Document:

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                                                                   EXHIBIT 10.29

NEITHER THIS WARRANT NOR THE SHARES ISSUABLE UPON EXERCISE HEREOF HAVE BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT")
OR ANY OTHER APPLICABLE SECURITIES LAWS IN RELIANCE UPON AN EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND SUCH OTHER SECURITIES LAWS.
NEITHER THIS WARRANT NOR THE SHARES ISSUABLE UPON EXERCISE HEREOF MAY BE SOLD,
PLEDGED, TRANSFERRED, ENCUMBERED OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR IN A TRANSACTION
WHICH IS EXEMPT FROM REGISTRATION UNDER THE PROVISIONS OF THE SECURITIES ACT AND
ANY APPLICABLE STATE LAWS.

                             STOCK PURCHASE WARRANT

                  To Purchase 325,000 Shares of Common Stock of

                                 MIGRATEC, INC.

                  THIS CERTIFIES that, for value received, Ironhead Investments
Inc. (the "Holder"), is entitled, upon the terms and subject to the limitations
on exercise and the conditions hereinafter set forth, at any time on or after
March 27, 2001 (the "Initial Exercise Date") and on or prior to the close of
business on March 27, 2006 (the "Termination Date") but not thereafter, to
subscribe for and purchase from MigraTEC, Inc., a corporation incorporated in
the Delaware (the "Company"), up to 325,000 shares (the "Warrant Shares") of
Common Stock, $0.001 par value per share, of the Company (the "Common Stock").
The purchase price of one share of Common Stock (the "Exercise Price") under
this Warrant shall be $0.42. The Exercise Price and the number of Warrant Shares
for which the Warrant is exercisable shall be subject to adjustment as provided
herein. In the event of any conflict between the terms of this Warrant and the
Common Stock Purchase Agreement dated as of March 27, 2001 pursuant to which
this Warrant has been issued (the "Purchase Agreement"), the Purchase Agreement
shall control. Capitalized terms used and not otherwise defined herein shall
have the meanings set forth for such terms in the Purchase Agreement.

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         1. Title to Warrant. Prior to the Termination Date and subject to
compliance with applicable laws, this Warrant and all rights hereunder are
transferable, in whole or in part, at the office or agency of the Company by the
Holder in person or by duly authorized attorney, upon surrender of this Warrant
together with the Assignment Form annexed hereto properly endorsed.

         2. Authorization of Shares. The Company covenants that all Warrant
Shares which may be issued upon the exercise of the purchase rights represented
by this Warrant will, upon exercise of the purchase rights represented by this
Warrant, be duly authorized, validly issued, fully paid and nonassessable and
free from all taxes, liens and charges in respect of the issue thereof (other
than taxes in respect of any transfer occurring contemporaneously with such
issue).

         3. Exercise of Warrant.

            (a) Except as provided in Section 4 herein, exercise of the purchase
   rights represented by this Warrant may be made at any time or times on or
   after the Initial Exercise Date and on or before the Termination Date by the
   surrender of this Warrant and the Notice of Exercise Form annexed hereto duly
   executed, at the office of the Company (or such other office or agency of the
   Company as it may designate by notice in writing to the registered Holder at
   the address of such Holder appearing on the books of the Company) and upon
   payment of the Exercise Price of the shares thereby purchased by wire
   transfer or cashier's check drawn on a United States bank, or by means of a
   cashless exercise, the Holder shall be entitled to receive a certificate for
   the number of Warrant Shares so purchased. Certificates for shares purchased
   hereunder shall be delivered to the Holder within three (3) Trading Days
   after the date on which this Warrant shall have been exercised as aforesaid.
   This Warrant shall be deemed to have been exercised and such certificate or
   certificates shall be deemed to have been issued, and Holder or any other
   person so designated to be named therein shall be deemed to have become a
   holder of record of such shares for all purposes, as of the date the Warrant
   has been exercised by payment to the Company of the Exercise Price and all
   taxes required to be paid by the Holder, if any, pursuant to Section 5 prior
   to the issuance of such shares, have been paid.

            (b) If this Warrant shall have been exercised in part, the Company
   shall, at the time of delivery of the certificate or certificates
   representing Warrant Shares, deliver to Holder a new Warrant evidencing the
   rights of Holder to purchase the unpurchased Warrant Shares called for by
   this Warrant, which new Warrant shall in all other respects be identical with
   this Warrant.

            (c) This Warrant shall also be exercisable by means of a "cashless
   exercise" in which the Holder shall be entitled to receive a certificate for
   the number of Warrant Shares equal to the quotient obtained by dividing
   [(A-B) (X)] by (A), where:

            (A) = the average of the high and low trading prices per share of
            Common Stock on the Trading Day preceding the date of such election
            on the

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            Nasdaq Stock Market, or if the Common Stock is not traded on the
            Nasdaq Stock Market, then the Principal Market in terms of volume;

            (B) =  the Exercise Price of this Warrant; and

            (X) = the number of Warrant Shares issuable upon exercise of this
            Warrant in accordance with the terms of this Warrant and the Notice
            of Exercise.

            (d) Notwithstanding anything herein to the contrary, in no event
   shall the Holder be permitted to exercise this Warrant for Warrant Shares to
   the extent that (i) the number of shares of Common Stock owned by such Holder
   (other than Warrant Shares issuable upon exercise of this Warrant) plus (ii)
   the number of Warrant Shares issuable upon exercise of this Warrant, would be
   equal to or exceed 9.9% of the number of shares of Common Stock then issued
   and outstanding, including shares issuable upon exercise of this Warrant held
   by such Holder after application of this Section 3(d). As used herein,
   beneficial ownership shall be determined in accordance with Section 13(d) of
   the Exchange Act. To the extent that the limitation contained in this Section
   3(d) applies, the determination of whether this Warrant is exercisable (in
   relation to other securities owned by the Holder) and of which a portion of
   this Warrant is exercisable shall be in the sole discretion of such Holder,
   and the submission of a Notice of Exercise shall be deemed to be such
   Holder's determination of whether this Warrant is exercisable (in relation to
   other securities owned by such Holder) and of which portion of this Warrant
   is exercisable, in each case subject to such aggregate percentage limitation,
   and the Company shall have no obligation to verify or confirm the accuracy of
   such determination. Nothing contained herein shall be deemed to restrict the
   right of a Holder to exercise this Warrant into Warrant Shares at such time
   as such exercise will not violate the provisions of this Section 3(d). The
   provisions of this Section 3(d) may be waived by the Holder upon, at the
   election of the Holder, with not less than 61 days' prior notice to the
   Company, and the provisions of this Section 3(d) shall continue to apply
   until such 61st day (or such later date as may be specified in such notice of
   waiver). No exercise of this Warrant in violation of this Section 3(d) but
   otherwise in accordance with this Warrant shall affect the status of the
   Warrant Shares as validly issued, fully-paid and nonassessable.

         4. No Fractional Shares or Scrip. No fractional shares or scrip
representing fractional shares shall be issued upon the exercise of this
Warrant. As to any fraction of a share which Holder would otherwise be entitled
to purchase upon such exercise, the Company shall pay a cash adjustment in
respect of such final fraction in an amount equal to such fraction multiplied by
the Exercise Price.

         5. Charges, Taxes and Expenses. Issuance of certificates for Warrant
Shares shall be made without charge to the Holder for any issue or transfer tax
or other incidental expense in respect of the issuance of such certificate, all
of which taxes and expenses shall be paid by the Company, and such certificates
shall be issued in the name of the Holder or in such name or names as may be
directed by the Holder; provided, however, that in the event certificates for
Warrant Shares are to be issued in a name other than the name of the Holder,
this

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Warrant when surrendered for exercise shall be accompanied by the Assignment
Form attached hereto duly executed by the Holder; and the Company may require,
as a condition thereto, the payment of a sum sufficient to reimburse it for any
transfer tax incidental thereto.

         6. Closing of Books. The Company will not close its stockholder books
or records in any manner which prevents the timely exercise of this Warrant.

         7. Transfer, Division and Combination.

            (a) Subject to compliance with any applicable securities laws,
   transfer of this Warrant and all rights hereunder, in whole or in part, shall
   be registered on the books of the Company to be maintained for such purpose,
   upon surrender of this Warrant at the principal office of the Company,
   together with a written assignment of this Warrant substantially in the form
   attached hereto duly executed by the Holder or its agent or attorney and
   funds sufficient to pay any transfer taxes payable upon the making of such
   transfer. In the event that the Holder wishes to transfer a portion of this
   Warrant, the Holder shall transfer at least 100,000 shares underlying this
   Warrant to any such transferee. Upon such surrender and, if required, such
   payment, the Company shall execute and deliver a new Warrant or Warrants in
   the name of the assignee or assignees and in the denomination or
   denominations specified in such instrument of assignment, and shall issue to
   the assignor a new Warrant evidencing the portion of this Warrant not so
   assigned, and this Warrant shall promptly be cancelled. A Warrant, if
   properly assigned, may be exercised by a new holder for the purchase of
   Warrant Shares without having a new Warrant issued.

            (b) This Warrant may be divided or combined with other Warrants upon
   presentation hereof at the aforesaid office of the Company, together with a
   written notice specifying the names and denominations in which new Warrants
   are to be issued, signed by the Holder or its agent or attorney. Subject to
   compliance with Section 7(a), as to any transfer which may be involved in
   such division or combination, the Company shall execute and deliver a new
   Warrant or Warrants in exchange for the Warrant or Warrants to be divided or
   combined in accordance with such notice.

            (c) The Company shall prepare, issue and deliver at its own expense
   (other than transfer taxes) the new Warrant or Warrants under this Section 7.

            (d) The Company agrees to maintain, at its aforesaid office, books
   for the registration and the registration of transfer of the Warrants.

         8. No Rights as Shareholder until Exercise. This Warrant does not
entitle the Holder to any voting rights or other rights as a shareholder of the
Company prior to the exercise hereof. Upon the surrender of this Warrant and the
payment of the aggregate Exercise Price or by means of a cashless exercise, the
Warrant Shares so purchased shall be and be deemed to be issued to such Holder
as the record owner of such shares as of the close of business on the later of
the date of such surrender or payment.

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         9. Loss, Theft, Destruction or Mutilation of Warrant. The Company
covenants that upon receipt by the Company of evidence reasonably satisfactory
to it of the loss, theft, destruction or mutilation of this Warrant or any stock
certificate relating to the Warrant Shares, and in case of loss, theft or
destruction, of indemnity or security reasonably satisfactory to it (which shall
not include the posting of any bond), and upon surrender and cancellation of
such Warrant or stock certificate, if mutilated, the Company will make and
deliver a new Warrant or stock certificate of like tenor and dated as of such
cancellation, in lieu of such Warrant or stock certificate.

         10. Saturdays, Sundays, Holidays, etc. If the last or appointed day for
the taking of any action or the expiration of any right required or granted
herein shall be a Saturday, Sunday or a legal holiday, then such action may be
taken or such right may be exercised on the next succeeding day not a Saturday,
Sunday or legal holiday.

         11. Adjustments of Exercise Price and Number of Warrant Shares. (a)
Stock Splits, etc. The number and kind of securities purchasable upon the
exercise of this Warrant and the Exercise Price shall be subject to adjustment
from time to time upon the happening of any of the following. In case the
Company shall (i) pay a dividend in shares of Common Stock or make a
distribution in shares of Common Stock to holders of its outstanding Common
Stock, (ii) subdivide its outstanding shares of Common Stock into a greater
number of shares, (iii) combine its outstanding shares of Common Stock into a
smaller number of shares of Common Stock, or (iv) issue any shares of its
capital stock in a reclassification of the Common Stock, then the number of
Warrant Shares purchasable upon exercise of this Warrant immediately prior
thereto shall be adjusted so that the Holder shall be entitled to receive the
kind and number of Warrant Shares or other securities of the Company which it
would have owned or have been entitled to receive had such Warrant been
exercised in advance thereof. Upon each such adjustment of the kind and number
of Warrant Shares or other securities of the Company which are purchasable
hereunder, the Holder shall thereafter be entitled to purchase the number of
Warrant Shares or other securities resulting from such adjustment at an Exercise
Price per Warrant Share or other security obtained by multiplying the Exercise
Price in effect immediately prior to such adjustment by the number of Warrant
Shares purchasable pursuant hereto immediately prior to such adjustment and
dividing by the number of Warrant Shares or other securities of the Company
resulting from such adjustment. An adjustment made pursuant to this paragraph
shall become effective immediately after the effective date of such event
retroactive to the record date, if any, for such event.

         12. Reorganization, Reclassification, Merger, Consolidation or
Disposition of Assets. In case the Company shall reorganize its capital,
reclassify its capital stock, consolidate or merge with or into another
corporation (where the Company is not the surviving corporation or where there
is a change in or distribution with respect to the Common Stock of the Company),
or sell, transfer or otherwise dispose of all or substantially all its property,
assets or business to another corporation and, pursuant to the terms of such
reorganization, reclassification, merger, consolidation or disposition of
assets, shares of common stock of the successor or acquiring corporation, or any
cash, shares of stock or other securities or property of any nature whatsoever
(including warrants or other subscription or purchase rights) in addition to or
in lieu of common stock of the successor or acquiring corporation ("Other
Property"), are to be received by or distributed to the holders of Common Stock
of the Company, then the Holder shall have the right

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thereafter to receive, upon exercise of this Warrant, the number of shares of
Common Stock of the successor or acquiring corporation or of the Company, if it
is the surviving corporation, and Other Property receivable upon or as a result
of such reorganization, reclassification, merger, consolidation or disposition
of assets by a Holder of the number of shares of Common Stock for which this
Warrant is exercisable immediately prior to such event. In case of any such
reorganization, reclassification, merger, consolidation or disposition of
assets, the successor or acquiring corporation (if other than the Company) shall
expressly assume the due and punctual observance and performance of each and
every covenant and condition of this Warrant to be performed and observed by the
Company and all the obligations and liabilities hereunder, subject to such
modifications as may be deemed appropriate (as determined in good faith by
resolution of the Board of Directors of the Company) in order to provide for
adjustments of Warrant Shares for which this Warrant is exercisable which shall
be as nearly equivalent as practicable to the adjustments provided for in this
Section 12. For purposes of this Section 12, "common stock of the successor or
acquiring corporation" shall include stock of such corporation of any class
which is not preferred as to dividends or assets over any other class of stock
of such corporation and which is not subject to redemption and shall also
include any evidences of indebtedness, shares of stock or other securities which
are convertible into or exchangeable for any such stock, either immediately or
upon the arrival of a specified date or the happening of a specified event and
any warrants or other rights to subscribe for or purchase any such stock. The
foregoing provisions of this Section 12 shall similarly apply to successive
reorganizations, reclassifications, mergers, consolidations or disposition of
assets.

         13. Voluntary Adjustment by the Company. The Company may at any time
during the term of this Warrant reduce the then current Exercise Price to any
amount and for any period of time deemed appropriate by the Board of Directors
of the Company.

         14. Notice of Adjustment. Whenever the number of Warrant Shares or
number or kind of securities or other property purchasable upon the exercise of
this Warrant or the Exercise Price is adjusted, as herein provided, the Company
shall promptly mail by registered or certified mail, return receipt requested,
to the Holder notice of such adjustment or adjustments setting forth the number
of Warrant Shares (and other securities or property) purchasable upon the
exercise of this Warrant and the Exercise Price of such Warrant Shares (and
other securities or property) after such adjustment, setting forth a brief
statement of the facts requiring such adjustment and setting forth the
computation by which such adjustment was made. Such notice, in the absence of
manifest error, shall be conclusive evidence of the correctness of such
adjustment.

         15. Notice of Corporate Action. If at any time:

                 (a) the Company shall take a record of the holders of its
   Common Stock for the purpose of entitling them to receive a dividend or other
   distribution, or any right to subscribe for or purchase any evidences of its
   indebtedness, any shares of stock of any class or any other securities or
   property, or to receive any other right, or

                 (b) there shall be any capital reorganization of the Company,
   any reclassification or recapitalization of the capital stock of the Company
   or any

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   consolidation or merger of the Company with, or any sale, transfer or other
   disposition of all or substantially all the property, assets or business of
   the Company to, another corporation or,

                 (c) there shall be a voluntary or involuntary dissolution,
   liquidation or winding up of the Company;

then, in any one or more of such cases, the Company shall give to Holder (i) at
least 20 days' prior written notice of the date on which a record date shall be
selected for such dividend, distribution or right or for determining rights to
vote in respect of any such reorganization, reclassification, merger,
consolidation, sale, transfer, disposition, liquidation or winding up, and (ii)
in the case of any such reorganization, reclassification, merger, consolidation,
sale, transfer, disposition, dissolution, liquidation or winding up, at least 20
days' prior written notice of the date when the same shall take place. Such
notice in accordance with the foregoing clause also shall specify (i) the date
on which any such record is to be taken for the purpose of such dividend,
distribution or right, the date on which the holders of Common Stock shall be
entitled to any such dividend, distribution or right, and the amount and
character thereof, and (ii) the date on which any such reorganization,
reclassification, merger, consolidation, sale, transfer, disposition,
dissolution, liquidation or winding up is to take place and the time, if any
such time is to be fixed, as of which the holders of Common Stock shall be
entitled to exchange their Warrant Shares for securities or other property
deliverable upon such disposition, dissolution, liquidation or winding up. Each
such written notice shall be sufficiently given if addressed to Holder at the
last address of Holder appearing on the books of the Company and delivered in
accordance with Section 17(d).

         16. Authorized Shares. The Company covenants that during the period the
Warrant is outstanding, it will reserve from its authorized and unissued Common
Stock a sufficient number of shares to provide for the issuance of the Warrant
Shares upon the exercise of any purchase rights under this Warrant. The Company
further covenants that its issuance of this Warrant shall constitute full
authority to its officers who are charged with the duty of executing stock
certificates to execute and issue the necessary certificates for the Warrant
Shares upon the exercise of the purchase rights under this Warrant. The Company
will take all such reasonable action as may be necessary to assure that such
Warrant Shares may be issued as provided herein without violation of any
applicable law or regulation, or of any requirements of the Principal Market
upon which the Common Stock may be listed.

             The Company shall not by any action, including, without limitation,
amending its certificate of incorporation or through any reorganization,
transfer of assets, consolidation, merger, dissolution, issue or sale of
securities or any other voluntary action, avoid or seek to avoid the observance
or performance of any of the terms of this Warrant, but will at all times in
good faith assist in the carrying out of all such terms and in the taking of all
such actions as may be necessary or appropriate to protect the rights of Holder
against impairment. Without limiting the generality of the foregoing, the
Company will (a) not increase the par value of any Warrant Shares above the
amount payable therefor upon such exercise immediately prior to such increase in
par value, (b) take all such action as may be necessary or appropriate in order
that the Company may validly and legally issue fully paid and nonassessable
Warrant Shares upon the exercise of this Warrant, and (c) use commercially
reasonable efforts to obtain all such

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authorizations, exemptions or consents from any public regulatory body having
jurisdiction thereof as may be necessary to enable the Company to perform its
obligations under this Warrant.

             Before taking any action which would result in an adjustment in the
number of Warrant Shares for which this Warrant is exercisable or in the
Exercise Price, the Company shall obtain all such authorizations or exemptions
thereof, or consents thereto, as may be necessary from any public regulatory
body or bodies having jurisdiction thereof.

         17. Miscellaneous.

             (a) Jurisdiction. This Warrant shall constitute a contract under
   the laws of New York, without regard to its conflict of law, principles or
   rules, and be subject to arbitration pursuant to the terms set forth in the
   Purchase Agreement.

             (b) Restrictions. The Holder acknowledges that the Warrant Shares
   acquired upon the exercise of this Warrant, if not registered, will have
   restrictions upon resale imposed by state and federal securities laws.

             (c) Nonwaiver and Expenses. No course of dealing or any delay or
   failure to exercise any right hereunder on the part of Holder shall operate
   as a waiver of such right or otherwise prejudice Holder's rights, powers or
   remedies, notwithstanding all rights hereunder terminate on the Termination
   Date. If the Company willfully and knowingly fails to comply with any
   provision of this Warrant, which results in any material damages to the
   Holder, the Company shall pay to Holder such amounts as shall be sufficient
   to cover any costs and expenses including, but not limited to, reasonable
   attorneys' fees, including those of appellate proceedings, incurred by Holder
   in collecting any amounts due pursuant hereto or in otherwise enforcing any
   of its rights, powers or remedies hereunder.

             (d) Notices. Any notice, request or other document required or
   permitted to be given or delivered to the Holder by the Company shall be
   delivered in accordance with the notice provisions of the Purchase Agreement.

             (e) Limitation of Liability. No provision hereof, in the absence of
   affirmative action by Holder to purchase Warrant Shares, and no enumeration
   herein of the rights or privileges of Holder, shall give rise to any
   liability of Holder for the purchase price of any Common Stock or as a
   stockholder of the Company, whether such liability is asserted by the Company
   or by creditors of the Company.

             (f) Remedies. Holder, in addition to being entitled to exercise all
   rights granted by law, including recovery of damages, will be entitled to
   specific performance of its rights under this Warrant. The Company agrees
   that monetary damages would not be adequate compensation for any loss
   incurred by reason of a breach by it of the provisions of this Warrant and
   hereby agrees to waive the defense in any action for specific performance
   that a remedy at law would be adequate.

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             (g) Successors and Assigns. Subject to applicable securities laws,
   this Warrant and the rights and obligations evidenced hereby shall inure to
   the benefit of and be binding upon the successors of the Company and the
   successors and permitted assigns of Holder. The provisions of this Warrant
   are intended to be for the benefit of all Holders from time to time of this
   Warrant and shall be enforceable by any such Holder or holder of Warrant
   Shares.

             (h) Amendment. This Warrant may be modified or amended or the
   provisions hereof waived with the written consent of the Company and the
   Holder.

             (i) Severability. Wherever possible, each provision of this Warrant
   shall be interpreted in such manner as to be effective and valid under
   applicable law, but if any provision of this Warrant shall be prohibited by
   or invalid under applicable law, such provision shall be ineffective to the
   extent of such prohibition or invalidity, without invalidating the remainder
   of such provisions or the remaining provisions of this Warrant.

             (j) Headings. The headings used in this Warrant are for the
   convenience of reference only and shall not, for any purpose, be deemed a
   part of this Warrant.

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                  IN WITNESS WHEREOF, the Company has caused this Warrant to be
executed by its officer thereunto duly authorized.

Dated: March 27, 2001
                                 MIGRATEC, INC.

                                 By:  /s/ T. Ulrich Brechbuhl
                                      ------------------------------------------
                                      T. Ulrich Brechbuhl, President, Chief
                                      Financial Officer and Secretary

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                                                                   EXHIBIT 10.30

                         COMMON STOCK PURCHASE AGREEMENT

                  This COMMON STOCK PURCHASE AGREEMENT (this "Agreement") is
dated as of March 27, 2001 by and between MigraTEC, Inc., a Delaware corporation
(the "Company") and Ironhead Investments Inc. (the "Purchaser"), a British
Virgin Islands corporation.

                  WHEREAS, the parties desire that, upon the terms and subject
to the conditions contained herein, the Company shall issue and sell to
Purchaser from time to time as provided herein, and Purchaser shall purchase, up
to $20,000,000 of Common Stock and the Warrant; and

                  WHEREAS, such investments will be made by the Purchaser as
statutory underwriter of a registered indirect primary offering of such Common
Stock by the Company.

                  NOW, THEREFORE, in consideration of the foregoing premises,
and the promises and covenants herein contained, the receipt and sufficiency of
which are hereby acknowledged by the parties hereto, the parties, intending to
be legally bound, hereby agree as follows:

                                   ARTICLE 1

                        PURCHASE AND SALE OF COMMON STOCK

                  Section 1.1. Purchase and Sale of Stock. Subject to the terms
and conditions of this Agreement, the Company may sell and issue to the
Purchaser and the Purchaser shall be obligated to purchase from the Company, up
to an aggregate of, $20,000,000 of Common Stock and the Warrant, subject to the
terms herein (the "Commitment Amount").

                  Section 1.2. Purchase Price and Initial Closing. The Company
agrees to issue and sell to the Purchaser and, in consideration of and in
express reliance upon the representations, warranties, covenants, terms and
conditions of this Agreement, the Purchaser agrees to purchase that number of
the Shares to be issued in connection with each Draw Down. The delivery of
executed documents under this Agreement and the other agreements referred to
herein and the payment of the fees set forth in Article I of the Escrow
Agreement, attached as Exhibit B hereto, (the "Initial Closing") shall take
place at the offices of Epstein Becker & Green, P.C., 250 Park Avenue, New York,
New York 10177 (i) within fifteen (15) days from the date hereof, or (ii) such
other time and place or on such date as the Purchaser and the Company may agree
upon (the "Initial Closing Date"). Each party shall deliver all documents,
instruments and writings required to be delivered by such party pursuant to this
Agreement at or prior to the Initial Closing.

                  Section 1.3. Liquidated Damages. The parties hereto
acknowledge and agree that the sums payable pursuant to this Agreement for late
delivery of the Draw Down Shares and

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pursuant to the Registration Rights Agreement for a suspension of the
Registration Statement or the Purchaser's right to resell the Draw Down Shares
thereunder shall constitute liquidated damages and not penalties. The parties
further acknowledge that (a) the amount of loss or damages likely to be incurred
is incapable or is difficult to precisely estimate, (b) the amount specified in
such provisions bear a reasonable proportion and are not plainly or grossly
disproportionate to the probable loss likely to be incurred by the Purchaser in
connection with the failure of the Company to deliver the Draw Down Shares in a
timely manner or the suspension of the suspension of Purchaser's rights to
resell the Draw Down Shares under the Registration Statement, and (c) the
parties are sophisticated businesses and have been represented by sophisticated
and able legal and financial counsel and negotiated this Agreement at arm's
length.

                                   ARTICLE 2

                         REPRESENTATIONS AND WARRANTIES

                  Section 2.1. Representation and Warranties of the Company. The
Company hereby makes the following representations and warranties to the
Purchaser:

                          (a) Organization, Good Standing and Power. The Company
         is a corporation duly incorporated validly existing and in good
         standing under the laws of Delaware and has all requisite corporate
         authority to own, lease and operate its properties and assets and to
         carry on its business as now being conducted. The Company does not have
         any subsidiaries and does not own more than fifty percent (50%) of or
         control any other business entity except as set forth in the SEC
         Documents. The Company is duly qualified to do business and is in good
         standing as a foreign corporation in every jurisdiction in which the
         nature of the business conducted or property owned by it makes such
         qualification necessary, other than those in which the failure so to
         qualify would not have a Material Adverse Effect.

                          (b) Authorization, Enforcement. (i) The Company has
         the requisite corporate power and corporate authority to enter into and
         perform its obligations under the Transaction Documents and to issue
         the Draw Down Shares pursuant to their respective terms, (ii) the
         execution and delivery of the Transaction Documents by the Company and
         the consummation by it of the transactions contemplated hereby and
         thereby have been duly authorized by all necessary corporate action and
         no further consent or authorization of the Company or its Board of
         Directors or stockholders is required, and (iii) the Transaction
         Documents have been duly executed and delivered by the Company and at
         the Initial Closing shall constitute valid and binding obligations of
         the Company enforceable against the Company in accordance with their
         terms, except as such enforceability may be limited by applicable
         bankruptcy, insolvency, reorganization, moratorium, liquidation,
         conservatorship, receivership or similar laws relating to, or affecting
         generally the enforcement of, creditors' rights and remedies or by
         other equitable principles of general application.

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<PAGE>   3

                          (c) Capitalization. The authorized capital stock of
         the Company consists of 200,000,000 shares of Common Stock of which
         92,180,113 shares are issued and outstanding and 50,000,000 shares of
         preferred stock of which none are issued and outstanding. All of the
         outstanding shares of the Company's Common Stock have been duly and
         validly authorized and are fully paid and non-assessable, except as set
         forth in the SEC Documents. Except as set forth in this Agreement, the
         Registration Rights Agreement, or as set forth in the SEC Documents, or
         on Schedule 2.1(c) hereto, no shares of Common Stock are entitled to
         preemptive rights or registration rights and there are no outstanding
         options, warrants, scrip, rights to subscribe to, calls or commitments
         of any character whatsoever relating to, or securities or rights
         convertible into, any shares of capital stock of the Company.
         Furthermore, except as set forth in this Agreement, the SEC Documents,
         or on Schedule 2.1(c), there are no contracts, commitments,
         understandings, or arrangements by which the Company is or may become
         bound to issue additional shares of the capital stock of the Company or
         options, securities or rights convertible into shares of capital stock
         of the Company. Except as set forth on Schedule 2.1(c), the Company is
         not a party to any agreement granting registration rights to any person
         with respect to any of its equity or debt securities. Except as set
         forth on Schedule 2.1(c), the Company is not a party to, and it has no
         knowledge of, any agreement restricting the voting or transfer of any
         shares of the capital stock of the Company. Except as set forth in the
         SEC Documents or on Schedule 2.1(c) hereto, the offer and sale of all
         capital stock, convertible securities, rights, warrants, or options of
         the Company issued prior to the Initial Closing complied with all
         applicable federal and state securities laws, and no stockholder has a
         right of rescission or damages with respect thereto which would have a
         Material Adverse Effect. The Company has made available to the
         Purchaser true and correct copies of the Company's articles or
         certificate of incorporation as in effect on the date hereof (the
         "Charter"), and the Company's bylaws as in effect on the date hereof
         (the "Bylaws"). The Company has not received any notice from the
         Principal Market questioning or threatening the continued inclusion of
         the Common Stock on such market.

                          (d) Issuance of Shares. The Warrant Shares to be
         issued upon exercise of the Warrant have been duly authorized by all
         necessary corporate action and, when paid for and issued in accordance
         with the terms hereof and the Warrant, the Warrant Shares shall be
         validly issued and outstanding, fully paid and non-assessable, and the
         Purchaser shall be entitled to all rights accorded to a holder of
         Common Stock.

                          (e) No Conflicts. Except as set forth on Schedule
         2.1(e), the execution, delivery and performance of this Agreement by
         the Company and the consummation by the Company of the transactions
         contemplated herein do not and will not (i) violate any provision of
         the Company's Charter or Bylaws, (ii) conflict with, or constitute a
         default (or an event which with notice or lapse of time or both would
         become a default) under, or give to others any rights of termination,
         amendment, acceleration or cancellation of, any agreement, mortgage,
         deed of trust, indenture, note, bond, license, lease agreement,
         instrument or obligation to which the Company is a party, (iii) create
         or impose a lien, charge or encumbrance on any property of the Company
         under any

                                       3
<PAGE>   4

         agreement or any commitment to which the Company is a party or by which
         the Company is bound or by which any of its respective properties or
         assets are bound, or (iv) result in a violation of any federal, state,
         local or other foreign statute, rule, regulation, order, judgment or
         decree (including any federal or state securities laws and regulations)
         applicable to the Company or by which any property or asset of the
         Company is bound or affected, except, in all cases, for such conflicts,
         defaults, termination, amendments, accelerations, cancellations and
         violations as would not, individually or in the aggregate, have a
         Material Adverse Effect. The business of the Company is not being
         conducted in violation of any laws, ordinances or regulations of any
         governmental entity, except for possible violations which singularly or
         in the aggregate do not and will not have a Material Adverse Effect.
         The Company is not required under any federal, state or local law, rule
         or regulation to obtain any consent, authorization or order of, or make
         any filing or registration with, any court or governmental agency in
         order for it to execute, deliver or perform any of its obligations
         under this Agreement, or issue and sell the Shares in accordance with
         the terms hereof (other than any filings which may be required to be
         made by the Company with the SEC or state securities administrators
         subsequent to the Initial Closing and any registration statement which
         may be filed pursuant hereto); provided, however, that for purpose of
         the representations made in this sentence, the Company is assuming and
         relying upon the accuracy of the relevant representations and
         agreements of the Purchaser herein.

                          (f) SEC Documents, Financial Statements. The Common
         Stock of the Company is registered pursuant to Section 12(g) of the
         Exchange Act, and, except as disclosed in the SEC Documents or on
         Schedule 2.1(f) hereto, the Company has timely filed all reports,
         schedules, forms, statements and other documents required to be filed
         by it with the SEC pursuant to the reporting requirements of the
         Exchange Act, including material filed pursuant to Section 13(a) or
         15(d) of the Exchange Act. The Company has delivered or made available
         to the Purchaser, through the EDGAR system or otherwise, true and
         complete copies of the SEC Documents filed with the SEC since December
         31, 1999. The Company has not provided to the Purchaser any information
         which, according to applicable law, rule or regulation, should have
         been disclosed publicly by the Company but which has not been so
         disclosed, other than with respect to the transactions contemplated by
         this Agreement. As of their respective filing dates, the SEC Documents
         complied in all material respects with the requirements of the Exchange
         Act or the Securities Act, as applicable, and the rules and regulations
         of the SEC promulgated thereunder applicable to such documents, and, as
         of their respective filing dates, none of the SEC Documents contained
         any untrue statement of a material fact or omitted to state a material
         fact required to be stated therein or necessary in order to make the
         statements therein, in light of the circumstances under which they were
         made, not misleading. The financial statements of the Company included
         in the SEC Documents comply as to form in all material respects with
         applicable accounting requirements under GAAP and the published rules
         and regulations of the SEC or other applicable rules and regulations
         with respect thereto. Such financial statements have been prepared in
         accordance with GAAP applied on a consistent basis during the periods
         involved (except (i) as may be otherwise indicated in such financial
         statements or the notes thereto or (ii) in the case of unaudited

                                       4
<PAGE>   5

         interim statements, to the extent they may not include footnotes or may
         be condensed or summary statements), and fairly present in all material
         respects the financial position of the Company and its subsidiaries as
         of the dates thereof and the results of operations and cash flows for
         the periods then ended (subject, in the case of unaudited statements,
         to normal year-end audit adjustments).

                          (g) Subsidiaries. The Company has no subsidiaries.

                          (h) No Material Adverse Effect. Since the date of the
         financial statement contained in the most recently filed Form 10-Q (or
         10-QSB) or Form 10-K (or 10-KSB), whichever is most current, no
         Material Adverse Effect has occurred or exists with respect to the
         Company, except as disclosed in the SEC Documents or on Schedule 2.1(h)
         hereto.

                          (i) No Undisclosed Liabilities. Except as disclosed in
         the SEC Documents or on Schedule 2.1(i) hereto, neither the Company nor
         any of its subsidiaries has any liabilities, obligations, claims or
         losses (whether liquidated or unliquidated, secured or unsecured,
         absolute, accrued, contingent or otherwise) that would be required to
         be disclosed on a balance sheet of the Company or any subsidiary
         (including the notes thereto) in conformity with GAAP which are not
         disclosed in the SEC Documents, other than those incurred in the
         ordinary course of the Company's or its subsidiaries' respective
         businesses since such date and which, individually or in the aggregate,
         do not or would not have a Material Adverse Effect on the Company or
         its subsidiaries.

                          (j) No Undisclosed Events or Circumstances. Since the
         date of the financial statement contained in the most recently filed
         Form 10- Q (or 10-QSB) or Form 10-K (or 10-KSB), whichever is most
         current, no event or circumstance has occurred or exists with respect
         to the Company or its businesses, properties, prospects, operations or
         financial condition, that, under applicable law, rule or regulation,
         requires public disclosure or announcement prior to the date hereof by
         the Company but which has not been so publicly announced or disclosed
         in the SEC Documents.

                          (k) Indebtedness. The SEC Documents or Schedule 2.1(k)
         hereto sets forth as of the date hereof all outstanding secured and
         unsecured Indebtedness of the Company or any subsidiary, or for which
         the Company or any subsidiary has commitments. For the purposes of this
         Agreement, "Indebtedness" shall mean (A) any liabilities for borrowed
         money or amounts owed in excess of $500,000 (other than trade accounts
         payable incurred in the ordinary course of business), (B) all
         guaranties, endorsements and contingent obligations in respect of
         Indebtedness of others, whether or not the same are or should be
         reflected in the Company's balance sheet (or the notes thereto), except
         guaranties by endorsement of negotiable instruments for deposit or
         collection or similar transactions in the ordinary course of business;
         and (C) the present value of any lease payments in excess of $500,000
         due under leases required to be capitalized in accordance with GAAP.
         Neither the Company nor any subsidiary is in default with respect to
         any Indebtedness.

                                       5
<PAGE>   6

                          (l) Title to Assets. Each of the Company and the
         subsidiaries has good and marketable title to all of its real and
         personal property reflected in the SEC Documents, free of any
         mortgages, pledges, charges, liens, security interests or other
         encumbrances, except for those indicated in the SEC Documents or on
         Schedule 2.1(1) hereto or such that do not cause a Material Adverse
         Effect. All said leases of the Company and each of its subsidiaries are
         valid and subsisting and in full force and effect.

                          (m) Actions Pending. There is no action, suit, claim,
         investigation or proceeding pending or, to the knowledge of the
         Company, threatened against the Company or any subsidiary which
         questions the validity of this Agreement or the transactions
         contemplated hereby or any action taken or to be taken pursuant hereto
         or thereto. Except as set forth in the SEC Documents or on Schedule
         2.1(m) hereto, there is no action, suit, claim, investigation or
         proceeding pending or, to the knowledge of the Company, threatened,
         against or involving the Company, any subsidiary or any of their
         respective properties or assets. There are no outstanding orders,
         judgments, injunctions, awards or decrees of any court, arbitrator or
         governmental or regulatory body against the Company or any subsidiary.

                          (n) Compliance with Law. The Company and each of its
         subsidiaries have all franchises, permits, licenses, consents and other
         governmental or regulatory authorizations and approvals necessary for
         the conduct of their respective businesses as now being conducted by
         them unless the failure to possess such franchises, permits, licenses,
         consents and other governmental or regulatory authorizations and
         approvals, individually or in the aggregate, could not reasonably be
         expected to have a Material Adverse Effect.

                          (o) Taxes. The Company and each subsidiary has filed
         all Tax Returns which it is required to file under applicable laws; all
         such Tax Returns are true and accurate and have been prepared in
         compliance with all applicable laws; the Company has paid all Taxes due
         and owing by it or any subsidiary (whether or not such Taxes are
         required to be shown on a Tax Return) and has withheld and paid over to
         the appropriate taxing authorities all Taxes which it is required to
         withhold from amounts paid or owing to any employee, stockholder,
         creditor or other third parties; and since December 31, 1999, the
         charges, accruals and reserves for Taxes with respect to the Company
         (including any provisions for deferred income taxes) reflected on the
         books of the Company are adequate to cover any Tax liabilities of the
         Company if its current tax year were treated as ending on the date
         hereof.

                          No claim has been made by a taxing authority in a
         jurisdiction where the Company does not file tax returns that the
         Company or any subsidiary is or may be subject to taxation by that
         jurisdiction. There are no foreign, federal, state or local tax audits
         or administrative or judicial proceedings pending or being conducted
         with respect to the Company or any subsidiary; no information related
         to Tax matters has been requested by any foreign, federal, state or
         local taxing authority; and, except as disclosed above, no written
         notice indicating an intent to open an audit or other review has been
         received by the Company or any subsidiary from any foreign, federal,
         state or local taxing

                                       6
<PAGE>   7

         authority. There are no material unresolved questions or claims
         concerning the Company's Tax liability. The Company (A) has not
         executed or entered into a closing agreement pursuant to Section 7121
         of the Internal Revenue Code or any predecessor provision thereof or
         any similar provision of state, local or foreign law; and (B) has not
         agreed to or is required to make any adjustments pursuant to Section
         481 (a) of the Internal Revenue Code or any similar provision of state,
         local or foreign law by reason of a change in accounting method
         initiated by the Company or any of its subsidiaries or has any
         knowledge that the IRS has proposed any such adjustment or change in
         accounting method, or has any application pending with any taxing
         authority requesting permission for any changes in accounting methods
         that relate to the business or operations of the Company. The Company
         has not been a United States real property holding corporation within
         the meaning of Section 897(c)(2) of the Internal Revenue Code during
         the applicable period specified in Section 897(c)(1)(A)(ii) of the
         Internal Revenue Code.

                          The Company has not made an election under Section
         341(f) of the Internal Revenue Code. The Company is not liable for the
         Taxes of another person that is not a subsidiary of the Company under
         (A) Treas. Reg. Section 1.1502-6 (or comparable provisions of state,
         local or foreign law), (B) as a transferee or successor, (C) by
         contract or indemnity or (D) otherwise. The Company is not a party to
         any tax sharing agreement. The Company has not made any payments, is
         not obligated to make payments nor is it a party to an agreement that
         could obligate it to make any payments that would not be deductible
         under Section 280G of the Internal Revenue Code.

                          For purposes of this Section 2.1(o):

                          "IRS" means the United States Internal Revenue
                          Service.

                          "Tax" or "Taxes" means federal, state, county, local,
                          foreign, or other income, gross receipts, ad valorem,
                          franchise, profits, sales or use, transfer,
                          registration, excise, utility, environmental,
                          communications, real or personal property, capital
                          stock, license, payroll, wage or other withholding,
                          employment, social security, severance, stamp,
                          occupation, alternative or add-on minimum, estimated
                          and other taxes of any kind whatsoever (including,
                          without limitation, deficiencies, penalties, additions
                          to tax, and interest attributable thereto) whether
                          disputed or not.

                          "Tax Return" means any return, information report or
                          filing with respect to Taxes, including any schedules
                          attached thereto and including any amendment thereof.

                          (p) Certain Fees. Except as set forth on Schedule
         2.1(p) hereto and the fees paid to GKN Securities Corp. pursuant to the
         Escrow Agreement, no brokers, finders or financial advisory fees or
         commissions will be payable by the Company or any subsidiary with
         respect to the transactions contemplated by this Agreement.

                                       7
<PAGE>   8

                          (q) Disclosure. To the best of the Company's
         knowledge, neither this Agreement or the Schedules hereto nor any other
         documents, certificates or instruments furnished to the Purchaser by or
         on behalf of the Company or any subsidiary in connection with the
         transactions contemplated by this Agreement contains any untrue
         statement of a material fact or omits to state a material fact
         necessary in order to make the statements made herein or therein, in
         the light of the circumstances under which they were made herein or
         therein, not misleading.

                          (r) Operation of Business. The Company and each of the
         subsidiaries owns or possesses all patents, trademarks, service marks,
         trade names, copyrights, licenses and authorizations as set forth in
         the SEC Documents or on Schedule 2.1(r) hereto, and all rights with
         respect to the foregoing, which are necessary for the conduct of its
         business as now conducted without any conflict with the rights of
         others.

                          (s) Insurance. Except as disclosed in the SEC
         Documents or on Schedule 2.1(s) hereto, the Company carries or will
         have the benefit of insurance in such amounts and covering such risks
         as is adequate for the conduct of its business and the value of its
         properties and as is customary for companies engaging in similar
         businesses and similar industries.

                          (t) Books and Records. The records and documents of
         the Company and its subsidiaries accurately reflect in all material
         respects the information relating to the business of the Company and
         the subsidiaries, the location and collection of their assets, and the
         nature of all transactions giving rise to the obligations or accounts
         receivable of the Company or any subsidiary.

                          (u) Material Agreements. Except as set forth in the
         SEC Documents, or on Schedule 2.1(u) hereto, neither the Company nor
         any subsidiary is a party to any written or oral contract, instrument,
         agreement, commitment, obligation, plan or arrangement, a copy of which
         would be required to be filed with the SEC as an exhibit to a
         registration statement on Form S-1 or other applicable form
         (collectively, "Material Agreements") if the Company or any subsidiary
         were registering securities under the Securities Act. Except as set
         forth on Schedule 2.1(u), the Company and each of its subsidiaries has
         in all material respects performed all the obligations required to be
         performed by them to date under the foregoing agreements, have received
         no notice of default and, to the best of the Company's knowledge are
         not in default under any Material Agreement now in effect, the result
         of which could cause a Material Adverse Effect. Except as set forth in
         the SEC Documents, no written or oral contract, instrument, agreement,
         commitment, obligation, plan or arrangement of the Company or of any
         subsidiary limits or shall limit the payment of dividends on the
         Company's Common Stock.

                          (v) Transactions with Affiliates. Except as set forth
         in the SEC Documents or on Schedule 2.1(v) hereto, there are no loans,
         leases, agreements, contracts, royalty agreements, management contracts
         or arrangements or other continuing transactions exceeding $100,000
         between (A) the Company, any subsidiary or any of their

                                       8
<PAGE>   9

         respective customers or suppliers on the one hand, and (B) on the other
         hand, any officer, employee, consultant or director of the Company, or
         any of its subsidiaries, or any person owning 5% or more of the capital
         stock of the Company or any subsidiary or any member of the immediate
         family of such officer, employee, consultant, director or stockholder
         or any corporation or other entity controlled by such officer,
         employee, consultant, director or stockholder, or a member of the
         immediate family of such officer, employee, consultant, director or
         stockholder.

                          (w) Securities Laws. The Company has complied and will
         comply with all applicable federal and state securities laws in
         connection with the offer, issuance and sale of the Shares hereunder.
         Neither the Company nor anyone acting on its behalf, directly or
         indirectly, has or will sell, offer to sell or solicit offers to buy
         the Shares or similar securities to, or solicit offers with respect
         thereto from, or enter into any preliminary conversations or
         negotiations relating thereto with, any person (other than the
         Purchaser), so as to bring the issuance and sale of the Shares under
         the registration provisions of the Securities Act and applicable state
         securities laws. Neither the Company nor any of its affiliates, nor any
         person acting on its or their behalf, has engaged in any form of
         general solicitation or general advertising (within the meaning of
         Regulation D under the Securities Act) in connection with the offer or
         sale of the Shares.

                          (x) Employees. Neither the Company nor any subsidiary
         has any collective bargaining arrangements or agreements covering any
         of its employees. Except as set forth in the SEC Documents or on
         Schedule 2.1(x) hereto, neither the Company nor any subsidiary is in
         breach of any employment contract, agreement regarding proprietary
         information, noncompetition agreement, nonsolicitation agreement,
         confidentiality agreement, or any other similar contract or restrictive
         covenant, relating to the right of any officer, employee or consultant
         to be employed or engaged by the Company or such subsidiary. Since the
         date of the December 31, 2000 Form 10-K (or 10-KSB), no officer,
         consultant or key employee of the Company or any subsidiary whose
         termination, either individually or in the aggregate, could have a
         Material Adverse Effect, has terminated or, to the knowledge of the
         Company, has any present intention of terminating his or her employment
         or engagement with the Company or any subsidiary.

                          (y) Absence of Certain Developments. Except as
         disclosed in SEC Documents or on Schedule 2.1(y) hereto, since the date
         of the financial statement contained in the most recently filed Form
         10-Q (or 10-QSB) or Form 10-K (or 10KSB), whichever is most current,
         neither the Company nor any subsidiary has:

                              (i) issued any stock, bonds or other corporate
                  securities or any rights, options or warrants with respect
                  thereto;

                              (ii) borrowed any amount or incurred or become
                  subject to any liabilities (absolute or contingent) except
                  current liabilities incurred in the ordinary course of
                  business which are comparable in nature and amount to the
                  current liabilities incurred in the ordinary course of
                  business during the

                                       9
<PAGE>   10

                  comparable portion of its prior fiscal year, as adjusted to
                  reflect the current nature and volume of the Company's or such
                  subsidiary's business;

                              (iii) discharged or satisfied any lien or
                  encumbrance or paid any obligation or liability (absolute or
                  contingent), other than current liabilities paid in the
                  ordinary course of business;

                              (iv) declared or made any payment or distribution
                  of cash or other property to stockholders with respect to its
                  stock, or purchased or redeemed, or made any agreements so to
                  purchase or redeem, any shares of its capital stock;

                              (v) sold, assigned or transferred any other
                  tangible assets, or canceled any debts or claims, except in
                  the ordinary course of business;

                              (vi) sold, assigned or transferred any patent
                  rights, trademarks, trade names, copyrights, trade secrets or
                  other intangible assets or intellectual property rights, or
                  disclosed any proprietary confidential information to any
                  person except to customers in the ordinary course of business
                  or to the Purchaser or its representatives;

                              (vii) suffered any material losses (except for
                  anticipated losses consistent with prior quarters) or waived
                  any rights of material value, whether or not in the ordinary
                  course of business, or suffered the loss of any material
                  amount of prospective business;

                              (viii) made any changes in employee compensation
                  except in the ordinary course of business and consistent with
                  past practices;

                              (ix) made capital expenditures or commitments
                  therefor that aggregate in excess of $500,000;

                              (x) entered into any other material transaction,
                  whether or not in the ordinary course of business;

                              (xi) suffered any material damage, destruction or
                  casualty loss, whether or not covered by insurance;

                              (xii) experienced any material problems with labor
                  or management in connection with the terms and conditions of
                  their employment; or

                              (xiii) effected any two or more events of the
                  foregoing kind which in the aggregate would be material to the
                  Company or its subsidiaries.

                          (z) Governmental Approvals. Except as set forth in the
         SEC Documents or on Schedule 2.1(z) hereto, and except for the filing
         of any notice prior or subsequent to any Settlement Date that may be
         required under applicable federal or state securities laws (which if
         required, shall be filed on a timely basis), including the filing of

                                       10
<PAGE>   11

         a registration statement or post-effective amendment pursuant to this
         Agreement, no authorization, consent, approval, license, exemption of,
         filing or registration with any court or governmental department,
         commission, board, bureau, agency or instrumentality, domestic or
         foreign, is or will be necessary for, or in connection with, the
         delivery of the Shares, or for the performance by the Company of its
         obligations under this Agreement.

                          (aa) Acknowledgment Regarding Purchaser's Purchase of
         Shares. Company acknowledges and agrees that Purchaser is acting solely
         in the capacity of arm's length purchaser with respect to this
         Agreement and the transactions contemplated hereunder. The Company
         further acknowledges that the Purchaser is not acting as a financial
         advisor or fiduciary of the Company (or in any similar capacity) with
         respect to this Agreement and the transactions contemplated hereunder.
         The Company further represents to the Purchaser that the Company's
         decision to enter into this Agreement has been based solely on (a) the
         Purchaser's representations and warranties in Section 3.2, and (b) the
         independent evaluation by the Company and its own representatives and
         counsel.

                  Section 2.2. Representations and Warranties of the Purchaser.
The Purchaser hereby makes the following representations and warranties to the
Company:

                          (a) Organization and Standing of the Purchaser. The
         Purchaser is a corporation duly incorporated, validly existing and in
         good standing under the laws of the British Virgin Islands.

                          (b) Authorization and Power. The Purchaser has the
         requisite power and authority to enter into and perform the Transaction
         Documents and to purchase the Shares being sold to it hereunder. The
         execution, delivery and performance of the Transaction Documents by
         Purchaser and the consummation by it of the transactions contemplated
         hereby have been duly authorized by all necessary corporate action and
         at the Initial Closing shall constitute valid and binding obligations
         of the Purchaser enforceable against the Purchaser in accordance with
         their terms, except as such enforceability may be limited by applicable
         bankruptcy, insolvency, reorganization, moratorium, liquidation,
         conservatorship, receivership or similar laws relating to, or affecting
         generally the enforcement of, creditors' rights and remedies or by
         other equitable principles of general application

                          (c) No Conflicts. The execution, delivery and
         performance of this Agreement and the consummation by the Purchaser of
         the transactions contemplated hereby or relating hereto do not and will
         not (i) result in a violation of the Purchaser's charter documents or
         bylaws or (ii) conflict with, or constitute a default (or an event
         which with notice or lapse of time or both would become a default)
         under, or give to others any rights of termination, amendment,
         acceleration or cancellation of any agreement, indenture or instrument
         to which the Purchaser is a party, or result in a violation of any law,
         rule, or regulation, or any order, judgment or decree of any court or
         governmental agency applicable to the Purchaser or its properties
         (except for such conflicts, defaults and violations as would not,
         individually or in the aggregate, have a

                                       11
<PAGE>   12

         Material Adverse Effect on Purchaser). The Purchaser is not required to
         obtain any consent, authorization or order of, or make any filing or
         registration with, any court or governmental agency in order for it to
         execute, deliver or perform any of its obligations under this Agreement
         or to purchase the Shares in accordance with the terms hereof.

                          (d) Financial Risks. The Purchaser acknowledges that
         it is able to bear the financial risks associated with an investment in
         the Shares and that it has been given full access to such records of
         the Company and the subsidiaries and to the officers of the Company and
         the subsidiaries as it has deemed necessary or appropriate to conduct
         its due diligence investigation. The Purchaser is capable of evaluating
         the risks and merits of an investment in the Shares by virtue of its
         experience as an investor and its knowledge, experience, and
         sophistication in financial and business matters and the Purchaser is
         capable of bearing the entire loss of its investment in the Shares.

                          (e) Accredited Investor. The Purchaser is an
         "accredited investor" as defined in Regulation D promulgated under the
         Securities Act.

                          (f) General. The Purchaser understands that the
         Company is relying upon the truth and accuracy of the representations,
         warranties, agreements, acknowledgments and understandings of the
         Purchaser set forth herein in order to determine the suitability of the
         Purchaser to acquire the Shares.

                                   ARTICLE 3

                                    COVENANTS

                  The Company covenants with the Purchaser as follows:

                  Section 3.1. The Shares. As of the date of each applicable
Draw Down, the Company will have authorized and reserved, free of preemptive
rights and other similar contractual rights of stockholders, a sufficient number
of its authorized but unissued shares of its Common Stock to cover the Draw Down
Shares to be issued in connection with such Draw Down requested under this
Agreement. The Draw Down Shares to be issued under this Agreement, when paid for
and issued in accordance with the terms hereof, shall be duly and validly issued
and outstanding, fully paid and non-assessable, and the Purchaser shall be
entitled to all rights accorded to a holder of Common Stock. Anything in this
Agreement to the contrary notwithstanding, the Company may not make a Draw Down
to the extent that, after such purchase by the Purchaser, the sum of the number
of shares of Common Stock beneficially owned by the Purchaser and its affiliates
would result in beneficial ownership by the Purchaser and its affiliates of more
than 9.9% of the then outstanding shares of Common Stock. For purposes of the
immediately preceding sentence, beneficial ownership shall be determined in
accordance with Section 13(d) of the Exchange Act.

                                       12
<PAGE>   13

                  Section 3.2. Securities Compliance. If applicable, the Company
shall notify the Principal Market, in accordance with its rules and regulations,
of the transactions contemplated by this Agreement, and shall take all other
necessary action and proceedings as may be required and permitted by applicable
law, rule and regulation, for the legal and valid issuance of the Shares to the
Purchaser or subsequent holders.

                  Section 3.3. Registration and Listing. The Company will cause
its Common Stock to continue to be registered under Sections 12(b) or 12(g) of
the Exchange Act, will comply in all respects with its reporting and filing
obligations under the Exchange Act, will comply with all requirements related to
any registration statement filed pursuant to this Agreement, and will not take
any action or file any document (whether or not permitted by the Securities Act
or the Exchange Act or the rules promulgated thereunder) to terminate or suspend
such registration or to terminate or suspend its reporting and filing
obligations under the Exchange Act or Securities Act, except as permitted
herein. The Company will take all action necessary to continue the listing or
trading of its Common Stock on the Principal Market and will comply in all
respects with the Company's reporting, filing and other obligations under the
bylaws or rules of the Principal Market and shall provide the Purchaser with
copies of any correspondence to or from such Principal Market which questions or
threatens delisting of the Common Stock, within three (3) Trading Days of the
Company's receipt thereof, until the Purchaser has disposed of all of the
Shares.

                  Section 3.4. Escrow Arrangement. The Company and the Purchaser
shall enter into an escrow arrangement with Epstein Becker & Green, P.C. (the
"Escrow Agent") in the form of Exhibit B hereto respecting payment against
delivery of the Shares.

                  Section 3.5. Registration Rights Agreement. The Company and
the Purchaser shall enter into the Registration Rights Agreement in the Form of
Exhibit A hereto. Before the Purchaser shall be obligated to accept a Draw Down
request from the Company, the Company shall have caused a sufficient number of
shares of Common Stock to be registered to cover the Shares to be issued in
connection with such Draw Down.

                  Section 3.6. Accuracy of Registration Statement.On each
Settlement Date, the Registration Statement and the prospectus therein shall not
contain any untrue statement of a material fact or omit to state any material
fact required to be stated therein or necessary in order to make the statements
therein not misleading in light of the circumstances under which they were made;
and on such Settlement Date or date of filing the Registration Statement and the
prospectus therein will not include any untrue statement of a material fact or
omit to state a material fact necessary in order to make the statements therein,
in the light of the circumstances under which they were made, not misleading;
provided, however, the Company makes no representations or warranties as to the
information contained in or omitted from the Registration Statement and the
prospectus therein in reliance upon and in conformity with the information
furnished in writing to the Company by the Purchaser specifically for inclusion
in the Registration Statement and the prospectus therein.

                                       13
<PAGE>   14

                  Section 3.7. Compliance with Laws. The Company shall comply,
and cause each subsidiary to comply, with all applicable laws, rules,
regulations and orders, noncompliance with which could have a Material Adverse
Effect.

                  Section 3.8. Keeping of Records and Books of Account. The
Company shall keep and cause each subsidiary to keep adequate records and books
of account, in which complete entries will be made in accordance with GAAP
consistently applied, reflecting all financial transactions of the Company and
its subsidiaries, and in which, for each fiscal year, all proper reserves for
depreciation, depletion, obsolescence, amortization, taxes, bad debts and other
purposes in connection with its business shall be made.

                  Section 3.9. Other Agreements. The Company shall not enter
into any agreement the terms of which such agreement would restrict or impair
the ability of the Company to perform its obligations under this Agreement.

                  Section 3.10. Notice of Certain Events Affecting Registration;
Suspension of Right to Request a Draw Down. THE COMPANY WILL PROMPTLY NOTIFY THE
PURCHASER IN WRITING AND OBTAIN AN ACKNOWLEDGMENT FROM PURCHASER UPON THE
OCCURRENCE OF ANY OF THE FOLLOWING EVENTS IN RESPECT OF THE REGISTRATION
STATEMENT OR RELATED PROSPECTUS IN RESPECT OF THE SHARES: (i) receipt of any
request for additional information from the SEC or any other federal or state
governmental authority during the period of effectiveness of the Registration
Statement the response to which would require any amendments or supplements to
the Registration Statement or related prospectus; (ii) the issuance by the SEC
or any other federal or state governmental authority of any stop order
suspending the effectiveness of the Registration Statement or the initiation of
any proceedings for that purpose; (iii) receipt of any notification with respect
to the suspension of the qualification or exemption from qualification of any of
the Shares for sale in any jurisdiction or the initiation or threatening of any
proceeding for such purpose; (iv) the happening of any event that makes any
statement made in the Registration Statement or related prospectus or any
document incorporated or deemed to be incorporated therein by reference untrue
in any material respect or that requires the making of any changes in the
Registration Statement, related prospectus or documents so that, in the case of
the Registration Statement, it will not 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, and that in the case
of the related prospectus, it will not 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, in the light of the circumstances
under which they were made, not misleading; and (v) the filing of a
post-effective amendment or withdrawal to the Registration Statement. The
Company shall not deliver to the Purchaser any Draw Down Notice during the
continuation of any of the foregoing events. The Company shall promptly make
available to the Purchaser any such supplements or amendments to the related
prospectus, at which time, provided that the registration statement and any
supplements and amendments thereto are then effective, the Company may
recommence the delivery of Draw Down Notices.

                  Section 3.11. Consolidation; Merger. The Company shall not, at
any time after the date hereof, effect any merger or consolidation of the
Company with or into, or a transfer of all or substantially all of the assets of
the Company to, another entity (a "Consolidation Event")

                                       14
<PAGE>   15

unless the resulting successor or acquiring entity (if not the Company) assumes
by written instrument or by operation of law the obligation to deliver to the
Purchaser any Draw Down Shares to be issued pursuant to a pending Draw Down and
Warrant Shares to this Agreement.

                  Section 3.12. Limitation on Future Financing. The Company
agrees that, except as set forth below, it will not enter into any sale of its
securities for cash at a discount to the current market price until the earlier
of (i) 20 months from the Effective Date, or (ii) sixty (60) days after the
entire Commitment Amount has been purchased by the Purchaser. The foregoing
shall not prevent or limit the Company from engaging in any sale of securities
(i) in a registered public offering by the Company which is underwritten by one
or more established investment banks (not including an equity line type of
financing), (ii) in one or more private placements where the purchasers do not
have demand registration rights, (iii) pursuant to any presently existing or
future employee benefit plan which plan has been or is approved by the Company's
stockholders, (iv) pursuant to any compensatory plan for a full-time employee or
key consultant, (v) in connection with a strategic partnership or other business
transaction, the principal purpose of which is not simply to raise money, or
(vi) to which Purchaser gives its prior written consent.

                  Section 3.13. Use of Proceeds. The proceeds from the sale of
the Shares will be used by the Company and its subsidiaries for general
corporate purposes.

                  The Purchaser covenants with the Company as follows:

                  Section 3.14. Compliance with Law. The Purchaser agrees that
its trading activities with respect to shares of the Company's Common Stock will
be in compliance with all applicable state and federal securities laws, rules
and regulations and rules and regulations of the Principal Market on which the
Company's Common Stock is listed. Without limiting the generality of the
foregoing, the Purchaser agrees that it will, whenever required by federal
securities laws, deliver the prospectus included in the Registration Statement
to any purchaser of Shares from the Purchaser.

                                   ARTICLE 4

                  CONDITIONS TO INITIAL CLOSING AND DRAW DOWNS

                  Section 4.1. Conditions Precedent to the Obligation of the
Company to Sell the Shares. The obligation hereunder of the Company to proceed
to close this Agreement and to issue and sell the Shares to the Purchaser is
subject to the satisfaction or waiver, at or before the Initial Closing, and as
of each Settlement Date of each of the conditions set forth below. These
conditions are for the Company's sole benefit and may be waived by the Company
at any time in its sole discretion.

                          (a) Accuracy of the Purchaser's Representations and
         Warranties. The representations and warranties of the Purchaser shall
         be true and correct in all material respects as of the date when made
         and as of the Initial Closing and as of each Settlement

                                       15
<PAGE>   16

         Date as though made at that time, except for representations and
         warranties that speak as of a particular date.

                          (b) Performance by the Purchaser. The Purchaser shall
         have performed, satisfied and complied in all material respects with
         all material covenants, agreements and conditions required by this
         Agreement to be performed, satisfied or complied with by the Purchaser
         at or prior to the Initial Closing and as of each Settlement Date.

                          (c) No Injunction. No statute, rule, regulation,
         executive order, decree, ruling or injunction shall have been enacted,
         entered, promulgated or endorsed by any court or governmental authority
         of competent jurisdiction which prohibits the consummation of any of
         the transactions contemplated by this Agreement.

                  Section 4.2. Conditions Precedent to the Obligation of the
Purchaser to Close. The obligation hereunder of the Purchaser to perform its
obligations under this Agreement and to purchase the Shares is subject to the
satisfaction or waiver, at or before the Initial Closing, of each of the
conditions set forth below. These conditions are for the Purchaser's sole
benefit and may be waived by the Purchaser at any time in its sole discretion.

                          (a) Accuracy of the Company's Representations and
         Warranties. Each of the representations and warranties of the Company
         shall be true and correct in all material respects as of the date when
         made and as of the Initial Closing as though made at that time (except
         for representations and warranties that speak as of a particular date).

                          (b) Performance by the Company. The Company shall have
         performed, satisfied and complied in all respects with all covenants,
         agreements and conditions required by this Agreement to be performed,
         satisfied or complied with by the Company at or prior to the Initial
         Closing.

                          (c) No Injunction. No statute, rule, regulation,
         executive order, decree, ruling or injunction shall have been enacted,
         entered, promulgated or endorsed by any court or governmental authority
         of competent jurisdiction which prohibits the consummation of any of
         the transactions contemplated by this Agreement.

                          (d) No Proceedings or Litigation. No action, suit or
         proceeding before any arbitrator or any governmental authority shall
         have been commenced, and no investigation by any governmental authority
         shall have been threatened, against the Purchaser or the Company or any
         subsidiary, or any of the officers, directors or affiliates of the
         Company or any subsidiary seeking to restrain, prevent or change the
         transactions contemplated by this Agreement, or seeking damages in
         connection with such transactions.

                          (e) Opinion of Counsel, Etc. At the Initial Closing,
         the Purchaser shall have received an opinion of counsel to the Company,
         dated as of the Initial Closing Date, in the form of Exhibit C hereto.

                                       16
<PAGE>   17

                          (f) Warrant. On the Initial Closing Date, the Company
         shall issue to the Purchaser a warrant certificate to purchase up to
         325,000 shares of Common Stock. The Warrant shall have a term from its
         initial date of exercise of 5 years. The exercise price of the Warrant
         shall be 110% of the average of the closing bid prices during the
         fifteen (15) Trading Days immediately prior to the Initial Closing
         Date. The Common Stock underlying the Warrant will be registered in the
         Registration Statement referred to in Section 4.3 hereof. The Warrant
         shall be in the form of Exhibit E hereto.

                  Section 4.3. Conditions Precedent to the Obligation of the
Purchaser to Accept a Draw Down and Purchase the Shares. The obligation
hereunder of the Purchaser to accept a Draw Down request and to acquire and pay
for the Shares is subject to the satisfaction at or before each Settlement Date,
of each of the conditions set forth below.

                          (a) Satisfaction of Conditions to Initial Closing. The
         Company shall have satisfied, or the Purchaser shall have waived at the
         Initial Closing, the conditions set forth in Section 4.2 hereof

                          (b) Effective Registration Statement. The Registration
         Statement registering the Shares shall have been declared effective by
         the SEC and shall remain effective on each Settlement Date.

                          (c) No Suspension. Trading in the Company's Common
         Stock shall not have been suspended by the SEC or the Principal Market
         (except for any suspension of trading of limited duration agreed to by
         the Company, which suspension shall be terminated prior to the delivery
         of each Draw Down Notice), and, at any time prior to such Draw Down
         Notice, trading in securities generally as reported on the Principal
         Market shall not have been suspended or limited, or minimum prices
         shall not have been established on securities whose trades are reported
         on the Principal Market unless the general suspension or limitation
         shall have been terminated prior to the delivery of such Draw Down
         Notice.

                          (d) Material Adverse Effect. No Material Adverse
         Effect and no Consolidation Event where the successor entity has not
         agreed to perform the Company's obligations shall have occurred.

                          (e) Opinion of Counsel. The Purchaser shall have
         received (i) a "down-to-date" letter from the Company's counsel,
         confirming that there is no change from the counsel's previously
         delivered opinion, or else specifying with particularity the reason for
         any change and an opinion as to the additional items specified in
         Exhibit C hereto, and (ii) any other items set forth in the Escrow
         Agreement.

                                       17
<PAGE>   18

                                   ARTICLE 5

                                 DRAW DOWN TERMS

                  Section 5.1. Draw Down Terms. Subject to the satisfaction of
the conditions set forth in this Agreement, the parties agree as follows:

                          (a) The Company, may, in its sole discretion, issue
         and exercise draw downs (each a "Draw Down") during the Commitment
         Period, which Draw Downs the Purchaser shall be obligated to accept
         during the Commitment Period, subject to the terms and conditions
         herein.

                          (b) Only one Draw Down shall be allowed in each Draw
         Down Pricing Period. There shall be a minimum of five (5) Trading Days
         between Draw Down Pricing Periods. The number of shares of Common Stock
         purchased by the Purchaser with respect to each Draw Down shall be
         determined as set forth in Section 5.1(e) herein and settled on:

                              (i) as to the 1st through the 11th Trading Days
                  during the Draw Down Pricing Period, on or before the 13th
                  Trading Day after such Draw Down Pricing Period commences; and

                              (ii) as to the 12th through the 22nd Trading Days
                  during the Draw Down Pricing Period commences, on or before
                  the 24th Trading Day after such Draw Down Pricing Period (such
                  settlement periods and such settlement dates in subsection (i)
                  and this subsection (ii) each referred to as a "Settlement
                  Period" and a "Settlement Date", respectively).

                          (c) In connection with each Draw Down Pricing Period,
         the Company may set the Threshold Price in the Draw Down Notice.

                          (d) The minimum Investment Amount for any Draw Down
         shall be $100,000 and the maximum Investment Amount as to each Draw
         Down shall be the lesser of (i) $5,000,000, and (ii) 6.5% of the EQY
         weighted average price field (as reported on Bloomberg Financial L.P.
         using the BLPH function), for the Common Stock for the ninety (90)
         calendar days immediately prior to the applicable Commencement Date
         (defined below) multiplied by the total trading volume in respect of
         the Common Stock for such period. Notwithstanding anything herein to
         the contrary, in the event the minimum Investment Amount is greater
         than the maximum Investment Amount, as to such Draw Down only, the
         minimum Investment Amount shall equal the maximum Investment Amount,
         but in no event shall the minimum Investment Amount be less than
         $50,000 such that if the maximum Investment Amount is less than
         $50,000, then the Company may not exercise a Draw Down at such time.

                          (e) The number of Shares of Common Stock to be issued
         on each Settlement Date shall be a number of shares equal to the sum of
         the quotients (for each

                                       18
<PAGE>   19

         trading day within the Settlement Period) of (x) 1/22nd of the
         Investment Amount, and (y) the Purchase Price on each Trading Day
         within the Settlement Period, subject to the following adjustments:

                              (i) if the VWAP on a given Trading Day is less
                  than the Threshold Price, then that portion of the immediately
                  pending Investment Amount to be paid on the Settlement Date
                  shall be reduced by 1/22nd of the Investment Amount and such
                  Trading Day shall be withdrawn from the Settlement Period;

                              (ii) if during any Trading Day during the
                  Settlement Period trading of the Common Stock on the Principal
                  Market is suspended for more than three (3) hours, in the
                  aggregate, or if any Trading Day during the Settlement Period
                  is shortened because of a public holiday, then that portion of
                  the immediately pending Investment Amount to be paid on the
                  Settlement Date shall be reduced by 1/22nd of the Investment
                  Amount and such Trading Day shall be withdrawn from the
                  Settlement Period; and

                              (iii) if sales of Draw Down Shares pursuant to the
                  Registration Statement are suspended by the Company in
                  accordance with Section 3(j) herein or Section 5(e) of the
                  Registration Rights Agreement for more than three (3) hours,
                  in the aggregate, during the Settlement Period, then that
                  portion of the immediately pending Investment Amount to be
                  paid on the Settlement Date shall be reduced by 1/22nd of the
                  Investment Amount and such Trading Day shall be withdrawn from
                  the Settlement Period.

                          (f) The Company must inform the Purchaser by
         delivering a draw down notice, in the form of Exhibit D hereto (the
         "Draw Down Notice"), via facsimile transmission in accordance with
         Section 8.4 as to the amount of the Draw Down (the "Investment Amount")
         the Company wishes to exercise, before the first day of the Draw Down
         Pricing Period (the "Commencement Date"). If the Commencement Date is
         to be the date of the Draw Down Notice, the Draw Down Notice must be
         delivered to and receipt confirmed by the Purchaser at least one (1)
         hour before trading commences on such date. At no time shall the
         Purchaser be required to purchase more than the maximum Investment
         Amount for a given Draw Down Pricing Period so that if the Company
         chooses not to exercise the maximum Investment Amount in a given Draw
         Down Pricing Period the Purchaser is not obligated to and shall not
         purchase more than the scheduled maximum Investment Amount in a
         subsequent Draw Down Pricing Period.

                          (g) On or before each Settlement Date, the Shares
         purchased by the Purchaser shall be delivered to The Depository Trust
         Company ("DTC") account of the Purchaser or its designees via the
         Deposit Withdrawal Agent Commission ("DWAC") system upon receipt by the
         Escrow Agent of payment for the Draw Down Shares into the Escrow
         Agent's master escrow account, as further provided in the Escrow
         Agreement. The Escrow Agent shall be directed to pay the aggregate
         Purchase Price to the Company, net of one thousand dollars ($1,000) per
         Settlement as escrow expenses to the Escrow

                                       19
<PAGE>   20

         Agent and any additional fees as set forth in the Escrow Agreement. The
         Company understands that a delay in the delivery of the Draw Down
         Shares into the Purchaser's DTC account beyond three (3) Trading Days
         after the dates set forth herein and in the Escrow Agreement could
         result in economic loss to the Purchaser. Notwithstanding anything
         herein to the contrary, as compensation to the Purchaser for such loss,
         the Company agrees to pay late payments to the Purchaser for late
         delivery after three (3) Trading Days from such dates in accordance
         with the following schedule (where "No. Trading Days Late" is defined
         as the number of Trading Days beyond three (3) Trading Days from the
         dates set forth herein and in the Escrow Agreement on which such Draw
         Down Shares are to be delivered into the Purchaser's DTC account):

<TABLE>
<CAPTION>
                                                                               Late Payment for Each
                                                                               $5,000 of Draw Down Shares
                  No. Trading Days Late                                        Being Purchased
------------------------------------------------------------ ---------------------------------------------------------
<S>                                                          <C>
                  1                                                            $100
                  2                                                            $200
                  3                                                            $300
                  4                                                            $400
                  5                                                            $500
                  6                                                            $600
                  7                                                            $700
                  8                                                            $800
                  9                                                            $900
                  10                                                           $1,000
                  More than 10                                                 $1,000 +$200 for each Trading Day
                                                                               Late beyond 10 Trading Days
</TABLE>

                           The Company shall pay any payments incurred under
         this Section 5.1(g) in immediately available funds upon demand. Nothing
         herein shall limit the Purchaser's right to pursue injunctive relief
         and/or actual damages for the Company's failure to issue and deliver
         the Draw Down Shares to the Company, including, without limitation, the
         Purchaser's actual losses occasioned by any "buy-in" of Common Stock
         necessitated by such late delivery.

                                   ARTICLE 6

                                   TERMINATION

                  Section 6.1. Term. The term of this Agreement shall begin on
the date hereof and shall end 20 months from the Effective Date or as otherwise
set forth in Section 6.2.

                  Section 6.2. Other Termination.

                                       20
<PAGE>   21

                          (a) This Agreement shall terminate upon one (1)
         Trading Day's notice if (i) an event resulting in a Material Adverse
         Effect has occurred and has not been cured for a period of thirty (30)
         days after giving notice thereof, (ii) the Common Stock is de-listed
         from the Principal Market unless such de-listing is in connection with
         the Company's subsequent listing of the Common Stock on the Nasdaq
         National Market, Nasdaq SmallCap Market, the American Stock Exchange or
         the New York Stock Exchange, or (iii) the Company files for protection
         from creditors under any applicable law.

                          (b) The Company may terminate this Agreement upon one
         (1) Trading Day's notice if the Purchaser shall fail to fund more than
         one properly noticed Draw Down within five (5) Trading Days of the end
         of the applicable Settlement Period.

                  Section 6.3. Effect of Termination. In the event of
termination of this Agreement pursuant to Section 6.2 herein, written notice
thereof shall forthwith be given to the other party and the transactions
contemplated by this Agreement shall be terminated without further action by
either party. If this Agreement is terminated as provided in Section 6.1 or 6.2
herein, this Agreement shall become void and of no further force and effect,
except for Sections 8.1, 8.2 and 8.9, and Article 7 herein. Nothing in this
Section 6.3 shall be deemed to release the Company or the Purchaser from any
liability for any breach under this Agreement, or to impair the rights of the
Company or the Purchaser to compel specific performance by the other party of
its obligations under this Agreement.

                                   ARTICLE 7

                                 INDEMNIFICATION

                  Section 7.1. General Indemnity.

                          (a) The Company agrees to indemnify and hold harmless
         the Purchaser (and its directors, officers, affiliates, agents,
         successors and assigns) from and against any and all losses,
         liabilities, deficiencies, costs, damages and expenses (including,
         without limitation, reasonable attorneys' fees, charges and
         disbursements) incurred by the Purchaser as a result of any material
         inaccuracy in or breach of the representations, warranties or covenants
         made by the Company herein.

                          (b) The Purchaser agrees to indemnify and hold
         harmless the Company and its directors, officers, affiliates, agents,
         successors and assigns from and against any and all losses,
         liabilities, deficiencies, costs, damages and expenses (including,
         without limitation, reasonable attorneys' fees, charges and
         disbursements) incurred by the Company as result of any material
         inaccuracy in or breach of the representations, warranties or covenants
         made by the Purchaser herein. Notwithstanding anything to the contrary
         herein, the Purchaser shall be liable under this Section 7.1(b) for
         only that amount as does not exceed the net proceeds to the Purchaser
         as a result of the sale of the Shares.

                                       21
<PAGE>   22

                  Section 7.2. Indemnification Procedure. Any party entitled to
indemnification under this Article 7 (an "Indemnified Party") will give written
notice to the indemnifying party of any matters giving rise to a claim for
indemnification; provided, that the failure of any party entitled to
indemnification hereunder to give notice as provided herein shall not relieve
the indemnifying party of its obligations under this Article 7 except to the
extent that the indemnifying party is actually prejudiced by such failure to
give notice. In case any action, proceeding or claim is brought against an
Indemnified Party in respect of which indemnification is sought hereunder, the
indemnifying party shall be entitled to participate in and, unless in the
reasonable judgment of counsel to the Indemnified Party a conflict of interest
between it and the indemnifying party may exist with respect of such action,
proceeding or claim, to assume the defense thereof with counsel reasonably
satisfactory to the Indemnified Party. In the event that the indemnifying party
advises an Indemnified Party that it will contest such a claim for
indemnification hereunder, or fails, within thirty (30) days of receipt of any
indemnification notice to notify, in writing, such person of its election to
defend, settle or compromise, at its sole cost and expense, any action,
proceeding or claim (or discontinues its defense at any time after it commences
such defense), then the Indemnified Party may, at its option, defend, settle or
otherwise compromise or pay such action or claim. In any event, unless and until
the indemnifying party elects in writing to assume and does so assume the
defense of any such claim, proceeding or action, the Indemnified Party's costs
(including reasonable attorneys' fees, charges and disbursements) and expenses
arising out of the defense, settlement or compromise of any such action, claim
or proceeding shall be losses subject to indemnification hereunder. The
Indemnified Party shall cooperate fully with the indemnifying party in
connection with any settlement negotiations or defense of any such action or
claim by the indemnifying party and shall furnish to the indemnifying party all
information reasonably available to the Indemnified Party, which relates to such
action or claim. The indemnifying party shall keep the Indemnified Party fully
apprised at all times as to the status of the defense or any settlement
negotiations with respect thereto. If the indemnifying party elects to defend
any such action or claim, then the Indemnified Party shall be entitled to
participate in such defense with counsel of its choice at its sole cost and
expense. The indemnifying party shall not be liable for any settlement of any
action, claim or proceeding effected without its prior written consent.
Notwithstanding anything in this Article 7 to the contrary, the indemnifying
party shall not, without the Indemnified Party's prior written consent, settle
or compromise any claim or consent to entry of any judgment in respect thereof
which imposes any future obligation on the Indemnified Party or which does not
include, as an unconditional term thereof, the giving by the claimant or the
plaintiff to the Indemnified Party of a release from all liability in respect of
such claim. The indemnity agreements contained herein shall be in addition to
(a) any cause of action or similar rights of the Indemnified Party against the
indemnifying party or others, and (b) any liabilities to which the indemnifying
party may be subject.

                                       22
<PAGE>   23

                                   ARTICLE 8

                                  MISCELLANEOUS

                  Section 8.1. Fees and Expenses. Each of the parties to this
Agreement shall pay its own fees and expenses related to the transactions
contemplated by this Agreement; except that, the Company shall pay, at the
Initial Closing, a non-accountable expense allowance of $10,000 for the
Purchaser's legal, administrative and due diligence costs and expenses and any
other additional fees as set forth in the Escrow Agreement. In addition, the
Company shall pay all reasonable fees and expenses incurred by the Purchaser in
connection with any subsequent amendments, modifications or waivers of this
Agreement, the Escrow Agreement or the Registration Rights Agreement or incurred
in connection with the enforcement of this Agreement, the Escrow Agreement and
the Registration Rights Agreement, including, without limitation, all reasonable
attorneys' fees and expenses if such subsequent amendment, modification or
waiver is at the request of the Company. The Company shall pay all stamp or
other similar taxes and duties levied in connection with issuance of the Shares
pursuant hereto.

                  Section 8.2. Specific Enforcement. The Company and the
Purchaser acknowledge and agree that irreparable damage would occur in the event
that any of the provisions of this Agreement were not performed in accordance
with their specific terms or were otherwise breached. It is accordingly agreed
that the parties shall be entitled to an injunction or injunctions to prevent or
cure breaches of the provisions of this Agreement and to enforce specifically
the terms and provisions hereof or thereof, this being in addition to any other
remedy to which any of them may be entitled by law or equity.

                  Section 8.3. Entire Agreement; Amendment. The Transaction
Documents contain the entire understanding of the parties with respect to the
matters covered in the Transaction Documents. No provision of this Agreement may
be waived or amended other than by a written instrument signed by the party
against whom enforcement of any such amendment or waiver is sought and no
condition to closing any Draw Down in favor of the Purchaser may be waived by
the Purchaser.

                  Section 8.4. Notices. Any notice, demand, request, waiver or
other communication required or permitted to be given hereunder shall be in
writing and shall be effective (a) upon hand delivery or facsimile at the
address or number designated below (if delivered on a business day during normal
business hours where such notice is to be received), or the first business day
following such delivery (if delivered other than on a business day during normal
business hours where such notice is to be received) or (b) on the second
business day following the date of mailing by express courier service, fully
prepaid, addressed to such address, or upon actual receipt of such mailing,
whichever shall first occur. The addresses for such communications shall be:

                                       23
<PAGE>   24

If to the Company:                          11494 Luna Road
                                            Suite 100
                                            Dallas, Texas 75234-9421
                                            Attn:  Ulrich Brechbuhl
                                            Tel: (972) 969-0300
                                            Fax: (972) 969-0315

With copies to:                             Winstead Sechrest & Minich P.C.
(which shall not constitute                 5400 Renaissance Tower
notice)                                     1201 Elm Street
                                            Dallas, Texas  75270
                                            Attn:  Ted Schweinfurth
                                            Tel:  (214) 745-5473
                                            Fax:  (214) 745-5390

If to Purchaser:                            c/o Beacon Capital Management
                                            Harbour House, 2nd Floor
                                            Waterfront Drive
                                            Attn: David Sims
                                            Fax: (284) 494-4090

with copies to:                             Epstein Becker & Green P.C.
(which shall not constitute                 250 Park Avenue
notice)                                     New York, NY  10177-1211
                                            Tel:  (212) 351-3771
                                            Fax:  (212) 661-0989
                                            Attn: Robert F. Charron

                  Any party hereto may from time to time change its address for
notices by giving written notice of such changed address to the other party
hereto in accordance herewith.

                  Section 8.5. Waivers. No waiver by either party of any
default with respect to any provision, condition or requirement of this
Agreement shall be deemed to be a continuing waiver in the future or a waiver
of any other provisions, condition or requirement hereof, nor shall any delay
or omission of any party to exercise any right hereunder in any manner impair
the exercise of any such right accruing to it thereafter.

                  Section 8.6. Headings. The article, section and subsection
headings in this Agreement are for convenience only and shall not constitute a
part of this Agreement for any other purpose and shall not be deemed to limit or
affect any of the provisions hereof.

                  Section 8.7. Successors and Assigns. This Agreement shall be
binding upon and inure to the benefit of the parties and their successors and
assigns. The parties hereto may not amend this Agreement or any rights or
obligations hereunder without the prior written consent of the Company and each
Purchaser to be affected by the amendment. After Initial Closing, the assignment
by a party to this Agreement of any rights hereunder shall not affect the
obligations of such party under this Agreement.

                                       24
<PAGE>   25

                  Section 8.8. No Third Party Beneficiaries.This Agreement is
intended for the benefit of the parties hereto and their respective permitted
successors and assigns and is not for the benefit of, nor may any provision
hereof be enforced by, any other person.

                  Section 8.9. Governing Law/Arbitration. This Agreement shall
be governed by and construed in accordance with the internal laws of the State
of New York, without giving effect to the choice of law provisions. The Company
and the Purchaser agree to submit themselves to the in personam jurisdiction of
the state and federal courts situated within the Southern District of the State
of New York with regard to any controversy arising out of or relating to this
Agreement. Any dispute under this Agreement or any Exhibit attached hereto shall
be submitted to arbitration under the American Arbitration Association (the
"AAA") in New York City, New York, and shall be finally and conclusively
determined by the decision of a board of arbitration consisting of three (3)
members (hereinafter referred to as the "Board of Arbitration") selected as
according to the rules governing the AAA. The Board of Arbitration shall meet on
consecutive business days in New York City, New York, and shall reach and render
a decision in writing (concurred in by a majority of the members of the Board of
Arbitration) with respect to the amount, if any, which the losing party is
required to pay to the other party in respect of a claim filed. In connection
with rendering its decisions, the Board of Arbitration shall adopt and follow
the laws of the State of New York. To the extent practical, decisions of the
Board of Arbitration shall be rendered no more than thirty (30) calendar days
following commencement of proceedings with respect thereto. The Board of
Arbitration shall cause its written decision to be delivered to all parties
involved in the dispute. The Board of Arbitration shall be authorized and is
directed to enter a default judgment against any party refusing to participate
in the arbitration proceeding within thirty days of any deadline for such
participation. Any decision made by the Board of Arbitration (either prior to or
after the expiration of such thirty (30) calendar day period) shall be final,
binding and conclusive on the parties to the dispute, and entitled to be
enforced to the fullest extent permitted by law and entered in any court of
competent jurisdiction. The prevailing party shall be awarded its costs,
including attorneys' fees, from the non-prevailing party as part of the
arbitration award. Any party shall have the right to seek injunctive relief from
any court of competent jurisdiction in any case where such relief is available.
The prevailing party in such injunctive action shall be awarded its costs,
including reasonable attorneys' fees, from the non-prevailing party.

                  Section 8.10. Counterparts. This Agreement may be executed in
any number of counterparts, all of which taken together shall constitute one and
the same instrument and shall become effective when counterparts have been
signed by each party and delivered to the other parties hereto, it being
understood that all parties need not sign the same counterpart. Execution may be
made by delivery by facsimile.

                  Section 8.11. Publicity. Neither the Company nor the Purchaser
shall issue any press release or otherwise make any public statement or
announcement with respect to this Agreement or the transactions contemplated
hereby or the existence of this Agreement, without the prior written consent of
the other party. After the Initial Closing, the Company may issue a press
release or otherwise make a public statement or announcement with respect to
this Agreement or the transactions contemplated hereby or the existence of this
Agreement; provided, however, that prior to issuing any such press release,
making any such public statement or

                                       25
<PAGE>   26

announcement, the Company obtains the prior consent of the Purchaser, which
consent shall not be unreasonably withheld or delayed.

                  Section 8.12. Severability. The provisions of this Agreement
are severable and, in the event that The Board of Arbitration or any court or
officials of any regulatory agency of competent jurisdiction shall determine
that any one or more of the provisions or part of the provisions contained in
this Agreement shall, for any reason, be held to be invalid, illegal or
unenforceable in any respect, such invalidity, illegality or unenforceability
shall not affect any other provision or part of a provision of this Agreement
and this Agreement shall be reformed and construed as if such invalid or illegal
or unenforceable provision, or part of such provision, had never been contained
herein, so that such provisions would be valid, legal and enforceable to the
maximum extent possible, so long as such construction does not materially
adversely effect the economic rights of either party hereto.

                  Section 8.13. Further Assurances. From and after the date of
this Agreement, upon the request of the Purchaser or the Company, each of the
Company and the Purchaser shall execute and deliver such instruments, documents
and other writings as may be reasonably necessary or desirable to confirm and
carry out and to effectuate fully the intent and purposes of this Agreement.

                  Section 8.14. Effectiveness of Agreement. This Agreement shall
become effective only upon satisfaction of the conditions precedent to the
Initial Closing set forth in Article I of the Escrow Agreement.

                                   ARTICLE 9

                                   DEFINITIONS

                  Section 9.1. Certain Definitions.

                          (a) "Commencement Date" shall have the meaning
          assigned to such term in Section 5.1(f) hereof.

                          (b) "Commitment Amount" shall have the meaning
          assigned to such term in Section 1.1 hereof.

                          (c) "Commitment Period" shall mean the period of 20
          consecutive months commencing immediately after the Effective Date.

                          (d) "Common Stock" shall mean the Company's common
          stock, $0.001 par value per share.

                          (e) "Draw Down" shall have the meaning assigned to
          such term in Section 5.1(a) hereof.

                          (f) "Draw Down Notice" shall have the meaning assigned
          to such term in Section 5.1(f) hereof.

                                       26
<PAGE>   27

                          (g) "Draw Down Pricing Period" shall mean a period of
          twenty-two (22) consecutive Trading Days beginning on the date
          specified in the Draw Down Notice (as defined in Section 5.1(f)
          herein); provided, however, the Draw Down Pricing Period shall not
          begin before the day on which receipt of such notice is confirmed by
          the Purchaser.

                          (h) "Effective Date" shall mean the date the
          Registration Statement of the Company covering the Shares being
          subscribed for hereby is declared effective by the SEC.

                          (i) "Exchange Act" shall mean the Securities Exchange
          Act of 1934, as amended, and the rules and regulations promulgated
          thereunder.

                          (j) "GAAP" shall mean the United States Generally
          Accepted Accounting Principles as those conventions, rules and
          procedures are determined by the Financial Accounting Standards Board
          and its predecessor agencies.

                          (k) "Initial Closing" shall have the meaning assigned
          to such term in Section 1.2 hereof.

                          (l) "Initial Closing Date" shall have the meaning
          assigned to such term in Section 1.2 hereof.

                          (m) "Investment Amount" shall have the meaning
          assigned to such term in Section 5.1(f) hereof.

                          (n) "Material Adverse Effect" shall mean any adverse
          effect on the business, operations, properties, prospects or financial
          condition of the Company that is material and adverse to the Company
          and its subsidiaries and affiliates, taken as a whole and/or any
          condition, circumstance, or situation that would prohibit or otherwise
          materially interfere with the ability of the Company to perform any of
          its material obligations under this Agreement or the Registration
          Rights Agreement or to perform its obligations under any other
          Material Agreement (as defined in Section 2.1(u)).

                          (o) "Principal Market" shall mean initially the OTC
          Bulletin Board and shall include the American Stock Exchange, Nasdaq
          National Market, the Nasdaq Small-Cap Market and the New York Stock
          Exchange if the Company becomes listed and trades on such market or
          exchange after the date hereof.

                          (p) "Purchase Price" shall mean, with respect to
          Shares purchased during each applicable Settlement Period, 94% of the
          VWAP on the date in question.

                          (q) "Registration Statement" shall mean the
          registration statement under the Securities Act, to be filed with the
          Securities and Exchange Commission for the registration of the Shares
          pursuant to the Registration Rights Agreement attached hereto as
          Exhibit A (the "Registration Rights Agreement).

                                       27
<PAGE>   28

                          (r) "SEC" shall mean the Securities and Exchange
          Commission.

                          (s) "SEC Documents" shall mean the Company's latest
          Form 10-K or Form 10-KSB as of the time in question, all Forms 10-Q or
          10-QSB and 8-K filed thereafter, and the Proxy Statement for its
          latest fiscal year as of the time in question until such time as the
          Company no longer has an obligation to maintain the effectiveness of a
          Registration Statement as set forth in the Registration Rights
          Agreement.

                          (t) "Securities Act" shall mean the Securities and
          Exchange Act of 1934, as amended, and the rules and regulations
          promulgated thereunder.

                          (u) "Settlement" shall mean the delivery of the Draw
          Down Shares into the Purchaser's DTC account in exchange for payment
          therefor.

                          (v) "Settlement Date" shall have the meaning assigned
          to such term in Section 5.1(b).

                          (w) "Settlement Period" shall have the meaning
          assigned to such term in Section 5.1(b).

                          (x) "Shares" shall mean, collectively, the shares of
          Common Stock of the Company being subscribed for hereunder (the "Draw
          Down Shares") and the shares of Common Stock issuable upon exercise of
          the Warrant (the "Warrant Shares").

                          (y) "Threshold Price" shall mean the price per Share
          designated by the Company as the lowest VWAP during any Draw Down
          Pricing Period at which the Company shall sell its Common Stock in
          accordance with the Agreement.

                          (z) "Trading Day" shall mean any day on which the
          Principal Market is open for business.

                          (aa) "Transaction Documents" shall mean this
          Agreement, the Registration Rights Agreement and the Escrow Agreement.

                          (bb) "VWAP" shall mean the daily volume weighted
          average price of the Company's Common Stock on the Principal Market as
          reported by Bloomberg Financial L.P. (based on a trading day from 9:30
          a.m. Eastern Time to 4:02 p.m. Eastern Time) using the VAP function on
          the date in question.

                          (cc) "Warrant" shall mean the warrant issued to the
          Purchaser pursuant to Section 4.2(f) hereof.

                            [SIGNATURE PAGE FOLLOWS]

                                       28
<PAGE>   29

               [SIGNATURE PAGE TO COMMON STOCK PURCHASE AGREEMENT]

                  IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be duly executed by their respective authorize officer as of this
27th day of March, 2001.

                                      MIGRATEC, INC.

                                      By: /s/ T. Ulrich Brechbuhl
                                          --------------------------------------
                                          T. Ulrich Brechbuhl, President, Chief
                                          Financial Officer and Secretary

                                      IRONHEAD INVESTMENTS INC.

                                      By: /s/ DAVID SIMS
                                          --------------------------------------
                                            David Sims, Authorized Signatory

                                       29

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