any of the Loan Documents shall constitute a default under each
other Loan Document and shall entitle Lender to pursue any and all remedies
under each or any of the Loan Documents.

	Reserving Common Stock For Issuance.  The Borrower
shall at all times while the Warrants or the Lender's conversion and purchase
rights as set forth in the Notes are outstanding, reserve and keep available out
of its authorized but unissued stock, such number of duly authorized Common
Stock as shall be sufficient to effect the conversion rights and purchase rights
under the Notes and Warrants in accordance with their respective
terms.

	Reclassification of Common Stock.  The Borrower
covenants and agrees that in the event its present Common Stock shall be
reclassified, split, combined or otherwise changed, or in case of any
consolidation or merger of the Borrower with or into another corporation as a
result of which holders of Common Stock become entitled to receive securities or
other assets (including cash) with respect to or in exchange for their Common
Stock (other than a merger with a subsidiary in which merger the Borrower 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, lease or conveyance to another corporation of the property
of the Borrower as an entirety or substantially as an entirety, the Borrower
shall make proper provision as a part of the terms of such reclassification,
split, combination, change, consolidation, merger or sale, that the holder of
the Warrants and the Notes will thereafter be entitled to convert it into the
same kind and amount of securities (including in that term, stock of any class
or classes) and other assets as may be issuable or distributable by the terms of
such reclassification, split, combination, change, consolidation, merger or
sale.

4.11  Financial Statements. The Borrower
shall: (i) Within 45 days of the end of each quarter, furnish Lender with any
and all filings with the Securities and Exchange Commission including but not
limited to Form 10Q, and  a No Default Certificate in the form which in a form
acceptable to Lender; (ii) within 90 days of its fiscal year end, furnish
audited copies of the Borrower's balance sheet, income statement, and statement
of cash flows as well as a copy of Borrower's Form 10K; and (iii) within 30 days
of filing, the Borrower's consolidated federal income tax return.

4.12Taxes, Assessments and Liabilities. The
Borrower shall pay all taxes, assessments, and other liabilities when due,
except for those which are contested in good faith. File all required federal,
state and local tax returns on a timely basis.

4.13Notice.  The Borrower shall give the
Lender prompt notice of any: (i) default of this or any other agreement or
contract under which the Borrower or any of its subsidiaries or affiliates are
liable; (ii) environmental penalty, claim or dispute involving more than
$25,000.00; (iii) litigation, government proceeding or investigation filed or
threatened against Borrower or any of its subsidiaries or affiliates, Lender its
directors and officers involving more than $25,000.00; (iv) reportable event
under ERISA; or (v) material change in the business prospects or financial
condition of the Borrower or any of its subsidiaries or affiliates.

4.14Corporate Existence and Status.  Borrower
shall maintain its and its subsidiaries' and affiliates' corporate existence and
remain in good standing under the laws of each jurisdiction where the Borrower
and its subsidiaries or affiliates are duly qualified to conduct its
business.

4.15Protection of Intellectual Property.
Borrower and its subsidiaries and affiliates shall take all measures necessary
to defend and protect the Intangibles, and not commit or permit any action that
may impair the value of the Intangibles.

4.16Liens.   Borrower and its subsidiaries and
affiliates shall not create or permit to exist any Encumbrance with respect to
the Collateral, except for liens created in favor of the Lender hereunder.

4.17Compliance with Laws.  Borrower and its
subsidiaries and affiliates shall keep, observe, satisfy and not suffer
violations of any and all  laws, statutes, ordinances and/or regulations.

4.18Operate in the Ordinary Course.  Borrower
and its subsidiaries and affiliates shall continue to operate their respective
businesses in the ordinary and customary course, and not take any actions which
materially alter the nature or scope of their respective businesses as conducted
on the date of the Initial Closing.

 

4.19Further Assurances.  Borrower and its
subsidiaries and affiliates shall provide Lender with such additional
information or documentation as Lender may request from time to time.

4.20Lender's Attorney's Fees.  At each
closing, Borrower shall pay Lender's attorney's fees it has incurred related to
the Loan up to a maximum of $10,000.

ARTICLE V

DEFAULT AND REMEDIES

5.1.Events of Default.  The occurrence
of any one or more of the following events or the existence of one or more of
the following conditions shall, upon 30 days written notice to Borrower,
constitute an "Event of Default" under this Agreement provided
that the events set forth in Sections 5.1(a), 5.1(c), 5.1(f), 5.1(e), 5.1(g),
5.1(h), 5.1(k), 5.1(l) and 5.1(n) shall constitute an Event of Default
immediately upon their occurrence and Lender shall not be required to provide
the 30 days' written notice for any such events:  

(a)Borrower shall fail to pay when due any
installment of principal or interest due under the Notes, whether due on the
date provided for therein or by acceleration or otherwise, or Borrower shall
fail to pay when due any other amounts due under any of the Loan Documents;

	Any material breach of a representation or warranty made
in writing to Lender by Borrower or its subsidiaries or affiliates made herein,
in any Loan Documents or in connection with the making of the Loan; 

	The breach, default or violation by Borrower or its
subsidiaries or affiliates of any obligation, agreement or covenant contained in
Loan Documents or any other agreements, certificates or writings executed in
connection herewith by Borrower or its subsidiaries or affiliates; unless the
same is cued within any applicable grace period; 

	any material provision of any of the Loan Documents shall
at any time for any reason cease to be in full force and effect or shall be
declared to be null and void; 

	any litigation or proceeding is pending which may
materially adversely affect the ability of Borrower, its subsidiaries or
affiliates to perform its obligations under the Loan Documents; 

	 the failure of the Borrower or its subsidiaries or
affiliates to comply with any other covenants or agreements contained in any of
the Loan Documents and not herein specifically referenced, unless the same is
cured within any applicable grace period; 

	a material part of the operations of the Borrower or any
of its subsidiaries or affiliates shall cease for a period of thirty days;

	the liquidation, termination or dissolution of Borrower
or any of its subsidiaries or affiliates;

	the occurrence of an event of default (as defined
therein) in any of the Loan Documents other than this Agreement;

	the occurrence of any of the following transactions
concerning the Borrower without the prior written consent of the Lender (which
shall be given in its sole and absolute discretion): (i) the acquisition of the
Borrower by another entity by means of any transaction or series of related
transactions (including, without limitation, the transfer of more than 50% of
the voting power of the Borrower, reorganization, merger, consolidation); or
(ii) a sale of all or substantially all of the assets of the Borrower; unless
the Borrower's shareholders of record as constituted immediately prior to such
acquisition or sale will, immediately after such acquisition or sale (by virtue
of securities issued as consideration for the Borrower's acquisition or
otherwise) hold at least 50% of the voting power of the surviving or acquiring
entity;

	the issuance of any securities by Borrower's subsidiaries
and affiliates without the prior written consent of the Lender; 

	the occurrence of any of the following transactions
concerning the Borrower's subsidiaries or affiliates without the prior written
consent of the Lender: (i) the acquisition (in whole or in part) of any
subsidiary or affiliate of the Borrower by another entity or person by means of
any transaction or series of related transactions (including, without
limitation, the stock purchase, stock issuance, reorganization, merger,
consolidation); or (ii) a sale of all or substantially all of the assets of the
Borrower; 

	Borrower's Common Stock is de-listed from the Nasdaq
National or SmallCap Market Systems; or 

	if Lender shall reasonably deem itself to be insecure.

5.2.Remedies.  Upon the
occurrence of any Event of Default hereunder as above provided, and at any time
thereafter, all principal, interest and other amounts payable under the Notes
shall, at the option of Lender, become immediately due and payable without
presentment, demand, protest or other notice of any kind, all of which are
expressly waived by Borrower.  Lender may proceed with every remedy available at
law or in equity or provided for in the Loan Documents or in any other document
executed in connection with the Loan, in such order or sequence as Lender may
determine in its sole discretion, including concurrently, independently, or
successively, and all expenses incurred by Lender in connection with any remedy
shall be deemed indebtedness of Borrower to Lender including, but not limited
to, reasonable attorneys' fees incurred by Lender.  

ARTICLE VI

GENERAL PROVISIONS

6.1.Amendments.  No provision or term
of the Loan Documents may be amended, modified, revoked, supplemented, waived or
otherwise changed except by a written instrument duly executed by the party from
whom enforcement is sought.  

6.2.Borrower Not Released.  Without
affecting any obligation of Borrower under this Agreement, Lender without notice
or demand may renew, extend or otherwise change the terms and conditions of the
Loan.  

6.3.Severability.  Whenever possible,
each provision of the Loan Documents shall be interpreted so as to be effective
and valid under Ohio law.  Should any provision, covenant or agreement contained
in the Loan Documents be deemed invalid, illegal or unenforceable in any
jurisdiction, the validity, legality and enforceability of the remaining
provisions of the Loan Documents shall not be impaired thereby, nor shall the
validity, legality or enforceability of any such defective provision be in any
way affected or impaired in any other jurisdiction.  

6.4.Successors and Assigns Bound;
Assignment.  The covenants and agreements contained herein shall bind the
parties hereto and each of their respective successors and assigns.  Borrower
may not assign this Agreement without the prior written consent of Lender.
Subject to the foregoing restriction, this Agreement shall inure to the benefit
of Lender and SDKI, their successors and assigns.  

6.5.No Third Party Benefits.  This
Agreement is made for the sole benefit of Borrower, Lender, PNI, FAO, COL, SDKI
and their respective successors and assigns, and no other person or persons
shall have any rights or remedies under or by reason of this Agreement.  

6.6.Headings.  The captions and
headings of the paragraphs in the Agreement are for convenience only and are not
used to interpret or define the provisions of the Agreement.  

6.7.Governing Law.  This Agreement and
the Loan Documents or any other documents executed in connection with the loan
shall be governed by and interpreted in accordance with the laws of the State of
Ohio, without regard to Ohio's conflict of laws principles.  

6.8.Conflict.  Should any provision of
any other Loan Documents conflict with any provision of this Agreement, the
provision selected by Lender, in its sole discretion, shall govern and shall be
controlling.  

6.9 Jurisdiction.  Borrower, by its execution
hereof (i) hereby irrevocably submits to the exclusive jurisdiction of the State
of Ohio and to the exclusive jurisdiction of the United States District Court
for the Southern District of Ohio for the purpose of any suit, action or other
proceeding arising out of or based upon this Agreement, the Collateral or the
Loan Documents or the subject matter hereof or thereof brought by Lender, any
holder of the obligations of Borrower under the Loan Documents or their
respective successors or assigns, and (ii) agrees not to assert, by way of
motion, as a defense or otherwise, in any such proceeding, any claim that
Borrower is not subject personally to the jurisdiction of the above-named
courts, that Borrower's property is exempt or immune from attachment or
execution, that any such proceeding brought in one of the above-named courts is
brought in an inconvenient forum, that the venue of any such proceeding brought
in one of the above-named courts in improper, or that this Agreement, the
Collateral or any of the Loan Documents, or the subject matter hereof or
thereof, may not be enforced in or by such court.

6.10Waiver of Jury.  LENDER AND BORROWER HEREBY
VOLUNTARILY, KNOWINGLY AND INTENTIONALLY WAIVE ANY AND ALL RIGHTS TO TRIAL BY
JURY IN ANY LEGAL ACTION OR PROCEEDING ARISING UNDER THIS AGREEMENT OR
CONCERNING THE LOAN DOCUMENTS AND/OR ANY COLLATERAL CONTEMPLATED THEREBY,
REGARDLESS OF WHETHER SUCH ACTION OR PROCEEDING CONCERNS ANY CONTRACTUAL OR
TORTIOUS OR OTHER CLAIM.  BORROWER ACKNOWLEDGES THAT THIS WAIVER OF JURY TRIAL
IS A MATERIAL INDUCEMENT TO LENDER IN EXTENDING CREDIT, THAT LENDER WOULD NOT
HAVE EXTENDED SUCH CREDIT WITHOUT THIS JURY TRIAL WAIVER, AND THAT BORROWER HAS
BEEN REPRESENTED BY AN ATTORNEY OR HAS HAD AN OPPORTUNITY TO CONSULT WITH AN
ATTORNEY IN CONNECTION WITH THIS JURY TRIAL WAIVER AND UNDERSTANDS THE LEGAL
EFFECT OF THIS WAIVER.

6.11Obligations of Subsidiaries of Borrower.
PNI, FAI and COL all acknowledge and agree that each of them shall be bound by
Section 4.8 and all obligations, covenants, representations and warranties that
reference any subsidiary or affiliate of Borrower as if such obligations,
covenants, representations and warranties were fully made by them.  PNI, FAI and
COL further acknowledge and agree that each of them shall receive a material
benefit from the Loan received by Borrower from Lender because without it, PNI,
FAI and COL would no longer be able to continue their business as currently
operated.  The obligations of PNI, FAI and COL hereunder were a material
inducement to Lender to enter into this Agreement.

6.12Counterparts.  This Agreement may be
executed in one or more counterparts, each of which shall de deemed to be an
original but all of which together will constitute one and the same instrument.
This Agreement may be executed by facsimile signatures which shall have the same
force and effect as original signatures.

6.13Entire Agreement.  This Agreement and all
documents and agreements referred to in this Agreement supersede all prior
understandings, agreements and discussions between the parties concerning this
subject matter, with such prior understandings, agreements and discussions
between the parties being merged into this Agreement, and constitutes the entire
agreement between the parties with regard to this subject matter.

6.14Survival.  All of the obligations,
covenants, representations and warranties of Borrower and its subsidiaries and
affiliates shall survive the Initial Closing and any subsequent Closing.

ARTICLE VII

CONDITIONS TO SUBSEQUENT CLOSINGS

7.1The obligation of Lender to complete any subsequent
Closing after the Initial Closing are subject to the satisfaction of each of the
following conditions:

(i)Receipt of certified resolutions of Borrower
and its subsidiaries and affiliates authorizing the Loan and the grant of the
security interest in the Collateral to Lender;

(ii)Execution of the Loan Documents by Borrower
and its subsidiaries and affiliates, including any Notes representing the
additional proceeds being disbursed in a subsequent Closing;

(iii)No Event of Default exists;

(iv)Confirmation from the applicable federal and
state filing offices of Lender's perfected security interest in the
Collateral;

(v)Receipt of evidence satisfactory to Lender and
its legal counsel, in their sole discretion, of Lender's first and best lien
position with respect to the Collateral with the exception of the Collateral set
forth in Item 4.7 of the Disclosure Schedule;

(vi)Receipt of  Borrower's certified resolutions authorizing the
issuance and reservation of shares of Common Stock upon the exercise of the
Warrants and the conversion rights set forth in the Notes in a form satisfactory
to Lender;

(vii)All representations and warranties set forth in the
Agreement or any Loan Document are true and correct as of the date of any
subsequent Closing;

(viii)Receipt of a No Default Certificate from
the Borrower and each subsidiary and affiliate of Borrower in a form acceptable
to Lender.

[Signature Page to Follow]

 

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

BORROWER:

POPMAIL.COM, INC., 

By:

Its:___________________________

 

PMI:

POPMAIL NETWORK, INC.

By:

Its:___________________________

 

LENDER:

GSI VENTURES, LLC,

By: SDK INVESTMENTS, INC., Manager

By:___________________________________

Stephen D. King

President

FAI:

FAN ASYLUM, INC.

By:

Its:___________________________

SDKI:

SDK INVESTMENTS, INC., 

By:

Stephen D. King

President

COL:

CAFE ODYSSEY, LLC

By:

Its:___________________________

DISCLOSURE SCHEDULE

ITEM 3.1SUBSIDIARIES AND AFFILIATES

ITEM 3.6LITIGATION

ITEM 3.14 NAMES OF BUSINESSES; ADDRESSES WHERE COLLATERAL LOCATED;
PRINCIPAL OFFICE ADDRESS OF BORROWER, SUBSIDIARIES AND AFFILIATES

ITEM 3.15CONTINGENT LIABILITIES

ITEM 4.7ENCUMBRANCES ON COLLATERAL

 

 

113679.5

SCHEDULE 3.1

Subsidiaries and Affiliates

 

	Fan Asylum, Inc.
	Popmail Network, Inc.
	Café Odyssey, Inc.

Schedule 3.6

Litigation

The Company entered into a bridge loan transaction on or about October 6,
2000, in which it issued a promissory note in favor of Great Western Business
Services in the principal amount of $600,000.  The note was payable in 30 days
and was secured by certain computer equipment owned by the Company.
Additionally, the lender obtained a "contingent" security interest in
the Company's units of Cafe Odyssey, LLC, which vested upon an event of default
thereunder.  The Company has failed to repay the note and the lender has
recently given the Company notice of such default.  Additionally, the lender has
informed the Company that it intends to retrieve the collateral as soon as is
practicable.  The lender has not given any notice or otherwise communicated to
the Company its intentions with respect to its interest in the Cafe Odyssey
units.   Cafe Odyssey, LLC currently has no assets.

Schedule 3.14

Names of Businesses and Addresses

	Fan Asylum, Inc.

1250 Folsom Street

San Francisco, CA  94103

	Popmail Network, Inc.

1333 Corporate Drive, Suite 350

Irving, TX  75038

	Café Odyssey, LLC

500 16th St. Suite 350

Denver, CO  80202

4. Cafe Odyssey

320 South Avenue

Mall of America

Bloomington, MN  55425

 

Schedule 3.15

Contingent Liabilities

The Kenwood Restaurant opened in December 1996 under the name
Hotel Discovery and was closed by the Company in August 1999. In November 1999,
the Company assigned the related lease (described below) in connection with the
pending sale of restaurant assets to a third party, who subsequently reopened
the restaurant under another name and continues to operate the same. The
property is approximately 17,000 square feet in size on three levels and is
located at the northeast corner of Sycamore Plaza at Kenwood Shopping Center in
Cincinnati, Ohio. Although the third party has paid all payments due under the
lease since November 1999, the Company remains primarily obligated under the
lease. 

 

The initial term of the lease is 15 years with an option for
two additional five-year periods. The lease provides for the payment of both a
monthly fixed minimum rent and a percentage rent based on gross sales in excess
of an escalating base amount. The monthly fixed minimum rent is $12,833 for the
first five years of the initial lease term, $14,117 for the sixth through tenth
years of the initial lease term, $15,400 for the eleventh through fifteenth
years of the initial lease term.

 

In addition to the fixed minimum rent, the lease provides for
the payment of a percentage rent equal to 4% of the gross sales from the
restaurant in excess of the following annual gross sales amounts; $3,850,000 for
the first five years of the initial lease term, $4,235,000 for the sixth through
tenth years of the initial lease term, $4,620,000 for the eleventh through
fifteenth years of the initial lease term. No percentage rent was paid in 1998
or 1999. In addition to the fixed minimum rent and percentage rent, the Company
is required to pay its proportionate share of common area maintenance costs;
taxes, insurance, maintenance and operating costs. 

Schedule 4.7

Encumbrances

See Schedule 3.6.

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