Document:

EXHIBIT 4.2.

THE SECURITIES  WHICH ARE THE SUBJECT OF THIS AGREEMENT HAVE NOT BEEN REGISTERED
UNDER THE  SECURITIES  ACT OF 1933 (THE "1933 ACT"),  NOR  REGISTERED  UNDER ANY
STATE SECURITIES LAW, AND ARE "RESTRICTED SECURITIES" AS THAT TERM IS DEFINED IN
RULE 144 UNDER THE 1933 ACT. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD OR
OTHERWISE  TRANSFERRED  EXCEPT PURSUANT TO AN EFFECTIVE  REGISTRATION  STATEMENT
UNDER THE 1933 ACT, OR PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE 1933
ACT, THE  AVAILABILITY OF WHICH IS TO BE ESTABLISHED TO THE  SATISFACTION OF THE
COMPANY.

AGREEMENT FOR THE EXCHANGE OF COMMON STOCK

     AGREEMENT  made  this  8th  day of  January,  2001,  by and  between  Focus
Financial Group, Inc., a Florida corporation, (the "ISSUER") and the individuals
listed in Exhibit A attached hereto,  (the  "SHAREHOLDERS"),  which SHAREHOLDERS
own of all the issued and outstanding shares of The Nationwide Companies, Inc. a
Florida corporation. ("Nationwide")

     In  consideration of the mutual promises,  covenants,  and  representations
contained herein, and other good and valuable consideration,

THE PARTIES HERETO AGREE AS FOLLOWS:

     1.  EXCHANGE OF  SECURITIES.  Subject to the terms and  conditions  of this
Agreement,  the ISSUER agrees to issue to  SHAREHOLDERS,  300,000  shares of the
common stock of ISSUER, $.001 par value (the "Shares"),  in exchange for 100% of
the issued and  outstanding  shares of Nationwide,  such that  Nationwide  shall
become a wholly owned subsidiary of the ISSUER.

     2.  REPRESENTATIONS  AND  WARRANTIES.  ISSUER  represents  and  warrants to
SHAREHOLDERS and Nationwide the following:

                     i. Organization.    ISSUER is a corporation duly organized,
validly  existing,  and in good standing under the laws of Florida,  and has all
necessary  corporate  powers to own properties  and carry on a business,  and is
duly  qualified to do business and is in good  standing in Florida.  All actions
taken by the Incorporators, directors and shareholders of ISSUER have been valid
and in accordance with the laws of the State of Florida.

                     ii. Capital.   The authorized capital stock ISSUER consists
of  10,000,000  shares of common  stock,  $.001 par value,  of which 800,000 are
issued  and  outstanding.   All  outstanding  shares  are  fully  paid  and  non
assessable,  free of liens,  encumbrances,  options,  restrictions  and legal or
equitable rights of others not a party to this Agreement. At closing, there will
be  no  outstanding  subscriptions,   options,  rights,  warrants,   convertible
securities,  or other agreements or commitments obligating ISSUER to issue or to
transfer from treasury any additional  shares of its capital stock.  None of the
outstanding  shares of ISSUER are subject to any stock  restriction  agreements.
All of the  shareholders  of ISSUER have valid title to such shares and acquired
their shares in a lawful transaction and in accordance with the laws of Florida.

                     iii. Financial Statements.      Exhibit B to this Agreement
includes the current  balance  sheet of ISSUER,  and the related  statements  of
income and retained earnings for the period then ended. The financial statements
have been prepared in accordance with generally accepted

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accounting  principles  consistently  followed by ISSUER  throughout the periods
indicated, and fairly present the financial position of ISSUER as of the date of
the  balance  sheet  and  the  financial  statements,  and  the  results  of its
operations for the periods indicated.

                     iv.  Absence of Changes.    Since the date of the financial
statements,  there  has not  been  any  change  in the  financial  condition  or
operations of ISSUER,  except changes in the ordinary course of business,  which
changes have not in the aggregate been materially adverse.

                     v.   Liabilities. ISSUER does not have any debt, liability,
or  obligation  of  any  nature,  whether  accrued,  absolute,   contingent,  or
otherwise,  and  whether  due or to become  due,  that is not  reflected  on the
ISSUERS' financial statement.  ISSUER is not aware of any pending, threatened or
asserted claims, lawsuits or contingencies involving ISSUER or its common stock.
There is no dispute of any kind between the ISSUER and any third  party,  and no
such dispute  will exist at the closing of this  Agreement.  At closing,  ISSUER
will be free from any and all liabilities, liens, claims and/or commitments.

                     vi. Ability to Carry Out Obligations. ISSUER has the right,
power,  and  authority  to enter into and  perform  its  obligations  under this
Agreement.  The  execution  and  delivery  of this  Agreement  by Issuer and the
performance by ISSUER of its obligations  hereunder will not cause,  constitute,
or  conflict  with  or  result  in (a) any  breach  or  violation  or any of the
provisions of or constitute a default  under any license,  indenture,  mortgage,
charter,  instrument,  articles of  incorporation,  bylaw, or other agreement or
instrument to which ISSUER or its shareholders are a party, or by which they may
be bound, nor will any consents or  authorizations of any party other than those
hereto be  required,  (b) an event that would  cause  ISSUER to be liable to any
party,  or (c) an event that would result in the creation or  imposition  or any
lien,  charge or  encumbrance  on any asset of ISSUER or upon the  securities of
ISSUER to be acquired by SHAREHOLDERS.

                     vii. Full  Disclosure.  None  of  the  representations  and
warranties made by the ISSUER, or in any certificate or memorandum  furnished or
to be furnished by the ISSUER,  contains or will contain any untrue statement of
a material  fact,  or omit any  material  fact the  omission  of which  would be
misleading.

                     viii. Contract and Leases. ISSUER is not currently carrying
on any  business  and is not a party to any  contract,  agreement  or lease.  No
person holds a power of attorney from ISSUER.

                     ix. Compliance with Laws.  ISSUER has complied with, and is
not in violation of any federal, state, or local statute, law, and/or regulation
pertaining to ISSUER.  ISSUER has complied with all federal and state securities
laws in connection with the issuance, sale and distribution of its securities.

                     x. Litigation.  ISSUER is not (and has not been) a party to
any suit, action, arbitration, or legal, administrative, or other proceeding, or
pending governmental  investigation.  To the best knowledge of the ISSUER, there
is no basis for any such action or  proceeding  and no such action or proceeding
is  threatened  against  ISSUER and ISSUER is not subject to or in default  with
respect to any order, writ, injunction,  or decree of any federal, state, local,
or foreign court, department, agency, or instrumentality.

                     xi. Conduct of Business. Prior to the closing, ISSUER shall
conduct its business in the normal course,  and shall not (1) sell,  pledge,  or
assign any assets (2) amend its Articles of Incorporation or Bylaws, (3) declare
dividends, redeem or sell stock or other securities, (4) incur any

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liabilities,  (5)  acquire or dispose of any  assets,  enter into any  contract,
guarantee  obligations  of  any  third  party,  or  (6)  enter  into  any  other
transaction.

                     xii.  Corporate Documents.  Copies of each of the following
documents, which are true complete and correct in all material respects, will be
attached to and made a part of this Agreement:

          (1)  Articles of Incorporation;
          (2)  Bylaws;
          (3)  Minutes of Shareholders Meetings;
          (4)  Minutes of Directors Meetings;
          (5)  List of Officers and Directors;
          (6)  Current  Balance Sheet together with other  financial  statements
               described in Section 2(iii);
          (7)  Stock  register  and  stock  records  of  ISSUER  and a  current,
               accurate list of ISSUER's shareholders.

                     xiii.  Documents.  All minutes, consents or other documents
pertaining to ISSUER to be delivered at closing shall be valid and in accordance
with the laws of Florida.

                     xiv.  Title.   The Shares to be issued to SHAREHOLDERS will
be,  at  closing,  free and clear of all  liens,  security  interests,  pledges,
charges, claims,  encumbrances and restrictions of any kind. None of such Shares
are or will be subject to any voting trust or agreement.  No person holds or has
the right to  receive  any proxy or  similar  instrument  with  respect  to such
shares,  except as provided in this Agreement,  the ISSUER is not a party to any
agreement  which offers or grants to any person the right to purchase or acquire
any of the  securities  to be issued  to  SHAREHOLDERS.  There is no  applicable
local,  state or federal law,  rule,  regulation,  or decree  which would,  as a
result of the issuance of the Shares to SHAREHOLDERS,  impair, restrict or delay
SHAREHOLDERS' voting rights with respect to the Shares.

     3.  SHAREHOLDERS  and  Nationwide  represent  and  warrant  to  ISSUER  the
following:

                     i. Organization Nationwide is a corporation duly organized,
validly  existing,  and in good  standing  under  the laws of  Florida,  has all
necessary  corporate  powers to own properties  and carry on a business,  and is
duly  qualified to do business and is in good  standing in Florida.  All actions
taken by the  Incorporators,  directors and shareholders of Nationwide have been
valid and in accordance with the laws of Florida.

                     ii. Shareholders and Issued Stock. Exhibit A annexed hereto
sets forth the names and share holdings of 100% of Nationwide shareholders.

     4.  INVESTMENT  INTENT.  SHAREHOLDERS  agree that the shares  being  issued
pursuant  to this  Agreement  may be sold,  pledged,  assigned,  hypothecate  or
otherwise  transferred,  with or  without  consideration  (a  "Transfer"),  only
pursuant to an effective registration statement under the Act, or pursuant to an
exemption from  registration  under the Act, the  availability of which is to be
established to the  satisfaction  of ISSUER.  SHAREHOLDERS  agree,  prior to any
Transfer,  to give written notice to ISSUER  expressing his desire to effect the
transfer and describing the proposed transfer.

     5. CLOSING.  The closing of this transaction shall take place no later than
February 1st, 2001.

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     6. DOCUMENTS TO BE DELIVERED AT CLOSING.

                     i.   By the ISSUER

                         (1) Board of Directors Minutes authorizing the issuance
of a certificate or certificates for 500,000 Shares,  registered in the names of
the  SHAREHOLDERS  based upon their holdings in Focus Financial  Group,  Inc. as
agreed to on Exhibit A.

                         (2) The resignation of all officers of ISSUER.

                         (3) A Board of  Directors  resolution  appointing  such
person as SHAREHOLDERS designate as a director(s) of ISSUER.

                         (4) The  resignation  of all the  directors  of ISSUER,
except  that of  SHAREHOLDER'S  designee,  dated  subsequent  to the  resolution
described in 3, above.

                         (5) Audited  financial  statements  of the ISSUER filed
with the SEC,  which shall  include a current  balance  sheet and  statements of
operations,  stockholders equity and cash flows for the twelve-month period then
ended.

                         (6)  All of  the  business  and  corporate  records  of
ISSUER,  including but not limited to  correspondence  files,  bank  statements,
checkbooks,   savings  account  books,  minutes  of  shareholder  and  directors
meetings,  financial statements,  shareholder listings,  stock transfer records,
agreements and contracts.

                         (7) Such other  minutes  of  ISSUER's  shareholders  or
directors as may reasonably be required by SHAREHOLDERS.

                         (8) An Opinion Letter from ISSUER's Attorney  attesting
to the validity and condition of the ISSUER.

                     ii.  By SHAREHOLDERS AND Nationwide.

                         (1) Delivery to the ISSUER,  or to its Transfer  Agent,
the  certificates  representing  100% of the  issued  and  outstanding  stock of
Nationwide.

                         (2)  Consents   signed  by  all  the   shareholders  of
Nationwide consenting to the terms of this Agreement.

     7. REMEDIES.

                     i. The parties agree that should Nationwide fail to fulfill
its obligations in a timely fashion hereunder, Focus Financial Group will suffer
damages which the parties agree are  unascertainable  at this time and therefore
the parties agree to set said damages in the liquidated amount equal to $ 25,000
as a reasonable  amount  thereof.  The Company  agrees to pay all attorney fees,
court  costs,  interest,  and  other  miscellaneous  costs  if  necessary  in  a
collection effort

                     ii. Arbitration.   Any controversy or claim arising out of,
or relating to, this Agreement,  or the making,  performance,  or interpretation
thereof,  shall be  settled by  arbitration  in Palm  Beach  County,  Florida in
accordance with the Rules of the American Arbitration Association

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then existing, and judgment on the arbitration award may be entered in any court
having jurisdiction over the subject matter of the controversy.

     8. MISCELLANEOUS.

                     i.  Captions  and  Headings.   The  Article  and  paragraph
headings  throughout  this Agreement are for convenience and reference only, and
shall  in no way be  deemed  to  define,  limit,  or add to the  meaning  of any
provision of this Agreement.

                     ii.  No oral  change.  This  Agreement  and  any  provision
hereof, may not be waived, changed,  modified, or discharged orally, but only by
an agreement in writing  signed by the party  against  whom  enforcement  of any
waiver, change, modification, or discharge is sought.

                     iii. Non  Waiver. Except  as  otherwise provided herein, no
waiver of any  covenant,  condition,  or  provision of this  Agreement  shall be
deemed to have been made  unless  expressly  in writing  and signed by the party
against whom such waiver is charged;  and (I) the failure of any party to insist
in any  one  or  more  cases  upon  the  performance  of any of the  provisions,
covenants,  or  conditions  of this  Agreement or to exercise any option  herein
contained shall not be construed as a waiver or relinquishment for the future of
any  such  provisions,   covenants,  or  conditions,   (ii)  the  acceptance  of
performance  of  anything  required  by  this  Agreement  to be  performed  with
knowledge of the breach or failure of a covenant, condition, or provision hereof
shall not be deemed a waiver of such breach or  failure,  and (iii) no waiver by
any party of one breach by another  party  shall be  construed  as a waiver with
respect to any other or subsequent breach.

                     iv.  Time of  Essence.  Time  is  of  the essence  of  this
Agreement and of each and every provision hereof.

                     v.   Entire Agreement.   This Agreement contains the entire
Agreement and understanding between the parties hereto, and supersedes all prior
agreements and understandings.

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

                     vii. Notices.     All notices, requests, demands, and other
communications  under this Agreement  shall be in writing and shall be deemed to
have been duly given on the date of service if served personally on the party to
whom notice is to be given,  or on the third day after  mailing if mailed to the
party  to whom  notice  is to be  given,  by first  class  mail,  registered  or
certified, postage prepaid, and properly addressed, and by fax, as follows:

     9. PIGGYBACK  PROVISIONS.  Nationwide agrees to piggyback  provisions which
provide  that  if  The  Nationwide  Companies,  Inc  proposes  to  register  any
securities under the Securities Act of 1933 for a public offering,  it will give
20 days written notice to the filing of each such registration  statement to the
Focus  Financial  Group,   Inc.   Shareholders  and  upon  the  request  of  any
Shareholder,  Nationwide shall include the shares of the Current Shareholders in
such registration;

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ISSUER:           Focus Financial Group, Inc.
                  22154 Martella Avenue,
                  Boca Raton, FL 33433

NATIONWIDE:       The Nationwide Companies, Inc.
                  4350 Oakes Road, Suite 512
                  Davie, Florida 33314

IN WITNESS WHEREOF,  the undersigned has executed this Agreement this 8th day of
January 2001.

                          FOCUS FINANCIAL GROUP, INC.

                          By:  /s/ Shelley S. Goldstein
                          -------------------------------------
                          Shelley S. Goldstein, Sole Officer and Director

                          THE NATIONWIDE COMPANIES, INC.

                          By:  /s/ Richard L. Loehr
                          -----------------------------------
                          Richard L. Loehr, President

                                        6Exhibit 10.5

HSBC [LOGO]
July 12, 2000

Pultronex Corporation
2305 - 8th Street
Nisku, Alberta
T9E 7Z3

Attention:  Kelly Delhon
            Gary Loblick

Dear Sirs:

0n the basis of the  financial  statements  and other  information  provided  by
Pultronex  Corporation  (the  "Borrower") and Pultronex  Corporation (US Entity)
(the  "Corporate  Guarantor')  in  connection  with your  request for  continued
financing,  HSBC Bank Canada  (tile  "Bank") has  authorized  the renewal of the
following loans (the "Loans"):

1.  Loans:

     1.1  $1,600,000  demand  revolving  operating loan (the  "Operating  Loan")
          (increase from $1,000,000). This includes an option for advances to be
          made  available  up to  USD$200,000,  and an option  for  issuance  of
          letters of guarantees up to an amount of $200,000;

     1.2  $233,300 demand capital loan (the "Capital Loan");

     1.3  $460,000  demand capital loan (the  "Equipment  Loan") based on 75% of
          purchase price of equipment, upgrades, etc., or alternatively,

          $460,000 leasing facility (the "Leasing  Facility") as outlined in the
          attached  Leasing Proposal dated June 1, 2000 put forward by HSBC Bank
          Canada Leasing Division (the "Leasing Department");

     1.4  $500,000  facility  to arrange  foreign  exchange  contracts  (the "FX
          Facility");

2. Purpose:

     2.1  the  Operating  Loan will be used to assist in financing the operating
          requirements  of the  Borrower,  which may  include  the  issuance  of
          documentary credits in payment for goods and services;

     2.2  the  Capital  Loan is the  residual  balance of a loan used to provide
          additional working capital and pay out loans to ZCL Composites Inc.;

     2.3  the  Equipment  Loan (or  Leasing  Facility)  will be used to  finance
          various equipment purchases, and to perform various computer upgrades;

HSCB Bank Canada
10561 Jasper Avenue, Edmonton, Alberta T5J 1Z4
Tel: (780) 423-3563       Fax:  (780) 420-0506

(70)
<PAGE>

                                      -2-

     2.4  the L/G Facility,  incorporated in the Operating Loan, will be used to
          issue letters of guarantee;

     2.5  the F/X  Facility  will be used to arrange  forward  contracts  to fix
          prices on forward purchases/sales of foreign currencies;

3. Interest:

     3.1  interest  on the daily  balance of the  principal  advanced  under the
          Operating Loan and remaining unpaid from  time-to-time will be payable
          monthly in  arrears  on the last day of each month at a floating  rate
          equal to the Bank's Prime Rate plus 75 basis points per annum  (change
          from 100 bps), calculated monthly from the date of advance.

          In the case of U.S. Dollar  borrowings,  interest on the daily balance
          of the principal  advanced and remaining unpaid from time-to-time will
          be  payable  monthly  in  arrears  on the last day of each  month at a
          floating  rate equal to the Bank's U.S. Base Rate plus 75 basis points
          per annum (change from 100 bps);

     3.2  interest on the daily balance  outstanding under the Capital Loan, and
          Equipment Loan and remaining unpaid from  time-to-time will be payable
          on the last day of each month at a rate equal to the Bank's Prime Rate
          plus 100 basis  points  per  annum  (change  from 125 bps)  calculated
          monthly in arrears from the date of advance;

     3.3  should the Leasing  Facility be  selected,  the rental  pricing on the
          Leasing  Facility will be determined by Leasing  Department  following
          the conditions stipulated on the attached Leasing Proposal;

     The  Bank's  "Prime  Rate"  means  the  floating  annual  rate of  interest
     established and announced by the Bank from time-to-time as a reference rate
     for  purposes  of  determining  rates of  interest  it will charge on loans
     denominated  in Canadian  dollars and which,  by accepting this letter the
     Borrower acknowledges was 7.50% on July 10, 2000. A certificate of the Vice
     President of the Bank will be conclusive  evidence of the Bank's Prime Rate
     from time-to-time;

     The Bank's  "U.S.  Prime Rate" means the  floating  annual rate of interest
     established and announced by the Bank from time-to-time as a reference rate
     for  purposes  of  determining  rates of  interest  it will charge on loans
     denominated  in U.S.  dollars and which,  by  accepting  this  letter,  the
     Borrower  acknowledges  was 10.00% on July 10, 2000. A  certificate  of the
     Vice-President of the Bank will be conclusive  evidence of the Bank's Prime
     Rate from time-to-time;

     Notwithstanding anything to the contrary contained herein, the Bank may, in
     its  discretion,  make an  advance  under  the  Operating  Loan,  or make a
     reduction  from the advance  otherwise  requested  under Loans,  to pay any
     interest which has become due and payable as aforesaid.

4.  Letter of Guarantee Fees:

     165 basis points per annum (minimum $100)  calculated on the amount of each
     letter of guarantee issued,  payable at the time of issue or on any renewal
     thereof;

(71)
<PAGE>

                                      -3-

5. Advances:

     5.1  the  Operating  Loan will  revolve on an  overdraft  basis and will be
          available  following  satisfaction  of the  Conditions of Loans as set
          forth below.  Advances under the Operating Loan,  together with 50% of
          D/C's opened but not accepted  plus 100% of D/C's under usance  terms,
          100%  of  L/G's   issued  and  31%  of  forward   exchange   contracts
          outstanding,  will  at  not  time  exceed  the  aggregate  of  50%  of
          Acceptable  Inventory  and  75% of  Acceptable  Receivables.  Employee
          deductions  and  wages  due  will  also  be  deleted  from  Acceptable
          Receivables  (the  "Margin  Requirements").  For the  purpose of this
          section  "Acceptable  Inventory"  means the value based on cost of all
          raw  materials to be utilized by the Borrower for resale of production
          of goods for  resale,  50% of which  value  will not be  greater  than
          $150,000 and "Acceptable  Receivables" means the aggregate of accounts
          receivable of the Borrower from  customers  approved by the Bank which
          have been  outstanding  for not more than 90 days from  which  will be
          excluded accounts  receivable from affiliated  corporations,  accounts
          receivable which are disputed by the Borrower's customers or from whom
          all or part of other accounts  receivable  remain  outstanding  for in
          excess of 90 days.

          5.1.1   an exception will be made to the Margin Requirements to allow
                  Acceptable Receivables to be assessed  at 90% of any  accounts
                  receivable of the  Borrower   insured  by  Export  Development
                  Corporation ("EDC") and in good standing.

          5.1.2  daily credit balance positions in the Borrower's USD account up
                 to an amount equivalent to CAD $250,000 may be used to net off
                 outstanding  balances on the  Operating Loan  but  only for the
                 purpose of determining the margin requirement on that day.

     5.2  the Capital Loan is fully advanced.

     5.3  the Equipment  Loan will be made  available as required in up to three
          tranches subject to ongoing compliance with the Conditions of Loans as
          set forth below, in blocks  representing  75% of the purchase price of
          equipment, and computer upgrades;

          Or,  alternatively,  should the Leasing  Facility be chosen,  advances
          will  be  made  according  to the  conditions  stipulated  by  Leasing
          Department;

     5.4  forward exchange  contracts may be arranged up to 180 days at any time
          within the  authorized limit of the FX  Facility,  provided 31% of the
          Canadian equivalent of such contracts  outstanding is assessed against
          the Margin Requirements above;

6.  Repayment:

     6.1  All  amounts  outstanding  under the Loans  will be repaid on  demand,
          however,  unless  and  until  otherwise  demanded,   interest  on  the
          Operating Loan will be payable as set forth above;

     6.2  the Capital  Loan will  continue to be repaid in  consecutive  monthly
          principal  payments  of $5,835  plus  interest on the last day of each
          month;

(72)
<PAGE>

                                      -4-

     6.3  the Equipment  Loan will be repaid in  consecutive  monthly  principal
          payments  plus  interest on the last day of each month.  Each  advance
          made under the Equipment  Loan will be repaid  within an  amortization
          period not to exceed 60 months.

     6.4  Repayment of Leasing Facility to be determined by Leasing Department.

7.   Loan Administration Fee:

     A fee of %200 per month  (change  from $150) will be charges to  compensate
     the Bank of the lack of free balances  which would normally be available to
     the Bank if the Operating Loan were to revolve in normal note multiples.

8.  Electronic Fund Transfer Services (EFT):

     For a faster and easier way to process  regularly  scheduled  transactions,
     EFT  software  is  available  to move funds  quickly  and  safely.  You can
     initiate payroll deposits,  regular  disbursements and obtain collection of
     your receivables to efficiently manage your cash. The fee is $50 per month
     plus 0.05 per entry and there is no cost for  transmission  (via modem to a
     1-800 number).

9.  Payment Filing Service (PFS):

     PFS software package will allow you to electronically remit taxed (federal,
     provincial and municipal),  as well as employee  payroll  deductions  (CPP,
     EI), federal & provincial filings, and utility bills. The fee is a one time
     $25 set up charge,  plus approximately  $2.75 per bill paid and there is no
     cost for transmission (via modem to a 1-800 number).

10.  Hexagon:

     10.1 the  Bank's  global  electronic  banking  software  is  available  for
          installation  on IBM  compatible  computer with modem,  for use at the
          Borrower's   office.   This   provides   on-line   banking  for  daily
          transactional  needs and  detailed  account  information.  The  Bank's
          monthly  change  in Canada  for  installations  in the same  office is
          $50.00 and there is no set fee of line charge for usage;

     10.2 up to 5 accounts  may be  accessed  through  Hexagon  without  further
          charge,  including  accounts  held with other members of the HSBC Bank
          Group   worldwide.   Accounts   of   parent   company,   subsidiaries,
          shareholders and other senior management may also be included.

11.  Conditions of Loans:

     The following  covenants of the Borrower and the  Guarantors  will apply so
     long as the Borrower is indebted to the Bank:

     11.1 all accounts of the Borrower to be maintained with to the Bank;

     11.2 the Borrower will maintain the Margin Requirements as set forth above;

     11.3 the  Borrower  will  maintain EDC  insurance  on all foreign  accounts
          receivable;

     11.4 the Borrower will not, without the prior written consent of the Bank:

(73)
<PAGE>

                                      -5-

      11.4.1   permit its total  debt to  tangible  net worth  ratio to exceed
               1.75:1 (change from 2.00:1). For the purpose of this calculation
               total debt  excludes  shareholder loans  formally  postponed and
               assigned to the Bank and  tangible net worth  includes  the same
               postponed  loans  and  excludes any  intangible  assets  such as
               Goodwill.   For  calculation of  this  ratio  based  on  monthly
               operating statements, 50% of current before tax earnings will be
               included in equity;

      11.4.2   permit  its net  working  capital  ratio to at any time be less
               than 1.75:1;

      11.4.3   make capital expenditures aggregating in any one year in excess
               of   $100,000  which   amount  will  not  be   cumulative   from
               year-to-year.  An  exception  is  made  under  this  section  to
               accommodate  the Borrower's capital  expenditure  program agreed
               with the Bank in detailed capital asset budgets  provided to and
               agreed with by the Bank at time of each annual review;

      11.4.4   inject further funds into new or existing affiliated or related
               operations or make any capital expenditures in this regard;

      11.4.5   declare or pay  dividends  on any class or kind of its  shares,
               repurchase or redeem any of its  shares,  which will result in a
               reduction of its  capital  in any way  whatsoever  or repay  any
               shareholders' advances;

      11.4.6   grant or allow any  lien,  charge,  lease or other  encumbrance,
               whether fixed or floating, to be registered  against or exist on
               any of the assets of the Borrower save as  specifically  provided
               herein;

      11.4.7   become  guarantor or endorser or otherwise  become  liable upon
               any note or other obligation  other than in the normal course of
               the Borrower's business;

12.  Financial Statements Reports:

     The Borrower will from time-to-time deliver to the Bank the following:

     12.1 monthly, within 25 days of each calendar month end:

        12.1.1   signed aged list of accounts  receivable  of the Borrower  with
                 those over 90 days  and  any  hold  back  monies  being  listed
                 separately;

        12.1.2   aged list of accounts payable of the Borrower;

        12.1.3  declaration  of inventory in the Bank's  format  detailing raw
                materials, work in progress and finished products, together with
                such supporting data as the Bank may require;

        12.1.4   signed  internally  prepared  interim  financial  and operating
                 statements;

        12.1.5   signed margin calculation using the Bank's format;

        12.1.6   signed  statement  of  financial  ratios/convenants  using  the
                 Bank's format;

(74)
<PAGE>
                                      -6-

        12.1.7   copy of EDC report.

     12.2 annually,  within  120 days  (change  from 90 days) of the  Borrower's
          fiscal year end:

        12.2.1   signed audited financial statements for the Borrower;

        12.2.2   pro forma  financial  statements,  income and  security  margin
                 projections, and a cashflow budget for the following fiscal
                 year;

        12.2.3   Registrar  of  Companies  and Personal  Property  Security Act
                 searches to be conducted in July of each year;

13. Security:

          The Loans will be secured by the following  documents completed by the
          Borrower  and,  where  necessary,  registered,  in a form  and  manner
          satisfactory to the Bank's solicitors:

          On Hand

          13.1 account and borrowing resolutions'

          13.2 Hexagon documentation as required;

          13.3 demand promissory notes;

          13.4 overdraft agreement for $1,000,000 (TO BE RELEASED);

          13.5 unlimited general security agreement creating a first charge over
               all present and after acquired assets of the Borrower  registered
               in each jurisdiction in which the Borrower carries on business;

          13.6 assignment  of  inventory  under  Section  427  of the  Bank  Act
               including all ancillary legal forms of the Bank in this regard;

          13.7 general security agreement relating to goods;

          13.8 endorsement of all risk insurance on the aforesaid  equipment and
               inventory,  showing  the Bank as the first  loss  payee by way of
               standard  endorsement,   the  said  policy  to  include  business
               interruption  and public liability  insurance,  with the coverage
               over inventory to be not less than $1,000,000, and over equipment
               to be not less than  $1,000,000 and the  comprehensive  liability
               coverage to be not less than $1,000,000

          13.9 agreement re: foreign exchange contracts;

          13.10 assignment of EDC insurances;

          13.11 indemnities re: D/C's and L/G's issued (as required);

(75)
<PAGE>

                                      -7-

         13.12 limited  guarantee  of  the  indebtedness  to  the  Bank  of  the
               Borrower,  by  each  of the  personal  guarantors  together  with
               interest and any recovery costs as follows:

                Kelly Delhon        $400,000 (TO BE RELEASED)
                Jarnail Sehra       $400,000 (TO BE RELEASED)
                K. Mehra            $290,000 (TO BE RELEASED)

         13.13 Life  insurance  benefits  to be  assigned  to  the  Bank  of the
               following individuals in amounts indicated:

                 $400,000 Kuldip Delhon

         13.14  postponements and assignments of creditors claim with promissory
                notes attached from the shareholders;

         13.15  postponements and subordination agreement from ZCL Composites in
                form satisfactory to the Bank's solicitors (TO BE RELEASED);

         13.16  assignment over cash, credit balances, or term deposits executed
                by the Borrower;
                  (To be obtained)

         13.17  overdraft agreement for $1,600,000;

         13.18  demand promissory notes as required (re: Equipment Loan);

         13.19  unlimited guarantee  of  the  indebtedness to the  Bank  of the
                Borrower by the Corporate Guarantor;

         13.20  postponements and assignments of shareholder  loans executed by
                the Corporate Guarantor;

         13.21  such  supporting certificates and  opinions  as the  Bank  will
                reasonably require.

14.  Premises Visits:

     The Bank  will  have the  right to  inspect  the  aforesaid  lands  and the
     Borrower's  business  premises  at any time,  and in any even not less than
     quarterly;

15.  Legal and Other Expenses:

     The Borrower  will pay all legal fees and  disbursements  in respect of the
     Loans, the preparation and issue of the security documents, the enforcement
     and  preservation  of  the  Bank's  rights  and  remedies,   all  insurance
     consultation,  Corporate  Registry,  Personal  Property  Registry  and  Tax
     Searches and similar fees and all other fees and disbursements of the Bank,
     whether or not the  documentation  is  completed  or any funds are advanced
     under the Loans.

16.  Bank's Solicitors:

     Legal work and  documentation  is to be  performed on behalf of the Bank by
     Messrs. Parlee, McLaws, Barristers and Solicitors,  1500, 10180-101 Street,
     Edmonton, Alberta, Attention: Frank Niziol, Telephone Number 423-8660.

(76)
<PAGE>

                                      -8-

17.  Laspe and Cancellation/Annual Review:

     If, in the opinion of the Bank a material  adverse change in risk occurs at
     any time,  at the option of the Bank this offer of credit may be  cancelled
     or disbursement  withheld.  The availability of the Loans and the terms and
     conditions of any offer of credit will be subject to periodic review by the
     Bank, not less than annually.

18.  Credit Reporting:

     The  Borrower  and the  Guarantor  consent to the Bank  obtaining  from any
     credit reporting agency or from any person such information as the Bank may
     require  at any time,  and  consent  to the  disclosure  at any time of any
     information concerning the Borrower and the Guarantor to any credit grantor
     with who the Borrower and the Guarantor have financial  relations or to any
     credit reporting agency.

19.  Non-Merger and Non-Assignment:

     The terms and  conditions  of this  offer of credit will not be merged by,
     and  will  survive,  the  execution  of the  security  documents,  and the
     benefits conferred hereby may not be assigned by the Borrower.

20.  Guarantors:

     By executing this letter, the Guarantor convenants and agrees with the Bank
     to  perform  and to cause  the  Borrower  to  perform  all  convenants  and
     agreements herein in favour of the Bank.

This offer of credit my be  accepted  by the  Borrower  by  signing,  dating and
returning  to the Bank by July 26, 2000 the enclosed  "Acceptance  Copy" of this
letter executed by the Borrower and the Guarantor.

Your sincerely,

/s/ Edgar Aragon
----------------
Edgar Aragon
Account Manager

(77)
<PAGE>

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