LAZZARA FINANCIAL ASSET RECOVERY INC
8-K, 2000-01-19
NON-OPERATING ESTABLISHMENTS
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                               UNITED STATES
                    SECURITIES AND EXCHANGE COMMISSION
                          Washington, D.C. 20549

                                 Form 8-K


                              CURRENT REPORT


                  Pursuant to Section 13 or 15(d) of the
                      Securities Exchange Act of 1934


     Date of Report (Date of Earliest Event Reported) January 18, 2000


                     Commission file Number 000-28705

                  LAZZARA FINANCIAL ASSET RECOVERY, INC.
          (Exact Name of Registrant as Specified in its Charter)



Nevada                                               88-0442898
(State of other jurisdiction of                      (I.R.S. Employer
incorporation or organization)                       Identification Number)



1850 E. Flamingo Rd., Suite #111
Las Vegas, NV                                        89119
 (Address of principal executive offices)            (Zip Code)




                              (702) 866-5838
              (Registrant's Executive Office Telephone Number)


<PAGE>


ITEM 1.   CHANGES IN CONTROL OF REGISTRANT

     Pursuant  to an Acquisition Agreement and Plan of Merger (the  "Merger
Agreement")  dated  as  of  January  18, 2000  between  CathayOnline,  Inc.
("CathayOnline"),  a  Nevada  corporation,  and  Lazzara  Financial   Asset
Recovery,  Inc.  ("Lazzara"),  a Nevada corporation,  all  the  outstanding
shares  of common stock of Lazzara were exchanged for 25,000 shares of  144
restricted  common  stock  of  CathayOnline  in  a  transaction  in   which
CathayOnline was the surviving corporation.

     A  copy of the Merger Agreement and Certificate of Merger are filed as
exhibits to this Form 8-K and are incorporated in their entirety herein.

ITEM 2.   ACQUISITION OR DISPOSITION OF ASSETS

     The  consideration  exchanged pursuant to  the  Merger  Agreement  was
negotiated between Lazzara and CathayOnline.

ITEM 3.   BANKRUPTCY OR RECEIVERSHIP

Not applicable.


ITEM 4.   CHANGES IN REGISTRANT'S CERTIFYING ACCOUNTANT

Not applicable.

ITEM 5.   OTHER EVENTS

Not applicable.

ITEM 6.   RESIGNATIONS OF DIRECTORS AND EXECUTIVE OFFICERS

     Pursuant  to  the  Merger  Agreement  all  Officer  and  Directors  of
CathayOnline will remain the same.

ITEM 7.   FINANCIAL STATEMENTS

     No financial statements are filed herewith.  The Registrant shall file
financial statements by amendment hereto not later than 60 days after the
date that this Current Report on Form 8-K must be filed.

ITEM 8.   CHANGE IN FISCAL YEAR

Not applicable.


EXHIBITS

1.1* Agreement and Plan of Merger between Lazzara Financial Asset Recovery,
Inc and CathayOnline, Inc. Brands, Inc.

1.2* Certificate of Merger between Lazzara Financial Asset Recovery, Inc
and CathayOnline, Inc.
______
*Filed herewith

<PAGE>



                                SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this Current Report on Form 8-K to be signed on
its behalf by the undersigned hereunto duly authorized.


                                                  LAZZARA FINANCIAL ASSET
                                                  RECOVERY, INC.

                                                  By /s/ Todd Ream
                                                    President


Date: January 18, 2000



EXHIBIT 1.1

                 ACQUISITION AGREEMENT AND PLAN OF MERGER

                      DATED AS OF JANUARY 18th, 2000

                                  BETWEEN

                            CATHAYONLINE, INC.

                                    AND

                   LAZZARA FINANCIAL ASSET RECOVERY, INC

TABLE OF CONTENTS


ARTICLE 1. The Merger
  Section 1.1.                                        The Merger
  Section 1.2.                                    Effective Time
  Section 1.3.                             Closing of the Merger
  Section 1.4.                            Effects of the Merger
  Section 1.5.                  Board of Directors and Officers
  Section 1.6.                              Conversion of Shares
  Section 1.7.                          Exchange of Certificates
  Section 1.8.                                     Stock Options
  Section 1.9.        Taking of Necessary Action; Further Action

ARTICLE 2. Representations and Warranties of CATHAYONLINE
  Section 2.1.                     Organization and Qualification
  Section 2.2.                     Capitalization of CATHAYONLINE
  Section 2.3.Authority Relative to this Agreement; Recommendation.
  Section 2.4.                  SEC Reports; Financial Statements
  Section 2.5.                               Information Supplied
  Section 2.6.              Consents and Approvals; No Violations
  Section 2.7.                                         No Default
  Section 2.8.     No Undisclosed Liabilities; Absence of Changes
  Section 2.9.                                         Litigation
  Section 2.10.                    Compliance with Applicable Law
  Section 2.11.             Employee Benefit Plans; Labor Matters
  Section 2.12.                Environmental Laws and Regulations
  Section 2.13.                                       Tax Matters
  Section 2.14.                                 Title To Property
  Section 2.15.                             Intellectual Property
  Section 2.16.                                         Insurance
  Section 2.17.                                     Vote Required
  Section 2.18.                                     Tax Treatment
  Section 2.19.                                        Affiliates
  Section 2.20.                        Certain Business Practices
  Section 2.21.                                 Insider Interests
  Section 2.22.                      Opinion of Financial Adviser
  Section 2.23.                                           Brokers
  Section 2.24.                                        Disclosure
  Section 2.25.                            No Existing Discussion
  Section 2.26.                                Material Contracts
<PAGE>

ARTICLE 3. Representations and Warranties of LAZZARA.
  Section 3.1.                     Organization and Qualification
  Section 3.2.                          Capitalization of LAZZARA
  Section 3.3.Authority Relative to this Agreement; Recommendation
  Section 3.4.                  SEC Reports; Financial Statements
  Section 3.5.                               Information Supplied
  Section 3.6.              Consents and Approvals; No Violations
  Section 3.7.                                         No Default
  Section 3.8      No Undisclosed Liabilities; Absence of Changes
  Section 3.9.                                         Litigation
  Section 3.10.                    Compliance with Applicable Law
  Section 3.11.             Employee Benefit Plans; Labor Matters
  Section 3.12.                Environmental Laws and Regulations
  Section 3.13.                                       Tax Matters
  Section 3.14.                                 Title to Property
  Section 3.15.                             Intellectual Property
  Section 3.16.                                         Insurance
  Section 3.17.                                     Vote Required
  Section 3.18.                                     Tax Treatment
  Section 3.19.                                        Affiliates
  Section 3.20.                        Certain Business Practices
  Section 3.21.                                 Insider Interests
  Section 3.22.                      Opinion of Financial Adviser
  Section 3.23.                                           Brokers
  Section 3.24.                                        Disclosure
  Section 3.25.                           No Existing Discussions
  Section 3.26.                                Material Contracts

ARTICLE 4. Covenants
  Section 4.1.                Conduct of Business of CATHAYONLINE
  Section 4.2.                     Conduct of Business of LAZZARA
  Section 4.3.         Preparation of 8-K and the Proxy Statement
  Section 4.4.                         Other Potential Acquirers
  Section 4.5.                          Meetings of Stockholders
  Section 4.6.                               NASD OTC:BB Listing
  Section 4.7.                             Access to Information
  Section 4.8.        Additional Agreements; Reasonable Efforts.
  Section 4.9.Employee Benefits; Stock Option and Employee Purchase Plans
  Section 4.10.                             Public Announcements
  Section 4.11.                                  Indemnification
  Section 4.12.                  Notification of Certain Matters

ARTICLE 5. Conditions to Consummation of the Merger
            Conditions to Each Party's Obligations to Effect the
  Section 5.1.                                             Merger
  Section 5.2.      Conditions to the Obligations of CATHAYONLINE
  Section 5.3.           Conditions to the Obligations of LAZZARA

<PAGE>

ARTICLE 6. Termination; Amendment; Waiver
  Section 6.1.                                        Termination
  Section 6.2.                              Effect of Termination
  Section 6.3.                                  Fees and Expenses
  Section 6.4.                                          Amendment
  Section 6.5.                                  Extension; Waiver

ARTICLE 7. Miscellaneous
  Section 7.1.      Nonsurvival of Representations and Warranties
  Section 7.2.                       Entire Agreement; Assignment
  Section 7.3.                                           Validity
  Section 7.4.                                            Notices
  Section 7.5.                                      Governing Law
  Section 7.6.                               Descriptive Headings
  Section 7.7.                                Parties in Interest
  Section 7.8.                               Certain Definitions
  Section 7.9.                                Personal Liability
  Section 7.10.                             Specific Performance
  Section 7.11.                                     Counterparts

<PAGE>

                       AGREEMENT AND PLAN OF MERGER

     This  Agreement  and Plan of Merger (this "Agreement"),  dated  as  of
January  18th,  2000, is between CATHAYONLINE, INC., a  Nevada  corporation
("CATHAYONLINE"),  and  LAZZARA FINANCIAL ASSET RECOVERY,  INC.,  a  Nevada
corporation ("LAZZARA").

     Whereas,  the  Boards of Directors of CATHAYONLINE  and  LAZZARA  each
have, in light of and subject to the terms and conditions set forth herein,
(i)  determined  that  the  Merger (as defined  below)  is  fair  to  their
respective stockholders and in the best interests of such stockholders  and
(ii) approved the Merger in accordance with this Agreement;

     Whereas,  for  Federal income tax purposes, it is  intended  that  the
Merger  qualify as a reorganization under the provisions of Section  368(a)
of the Internal Revenue Code of 1986, as amended (the "Code"); and

     Whereas,   CATHAYONLINE   and   LAZZARA   desire   to   make   certain
representations,  warranties, covenants and agreements in  connection  with
the Merger and also to prescribe various conditions to the Merger.

     Now,   therefore,   in   consideration  of  the   promises   and   the
representations, warranties, covenants and agreements herein contained, and
intending to be legally bound hereby, CATHAYONLINE and LAZZARA hereby agree
as follows:

                                 ARTICLE I

                                The Merger

     Section 1.1. The Merger. At the Effective Time (as defined below)  and
upon  the  terms  and subject to the conditions of this  Agreement  and  in
accordance  with the General Corporation Law of the State  of  Nevada  (the
"NGCL"),  LAZZARA  shall be merged with and into CATHAYONLINE  (as  defined
below)  (the ''Merger`). Following the Merger, CATHAYONLINE shall  continue
as  the surviving corporation (the "Surviving Corporation"), shall continue
to  be  governed  by the laws of the jurisdiction of its  incorporation  or
organization  and the separate corporate existence of LAZZARA shall  cease.
Prior to the Effective Time, the parties hereto shall mutually agree as  to
the  name  of  the Surviving Corporation; however, initially the  Surviving
Corporation  shall be named CATHAYONLINE, INC.. a Nevada corporation.   The
Merger  is  intended to qualify as a tax-free reorganization under  Section
368  of  the  Code as relates to the non-cash exchange of stock  referenced
herein.

Section 1.2. Effective Time. Subject to the terms and conditions set  forth
in this Agreement, a Certificate of Merger (the "Merger Certificate") shall
be  duly executed and acknowledged by each of LAZZARA and CATHAYONLINE, and
thereafter the Merger Certificate reflecting the Merger shall be  delivered
to the Secretary of State of the State of Nevada for filing pursuant to the
NGCL  on  the  Closing Date (as defined in Section 1.3). The  Merger  shall
become effective at such time as a properly executed and certified copy  of
the Merger Certificate is duly filed by the Secretary of State of the State
of Nevada in accordance with the NGCL or such later time as the parties may
agree  upon and set forth in the Merger Certificate (the time at which  the
Merger  becomes  effective shall be referred to herein  as  the  "Effective
Time").

     Section  1.3.  Closing of the Merger. The closing of the  Merger  (the
"Closing") will take place at a time and on a date to be specified  by  the
parties,  which  shall  be  no later than the  second  business  day  after
satisfaction of the latest to occur of the conditions set forth in  Article
5  (the "Closing Date"), at the offices of Sperry Young & Stoecklein,  1850
E. Flamingo Rd., Suite 111, Las Vegas, Nevada, unless another time, date or
place is agreed to in writing by the parties hereto.

     Section  1.4. Effects of the Merger. The Merger shall have the effects
set  forth  in the NGCL. Without limiting the generality of the  foregoing,
and  subject  thereto, at the Effective Time, all the  properties,  rights,
privileges, powers of LAZZARA shall vest in the Surviving Corporation,  and
all  debts,  liabilities  and duties of LAZZARA  shall  become  the  debts,
liabilities and duties of the Surviving Corporation.

<PAGE>


     Section  1.5. Board of Directors and Officers of CATHAYONLINE.  At  or
prior  to  the Effective Time, each of LAZZARA and CATHAYONLINE  agrees  to
take  such  action  as  is necessary (i) to cause the number  of  directors
comprising the full Board of Directors of CATHAYONLINE to remain the same

     Section 1.6. Conversion of Shares.  At the Effective Time, each  share
of  common  stock,  par  value $.001 per share of LAZZARA  (individually  a
"LAZZARA  Share"  and  collectively,  the  "LAZZARA  Shares")  issued   and
outstanding immediately prior to the Effective Time shall, by virtue of the
Merger and without any action on the part of LAZZARA, CATHAYONLINE, or  the
holder  thereof,  be  converted  into  and  shall  become  fully  paid  and
nonassessable  CATHAYONLINE common shares determined  by  issuing  one  (1)
share of CATHAYONLINE common share for every 200 shares of LAZZARA.

     Section 1.7. Exchange of Certificates.

     (a)  Prior  to  the Effective Time, CATHAYONLINE shall enter  into  an
agreement with, and shall deposit with, Sperry Young & Stoecklein, or  such
other  agent  or agents as may be satisfactory to CATHAYONLINE and  LAZZARA
(the  "Exchange Agent'), for the benefit of the holders of LAZZARA  Shares,
for exchange through the Exchange Agent in accordance with this Article  I:
(i) certificates representing the appropriate number of CATHAYONLINE Shares
to  be issued to holders of LAZZARA Shares issuable pursuant to Section 1.6
in exchange for outstanding LAZZARA Shares.

     (b)  As  soon as reasonably practicable after the Effective Time,  the
Exchange  Agent  shall mail to each holder of record of  a  certificate  or
certificates  which  immediately prior to the  Effective  Time  represented
outstanding LAZZARA Shares (the "Certificates") whose shares were converted
into the right to receive CATHAYONLINE Shares pursuant to Section 1.6:  (i)
a  letter  of  transmittal  (which shall specify  that  delivery  shall  be
effected,  and risk of loss and title to the Certificates shall pass,  only
upon  delivery of the Certificates to the Exchange Agent and  shall  be  in
such  form  and have such other provisions as LAZZARA and CATHAYONLINE  may
reasonably  specify)  and  (ii)  instructions  for  use  in  effecting  the
surrender  of  the  Certificates in exchange for certificates  representing
CATHAYONLINE Shares. Upon surrender of a Certificate to the Exchange Agent,
together  with  such letter of transmittal, duly executed,  and  any  other
required  documents, the holder of such Certificate shall  be  entitled  to
receive  in  exchange therefore a certificate representing that  number  of
whole  CATHAYONLINE  Shares, which such holder has  the  right  to  receive
pursuant  to  the  provisions of this Article I,  and  the  Certificate  so
surrendered  shall forthwith be canceled. In the event  of  a  transfer  of
ownership  of  LAZZARA  Shares which are not  registered  in  the  transfer
records  of  LAZZARA,  a  certificate representing  the  proper  number  of
CATHAYONLINE  Shares  may  be  issued to a transferee  if  the  Certificate
representing  such  LAZZARA  Shares is  presented  to  the  Exchange  Agent
accompanied by all documents required by the Exchange Agent or CATHAYONLINE
to  evidence  and effect such transfer and by evidence that any  applicable
stock  transfer  or  other  taxes  have been  paid.  Until  surrendered  as
contemplated by this Section 1.7, each Certificate shall be deemed  at  any
time  after the Effective Time to represent only the right to receive  upon
such   surrender  the  certificate  representing  CATHAYONLINE  Shares   as
contemplated by this Section 1.7.

     (c)  No  dividends or other distributions declared or made  after  the
Effective Time with respect to CATHAYONLINE Shares with a record date after
the  Effective  Time  shall  be  paid to the holder  of  any  unsurrendered
Certificate  with  respect to the CATHAYONLINE Shares  represented  thereby
until  the  holder  of  record  of such Certificate  shall  surrender  such
Certificate.

     (d)  In  the  event  that  any  Certificate  for  LAZZARA  Shares   or
CATHAYONLINE Shares shall have been lost, stolen or destroyed, the Exchange
Agent shall issue in exchange therefore, upon the making of an affidavit of
that  fact by the holder thereof such CATHAYONLINE Shares and cash in  lieu
of  fractional CATHAYONLINE Shares, if any, as may be required pursuant  to
this Agreement; provided, however, that CATHAYONLINE or the Exchange Agent,
may, in its respective discretion, require the delivery of a suitable bond,
opinion or indemnity.

     (e) All CATHAYONLINE Shares issued upon the surrender for exchange  of
LAZZARA Shares in accordance with the terms hereof shall be deemed to  have
been  issued in full satisfaction of all rights pertaining to such  LAZZARA
Shares.  There shall be no further registration of transfers on  the  stock
transfer  books of either of LAZZARA or CATHAYONLINE of the LAZZARA  Shares
or  CATHAYONLINE  Shares which were outstanding immediately  prior  to  the
Effective Time. If, after the Effective Time, Certificates are presented to
CATHAYONLINE  for  any  reason, they shall be  canceled  and  exchanged  as
provided in this Article I.
<PAGE>

     (f)  No  fractional CATHAYONLINE Shares shall be issued in the Merger,
but  in lieu thereof each holder of LAZZARA Shares otherwise entitled to  a
fractional  CATHAYONLINE Share shall, upon surrender of  its,  his  or  her
Certificate or Certificates, be entitled to receive an additional share  to
round up to the nearest round number of shares.

     Section  1.8. Taking of Necessary Action; Further Action. If,  at  any
time   after   the  Effective  Time,  LAZZARA  or  CATHAYONLINE  reasonably
determines that any deeds, assignments, or instruments or confirmations  of
transfer  are  necessary or desirable to carry out  the  purposes  of  this
Agreement and to vest CATHAYONLINE with full right, title and possession to
all assets, property, rights, privileges, powers and franchises of LAZZARA,
the officers and directors of CATHAYONLINE and LAZZARA are fully authorized
in the name of their respective corporations or otherwise to take, and will
take, all such lawful and necessary or desirable action.

                                 ARTICLE 2

              Representations and Warranties of CATHAYONLINE

     Except   as  set  forth  on  the  Disclosure  Schedule  delivered   by
CATHAYONLINE   to   LAZZARA  (the  "CATHAYONLINE   Disclosure   Schedule"),
CATHAYONLINE hereby represents and warrants to LAZZARA as follows:

     Section 2.1. Organization and Qualification.

     (a)  CATHAYONLINE  is  duly organized, validly existing  and  in  good
standing  under  the  laws  of the jurisdiction  of  its  incorporation  or
organization,  has 300 or more round lot (100 or more shares)  stockholders
and  has  all  requisite power and authority to own, lease and operate  its
properties  and  to carry on its businesses as now being conducted,  except
where  the failure to be so organized, existing and in good standing or  to
have such power and authority would not have a Material Adverse Effect  (as
defined  below) on CATHAYONLINE. When used in connection with CATHAYONLINE,
the  term "Material Adverse Effect" means any change or effect (i) that  is
or  is  reasonably likely to be materially adverse to the business, results
of   operations,  condition  (financial  or  otherwise)  or  prospects   of
CATHAYONLINE,  other  than  any change or effect  arising  out  of  general
economic  conditions  unrelated to any business in  which  CATHAYONLINE  is
engaged, or (ii) that may impair the ability of CATHAYONLINE to perform its
obligations  hereunder  or  to  consummate  the  transactions  contemplated
hereby.

     (b)  CATHAYONLINE  has  heretofore delivered to LAZZARA  accurate  and
complete copies of the Certificate of Incorporation and Bylaws (or  similar
governing  documents), as currently in effect, of CATHAYONLINE.  Except  as
set  forth  on  Schedule  2.1  of  the  CATHAYONLINE  Disclosure  Schedule,
CATHAYONLINE  is  duly qualified or licensed and in  good  standing  to  do
business  in  each  jurisdiction in which the  property  owned,  leased  or
operated  by  it or the nature of the business conducted by it  makes  such
qualification  or  licensing necessary, except in such jurisdictions  where
the  failure to be so duly qualified or licensed and in good standing would
not have a Material Adverse Effect on CATHAYONLINE.

     Section 2.2. Capitalization of CATHAYONLINE.

     (a)  The  authorized capital stock of CATHAYONLINE  consists  of:  (i)
Fifty  Million (50,000,000) Shares of Common Stock, $0.001 par  value.   In
February 1999, CATHAYONLINE board of Directors and shareholders approved an
amendment  to  the  Articles of Incorporation which  authorized  30,000,000
shares  if par value $.001 preferred stock.  CATHAYONLINE have not  amended
the  Articles  of Incorporation to authorized the issuence of these  shares
but  expect to do so in the near future.  During October 1999, CATHAYONLINE
granted 21,700,000 warrants exercisable for a period of 3 years and  during
April and June 1999, granted 2,990,000 warrants to eight (8) investors  and
50,000  to the President of CATHAYONLINE. As of January 18, 2000 18,892,711
shares of CATHAYONLINE Common Stock were issued and outstanding and held by
<PAGE>

300  or more round lot (100 or more shares) stockholders.  Pursuant to  the
Merger  Agreement  CATHAYONLINE will issue 25,000 of 144 restricted  common
stock  to  the stockholder of LAZZARA.  All of the outstanding CATHAYONLINE
Shares  have  been duly authorized and validly issued, and are fully  paid,
nonassessable and free of preemptive rights. Except as set forth herein, as
of the date hereof, there are no outstanding (i) shares of capital stock or
other  voting  securities of CATHAYONLINE, (ii) securities of  CATHAYONLINE
convertible  into  or exchangeable for shares of capital  stock  or  voting
securities   of   CATHAYONLINE,  except  for  the   preferred   shares   of
CATHAYONLINE,  (iii) options or other rights to acquire  from  CATHAYONLINE
and,  no  obligations of CATHAYONLINE to issue, any capital  stock,  voting
securities or securities convertible into or exchangeable for capital stock
or   voting  securities  of  CATHAYONLINE,  and  (iv)  equity  equivalents,
interests  in  the ownership or earnings of CATHAYONLINE or  other  similar
rights  (collectively, "CATHAYONLINE Securities"). As of the  date  hereof,
except  as  set  forth  on  Schedule 2.2(a) of the CATHAYONLINE  Disclosure
Schedule  there  are  no  outstanding obligations of  CATHAYONLINE  or  its
subsidiaries  to  repurchase, redeem or otherwise acquire any  CATHAYONLINE
Securities or stockholder agreements, voting trusts or other agreements  or
understandings  to which CATHAYONLINE is a party or by which  it  is  bound
relating  to the voting or registration of any shares of capital  stock  of
CATHAYONLINE. For purposes of this Agreement, ''Lien" means,  with  respect
to  any  asset (including, without limitation, any security) any  mortgage,
lien,  pledge,  charge, security interest or encumbrance  of  any  kind  in
respect of such asset.

     (b)  The  CATHAYONLINE  Shares constitute the  only  class  of  equity
securities  of  CATHAYONLINE registered or required to be registered  under
the Exchange Act.

     (c)  CATHAYONLINE does not own directly or indirectly more than  fifty
percent  (50%) of the outstanding voting securities or interests (including
membership  interests) of any entity, other than as specifically  disclosed
in the disclosure documents.

     Section  2.3.  Authority  Relative to this Agreement;  Recommendation.
CATHAYONLINE has all necessary corporate power and authority to execute and
deliver  this  Agreement  and to consummate the  transactions  contemplated
hereby.  The  execution and delivery of this Agreement and the consummation
of  the  transactions  contemplated  hereby  have  been  duly  and  validly
authorized  by  the  Board of Directors of CATHAYONLINE (the  "CATHAYONLINE
Board") and no other corporate proceedings on the part of CATHAYONLINE  are
necessary  to  authorize this Agreement or to consummate  the  transactions
contemplated hereby.  This Agreement has been duly and validly executed and
delivered  by  CATHAYONLINE  and constitutes a  valid,  legal  and  binding
agreement  of CATHAYONLINE, enforceable against CATHAYONLINE in  accordance
with its terms.

     Section 2.4. SEC Reports; Financial Statements.  CATHAYONLINE  is  not
required to file forms, reports and documents with the SEC.

     Section 2.5. Information Supplied. None of the information supplied or
to  be supplied by CATHAYONLINE for inclusion or incorporation by reference
in  connection with the Merger will at the date presented to stockholder of
LAZZARA  and  at  the times of the meeting or meetings of  stockholders  of
CATHAYONLINE to be held in connection with the Merger, contain  any  untrue
statement of a material fact or omit to state any material fact required to
be  stated therein or necessary in order to make the statements therein, in
light of the circumstances under which they are made, not misleading.

     Section  2.6.  Consents  and  Approvals;  No  Violations.  Except  for
filings, permits, authorizations, consents and approvals as may be required
under,  and  other  applicable requirements of,  the  Securities  Act,  the
Exchange  Act,  state  securities or blue sky laws,  the  Hart-Scott-Rodino
Antitrust Improvements Act of 1916, as amended (the ''HSR Act''), the rules
of  the  National  Association of Securities Dealers,  Inc.  ("NASD"),  the
filing  and recordation of the Merger Certificate as required by the  NGCL,
and as set forth on Schedule 2.6 of the CATHAYONLINE Disclosure Schedule no
filing with or notice to, and no permit, authorization, consent or approval
of,  any  court  or tribunal or administrative, governmental or  regulatory
body,  agency or authority (a "Governmental Entity") is necessary  for  the
execution   and  delivery  by  CATHAYONLINE  of  this  Agreement   or   the
consummation  by  CATHAYONLINE  of  the transactions  contemplated  hereby,
except  where the failure to obtain such permits, authorizations,  consents
or  approvals or to make such filings or give such notice would not have  a
Material Adverse Effect on CATHAYONLINE.

<PAGE>

     Except  as  set  forth  in Section 2.6 of the CATHAYONLINE  Disclosure
Schedule, neither the execution, delivery and performance of this Agreement
by  CATHAYONLINE  nor the consummation by CATHAYONLINE of the  transactions
contemplated hereby will (i) conflict with or result in any breach  of  any
provision  of  the respective Certificate of Incorporation  or  Bylaws  (or
similar governing documents) of CATHAYONLINE, (ii) result in a violation or
breach  of, or constitute (with or without due notice or lapse of  time  or
both)  a  default  (or  give rise to any right of  termination,  amendment,
cancellation  or acceleration or Lien) under, any of the terms,  conditions
or  provisions  of  any  note, bond, mortgage, indenture,  lease,  license,
contract, agreement or other instrument or obligation to which CATHAYONLINE
is  a  party or by which any of its properties or assets may be  bound,  or
(iii)  violate any order, writ, injunction, decree, law, statute,  rule  or
regulation  applicable to CATHAYONLINE or any of its properties or  assets,
except  in  the case of (ii) or (iii) for violations, breaches or  defaults
which would not have a Material Adverse Effect on CATHAYONLINE.

     Section  2.7. No Default. Except as set forth in Section  2.7  of  the
CATHAYONLINE Disclosure Schedule, CATHAYONLINE is not in breach, default or
violation (and no event has occurred which with notice or the lapse of time
or  both  would  constitute a breach default or  violation)  of  any  term,
condition  or provision of (i) its Certificate of Incorporation  or  Bylaws
(or similar governing documents), (ii) any note, bond, mortgage, indenture,
lease,  license, contract, agreement or other instrument or  obligation  to
which  CATHAYONLINE  is  now  a party or by which  any  of  its  respective
properties  or  assets  may be bound or (iii) any order,  writ  injunction,
decree, law, statute, rule or regulation applicable to CATHAYONLINE or  any
of its respective properties or assets, except in the case of (ii) or (iii)
for violations, breaches or defaults that would not have a Material Adverse
Effect  on  CATHAYONLINE.  Except  as set  forth  in  Section  2.7  of  the
CATHAYONLINE  Disclosure  Schedule, each note, bond,  mortgage,  indenture,
lease,  license, contract, agreement or other instrument or  obligation  to
which CATHAYONLINE is now a party or by which its respective properties  or
assets  may  be  bound that is material to CATHAYONLINE and  that  has  not
expired  is  in  full force and effect and is not subject to  any  material
default thereunder of which CATHAYONLINE is aware by any party obligated to
CATHAYONLINE thereunder.

     Section 2.8. No Undisclosed Liabilities; Absence of Changes. Except as
and  to  the extent disclosed by CATHAYONLINE of approximately $1.2 million
in   certain  bridge  loan  obligations,  none  of  CATHAYONLINE   or   its
subsidiaries had any liabilities or obligations of any nature,  whether  or
not  accrued, contingent or otherwise, that would be required by  generally
accepted  accounting  principles to be reflected on a consolidated  balance
sheet  of  CATHAYONLINE  and its consolidated subsidiaries  (including  the
notes   thereto)  or  which  would  have  a  Material  Adverse  Effect   on
CATHAYONLINE. Except as disclosed by CATHAYONLINE, none of CATHAYONLINE  or
its subsidiaries has incurred any liabilities of any nature, whether or not
accrued,  contingent or otherwise, which could reasonably  be  expected  to
have,  and  there have been no events, changes or effects with  respect  to
CATHAYONLINE  or  its  subsidiaries having or  which  could  reasonably  be
expected to have, a Material Adverse Effect on CATHAYONLINE. Except as  and
to the extent disclosed by CATHAYONLINE there has not been (i) any material
change  by  CATHAYONLINE in its accounting methods, principles or practices
(other  than  as  required after the date hereof by concurrent  changes  in
generally   accepted  accounting  principles),  (ii)  any  revaluation   by
CATHAYONLINE  of  any  of its assets having a Material  Adverse  Effect  on
CATHAYONLINE, including, without limitation, any write-down of the value of
any assets other than in the ordinary course of business or (iii) any other
action  or  event that would have required the consent of any  other  party
hereto  pursuant to Section 4.2 of this Agreement had such action or  event
occurred after the date of this Agreement.

     Section  2.9. Litigation. Except as set forth in Schedule 2.9  of  the
CATHAYONLINE   Disclosure  Schedule  there  is  no  suit,  claim,   action,
proceeding  or  investigation pending or, to the knowledge of CATHAYONLINE,
threatened against CATHAYONLINE or any of its subsidiaries or any of  their
respective  properties  or  assets before any  Governmental  Entity  which,
individually or in the aggregate, could reasonably be expected  to  have  a
Material Adverse Effect on CATHAYONLINE or could reasonably be expected  to
prevent or delay the consummation of the transactions contemplated by  this
Agreement. Except as disclosed by CATHAYONLINE, none of CATHAYONLINE or its
subsidiaries  is  subject  to any outstanding order,  writ,  injunction  or
decree  which,  insofar as can be reasonably foreseen in the future,  could
reasonably be expected to have a Material Adverse Effect on CATHAYONLINE or
could  reasonably be expected to prevent or delay the consummation  of  the
transactions contemplated hereby.

<PAGE>

     Section  2.10. Compliance with Applicable Law. Except as disclosed  by
CATHAYONLINE, CATHAYONLINE and its subsidiaries hold all permits, licenses,
variances,  exemptions, orders and approvals of all  Governmental  Entities
necessary  for  the  lawful  conduct of their  respective  businesses  (the
"CATHAYONLINE  Permits"),  except  for  failures  to  hold  such   permits,
licenses, variances, exemptions, orders and approvals which would not  have
a   Material  Adverse  Effect  on  CATHAYONLINE.  Except  as  disclosed  by
CATHAYONLINE, CATHAYONLINE and its subsidiaries are in compliance with  the
terms  of  the CATHAYONLINE Permits, except where the failure so to  comply
would  not  have  a  Material  Adverse Effect on  CATHAYONLINE.  Except  as
disclosed  by  CATHAYONLINE,  the  businesses  of  CATHAYONLINE   and   its
subsidiaries are not being conducted in violation of any law, ordinance  or
regulation  of  any  Governmental Entity except that no  representation  or
warranty  is  made in this Section 2.10 with respect to Environmental  Laws
and except for violations or possible violations which do not, and, insofar
as  reasonably  can be foreseen, in the future will not,  have  a  Material
Adverse  Effect  on  CATHAYONLINE. Except as disclosed by  CATHAYONLINE  no
investigation  or  review  by  any  Governmental  Entity  with  respect  to
CATHAYONLINE  or  its  subsidiaries is pending  or,  to  the  knowledge  of
CATHAYONLINE,  threatened, nor, to the knowledge of CATHAYONLINE,  has  any
Governmental Entity indicated an intention to conduct the same, other than,
in each case, those which CATHAYONLINE reasonably believes will not have  a
Material Adverse Effect on CATHAYONLINE.

     Section 2.11. Employee Benefit Plans; Labor Matters.

     (a)  Except  as  set  forth  in Section 2.11(a)  of  the  CATHAYONLINE
Disclosure  Schedule with respect to each employee benefit  plan,  program,
policy,  arrangement  and  contract  (including,  without  limitation,  any
"employee  benefit  plan,"  as  defined in Section  3(3)  of  the  Employee
Retirement  Income Security Act of 1974, as amended ("ERISA")),  maintained
or  contributed to at any time by CATHAYONLINE or any entity required to be
aggregated with CATHAYONLINE pursuant to Section 414 of the Code  (each,  a
"CATHAYONLINE  Employee Plan"), no event has occurred and to the  knowledge
of  CATHAYONLINE, no condition or set of circumstances exists in connection
with  which CATHAYONLINE could reasonably be expected to be subject to  any
liability which would have a Material Adverse Effect on CATHAYONLINE.

     (b)  (i) No CATHAYONLINE Employee Plan is or has been subject to Title
IV of ERISA or Section 412 of the Code; and (ii) each CATHAYONLINE Employee
Plan  intended to qualify under Section 401(a) of the Code and  each  trust
intended  to qualify under Section 501(a) of the Code is the subject  of  a
favorable  Internal Revenue Service determination letter, and  nothing  has
occurred  which  could  reasonably be expected  to  adversely  affect  such
determination.

     (c) Section 2.11(c) of the CATHAYONLINE Disclosure Schedule sets forth
a  true and complete list, as of the date of this Agreement, of each person
who  holds  any  CATHAYONLINE Stock Options, together with  the  number  of
CATHAYONLINE Shares which are subject to such option, the date of grant  of
such  option,  the extent to which such option is vested  (or  will  become
vested as a result of the Merger), the option price of such option (to  the
extent  determined  as  of  the date hereof),  whether  such  option  is  a
nonqualified  stock option or is intended to qualify as an incentive  stock
option within the meaning of Section 422(b) of the Code, and the expiration
date  of  such  option.  Section  2.11(c) of  the  CATHAYONLINE  Disclosure
Schedule  also sets forth the total number of such incentive stock  options
and  such  nonqualified  options. CATHAYONLINE has furnished  LAZZARA  with
complete  copies  of  the  plans pursuant to which the  CATHAYONLINE  Stock
Options were issued. Other than the automatic vesting of CATHAYONLINE Stock
Options  that  may occur without any action on the part of CATHAYONLINE  or
its officers or directors, CATHAYONLINE has not taken any action that would
result  in any CATHAYONLINE Stock Options that are unvested becoming vested
in  connection  with or as a result of the execution and delivery  of  this
Agreement or the consummation of the transactions contemplated hereby.

     (d)  CATHAYONLINE has made available to LAZZARA (i) a  description  of
the  terms  of employment and compensation arrangements of all officers  of
CATHAYONLINE  and a copy of each such agreement currently in  effect;  (ii)
copies  of  all agreements with consultants who are individuals  obligating
CATHAYONLINE  to make annual cash payments in an amount exceeding  $60,000;
(iii)  a schedule listing all officers of CATHAYONLINE who have executed  a
non-competition  agreement  with CATHAYONLINE  and  a  copy  of  each  such
agreement  currently  in  effect;  (iv) copies  (or  descriptions)  of  all
severance  agreements,  programs  and  policies  of  CATHAYONLINE  with  or
relating  to  its employees, except programs and policies  required  to  be
maintained  by  law; and (v) copies of all plans, programs, agreements  and
other  arrangements of CATHAYONLINE with or relating to its employees which
contain  change in control provisions all of which are set forth in Section
2.11(d) of the CATHAYONLINE Disclosure Schedule.

<PAGE>

     (e)  There  shall  be  no  payment, accrual  of  additional  benefits,
acceleration  of payments, or vesting in any benefit under any CATHAYONLINE
Employee Plan or any agreement or arrangement disclosed under this  Section
2.11  solely  by  reason  of  entering  into  or  in  connection  with  the
transactions contemplated by this Agreement.

     (f)  There  are  no  controversies pending or,  to  the  knowledge  of
CATHAYONLINE, threatened, between CATHAYONLINE and any of their  employees,
which controversies have or could reasonably be expected to have a Material
Adverse  Effect  on  CATHAYONLINE. Neither  CATHAYONLINE  nor  any  of  its
subsidiaries  is  a party to any collective bargaining agreement  or  other
labor union contract applicable to persons employed by CATHAYONLINE or  any
of  its  subsidiaries (and neither CATHAYONLINE nor any of its subsidiaries
has  any  outstanding  material liability with respect  to  any  terminated
collective  bargaining  agreement  or  labor  union  contract),  nor   does
CATHAYONLINE  know of any activities or proceedings of any labor  union  to
organize  any  of  its or employees. CATHAYONLINE has no knowledge  of  any
strike,  slowdown,  work stoppage, lockout or threat thereof,  by  or  with
respect to any of its employees.

     Section 2.12. Environmental Laws and Regulations.

     (a)  Except  as publicly disclosed by CATHAYONLINE in the CATHAYONLINE
SEC Reports, (i) CATHAYONLINE is in material compliance with all applicable
federal,  state,  local  and  foreign  laws  and  regulations  relating  to
pollution  or  protection  of human health or the  environment  (including,
without  limitation, ambient air, surface water, ground water, land surface
or  subsurface  strata) (collectively, "Environmental  Laws"),  except  for
non-compliance   that  would  not  have  a  Material  Adverse   Effect   on
CATHAYONLINE,  which  compliance includes,  but  is  not  limited  to,  the
possession  by CATHAYONLINE of all material permits and other  governmental
authorizations required under applicable Environmental Laws, and compliance
with  the  terms and conditions thereof; (ii) CATHAYONLINE has not received
written notice of, or, to the knowledge of CATHAYONLINE, is the subject of,
any  action, cause of action, claim, investigation, demand or notice by any
person  or  entity  alleging  liability under or  non-compliance  with  any
Environmental  Law  (an ''Environmental Claim") that  could  reasonably  be
expected  to have a Material Adverse Effect on CATHAYONLINE; and  (iii)  to
the  knowledge  of  CATHAYONLINE,  there  are  no  circumstances  that  are
reasonably likely to prevent or interfere with such material compliance  in
the future.

     (b)  Except  as  publicly  disclosed by  CATHAYONLINE,  there  are  no
Environmental Claims which could reasonably be expected to have a  Material
Adverse  Effect  on CATHAYONLINE that are pending or, to the  knowledge  of
CATHAYONLINE,  threatened against CATHAYONLINE  or,  to  the  knowledge  of
CATHAYONLINE,  against  any  person  or  entity  whose  liability  for  any
Environmental Claim CATHAYONLINE has or may have retained or assumed either
contractually or by operation of law.

     Section 2.13. Tax Matters.

     (a) Except as set forth in Section 2.13 of the CATHAYONLINE Disclosure
Schedule:  (i) CATHAYONLINE has filed or has had filed on its behalf  in  a
timely   manner  (within  any  applicable  extension  periods)   with   the
appropriate  Governmental Entity all income and other material Tax  Returns
(as  defined  herein)  with  respect  to  Taxes  (as  defined  herein)   of
CATHAYONLINE  and  all  Tax  Returns were in all  material  respects  true,
complete  and correct; (ii) all material Taxes with respect to CATHAYONLINE
have been paid in full or have been provided for in accordance with GAAP on
CATHAYONLINE's most recent balance sheet which is part of the  CATHAYONLINE
SEC  Documents.  (iii)  there  are  no outstanding  agreements  or  waivers
extending  the statutory period of limitations applicable to  any  federal,
state, local or foreign income or other material Tax Returns required to be
filed  by  or  with  respect  to CATHAYONLINE; (iv)  to  the  knowledge  of
CATHAYONLINE none of the Tax Returns of or with respect to CATHAYONLINE  is
currently being audited or examined by any Governmental Entity; and (v)  no
deficiency  for any income or other material Taxes has been  assessed  with
respect to CATHAYONLINE which has not been abated or paid in full.

     (b)  For purposes of this Agreement, (i) "Taxes" shall mean all taxes,
charges,  fees, levies or other assessments, including, without limitation,
income,  gross  receipts,  sales,  use, ad  valorem,  goods  and  services,
capital,  transfer,  franchise,  profits,  license,  withholding,  payroll,
employment,   employer   health,  excise,  estimated,   severance,   stamp,
occupation,  property or other taxes, customs duties, fees, assessments  or
charges  of  any  kind  whatsoever, together  with  any  interest  and  any
penalties,  additions to tax or additional amounts imposed  by  any  taxing

<PAGE>

authority  and  (ii) "Tax Return" shall mean any report, return,  documents
declaration or other information or filing required to be supplied  to  any
taxing authority or jurisdiction with respect to Taxes.

     Section  2.14. Title to Property. CATHAYONLINE has good and defensible
title  to  all of its properties and assets, free and clear of  all  liens,
charges and encumbrances except liens for taxes not yet due and payable and
such  liens  or other imperfections of title, if any, as do not  materially
detract from the value of or interfere with the present use of the property
affected thereby or which, individually or in the aggregate, would not have
a   Material   Adverse  Effect  on  CATHAYONLINE;  and,  to  CATHAYONLINE's
knowledge,  all  leases pursuant to which CATHAYONLINE leases  from  others
real  or  personal  property are in good standing, valid and  effective  in
accordance with their respective terms, and there is not, to the  knowledge
of CATHAYONLINE, under any of such leases, any existing material default or
event  of  default (or event which with notice of lapse of time,  or  both,
would  constitute  a default and in respect of which CATHAYONLINE  has  not
taken adequate steps to prevent such a default from occurring) except where
the  lack  of  such  good  standing, validity  and  effectiveness,  or  the
existence  of  such  default or event, would not have  a  Material  Adverse
Effect on CATHAYONLINE.

     Section 2.15. Intellectual Property.

     (a)  CATHAYONLINE owns, or possesses adequate licenses or other  valid
rights  to use, all existing United States and foreign patents, trademarks,
trade  names,  service  marks, copyrights, trade secrets  and  applications
therefore  that  are material to its business as currently  conducted  (the
"CATHAYONLINE Intellectual Property Rights").

     (b)  The validity of the CATHAYONLINE Intellectual Property Rights and
the title thereto of CATHAYONLINE is not being questioned in any litigation
to which CATHAYONLINE is a party.

     (c)  Except  as  set  forth  in Section 2.15(c)  of  the  CATHAYONLINE
Disclosure  Schedule, the conduct of the business of  CATHAYONLINE  as  now
conducted  does  not,  to  CATHAYONLINE's  knowledge,  infringe  any  valid
patents,  trademarks, trade names, service marks or copyrights  of  others.
The  consummation of the transactions completed hereby will not  result  in
the loss or impairment of any CATHAYONLINE Intellectual Property Rights.

     (d)  CATHAYONLINE has taken steps it believes appropriate  to  protect
and  maintain its trade secrets as such, except in cases where CATHAYONLINE
has  elected  to rely on patent or copyright protection in  lieu  of  trade
secret protection.

     Section  2.16.  Insurance. CATHAYONLINE currently  does  not  maintain
general liability and other business insurance.

     Section  2.17. Vote Required. Approval of this Agreement and  Plan  of
Merger by the Stockholders of CATHAYONLINE is not required pursuant to  NRS
92A.130(i).

     Section  2.18.  Tax  Treatment.  Neither  CATHAYONLINE  nor,  to   the
knowledge  of  CATHAYONLINE, any of its affiliates has taken or  agreed  to
take   action   that   would  prevent  the  Merger  from   constituting   a
reorganization  qualifying under the provisions of Section  368(a)  of  the
Code.

     Section   2.19.   Affiliates.   Except  for   Principal   CATHAYONLINE
Stockholder  ("CATHAYONLINES") and the directors and executive officers  of
CATHAYONLINE,  each of whom is listed in Section 2.19 of  the  CATHAYONLINE
Disclosure  Schedule,  there  are  no persons  who,  to  the  knowledge  of
CATHAYONLINE,  may  be deemed to be affiliates of CATHAYONLINE  under  Rule
1-02(b) of Regulation S-X of the SEC (the "CATHAYONLINE Affiliates").

     Section 2.20. Certain Business Practices. None of CATHAYONLINE or  any
directors, officers, agents or employees of CATHAYONLINE has (i)  used  any
funds  for  unlawful contributions, gifts, entertainment or other  unlawful
expenses relating to political activity, (ii) made any unlawful payment  to
foreign  or  domestic government officials or employees or  to  foreign  or
domestic  political parties or campaigns or violated any provision  of  the
Foreign  Corrupt Practices Act of 1977, as amended (the "FCPA"),  or  (iii)
made any other unlawful payment.

<PAGE>

     Section  2.21. Insider Interests. Except as set forth in Section  2.21
of  the  CATHAYONLINE Disclosure Schedule, neither PVS nor any  officer  or
director of CATHAYONLINE has any interest in any material property, real or
personal,   including   without  limitation,  any  computer   software   or
CATHAYONLINE  Intellectual Property Rights, used in or  pertaining  to  the
business  of  CATHAYONLINE, expect for the ordinary rights of a stockholder
or employee stock optionholder.

     Section  2.22. Opinion of Financial Adviser. No advisers,  as  of  the
date hereof, have delivered to the CATHAYONLINE Board a written opinion  to
the  effect that, as of such date, the exchange ratio contemplated  by  the
Merger is fair to the holders of CATHAYONLINE Shares.

     Section  2.23. Brokers. No broker, finder or investment banker  (other
than  the CATHAYONLINE Financial Adviser, a true and correct copy of  whose
engagement  agreement  has been provided to LAZZARA)  is  entitled  to  any
brokerage,  finder's  or  other fee or commission in  connection  with  the
transactions contemplated by this Agreement based upon arrangements made by
or on behalf of CATHAYONLINE.

     Section   2.24.   Disclosure.  No  representation   or   warranty   of
CATHAYONLINE  in this Agreement or any certificate, schedule,  document  or
other instrument furnished or to be furnished to LAZZARA pursuant hereto or
in  connection  herewith contains, as of the date of  such  representation,
warranty  or instrument, or will contain any untrue statement of a material
fact  or, at the date thereof, omits or will omit to state a material  fact
necessary  to  make  any  statement herein or  therein,  in  light  of  the
circumstances  under  which  such  statement  is  or  will  be  made,   not
misleading.

     Section  2.25.  No  Existing  Discussions.  As  of  the  date  hereof,
CATHAYONLINE is not engaged, directly or indirectly, in any discussions  or
negotiations  with  any  other  party  with  respect  to  any  Third  Party
Acquisition (as defined in Section 4.4).

     Section 2.26. Material Contracts.

     (a)  CATHAYONLINE has delivered or otherwise made available to LAZZARA
true, correct and complete copies of all contracts and agreements (and  all
amendments, modifications and supplements thereto and all side  letters  to
which  CATHAYONLINE  is  a  party affecting the obligations  of  any  party
thereunder)  to  which  CATHAYONLINE is a party or  by  which  any  of  its
properties  or  assets  are  bound  that are,  material  to  the  business,
properties  or assets of CATHAYONLINE taken as a whole, including,  without
limitation, to the extent any of the following are, individually or in  the
aggregate,  material to the business, properties or assets of  CATHAYONLINE
taken  as  a  whole,  all: (i) employment, product design  or  development,
personal services, consulting, non-competition, severance, golden parachute
or  indemnification contracts (including, without limitation, any  contract
to which CATHAYONLINE is a party involving employees of CATHAYONLINE); (ii)
licensing,  publishing,  merchandising or  distribution  agreements;  (iii)
contracts  granting  rights  of first refusal or  first  negotiation;  (iv)
partnership   or   joint  venture  agreements;  (v)  agreements   for   the
acquisition,  sale or lease of material properties or assets  or  stock  or
otherwise  entered into since June 30, 1999; (vi) contracts  or  agreements
with  any Governmental Entity. and (vii) all commitments and agreements  to
enter  into  any  of the foregoing (collectively, together  with  any  such
contracts  entered  into  in  accordance  with  Section  4.1  hereof,   the
"CATHAYONLINE Contracts"). CATHAYONLINE is not a party to or bound  by  any
severance,  golden  parachute  or  other agreement  with  any  employee  or
consultant  pursuant to which such person would be entitled to receive  any
additional  compensation or an accelerated payment  of  compensation  as  a
result of the consummation of the transactions contemplated hereby.

     (b)  Each  of  the CATHAYONLINE Contracts is valid and enforceable  in
accordance  with its terms, and there is no default under any  CATHAYONLINE
Contract  so  listed  either  by  CATHAYONLINE  or,  to  the  knowledge  of
CATHAYONLINE,  by any other party thereto, and no event has  occurred  that
with  the lapse of time or the giving of notice or both would constitute  a
default  thereunder by CATHAYONLINE or, to the knowledge  of  CATHAYONLINE,
any  other  party, in any such case in which such default  or  event  could
reasonably be expected to have a Material Adverse Effect on CATHAYONLINE.

<PAGE>

     (c)  No  party to any such CATHAYONLINE Contract has given  notice  to
CATHAYONLINE  of or made a claim against CATHAYONLINE with respect  to  any
breach  or  default thereunder, in any such case in which  such  breach  or
default  could reasonably be expected to have a Material Adverse Effect  on
CATHAYONLINE.

                                 ARTICLE 3

                 Representations and Warranties of LAZZARA

     Except as set forth on the Disclosure Schedule delivered by LAZZARA to
CATHAYONLINE (the "LAZZARA Disclosure Schedule"), LAZZARA hereby represents
and warrants to CATHAYONLINE as follows:

     Section 3.1. Organization and Qualification.

     (a)  Each  of LAZZARA and its subsidiaries is duly organized,  validly
existing  and  in good standing under the laws of the jurisdiction  of  its
incorporation or organization and has all requisite power and authority  to
own, lease and operate its properties and to carry on its businesses as now
being conducted, except where the failure to be so organized, existing  and
in  good  standing  or to have such power and authority would  not  have  a
Material  Adverse  Effect  (as defined below)  on  LAZZARA.  When  used  in
connection  with  LAZZARA, the term "Material Adverse  Effect''  means  any
change  or  effect  (i) that is or is reasonably likely  to  be  materially
adverse  to  the business, results of operations, condition  (financial  or
otherwise) or prospects of LAZZARA and its subsidiaries, taken as a  whole,
other  than any change or effect arising out of general economic conditions
unrelated  to  any  businesses in which LAZZARA and  its  subsidiaries  are
engaged,  or (ii) that may impair the ability of LAZZARA to consummate  the
transactions contemplated hereby.

     (b)  LAZZARA  has  heretofore delivered to CATHAYONLINE  accurate  and
complete copies of the Certificate of Incorporation and Bylaws (or  similar
governing  documents), as currently in effect, of LAZZARA. Each of  LAZZARA
and its subsidiaries is duly qualified or licensed and in good standing  to
do  business  in each jurisdiction in which the property owned,  leased  or
operated  by  it or the nature of the business conducted by it  makes  such
qualification or licensing necessary except in such jurisdictions where the
failure to be so duly qualified or licensed and in good standing would  not
have a Material Adverse Effect on LAZZARA.

     Section 3.2. Capitalization of LAZZARA.

     (a)  As  of December 31, 1999, the authorized capital stock of LAZZARA
consists  of; (i) Twenty Million (20,000,000) LAZZARA common Shares,  $.001
par value, of which 5,000,000 common Shares are issued and outstanding, and
(ii)  Five  Million (5,000,000) LAZZARA preferred shares, $.001 par  value,
and  no preferred shares are issued and outstanding. All of the outstanding
LAZZARA Shares have been duly authorized and validly issued, and are  fully
paid, nonassessable and free of preemptive rights.

     (b)  Except  as set forth in Section 3.2(b) of the LAZZARA  Disclosure
Schedule,  LAZZARA is the record and beneficial owner of all of the  issued
and outstanding shares of capital stock of its subsidiaries.

     (c)  Except  as set forth in Section 3.2(c) of the LAZZARA  Disclosure
Schedule,  between  December 31, 1999 and the date  hereof,  no  shares  of
LAZZARA's capital stock have been issued and no LAZZARA Stock options  have
been  granted. Except as set forth in Section 3.2(a) above, as of the  date
hereof,  there  are  no outstanding (i) shares of capital  stock  or  other
voting   securities  of  LAZZARA,  (ii)  securities  of  LAZZARA   or   its
subsidiaries  convertible into or exchangeable for shares of capital  stock
or  voting securities of LAZZARA, (iii) options or other rights to  acquire
from  LAZZARA  or  its  subsidiaries, or  obligations  of  LAZZARA  or  its
subsidiaries  to issue, any capital stock, voting securities or  securities
convertible into or exchangeable for capital stock or voting securities  of
LAZZARA, or (iv) equity equivalents, interests in the ownership or earnings
of  LAZZARA  or  its  subsidiaries or other similar  rights  (collectively,
"LAZZARA  Securities").  As of the date hereof, there  are  no  outstanding
obligations of LAZZARA or any of its subsidiaries to repurchase, redeem  or
otherwise   acquire  any  LAZZARA  Securities.  There  are  no  stockholder
agreements,  voting trusts or other agreements or understandings  to  which
LAZZARA  is  a  party or by which it is bound relating  to  the  voting  or
registration of any shares of capital stock of LAZZARA.

<PAGE>

     (d)  Except  as set forth in Section 3.2(d) of the LAZZARA  Disclosure
Schedule,  there  are  no  securities  of  LAZZARA  convertible   into   or
exchangeable  for, no options or other rights to acquire from LAZZARA,  and
no other contract, understanding, arrangement or obligation (whether or not
contingent) providing for the issuance or sale, directly or indirectly,  of
any  capital stock or other ownership interests in, or any other securities
of, any subsidiary of LAZZARA.

     (e)  The LAZZARA Shares constitute the only class of equity securities
of LAZZARA or its subsidiaries.

     (f)  Except  as set forth in Section 3.2(f) of the LAZZARA  Disclosure
Schedule,  LAZZARA  does  not own directly or indirectly  more  than  fifty
percent  (50%) of the outstanding voting securities or interests (including
membership interests) of any entity.

     Section 3.3. Authority Relative to this Agreement; Recommendation.

     (a) LAZZARA has all necessary corporate power and authority to execute
and  deliver this Agreement and to consummate the transactions contemplated
hereby.  The  execution and delivery of this Agreement and the consummation
of  the  transactions  contemplated  hereby  have  been  duly  and  validly
authorized by the Board of Directors of LAZZARA (the "LAZZARA Board"),  and
no  other  corporate proceedings on the part of LAZZARA  are  necessary  to
authorize  this  Agreement  or to consummate the transactions  contemplated
hereby,  except, as referred to in Section 3.17, the approval and  adoption
of  this  Agreement  by  the holders of at least a  majority  of  the  then
outstanding  LAZZARA  Shares. This Agreement  has  been  duly  and  validly
executed  and  delivered  by LAZZARA and constitutes  a  valid,  legal  and
binding  agreement  of LAZZARA, enforceable against LAZZARA  in  accordance
with its terms.

     (b)  The LAZZARA Board has resolved to recommend that the stockholders
of LAZZARA approve and adopt this Agreement.

     Section 3.4. SEC Reports; Financial Statements.

     (a)   LAZZARA has filed all required forms, reports and documents with
the Securities and Exchange Commission (the "SEC") since December 31, 1999,
each  of  which  has complied in all material respects with all  applicable
requirements  of  the Securities Act of 1933, as amended  (the  "Securities
Act"),  and  the  Exchange  Act (and the rules and regulations  promulgated
thereunder,  respectively), each as in effect  on  the  dates  such  forms,
reports  and  documents  were filed. LAZZARA has  heretofore  delivered  or
promptly  will deliver prior to the Effective Date to LAZZARA, in the  form
filed  with  the  SEC (including any amendments thereto but  excluding  any
exhibits),  (i) its Annual Report on Form 10-KSB for the fiscal year  ended
December  31,  1999,  (ii)  all  definitive proxy  statements  relating  to
LAZZARA's  meetings of stockholders (whether annual or special) held  since
December  31,  1999,  if any, and (iii) all other reports  or  registration
statements  filed by LAZZARA with the SEC since December 31, 1999  (all  of
the  foregoing,  collectively, the "LAZZARA SEC  Reports").  None  of  such
LAZZARA   SEC   Reports,  including,  without  limitation,  any   financial
statements  or  schedules included or incorporated  by  reference  therein,
contained,  when filed, any untrue statement of a material fact or  omitted
to state a material fact required to be stated or incorporated by reference
therein  or necessary in order to make the statements therein, in light  of
the  circumstances under which they were made, not misleading. The  audited
financial statements of LAZZARA included in the LAZZARA SEC Reports  fairly
present,  in  conformity  with  generally  accepted  accounting  principles
applied  on  a  consistent basis (except as may be indicated in  the  notes
thereto), the financial position of LAZZARA as of the dates thereof and its
results  of  operations and changes in financial position for  the  periods
then ended. All material agreements, contracts and other documents required
to  be  filed  as exhibits to any of the LAZZARA SEC Reports have  been  so
filed.

     (b)  LAZZARA  has  heretofore made available  or  promptly  will  make
available to CATHAYONLINE a complete and correct copy of any amendments  or
modifications which are required to be filed with the SEC but have not  yet
been  filed  with  the SEC, to agreements, documents or  other  instruments
which  previously had been filed by LAZZARA with the SEC  pursuant  to  the
Exchange Act.

     Section 3.5. Information Supplied. None of the information supplied or
to  be  supplied by LAZZARA for inclusion or incorporation by reference  to
the 8-K will, at the time the 8-K is filed with the SEC and at the time  it
becomes effective under the Securities Act, contain any untrue statement of
a  material fact or omit to state any material fact required to  be  stated
therein or necessary to make the statements therein not misleading.

<PAGE>

     Section  3.6.  Consents and Approvals; No Violations.  Except  as  set
forth  in  Section 3.6 of the LAZZARA Disclosure Schedule, and for filings,
permits,  authorizations, consents and approvals as may be required  under,
and other applicable requirements of, the Securities Act, the Exchange Act,
state securities or blue sky laws, the HSR Act, the rules of the NASD,  and
the  filing  and recordation of the Merger Certificate as required  by  the
NGCL, no filing with or notice to, and no permit, authorization, consent or
approval  of,  any Governmental Entity is necessary for the  execution  and
delivery by LAZZARA of this Agreement or the consummation by LAZZARA of the
transactions contemplated hereby, except where the failure to  obtain  such
permits,  authorizations consents or approvals or to make such  filings  or
give such notice would not have a Material Adverse Effect on LAZZARA.

     Neither  the execution, delivery and performance of this Agreement  by
LAZZARA  nor  the consummation by LAZZARA of the transactions  contemplated
hereby  will (i) conflict with or result in any breach of any provision  of
the respective Certificate of Incorporation or Bylaws (or similar governing
documents)  of LAZZARA or any of LAZZARA's subsidiaries, (ii) result  in  a
violation or breach of, or constitute (with or without due notice or  lapse
of  time  or  both)  a default (or give rise to any right  of  termination,
amendment,  cancellation or acceleration or Lien) under, any of the  terms,
conditions  or  provisions of any note, bond, mortgage,  indenture,  lease,
license,  contract,  agreement or other instrument or obligation  to  which
LAZZARA or any of LAZZARA's subsidiaries is a party or by which any of them
or  any  of  their respective properties or assets may be  bound  or  (iii)
violate  any  order,  writ,  injunction,  decree,  law,  statute,  rule  or
regulation applicable to LAZZARA or any of LAZZARA's subsidiaries or any of
their  respective properties or assets, except in the case of (ii) or (iii)
for  violations,  breaches  or defaults which would  not  have  a  Material
Adverse Effect on LAZZARA.

     Section 3.7. No Default. None of LAZZARA or any of its subsidiaries is
in  breach,  default  or violation (and no event has  occurred  which  with
notice  or the lapse of time or both would constitute a breach, default  or
violation)  of  any term, condition or provision of (i) its Certificate  of
Incorporation  or Bylaws (or similar governing documents), (ii)  any  note,
bond,  mortgage,  indenture, lease, license, contract, agreement  or  other
instrument or obligation to which LAZZARA or any of its subsidiaries is now
a  party  or by which any of them or any of their respective properties  or
assets  may  be  bound or (iii) any order, writ, injunction,  decree,  law,
statute, rule or regulation applicable to LAZZARA, its subsidiaries or  any
of  their  respective properties or assets, except in the case of  (ii)  or
(iii)  for violations, breaches or defaults that would not have a  Material
Adverse  Effect  on  LAZZARA. Each note, bond, mortgage, indenture,  lease,
license,  contract,  agreement or other instrument or obligation  to  which
LAZZARA  or any of its subsidiaries is now a party or by which any of  them
or  any  of  their  respective properties or assets may be  bound  that  is
material to LAZZARA and its subsidiaries taken as a whole and that has  not
expired  is  in  full force and effect and is not subject to  any  material
default  thereunder  of which LAZZARA is aware by any  party  obligated  to
LAZZARA or any subsidiary thereunder.

     Section 3.8. No Undisclosed Liabilities; Absence of Changes. Except as
set  forth in Section 2.8 of the LAZZARA Disclosure Schedule and except  as
and to the extent publicly disclosed by LAZZARA in the LAZZARA SEC Reports,
as  of  December  31,  1999,  LAZZARA does  not  have  any  liabilities  or
obligations of any nature, whether or not accrued, contingent or otherwise,
that  would be required by generally accepted accounting principles  to  be
reflected  on a balance sheet of LAZZARA (including the notes  thereto)  or
which  would have a Material Adverse Effect on LAZZARA. Except as  publicly
disclosed by LAZZARA, since November 19, 1999, LAZZARA has not incurred any
liabilities of any nature, whether or not accrued, contingent or otherwise,
which  could reasonably be expected to have, and there have been no events,
changes or effects with respect to LAZZARA having or which reasonably could
be expected to have, a Material Adverse Effect on LAZZARA. Except as and to
the  extent  publicly disclosed by LAZZARA in the LAZZARA SEC  Reports  and
except  as  set  forth  in Section 2.8 of the LAZZARA Disclosure  Schedule,
since  November  19,1999, there has not been (i)  any  material  change  by
LAZZARA  in its accounting methods, principles or practices (other than  as
required  after the date hereof by concurrent changes in generally accepted
accounting  principles), (ii) any revaluation by  LAZZARA  of  any  of  its
assets  having  a  Material Adverse Effect on LAZZARA,  including,  without
limitation,  any write-down of the value of any assets other  than  in  the
ordinary  course of business or (iii) any other action or event that  would
have required the consent of any other party hereto pursuant to Section 4.1
of  this Agreement had such action or event occurred after the date of this
Agreement.

<PAGE>

     Section  3.9. Litigation. Except as publicly disclosed by  LAZZARA  in
the  LAZZARA  SEC Reports, there is no suit, claim, action,  proceeding  or
investigation  pending or, to the knowledge of LAZZARA, threatened  against
LAZZARA or any of its subsidiaries or any of their respective properties or
assets  before  any  Governmental Entity  which,  individually  or  in  the
aggregate,  could reasonably be expected to have a Material Adverse  Effect
on  LAZZARA  or  could  reasonably be expected  to  prevent  or  delay  the
consummation of the transactions contemplated by this Agreement. Except  as
publicly  disclosed by LAZZARA in the LAZZARA SEC Reports, LAZZARA  is  not
subject to any outstanding order, writ, injunction or decree which, insofar
as  can  be reasonably foreseen in the future, could reasonably be expected
to  have  a  Material  Adverse Effect on LAZZARA  or  could  reasonably  be
expected   to  prevent  or  delay  the  consummation  of  the  transactions
contemplated hereby.

     Section  3.10.  Compliance with Applicable  Law.  Except  as  publicly
disclosed by LAZZARA in the LAZZARA SEC Reports, LAZZARA holds all permits,
licenses,  variances, exemptions, orders and approvals of all  Governmental
Entities  necessary  for the lawful conduct of their respective  businesses
(the  `'LAZZARA  Permits"),  except for  failures  to  hold  such  permits,
licenses, variances, exemptions, orders and approvals which would not  have
a  Material  Adverse  Effect on LAZZARA. Except as  publicly  disclosed  by
LAZZARA in the LAZZARA SEC Reports, LAZZARA is in compliance with the terms
of  the  LAZZARA Permits, except where the failure so to comply  would  not
have a Material Adverse Effect on LAZZARA. Except as publicly disclosed  by
LAZZARA  in the LAZZARA SEC Reports, the business of LAZZARA is  not  being
conducted  in  violation  of  any  law,  ordinance  or  regulation  of  any
Governmental Entity except that no representation or warranty  is  made  in
this Section 2.10 with respect to Environmental Laws (as defined in Section
2.12  below) and except for violations or possible violations which do not,
and, insofar as reasonably can be foreseen, in the future will not, have  a
Material Adverse Effect on LAZZARA. Except as publicly disclosed by LAZZARA
in  the LAZZARA SEC Reports, no investigation or review by any Governmental
Entity  with respect to LAZZARA is pending or, to the knowledge of LAZZARA,
threatened,  nor, to the knowledge of LAZZARA, has any Governmental  Entity
indicated an intention to conduct the same, other than, in each case, those
which  LAZZARA reasonably believes will not have a Material Adverse  Effect
on LAZZARA.

     Section 3.11. Employee Benefit Plans; Labor Matters.

     (a)  With  respect  to  each employee benefit plan,  program,  policy,
arrangement  and  contract  (including, without limitation,  any  "employee
benefit  plan,"  as  defined  in  Section 3(3)  of  ERISA),  maintained  or
contributed  to  at  any time by LAZZARA, any of its  subsidiaries  or  any
entity  required  to be aggregated with LAZZARA or any of its  subsidiaries
pursuant  to Section 414 of the Code (each, a "LAZZARA Employee Plan"),  no
event has occurred and, to the knowledge of LAZZARA, no condition or set of
circumstances  exists  in  connection with which  LAZZARA  or  any  of  its
subsidiaries  could reasonably be expected to be subject to  any  liability
which would have a Material Adverse Effect on LAZZARA.

     (b) (i) No LAZZARA Employee Plan is or has been subject to Title IV of
ERISA  or  Section  412  of the Code; and (ii) each LAZZARA  Employee  Plan
intended  to  qualify  under Section 401(a) of  the  Code  and  each  trust
intended  to qualify under Section 501(a) of the Code is the subject  of  a
favorable  Internal Revenue Service determination letter, and  nothing  has
occurred  which  could  reasonably be expected  to  adversely  affect  such
determination.

     (c)  Section 3.11(c) of the LAZZARA Disclosure Schedule sets  forth  a
true  and  complete list, as of the date of this Agreement, of each  person
who  holds  any LAZZARA Stock Options, together with the number of  LAZZARA
Shares  which are subject to such option, the date of grant of such option,
the  extent  to  which such option is vested (or will become  vested  as  a
result  of  the  Merger), the option price of such option  (to  the  extent
determined  as  of the date hereof), whether such option is a  nonqualified
stock  option or is intended to qualify as an incentive stock option within
the  meaning of Section 422(b) of the Code, and the expiration date of such
option. Section 3.11(c) of the LAZZARA Disclosure Schedule also sets  forth
the  total  number  of such incentive stock options and  such  nonqualified
options.  LAZZARA has furnished CATHAYONLINE with complete  copies  of  the
plans  pursuant to which the LAZZARA Stock Options were issued. Other  than
the  automatic vesting of LAZZARA Stock Options that may occur without  any
action on the part of LAZZARA or its officers or directors, LAZZARA has not
taken  any action that would result in any LAZZARA Stock Options  that  are
unvested becoming vested in connection with or as a result of the execution
and  delivery  of  this Agreement or the consummation of  the  transactions
contemplated hereby.

<PAGE>

     (d)  LAZZARA  has made available to CATHAYONLINE (i) a description  of
the  terms  of employment and compensation arrangements of all officers  of
LAZZARA and a copy of each such agreement currently in effect; (ii)  copies
of  all  agreements with consultants who are individuals obligating LAZZARA
to  make  annual  cash  payments in an amount exceeding  $60,000;  (iii)  a
schedule   listing   all  officers  of  LAZZARA   who   have   executed   a
non-competition  agreement with LAZZARA and a copy of each  such  agreement
currently  in  effect;  (iv)  copies (or  descriptions)  of  all  severance
agreements,  programs  and policies of LAZZARA  with  or  relating  to  its
employees, except programs and policies required to be maintained  by  law;
and (v) copies of all plans, programs, agreements and other arrangements of
the  LAZZARA  with  or relating to its employees which  contain  change  in
control provisions.

     (e)  Except  as disclosed in Section 3.11(e) of the LAZZARA Disclosure
Schedule  there  shall  be  no  payment, accrual  of  additional  benefits,
acceleration  of  payments,  or vesting in any benefit  under  any  LAZZARA
Employee Plan or any agreement or arrangement disclosed under this  Section
3.11  solely  by  reason  of  entering  into  or  in  connection  with  the
transactions contemplated by this Agreement.

     (f) There are no controversies pending or, to the knowledge of LAZZARA
threatened,  between LAZZARA or any of its subsidiaries and  any  of  their
respective  employees,  which controversies have  or  could  reasonably  be
expected to have a Material Adverse Effect on LAZZARA. Neither LAZZARA  nor
any  of  its subsidiaries is a party to any collective bargaining agreement
or  other labor union contract applicable to persons employed by LAZZARA or
any  of  its  subsidiaries (and neither LAZZARA nor any of its subsidiaries
has  any  outstanding  material liability with respect  to  any  terminated
collective bargaining agreement or labor union contract), nor does  LAZZARA
know of any activities or proceedings of any labor union to organize any of
its  or any of its subsidiaries' employees. LAZZARA has no knowledge of any
strike,  slowdown,  work stoppage, lockout or threat  thereof  by  or  with
respect to any of its or any of its subsidiaries' employees.

     Section 3.12. Environmental Laws and Regulations.

     (a)  Except  as  disclosed by LAZZARA, (i) each  of  LAZZARA  and  its
subsidiaries is in material compliance with all Environmental Laws,  except
for  non-compliance  that  would not have  a  Material  Adverse  Effect  on
LAZZARA,  which compliance includes, but is not limited to, the  possession
by  LAZZARA  and  its  subsidiaries  of  all  material  permits  and  other
governmental  authorizations required under applicable Environmental  Laws,
and  compliance with the terms and conditions thereof; (ii) none of LAZZARA
or its subsidiaries has received written notice of, or, to the knowledge of
LAZZARA,  is the subject of, any Environmental Claim that could  reasonably
be  expected to have a Material Adverse Effect on LAZZARA; and (iii) to the
knowledge of LAZZARA, there are no circumstances that are reasonably likely
to prevent or interfere with such material compliance in the future.

     (b)  Except as disclosed by LAZZARA, there are no Environmental Claims
which  could  reasonably be expected to have a Material Adverse  Effect  on
LAZZARA  that  are  pending  or, to the knowledge  of  LAZZARA,  threatened
against LAZZARA or any of its subsidiaries or, to the knowledge of LAZZARA,
against  any  person or entity whose liability for any Environmental  Claim
LAZZARA  or  its  subsidiaries has or may have retained or  assumed  either
contractually or by operation of law.

     Section 3.13. Tax Matters. Except as set forth in Section 3.13 of  the
LAZZARA  Disclosure Schedule: (i) LAZZARA and each of its subsidiaries  has
filed  or  has  had  filed  on its behalf in a timely  manner  (within  any
applicable extension periods) with the appropriate Governmental Entity  all
income and other material Tax Returns with respect to Taxes of LAZZARA  and
each  of its subsidiaries and all Tax Returns were in all material respects
true, complete and correct; (ii) all material Taxes with respect to LAZZARA
and  each  of its subsidiaries have been paid in full or have been provided
for in accordance with GAAP on LAZZARA's most recent balance sheet which is
part  of  the  LAZZARA  SEC  Documents;  (iii)  there  are  no  outstanding
agreements  or  waivers  extending  the  statutory  period  of  limitations
applicable to any federal, state, local or foreign income or other material
Tax  Returns  required to be filed by or with respect  to  LAZZARA  or  its
subsidiaries; (iv) to the knowledge of LAZZARA none of the Tax  Returns  of
or  with  respect to LAZZARA or any of its subsidiaries is currently  being
audited  or examined by any Governmental Entity; and (v) no deficiency  for
any  income  or  other  material Taxes has been assessed  with  respect  to
LAZZARA  or  any of its subsidiaries which has not been abated or  paid  in
full.

<PAGE>

     Section  3.14. Title to Property. LAZZARA and each of its subsidiaries
have  good and defensible title to all of their properties and assets, free
and clear of all liens, charges and encumbrances except liens for taxes not
yet due and payable and such liens or other imperfections of title, if any,
as  do  not  materially  detract from the value of or  interfere  with  the
present use of the property affected thereby or which, individually  or  in
the aggregate, would not have a Material Adverse Effect on LAZZARA; and, to
LAZZARA's  knowledge, all leases pursuant to which LAZZARA or  any  of  its
subsidiaries  lease  from  others real or personal  property  are  in  good
standing,  valid  and effective in accordance with their respective  terms,
and  there  is not, to the knowledge of LAZZARA, under any of such  leases,
any  existing  material default or event of default (or  event  which  with
notice  or lapse of time, or both, would constitute a material default  and
in respect of which LAZZARA or such subsidiary has not taken adequate steps
to  prevent  such a default from occurring) except where the lack  of  such
good standing, validity and effectiveness, or the existence of such default
or event of default would not have a Material Adverse Effect on LAZZARA.

     Section 3.15. Intellectual Property.

     (a)  Each  of LAZZARA and its subsidiaries owns, or possesses adequate
licenses  or  other  valid rights to use, all existing  United  States  and
foreign patents, trademarks, trade names, services marks, copyrights, trade
secrets,  and applications therefore that are material to its  business  as
currently conducted (the "LAZZARA Intellectual Property Rights").

     (b)  Except  as set forth in Section 3.15(b) of the LAZZARA Disclosure
Schedule the validity of the LAZZARA Intellectual Property Rights  and  the
title  thereto  of LAZZARA or any subsidiary, as the case may  be,  is  not
being questioned in any litigation to which LAZZARA or any subsidiary is  a
party.

     (c) The conduct of the business of LAZZARA and its subsidiaries as now
conducted  does  not, to LAZZARA's knowledge, infringe any  valid  patents,
trademarks,  tradenames,  service  marks  or  copyrights  of  others.   The
consummation of the transactions contemplated hereby will not result in the
loss or impairment of any LAZZARA Intellectual Property Rights.

     (d)  Each  of LAZZARA and its subsidiaries has taken steps it believes
appropriate  to protect and maintain its trade secrets as such,  except  in
cases  where LAZZARA has elected to rely on patent or copyright  protection
in lieu of trade secret protection.

     Section  3.16. Insurance. LAZZARA currently does not maintain  general
liability and other business insurance.

     Section 3.17. Vote Required. The affirmative vote of the holders of at
least a majority of the outstanding LAZZARA Shares is the only vote of  the
holders  of  any  class or series of LAZZARA's capital stock  necessary  to
approve and adopt this Agreement and the Merger.

     Section 3.18. Tax Treatment. Neither LAZZARA nor, to the knowledge  of
LAZZARA, any of its affiliates has taken or agreed to take any action  that
would  prevent  the  Merger  from constituting a reorganization  qualifying
under the provisions of Section 368(a) of the Code.

     Section  3.19.  Affiliates.  Except for the  directors  and  executive
officers of LAZZARA, each of whom is listed in Section 3.19 of the  LAZZARA
Disclosure Schedule, there are no persons who, to the knowledge of LAZZARA,
may  be deemed to be affiliates of LAZZARA under Rule 1-02(b) of Regulation
S-X of the SEC (the "LAZZARA Affiliates").

     Section 3.20. Certain Business Practices. None of LAZZARA, any of  its
subsidiaries or any directors, officers, agents or employees of LAZZARA  or
any  of its subsidiaries has (i) used any funds for unlawful contributions,
gifts,  entertainment  or  other unlawful expenses  relating  to  political
activity,  (ii) made any unlawful payment to foreign or domestic government
officials  or  employees  or to foreign or domestic  political  parties  or
campaigns  or violated any provision of the FCPA, or (iii) made  any  other
unlawful payment.

<PAGE>

     Section  3.21. Insider Interests. Except as set forth in Section  3.21
of  the LAZZARA Disclosure Schedule, no officer or director of LAZZARA  has
any  interest in any material property, real or personal, including without
limitation, any computer software or LAZZARA Intellectual Property  Rights,
used  in or pertaining to the business of LAZZARA or any subsidiary, except
for the ordinary rights of a stockholder or employee stock optionholder.

     Section  3.22. Opinion of Financial Adviser. No advisers,  as  of  the
date  hereof, have delivered to the LAZZARA Board a written opinion to  the
effect that, as of such date, the exchange ratio contemplated by the Merger
is fair to the holders of LAZZARA Shares.

     Section  3.23. Brokers. No broker, finder or investment banker  (other
than  the  LAZZARA  Financial Adviser, a true and  correct  copy  of  whose
engagement agreement has been provided to CATHAYONLINE) is entitled to  any
brokerage,  finders  or  other fee or commission  in  connection  with  the
transactions contemplated by this Agreement based upon arrangements made by
or on behalf of LAZZARA.

     Section 3.24. Disclosure. No representation or warranty of LAZZARA  in
this  Agreement or any certificate, schedule, document or other  instrument
furnished  or  to  be  furnished  to CATHAYONLINE  pursuant  hereto  or  in
connection  herewith  contains,  as of the  date  of  such  representation,
warranty  or instrument, or will contain any untrue statement of a material
fact  or, at the date thereof, omits or will omit to state a material  fact
necessary  to  make  any  statement herein or  therein,  in  light  of  the
circumstances  under  which  such  statement  is  or  will  be  made,   not
misleading.

     Section  3.25. No Existing Discussions. As of the date hereof, LAZZARA
is  not engaged, directly or indirectly, in any discussions or negotiations
with  any  other  party  with respect to any Third  Party  Acquisition  (as
defined in Section 5.4).

     Section 3.26. Material Contracts.

     (a)  LAZZARA has delivered or otherwise made available to CATHAYONLINE
true, correct and complete copies of all contracts and agreements (and  all
amendments, modifications and supplements thereto and all side  letters  to
which LAZZARA is a party affecting the obligations of any party thereunder)
to  which LAZZARA or any of its subsidiaries is a party or by which any  of
their  properties or assets are bound that are, material to  the  business,
properties  or  assets of LAZZARA and its subsidiaries taken  as  a  whole,
including,  without  limitation, to the extent any of  the  following  are,
individually  or in the aggregate, material to the business, properties  or
assets  of  LAZZARA  and  its  subsidiaries taken  as  a  whole,  all:  (i)
employment,  product design or development, personal services,  consulting,
non-competition,  severance, golden parachute or indemnification  contracts
(including, without limitation, any contract to which LAZZARA  is  a  party
involving  employees of LAZZARA); (ii) licensing, publishing, merchandising
or  distribution  agreements;  (iii) contracts  granting  rights  of  first
refusal or first negotiation; (iv) partnership or joint venture agreements;
(v) agreements for the acquisition, sale or lease of material properties or
assets  or  stock  or  otherwise. (vi) contracts  or  agreements  with  any
Governmental Entity; and (vii) all commitments and agreements to enter into
any  of  the  foregoing  (collectively, together with  any  such  contracts
entered   into  in  accordance  with  Section  5.2  hereof,  the   'LAZZARA
Contracts"). Neither LAZZARA nor any of its subsidiaries is a party  to  or
bound  by  any  severance,  golden parachute or other  agreement  with  any
employee  or consultant pursuant to which such person would be entitled  to
receive   any  additional  compensation  or  an  accelerated   payment   of
compensation   as  a  result  of  the  consummation  of  the   transactions
contemplated hereby.

     (b)  Each  of  the  LAZZARA  Contracts is  valid  and  enforceable  in
accordance  with  its  terms, and there is no  default  under  any  LAZZARA
Contract  so  listed either by LAZZARA or, to the knowledge of LAZZARA,  by
any  other party thereto, and no event has occurred that with the lapse  of
time  or the giving of notice or both would constitute a default thereunder
by  LAZZARA or, to the knowledge of LAZZARA, any other party, in  any  such
case in which such default or event could reasonably be expected to have  a
Material Adverse Effect on LAZZARA.

     (c)  No party to any such LAZZARA Contract has given notice to LAZZARA
of  or  made a claim against LAZZARA with respect to any breach or  default
thereunder,  in  any  such  case  in which such  breach  or  default  could
reasonably be expected to have a Material Adverse Effect on LAZZARA.

<PAGE>


                                 ARTICLE 4

                                 Covenants

     Section   4.1.  Conduct  of  Business  of  CATHAYONLINE.   Except   as
contemplated  by  this  Agreement or as described in  Section  4.1  of  the
CATHAYONLINE Disclosure Schedule, during the period from the date hereof to
the  Effective  Time,  CATHAYONLINE will  conduct  its  operations  in  the
ordinary  course  of  business consistent with past practice  and,  to  the
extent  consistent therewith, with no less diligence and effort than  would
be  applied  in the absence of this Agreement, seek to preserve intact  its
current  business organization, keep available the service of  its  current
officers  and  employees  and  preserve its relationships  with  customers,
suppliers  and  others having business dealings with it  to  the  end  that
goodwill and ongoing businesses shall be unimpaired at the Effective  Time.
Without  limiting  the  generality of the foregoing,  except  as  otherwise
expressly provided in this Agreement or as described in Section 4.1 of  the
CATHAYONLINE Disclosure Schedule, prior to the Effective Time, CATHAYONLINE
will not, without the prior written consent of LAZZARA:

     (a) amend its Certificate of Incorporation or Bylaws (or other similar
governing instrument);

     (b)  amend the terms of any stock of any class or any other securities
(except bank loans) or equity equivalents.

     (c)  split,  combine  or reclassify any shares of its  capital  stock,
declare,  set aside or pay any dividend or other distribution  (whether  in
cash,  stock  or  property or any combination thereof) in  respect  of  its
capital  stock, make any other actual, constructive or deemed  distribution
in  respect  of  its  capital  stock or  otherwise  make  any  payments  to
stockholders in their capacity as such, or redeem or otherwise acquire  any
of its securities;

     (d)  adopt  a  plan  of complete or partial liquidation,  dissolution,
merger,    consolidation,   restructuring,   recapitalization   or    other
reorganization of CATHAYONLINE (other than the Merger);

     (e)  (i) incur or assume any long-term or short-term debt or issue any
debt  securities  except for borrowings or issuances of letters  of  credit
under  existing  lines of credit in the ordinary course of  business;  (ii)
assume,  guarantee,  endorse  or otherwise  become  liable  or  responsible
(whether  directly, contingently or otherwise) for the obligations  of  any
other  person. (iii) make any loans, advances or capital contributions  to,
or  investments  in,  any other person; (iv) pledge or  otherwise  encumber
shares  of capital stock of CATHAYONLINE; or (v) mortgage or pledge any  of
its  material  assets,  or  create or suffer to  exist  any  material  Lien
thereupon (other than tax Liens for taxes not yet due);

     (f)  except as may be required by law, enter into, adopt or  amend  or
terminate  any bonus, profit sharing, compensation, severance, termination,
stock option, stock appreciation right, restricted stock, performance unit,
stock  equivalent, stock purchase agreement, pension, retirement,  deferred
compensation,  employment, severance or other employee  benefit  agreement,
trust,  plan, fund or other arrangement for the benefit or welfare  of  any
director, officer or employee in any manner, or increase in any manner  the
compensation or fringe benefits of any director, officer or employee or pay
any benefit not required by any plan and arrangement as in effect as of the
date   hereof  (including,  without  limitation,  the  granting  of   stock
appreciation  rights or performance units); provided,  however,  that  this
paragraph  (f)  shall  not  prevent CATHAYONLINE  from  (i)  entering  into
employment  agreements  or  severance  agreements  with  employees  in  the
ordinary  course  of  business and consistent with past  practice  or  (ii)
increasing  annual  compensation and/or providing  for  or  amending  bonus
arrangements  for  employees for fiscal 1999  in  the  ordinary  course  of
year-end  compensation  reviews consistent with past  practice  and  paying
bonuses  to  employees for fiscal 1999 in amounts previously  disclosed  to
LAZZARA  (to the extent that such compensation increases and new or amended
bonus  arrangements  do not result in a material increase  in  benefits  or
compensation expense to CATHAYONLINE);

     (g)  acquire,  sell,  lease or dispose of any  assets  in  any  single
transaction  or series of related transactions (other than in the  ordinary
course of business);

     (h)  except as may be required as a result of a change in  law  or  in
generally  accepted  accounting principles, change any  of  the  accounting
principles or practices used by it;
     (i)  revalue  in  any  material respect any of its  assets  including,
without  limitation,  writing down the value of  inventory  or  writing-off
notes or accounts receivable other than in the ordinary course of business;

<PAGE>

     (j) (i) acquire (by merger, consolidation, or acquisition of stock  or
assets)  any  corporation,  partnership or other business  organization  or
division  thereof  or  any equity interest therein;  (ii)  enter  into  any
contract  or  agreement  other  than in the  ordinary  course  of  business
consistent  with  past  practice which would be material  to  CATHAYONLINE;
(iii)   authorize  any  new  capital  expenditure  or  expenditures  which,
individually is in excess of $1,000 or, in the aggregate, are in excess  of
$5,000;  provided,  however  that none of the  foregoing  shall  limit  any
capital expenditure required pursuant to existing contracts;

     (k)  make  any  tax election or settle or compromise  any  income  tax
liability material to CATHAYONLINE;

     (l)  settle  or compromise any pending or threatened suit,  action  or
claim which (i) relates to the transactions contemplated hereby or (ii) the
settlement or compromise of which could have a Material Adverse  Effect  on
CATHAYONLINE;

     (m)  commence  any  material  research  and  development  project   or
terminate  any material research and development project that is  currently
ongoing, in either case, except pursuant to the terms of existing contracts
or in the ordinary course of business; or

     (n) take, or agree in writing or otherwise to take, any of the actions
described in Sections 4.1(a) through 4.1(m) or any action which would  make
any  of  the representations or warranties of  contained in this  Agreement
untrue or incorrect.

     Section 4.2. Conduct of Business of LAZZARA. Except as contemplated by
this  Agreement  or  as described in Section 4.2 of the LAZZARA  Disclosure
Schedule  during  the  period from the date hereof to the  Effective  Time,
LAZZARA  will  conduct its operations in the ordinary  course  of  business
consistent with past practice and, to the extent consistent therewith, with
no  less diligence and effort than would be applied in the absence of  this
Agreement, seek to preserve intact its current business organization,  keep
available  the service of its current officers and employees  and  preserve
its  relationships  with  customers, suppliers and others  having  business
dealings  with it to the end that goodwill and ongoing businesses shall  be
unimpaired  at the Effective Time. Without limiting the generality  of  the
foregoing, except as otherwise expressly provided in this Agreement  or  as
described in Section 4.2 of the LAZZARA Disclosure Schedule, prior  to  the
Effective Time, LAZZARA will not, without the prior written consent of:

     (a) amend its Certificate of Incorporation or Bylaws (or other similar
governing instrument);

     (b) authorize for issuance, issue, sell, deliver or agree or commit to
issue,  sell  or  deliver  (whether through the  issuance  or  granting  of
options,  warrants,  commitments,  subscriptions,  rights  to  purchase  or
otherwise)  any  stock  of any class or any other securities  (except  bank
loans)  or  equity  equivalents (including, without limitation,  any  stock
options or stock appreciation rights;

       (c)  split,  combine or reclassify any shares of its capital  stock,
declare,  set aside or pay any dividend or other distribution  (whether  in
cash,  stock  or  property or any combination thereof) in  respect  of  its
capital  stock, make any other actual, constructive or deemed  distribution
in  respect  of  its  capital  stock or  otherwise  make  any  payments  to
stockholders in their capacity as such, or redeem or otherwise acquire  any
of its securities;

     (d)  adopt  a  plan  of complete or partial liquidation,  dissolution,
merger    consolidation,   restructuring,   recapitalization    or    other
reorganization of LAZZARA (other than the Merger);

     (e)  (i) incur or assume any long-term or short-term debt or issue any
debt  securities  except for borrowings or issuances of letters  of  credit
under  existing  lines of credit in the ordinary course of  business.  (ii)
assume,  guarantee,  endorse  or otherwise  become  liable  or  responsible
(whether  directly, contingently or otherwise) for the obligations  of  any
other person; (iii) make any loans, advances or capital contributions to or
investments in, any other person; (iv) pledge or otherwise encumber  shares
of  capital stock of LAZZARA or its subsidiaries; or (v) mortgage or pledge
any  of its material assets, or create or suffer to exist any material Lien
thereupon (other than tax Liens for taxes not yet due);

<PAGE>

     (f)  except as may be required by law, enter into, adopt or  amend  or
terminate  any bonus, profit sharing, compensation, severance, termination,
stock option, stock appreciation right, restricted stock, performance  unit
stock  equivalent, stock purchase agreement, pension, retirement,  deferred
compensation,  employment, severance or other employee  benefit  agreement,
trust,  plan, fund or other arrangement for the benefit or welfare  of  any
director, officer or employee in any manner, or increase in any manner  the
compensation or fringe benefits of any director, officer or employee or pay
any benefit not required by any plan and arrangement as in effect as of the
date   hereof  (including,  without  limitation,  the  granting  of   stock
appreciation  rights or performance units); provided,  however,  that  this
paragraph  (f)  shall  not  prevent LAZZARA or its  subsidiaries  from  (i)
entering  into employment agreements or severance agreements with employees
in  the  ordinary course of business and consistent with past  practice  or
(ii)  increasing annual compensation and/or providing for or amending bonus
arrangements for employees for fiscal 1999 in the ordinary course  of  year
end  compensation reviews consistent with past practice and paying  bonuses
to  employees for fiscal 1999 in amounts previously disclosed to   (to  the
extent   that  such  compensation  increases  and  new  or  amended   bonus
arrangements  do  not  result  in  a  material  increase  in  benefits   or
compensation expense to LAZZARA);

     (g)  acquire,  sell,  lease or dispose of any  assets  in  any  single
transaction  or series of related transactions other than in  the  ordinary
course of business;

     (h)  except as may be required as a result of a change in  law  or  in
generally  accepted  accounting principles, change any  of  the  accounting
principles or practices used by it;

     (i)  revalue  in  any  material respect any of its assets,  including,
without  limitation,  writing down the value of  inventory  of  writing-off
notes or accounts receivable other than in the ordinary course of business;

     (j) (i) acquire (by merger, consolidation, or acquisition of stock  or
assets)  any  corporation, partnership, or other business  organization  or
division  thereof  or  any equity interest therein;  (ii)  enter  into  any
contract  or  agreement  other  than in the  ordinary  course  of  business
consistent  with  past practice which would be material to  LAZZARA;  (iii)
authorize  any new capital expenditure or expenditures which, individually,
is  in  excess  of  $1,000 or, in the aggregate, are in excess  of  $5,000:
provided,  however  that  none of the foregoing  shall  limit  any  capital
expenditure required pursuant to existing contracts;

     (k)  make  any  tax election or settle or compromise  any  income  tax
liability material to LAZZARA and its subsidiaries taken as a whole;

     (l)  settle  or compromise any pending or threatened suit,  action  or
claim which (i) relates to the transactions contemplated hereby or (ii) the
settlement or compromise of which could have a Material Adverse  Effect  on
LAZZARA;

     (m)  commence  any  material  research  and  development  project   or
terminate  any material research and development project that is  currently
ongoing, in either case, except pursuant to the terms of existing contracts
or except in the ordinary course of business; or

     (n) take, or agree in writing or otherwise to take, any of the actions
described in Sections 4.2(a) through 4.2(m) or any action which would  make
any  of the representations or warranties of the LAZZARA contained in  this
Agreement untrue or incorrect.

     Section  4.3.  Preparation of 8-K.   LAZZARA  and  CATHAYONLINE  shall
promptly prepare and file with the SEC an 8-K disclosing this merger.


<PAGE>


     Section 4.4. Other Potential Acquirers.

     (a)  LAZZARA, its affiliates and their respective officers, directors,
employees, representatives and agents shall immediately cease any  existing
discussions or negotiations, if any, with any parties conducted  heretofore
with respect to any Third Party Acquisition.

     Section 4.5. Meetings of Stockholders.  LAZZARA shall take all  action
necessary, in accordance with the respective General Corporation Law of its
respective  state,  and  its respective certificate  of  incorporation  and
bylaws,  to  duly call, give notice of, convene and hold a meeting  of  its
stockholders  as  promptly as practicable, to consider and  vote  upon  the
adoption  and  approval of this Agreement and the transactions contemplated
hereby. The stockholder votes required for the adoption and approval of the
transactions  contemplated  by this Agreement. LAZZARA  will,  through  its
Boards of Directors, recommend to their respective stockholders approval of
such matters

     Section  4.6.  OTC:BB Listing. The parties shall  use  all  reasonable
efforts to cause the CATHAYONLINE Shares, subject to Rule 144, to be traded
on the Over-The-Counter Bulletin Board (OTC:BB).

     Section 4.7. Access to Information.

     (a)  Between the date hereof and the Effective Time, CATHAYONLINE will
give  LAZZARA  and  its authorized representatives, and LAZZARA  will  give
CATHAYONLINE and its authorized representatives, reasonable access  to  all
employees,  plants,  offices, warehouses and other facilities  and  to  all
books  and  records of itself and its subsidiaries, will permit  the  other
party  to  make such inspections as such party may reasonably  require  and
will  cause its officers and those of its subsidiaries to furnish the other
party  with  such  financial and operating data and other information  with
respect  to  the business and properties of itself and its subsidiaries  as
the other party may from time to time reasonably request.

     (b) Between the date hereof and the Effective Time, CATHAYONLINE shall
furnish  to  LAZZARA, and LAZZARA will furnish to CATHAYONLINE,  within  25
business  days after the end of each quarter, quarterly statements prepared
by  such party in conformity with its past practices) as of the last day of
the period then ended.

     (c)  Each  of  the  parties  hereto  will  hold  and  will  cause  its
consultants   and  advisers  to  hold  in  confidence  all  documents   and
information   furnished   to  it  in  connection  with   the   transactions
contemplated by this Agreement.

     Section 4.8. Additional Agreements, Reasonable Efforts. Subject to the
terms and conditions herein provided, each of the parties hereto agrees  to
use  all reasonable efforts to take, or cause to be taken, all action,  and
to  do,  or  cause to be done, all things reasonably necessary,  proper  or
advisable  under  applicable laws and regulations to  consummate  and  make
effective  the  transactions  contemplated by  this  Agreement,  including,
without limitation, (i) cooperating in the preparation and filing of the 8-
K,  any  filings that may be required under the HSR Act, and any amendments
to   any  thereof;  (ii)  obtaining  consents  of  all  third  parties  and
Governmental  Entities necessary, proper or advisable for the  consummation
of  the  transactions contemplated by this Agreement; (iii) contesting  any
legal  proceeding  relating to the Merger and (iv)  the  execution  of  any
additional   instruments   necessary   to   consummate   the   transactions
contemplated hereby. Subject to the terms and conditions of this Agreement,
LAZZARA  and CATHAYONLINE agree to use all reasonable efforts to cause  the
Effective Time to occur as soon as practicable after the stockholder  votes
with  respect  to the Merger. In case at any time after the Effective  Time
any  further  action  is  necessary to  carry  out  the  purposes  of  this
Agreement,  the  proper officers and directors of each party  hereto  shall
take all such necessary action.

     Section 4.9. Indemnification.

     (a) To the extent, if any, not provided by an existing right under one
of  the parties' directors and officers liability insurance policies,  from
and  after  the  Effective Time, CATHAYONLINE shall, to the fullest  extent
permitted  by  applicable law, indemnify, defend  and  hold  harmless  each
person who is now, or has been at any time prior to the date hereof, or who
becomes prior to the Effective Time, a director, officer or employee of the
parties hereto or any subsidiary thereof (each an "Indemnified Party"  and,
collectively,  the  ''Indemnified Parties") against  all  losses,  expenses
(including  reasonable attorneys' fees and expenses),  claims,  damages  or
liabilities  or,  subject to the proviso of the next  succeeding  sentence,
amounts paid in settlement arising out of actions or omissions occurring at
or prior to the Effective Time and whether asserted or claimed prior to, at

<PAGE>

or  after the Effective Time) that are in whole or in part (i) based on, or
arising  out of the fact that such person is or was a director, officer  or
employee  of  such party or a subsidiary of such party or  (ii)  based  on,
arising  out  of  or  pertaining to the transactions contemplated  by  this
Agreement.  In  the  event  of  any such loss  expense,  claim,  damage  or
liability  (whether  or  not  arising  before  the  Effective  Time),   (i)
CATHAYONLINE shall pay the reasonable fees and expenses of counsel selected
by  the Indemnified Parties, which counsel shall be reasonably satisfactory
to  CATHAYONLINE,  promptly  after statements therefore  are  received  and
otherwise  advance to such Indemnified Party upon request reimbursement  of
documented  expenses reasonably incurred, in either case to the extent  not
prohibited by the NGCL or its certificate of incorporation or bylaws,  (ii)
CATHAYONLINE will cooperate in the defense of any such matter and (iii) any
determination  required to be made with respect to whether  an  Indemnified
Party's  conduct complies with the standards set forth under the  NGCL  and
CATHAYONLINE's  certificate of incorporation or bylaws  shall  be  made  by
independent counsel mutually acceptable to CATHAYONLINE and the Indemnified
Party;  provided, however, that CATHAYONLINE shall not be  liable  for  any
settlement effected without its written consent (which consent shall not be
unreasonably withheld). The Indemnified Parties as a group may retain  only
one law firm with respect to each related matter except to the extent there
is,  in  the  opinion of counsel to an Indemnified Party, under  applicable
standards  of  professional conduct, c conflict on  any  significant  issue
between positions of any two or more Indemnified Parties.

     (b)  In the event CATHAYONLINE or any of its successors or assigns (i)
consolidates  with or merges into any other person and  shall  not  be  the
continuing  or  surviving corporation or entity or  such  consolidation  or
merger  or  (ii)  transfers all or substantially all of its properties  and
assets to any person, then and in either such case, proper provision  shall
be made so that the successors and assigns of CATHAYONLINE shall assume the
obligations set forth in this Section 4.11.

     (c)  To  the  fullest  extent permitted by law,  from  and  after  the
Effective Time, all rights to indemnification now existing in favor of  the
employees,  agents, directors or officers of CATHAYONLINE and  LAZZARA  and
their  subsidiaries with respect to their activities as such prior  to  the
Effective Time, as provided in CATHAYONLINE's and LAZZARA's certificate  of
incorporation  or  bylaws, in effect on the date thereof  or  otherwise  in
effect  on the date hereof, shall survive the Merger and shall continue  in
full  force  and  effect for a period of not less than six years  from  the
Effective Time.

     (d)  The  provisions of this Section 4.11 are intended to be  for  the
benefit of, and shall be enforceable by, each Indemnified Party, his or her
heirs and his or her representatives.

     Section  4.10.  Notification of Certain Matters.  The  parties  hereto
shall  give  prompt notice to the other parties, of (i) the  occurrence  or
nonoccurrence of any event the occurrence or nonoccurrence of  which  would
be  likely  to  cause  any  representation or warranty  contained  in  this
Agreement to be untrue or inaccurate in any material respect at or prior to
the  Effective Time, (ii) any material failure of such party to comply with
or  satisfy  any  covenant, condition or agreement to be complied  with  or
satisfied  by  it  hereunder, (iii) any notice of, or  other  communication
relating  to,  a default or event which, with notice or lapse  of  time  or
both,  would  become  a  default, received by such  party  or  any  of  its
subsidiaries  subsequent to the date of this Agreement  and  prior  to  the
Effective  Time, under any contract or agreement material to the  financial
condition,  properties, businesses or results of operations of  such  party
and  its  subsidiaries taken as a whole to which such party or any  of  its
subsidiaries  is  a  party  or  is  subject,  (iv)  any  notice  or   other
communication from any third party alleging that the consent of such  third
party   is   or  may  be  required  in  connection  with  the  transactions
contemplated by this Agreement, or (v) any material adverse change in their
respective   financial  condition,  properties,  businesses,   results   of
operations or prospects taken as a whole, other than changes resulting from
general  economic conditions; provided, however, that the delivery  of  any
notice  pursuant  to  this  Section 4.12 shall  not  cure  such  breach  or
non-compliance  or  limit  or  otherwise  affect  the  remedies   available
hereunder to the party receiving such notice.



<PAGE>


                                 ARTICLE 5

                 Conditions to Consummation of the Merger

     Section  5.1.  Conditions to Each Party's Obligations  to  Effect  the
Merger.  The  respective obligations of each party  hereto  to  effect  the
Merger are subject to the satisfaction at or prior to the Effective Time of
the following conditions:

     (a)  this  Agreement  shall  have been approved  and  adopted  by  the
requisite vote of the stockholders of LAZZARA;

     (b)  this Agreement shall have been approved and adopted by the  Board
of Directors of CATHAYONLINE and LAZZARA;

     (c)  no statute, rule, regulation, executive order, decree, ruling  or
injunction shall have been enacted, entered, promulgated or enforced by any
United   States  court  or  United  States  governmental  authority   which
prohibits, restrains, enjoins or restricts the consummation of the Merger;

     (d)  any  waiting period applicable to the Merger under  the  HSR  Act
shall  have terminated or expired, and any other governmental or regulatory
notices or approvals required with respect to the transactions contemplated
hereby shall have been either filed or received; and

     Section  5.2.  Conditions  to  the Obligations  of  CATHAYONLINE.  The
obligation  of  CATHAYONLINE  to  effect  the  Merger  is  subject  to  the
satisfaction at or prior to the Effective Time of the following conditions:

     (a)  the representations of LAZZARA contained in this Agreement or  in
any  other  document delivered pursuant hereto shall be  true  and  correct
(except  to  the extent that the breach thereof would not have  a  Material
Adverse  Effect on LAZZARA) at and as of the Effective Time with  the  same
effect  as  if made at and as of the Effective Time (except to  the  extent
such representations specifically related to an earlier date, in which case
such  representations shall be true and correct as of such  earlier  date),
and  at  the  Closing  LAZZARA  shall  have  delivered  to  CATHAYONLINE  a
certificate to that effect;

<PAGE>

     (b)  each  of the covenants and obligations of LAZZARA to be performed
at  or  before  the Effective Time pursuant to the terms of this  Agreement
shall  have  been duly performed in all material respects at or before  the
Effective  Time  and  at  the  Closing  LAZZARA  shall  have  delivered  to
CATHAYONLINE a certificate to that effect;

     (d) LAZZARA shall have obtained the consent or approval of each person
whose  consent or approval shall be required in order to permit the  Merger
as  relates to any obligation, right or interest of LAZZARA under any  loan
or credit agreement, note, mortgage, indenture, lease or other agreement or
instrument,  except  those for which failure to obtain  such  consents  and
approvals   would   not,  in  the  reasonable  opinion   of   CATHAYONLINE,
individually  or  in  the  aggregate, have a  Material  Adverse  Effect  on
LAZZARA;

     (e)  there shall have been no events, changes or effects with  respect
to LAZZARA or its subsidiaries having or which could reasonably be expected
to have a Material Adverse Effect on LAZZARA; and

     Section  5.3. Conditions to the Obligations of LAZZARA. The respective
obligations of LAZZARA to effect the Merger are subject to the satisfaction
at or prior to the Effective Time of the following conditions:

     (a) the representations of CATHAYONLINE contained in this Agreement or
in  any  other document delivered pursuant hereto shall be true and correct
(except  to  the extent that the breach thereof would not have  a  Material
Adverse  Effect on CATHAYONLINE) at and as of the Effective Time  with  the
same  effect  as  if made at and as of the Effective Time  (except  to  the
extent  such  representations specifically related to an earlier  date,  in
which  case  such  representations shall be true and  correct  as  of  such
earlier  date),  and at the Closing CATHAYONLINE shall  have  delivered  to
LAZZARA a certificate to that effect;

     (b)  each  of  the  covenants and obligations of  CATHAYONLINE  to  be
performed  at  or before the Effective Time pursuant to the terms  of  this
Agreement  shall have been duly performed in all material  respects  at  or
before  the  Effective  Time  and at the Closing  CATHAYONLINE  shall  have
delivered to LAZZARA a certificate to that effect;

     (c)  there shall have been no events, changes or effects with  respect
to  CATHAYONLINE  having or which could reasonably be expected  to  have  a
Material Adverse Effect on CATHAYONLINE.

                                 ARTICLE 6

                      Termination; Amendment; Waiver

     Section  6.1.  Termination. This Agreement may be terminated  and  the
Merger  may  be abandoned at any time prior to the Effective Time,  whether
before  or  after approval and adoption of this Agreement by CATHAYONLINE's
or LAZZARA's stockholders:

     (a) by mutual written consent of CATHAYONLINE and LAZZARA;

     (b)  by  LAZZARA  or  CATHAYONLINE  if  (i)  any  court  of  competent
jurisdiction  in  the  United  States or other United  States  Governmental
Entity shall have issued a final order, decree or ruling or taken any other
final action restraining, enjoining or otherwise prohibiting the Merger and
such  order,  decree,  ruling  or other action  is  or  shall  have  become
nonappealable  or (ii) the Merger has not been consummated by  January  31,
2000;  provided,  however,  that  no party  may  terminate  this  Agreement
pursuant to this clause (ii) if such party's failure to fulfill any of  its
obligations  under  this  Agreement shall have been  the  reason  that  the
Effective Time shall not have occurred on or before said date;

     (c)  by  CATHAYONLINE if (i) there shall have been  a  breach  of  any
representation  or  warranty  on the part of  LAZZARA  set  forth  in  this
Agreement,  or  if  any representation or warranty of  LAZZARA  shall  have
become untrue, in either case such that the conditions set forth in Section
5.2(a)  would be incapable of being satisfied by January 18,  2000  (or  as
otherwise extended), (ii) there shall have been a breach by LAZZARA of  any
of  their  respective covenants or agreements hereunder having  a  Material
Adverse  Effect on LAZZARA or materially adversely affecting (or materially
delaying) the consummation of the Merger, and LAZZARA, as the case may  be,
has  not  cured  such  breach  within 20  business  days  after  notice  by
CATHAYONLINE  thereof, provided that CATHAYONLINE has not breached  any  of
its obligations hereunder, (iii) CATHAYONLINE shall have convened a meeting
of its stockholders to vote upon the Merger and shall have failed to obtain
the  requisite  vote of its stockholders; or (iv) CATHAYONLINE  shall  have
convened  a  meeting of its Board of Directors to vote upon the Merger  and
shall have failed to obtain the requisite vote;

     (d)  by  LAZZARA  if  (i)  there shall  have  been  a  breach  of  any
representation or warranty on the part of CATHAYONLINE set  forth  in  this
Agreement, or if any representation or warranty of CATHAYONLINE shall  have
become untrue, in either case such that the conditions set forth in Section
5.3(a)  would be incapable of being satisfied by January 18,  2000  (or  as
otherwise extended), (ii) there shall have been a breach by CATHAYONLINE of
its  covenants or agreements hereunder having a Material Adverse Effect  on
CATHAYONLINE or materially adversely affecting (or materially delaying) the
consummation of the Merger, and CATHAYONLINE, as the case may be,  has  not
cured  such  breach  within twenty business days after  notice  by  LAZZARA
thereof,  provided  that LAZZARA has not breached any  of  its  obligations
hereunder,   (iii)  the  CATHAYONLINE  Board  shall  have  recommended   to
CATHAYONLINE's  stockholders  a Superior Proposal,  (iv)  the  CATHAYONLINE
Board   shall   have  withdrawn,  modified  or  changed  its  approval   or
recommendation  of  this Agreement or the Merger, or hold  a  stockholders'
meeting  to  vote upon the Merger, or shall have adopted any resolution  to
effect  any of the foregoing, (v) LAZZARA shall have convened a meeting  of
its  stockholders to vote upon the Merger and shall have failed  to  obtain
the requisite vote of its stockholders.

     Section  6.2.  Effect of Termination. In the event of the  termination
and  abandonment of this Agreement pursuant to Section 6.1, this  Agreement
shall  forthwith become void and have no effect, without any  liability  on
the  part  of  any party hereto or its affiliates, directors,  officers  or
stockholders,  other than the provisions of this Section 6.2  and  Sections
4.7(c)  and 6.3 hereof. Nothing contained in this Section 6.2 shall relieve
any party from liability for any breach of this Agreement.

<PAGE>

     Section  6.3.  Fees and Expenses. Except as specifically  provided  in
this Section 6.3, each party shall bear its own expenses in connection with
this Agreement and the transactions contemplated hereby.

     Section 6.4. Amendment. This Agreement may be amended by action  taken
by  CATHAYONLINE  and LAZZARA at any time before or after approval  of  the
Merger  by  the  stockholders of CATHAYONLINE and LAZZARA (if  required  by
applicable  law) but, after any such approval, no amendment shall  be  made
which  requires  the  approval of such stockholders  under  applicable  law
without  such  approval. This Agreement may not be  amended  except  by  an
instrument in writing signed on behalf of the parties hereto.

     Section  6.5.  Extension; Waiver. At any time prior to  the  Effective
Time, each party hereto may (i) extend the time for the performance of  any
of  the  obligations  or  other acts of any other  party,  (ii)  waive  any
inaccuracies  in  the representations and warranties  of  any  other  party
contained  herein  or  in any document, certificate  or  writing  delivered
pursuant  hereto or (iii) waive compliance by any other party with  any  of
the agreements or conditions contained herein. Any agreement on the part of
any party hereto to any such extension or waiver shall be valid only if set
forth  in  an  instrument in writing signed on behalf of  such  party.  The
failure of any party hereto to assert any of its rights hereunder shall not
constitute a waiver of such rights.

                                 ARTICLE 7

                               Miscellaneous

     Section  7.1.  Nonsurvival  of  Representations  and  Warranties.  The
representations  and warranties made herein shall not  survive  beyond  the
Effective  Time or a termination of this Agreement. This Section 7.1  shall
not  limit  any covenant or agreement of the parties hereto  which  by  its
terms requires performance after the Effective Time.

     Section   7.2.  Entire  Agreement;  Assignment.  This  Agreement   (a)
constitutes the entire agreement between the parties hereto with respect to
the  subject  matter hereof and supersedes all other prior  agreements  and
understandings both written and oral, between the parties with  respect  to
the subject matter hereof and (b) shall not be assigned by operation of law
or otherwise.

     Section  7.3.  Validity. If any provision of this  Agreement,  or  the
application  thereof  to any person or circumstance,  is  held  invalid  or
unenforceable, the remainder of this Agreement, and the application of such
provision to other persons or circumstances, shall not be affected thereby,
and  to  such  end,  the  provisions of this Agreement  are  agreed  to  be
severable.

     Section 7.4. Notices. All notices, requests, claims, demands and other
communications hereunder shall be in writing and shall be given (and  shall
be  deemed to have been duly given upon receipt) by delivery in person,  by
facsimile  or  by  registered or certified mail  (postage  prepaid,  return
receipt requested), to each other party as follows:

  If to LAZZARA:

     Lazzara Financial Asset Recovery, Inc.
     1850 East Flamingo Rd. Suite 111
     Las Vegas, Nevada 89119
  with a copy to:

     Donald J. Stoecklein
     Sperry Young & Stoecklein
     1850 East Flamingo Rd. Suite 111
     Las Vegas, Nevada 89119
     (702) 792-2590
     (702) 794-0744

<PAGE>

  if to CATHAYONLINE:

     Cathayonline, Inc.
     6 East 45th Street, Suite 1000
     New York, New York 10017
     (212) 490-1871

or  to  such other address as the person to whom notice is given  may  have
previously  furnished  to the others in writing in  the  manner  set  forth
above.

     Section  7.5. Governing Law. This Agreement shall be governed  by  and
construed  in  accordance  with the laws of the State  of  Nevada,  without
regard to the principles of conflicts of law thereof.

     Section 7.6. Descriptive Headings. The descriptive headings herein are
inserted for convenience of reference only and are not intended to be  part
of or to affect the meaning or interpretation of this Agreement.

     Section 7.7. Parties in Interest. This Agreement shall be binding upon
and inure solely to the benefit of each party hereto and its successors and
permitted assigns, and except as provided in Sections 4.9 and 4.11, nothing
in  this Agreement, express or implied, is intended to or shall confer upon
any  other person any rights, benefits or remedies of any nature whatsoever
under or by reason of this Agreement.

     Section  7.8. Certain Definitions. For the purposes of this Agreement,
the term:

     (a)  "affiliate" means (except as otherwise provided in Sections 2.19,
3.19  and 4.13) a person that directly or indirectly, through one  or  more
intermediaries,  controls, is controlled by, or  is  under  common  control
with, the first mentioned person;

     (b)  "business day" means any day other than a day on which Nasdaq  is
closed;

     (c)  "capital stock" means common stock, preferred stock,  partnership
interests, limited liability company interests or other ownership interests
entitling the holder thereof to vote with respect to matters involving  the
issuer thereof;

     (d)  "knowledge''  or "known'' means, with respect to  any  matter  in
question,  if  an  executive  officer of CATHAYONLINE  or  LAZZARA  or  its
subsidiaries, as the case may be, has actual knowledge of such matter;

     (e)  "person"  means an individual, corporation, partnership,  limited
liability company, association, trust, unincorporated organization or other
legal entity; and

     (f)  "subsidiary" or "subsidiaries" of CATHAYONLINE,  LAZZARA  or  any
other   person,  means  any  corporation,  partnership,  limited  liability
company,  association,  trust, unincorporated association  or  other  legal
entity of which CATHAYONLINE, LAZZARA or any such other person, as the case
may  be  (either  alone or through or together with any other  subsidiary),
owns, directly or indirectly, 50% or more of the capital stock, the holders
of  which  are generally entitled to vote for the election of the board  of
directors  or  other  governing body of such  corporation  or  other  legal
entity.

     Section 7.9. Personal Liability. This Agreement shall not create or be
deemed to create or permit any personal liability or obligation on the part
of  any direct or indirect stockholder of CATHAYONLINE, LAZZARA or Newco or
any  officer, director, employee, agent, representative or investor of  any
party hereto.

     Section 7.10. Specific Performance. The parties hereby acknowledge and
agree that the failure of any party to perform its agreements and covenants
hereunder,  including its failure to take all actions as are  necessary  on
its  part to the consummation of the Merger, will cause irreparable  injury
to  the other parties for which damages, even if available, will not be  an
adequate remedy. Accordingly, each party hereby consents to the issuance of
injunctive  relief  by  any  court  of  competent  jurisdiction  to  compel
performance of such party's obligations and to the granting by any court of
the  remedy of specific performance of its obligations hereunder; provided,
however,  that,  if a party hereto is entitled to receive  any  payment  or
reimbursement of expenses pursuant to Sections 6.3(a), (b) or (c), it shall
not  be entitled to specific performance to compel the consummation of  the
Merger.

<PAGE>

     Section 7.11. Counterparts. This Agreement may be executed in  one  or
more counterparts, each of which shall be deemed to be an original, but all
of which shall constitute one and the same agreement.


In  Witness  Whereof, each of the parties has caused this Agreement  to  be
duly executed on its behalf as of the day and year first above written.
                                 CATHAYONLINE, INC


                                 By:/s/ Brian Ransom
                                    Name: Brian Ransom
                                    Title:  President

                                 LAZZARA FINANCIAL ASSET RECOVERY, INC.


                                 By:/s/ Todd Ream
                                    Name: Todd S. Ream
                                    Title:  President

<PAGE>
                     CATHAYONLINE DISCLOSURE SCHEDULE

Schedule 2.1   Organization                  See Amended Articles/Bylaws

Schedule 2.6   Consents & Approvals          None Provided

Schedule 2.7   No Default                    Not Applicable

Schedule 2.8   No Undisclosed Liability      None Exist

Schedule 2.9   Litigation                    None Exist

Schedule 2.10  Compliance with Applicable Law     None

Schedule 2.11 Employee Benefit Plans         None Provided

Schedule 2.12 Environmental Laws and Regs    Not Applicable

Schedule 2.13 Tax Matters                    None Exist

Schedule 2.14 Title to Property              None Exist

Schedule 2.15 Intellectual Property               None Exist

Schedule 2.16 Insurance                 None Exist

Schedule 2.17  Vote Required                 None Required

Schedule 2.18 Tax Treatment                  Not Applicable

Schedule 2.19 Affiliates                None Provided

Schedule 2.20 Certain Business Practices          None Exist

Schedule 2.21 Insider Interest                    None Exist

Schedule 2.22 Opinion of Financial Adviser        Waived - None Exist

Schedule 2.23 Broker                         None Exist

Schedule 4.1 Conduct of Business             None Provided

<PAGE>

                        LAZZARA DISCLOSURE SCHEDULE

Schedule 3.2(b) Subsidiary Stock             None Exist

Schedule 3.2(c) Capital Stock Rights              None Exist other than  as
in Articles

Schedule 3.2(d) Securities conversions       None Exist

Schedule 3.2 (f) Subsidiaries                None Exist

Schedule 3.6   Consents & Approvals          Provided

Schedule 3.7   No Default                    Not Applicable

Schedule 3.8   No Undisclosed Liability      None Exist

Schedule 3.9   Litigation                    None Exist

Schedule  3.10   Compliance with Applicable Law     Not Applicable  -  full
disclosed in 10KSB

Schedule  3.11  Employee Benefit Plans         Section 3.11(  c)No  Options
Exist

                                   Section 3.11(e) No Agreements Exist

Schedule 3.12 Environmental Laws and Regs    Not Applicable

Schedule 3.13 Tax Matters                    None Exist

Schedule 3.14 Title to Property              None Exist

Schedule 3.15(b) Intellectual Property       None Exist

Schedule 3.16 Insurance                 None Exist

Schedule  3.17   Vote  Required                  See  Shareholder   Meeting
Certificate

Schedule 3.18 Tax Treatment                  Not Applicable

Schedule 3.19 Affiliates                Todd Ream

Schedule 3.20 Certain Business Practices          None Exist

Schedule 3.21 Insider Interest                    None Exist

Schedule 3.22 Opinion of Financial Adviser        Waived - None Exist

Schedule 2.23 Broker                         None Exist

Schedule  4.2  Conduct  of  Business              See  Amended  &  Restated
Articles


                                EXHIBIT 1.2



                           CERTIFICATE OF MERGER
                                    OF
                             CATHAYONLINE INC.
                           a Nevada corporation
                                    and
                  LAZZARA FINANCIAL ASSET RECOVERY, INC.
                           a Nevada corporation



     The undersigned corporations, MILLENIUM PLASTICS CORPORATION, a Nevada
corporation ("COL"), and LAZZARA FINANCIAL ASSET RECOVERY, INC.,  a  Nevada
corporation ("LFAR"), do hereby certify:

     1.    LFAR is a corporation duly organized and validly existing  under
the laws of the State of Nevada.  Articles of Incorporation were originally
filed on November 22, 1999.

     2.    COL  is a corporation duly organized and validly existing  under
the laws of the State of Nevada.  Articles of Incorporation were originally
filed on September 20, 1995.

     3.    LFAR  and  COL  are parties to a Merger Agreement,  as  amended,
pursuant  to which LFAR will be merged with and into COL.  Upon  completion
of  the merger COL will be the surviving corporation in the merger and LFAR
will  be  dissolved.  Pursuant to the Merger Agreement the stockholders  of
LFAR will receive stock in COL.

     4.   The Articles of Incorporation and Bylaws of COL as existing prior
to  the  effective date of the merger shall continue in full force  as  the
Articles of Incorporation and Bylaws of the surviving corporation.

     5.    The complete executed Agreement and Plan of Merger dated  as  of
January  18,  2000, which sets forth the plan of merger providing  for  the
merger  of  LFAR with and into COL is on file at the corporate  offices  of
COL.

     6.    A  copy  of  the Merger Agreement will be furnished  by  COL  on
request and without cost to any stockholder of any corporation which  is  a
party to the merger.

     7.    The  plan  of merger as set forth in the Agreement and  Plan  of
Merger,  has been approved by a majority of the Board of Directors of  LFAR
at a meeting held January 18, 2000.

     8.     LFAR  has  5,000,000 shares of common stock issued, outstanding
and  entitled  to vote on the merger.  At a meeting of the Shareholders  of
LFAR  held  January 18, 2000 all 5,000,000 shares voted  in  favor  of  the
merger.


<PAGE>

     9.     The  plan of merger as set forth in the Agreement and  Plan  of
Merger,  was approved by a majority of the Board of Directors of COL  at  a
meeting held January 18, 2000.

     10.   Stockholder approval of the Agreement and Plan of Merger by  the
Stockholders of COL is not required pursuant to NRS 92A.130(1).

     11.   The manner in which the exchange of issued shares of LFAR  shall
be affected is set forth in the Agreement and Plan of Merger.

     IN WITNESS WHEREOF, the undersigned have executed these Certificate of
Merger this 18th day of January, 2000.


CATHAYONLINE INC.                       LAZZARA FINANCIAL ASSET
                                        RECOVERY, INC.
a Nevada corporation                    a Nevada corporation


By/s/ Brian Ransom                      By/s/ Todd Ream
    BRIAN RANSOM, President               TODD REAM, President


By/s/ Peter Lau                         By/s/ Todd Ream
    PETER LAU, Secretary                  TODD REAM, Secretary


PROVINCE OF BRITISH COLUMBIA)
                            )  SS:
                            )

     On Jan. 18, 2000 before me, a Notary Public, personally appeared  BRIAN
RANSOM  who  is the President of CATHAYONLINE INC.,  and who is  personally
known  to me (or proved to me on the basis of satisfactory evidence) to  be
the   person  whose  name  is  subscribed  to  the  within  instrument  and
acknowledged  to me that he executed the same in his authorized  capacities
and  that,  by his signatures on the instrument, the person or  the  entity
upon behalf of which the person acted, executed the instrument.

     WITNESS my hand and official seal.

                              /s/ John McIntyre
                              ________________________________
                              Notary Public
<PAGE>

STATE OF NEW YORK        )
                         )  SS:
COUNTY OF NEW YORK       )

     On Jan 18, 2000 before me, a Notary Public, personally appeared  PETER
LAU who is the Secretary of CATHAYONLINE INC.,  and who is personally known
to  me  (or proved to me on the basis of satisfactory evidence) to  be  the
person  whose  name is subscribed to the within instrument and acknowledged
to  me that he executed the same in his authorized capacities and that,  by
his  signatures on the instrument, the person or the entity upon behalf  of
which the person acted, executed the instrument.

     WITNESS my hand and official seal.

                              /s/ William Ruffa
                              ________________________________
                              Notary Public


STATE OF NEVADA     )
                    )  SS:
COUNTY OF CLARK     )

     On  Jan 18, 2000 before me, a Notary Public, personally  appeared  TODD
REAM  who  is  the  President  and Secretary  of  LAZZARA  FINANCIAL  ASSET
RECOVERY, INC., and who is personally known to me (or proved to me  on  the
basis  of  satisfactory evidence) to be the person whose name is subscribed
to  the within instrument and acknowledged to me that he executed the  same
in his authorized capacities and that, by his signatures on the instrument,
the  person  or the entity upon behalf of which the person acted,  executed
the instrument.

     WITNESS my hand and official seal.

                              /s/ Debra Amigone
                              ________________________________
                              Notary Public




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