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Exhibit 4.8    
    

 
 

$200,000,000
  
    THE TITAN CORPORATION
  
    8% Senior Subordinated Notes Due 2011
  
    REGISTRATION RIGHTS AGREEMENT

May 15,
2003 

Credit
Suisse First Boston LLC

Goldman, Sachs & Co.

Wachovia Securities, Inc.

c/o Credit Suisse First Boston LLC

     Eleven Madison Avenue

     New York, New York 10010-3629 

Dear
Sirs: 

        The
Titan Corporation, a Delaware corporation (the "Issuer"), proposes to issue and sell to Credit Suisse First Boston LLC, Goldman
Sachs & Co. and Wachovia Securities, Inc. (collectively, the "Initial Purchasers"), upon the terms set forth in a purchase agreement of
even date herewith (the "Purchase
Agreement"), $200,000,000 aggregate principal amount of its Series A 8% Senior Subordinated Notes Due 2011 (the "Initial
Securities") to be guaranteed (the "Guarantees") by each of the entities listed on the signature pages hereto (the
"Guarantors" and, collectively with the Issuer, the "Company"). The Initial Securities will be issued
pursuant to an Indenture, dated as of May 15, 2003 (the "Indenture"), among the Issuer, the Guarantors named therein and Deutsche Bank Trust
Company Americas, as trustee (the "Trustee"). As an inducement to the Initial Purchasers to enter into the Purchase Agreement, the Company agrees with
the Initial Purchasers, for the benefit of the Initial Purchasers and the holders of the Securities (as defined below) (collectively the "Holders"), as
follows: 

        1.     Registered Exchange Offer. Unless not permitted by applicable law, the Company shall prepare and, not later than
90 days (such 90th day being a "Filing Deadline") after the date on which the Initial Purchasers purchase the Initial Securities pursuant to the
Purchase Agreement (the "Closing Date"), file with the Securities and Exchange Commission (the
"Commission") a registration statement (the "Exchange Offer Registration Statement") on an appropriate
form under the Securities Act of 1933, as amended (the "Securities Act"), with respect to a proposed offer (the "Registered
Exchange Offer") to the Holders of Transfer Restricted Securities (as defined in Section 6 hereof), who are not prohibited by any law or policy of the Commission from
participating in the Registered Exchange Offer, to issue and deliver to such Holders, in exchange for the Initial Securities, a like aggregate principal amount of debt securities of the Company issued
under the Indenture, identical in all material respects to the Initial Securities and registered under the Securities Act (the "Exchange Securities").
The Company shall use its reasonable best efforts to (i) cause such Exchange Offer Registration Statement to become effective under the Securities Act within 210 days after the Closing
Date (such 210th day being an "Effectiveness Deadline") and (ii) keep the Exchange Offer Registration Statement effective for not less than 20
business days (or longer, if required by applicable law) after the date notice of the Registered Exchange Offer is mailed to the Holders (such period being called the "Exchange
Offer Registration Period"). 

        If
the Company commences the Registered Exchange Offer, the Company (i) will be entitled to consummate the Registered Exchange Offer 20 business days after such commencement
(provided that the Company has accepted all the Initial Securities theretofore validly tendered in accordance with the 

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terms
of the Registered Exchange Offer) and (ii) will be required to consummate the Registered Exchange Offer no later than 40 days after the date on which the Exchange Offer
Registration Statement is declared effective (such 40th day being the "Consummation Deadline"). 

        Following
the declaration of the effectiveness of the Exchange Offer Registration Statement, the Company shall promptly commence the Registered Exchange Offer, it being the objective of
such Registered Exchange Offer to enable each Holder of Transfer Restricted Securities electing to exchange the Initial Securities for Exchange Securities (assuming that such Holder is not an
affiliate of the Company within the meaning of the Securities Act, acquires the Exchange Securities in the ordinary course of such Holder's business and has no arrangements with any person to
participate in the distribution of the Exchange Securities and is not prohibited by any law or policy of the Commission from participating in the Registered Exchange Offer) to trade such Exchange
Securities from and after
their receipt without any limitations or restrictions under the Securities Act and without material restrictions under the securities laws of the several states of the United States. 

        The
Company acknowledges that, pursuant to current interpretations by the Commission's staff of Section 5 of the Securities Act, in the absence of an applicable exemption
therefrom, (i) each Holder which is a broker-dealer electing to exchange Initial Securities, acquired for its own account as a result of market making activities or other trading activities,
for Exchange Securities (an "Exchanging Dealer"), is required to deliver a prospectus containing the information set forth (in substantially the same
form) in (a) Annex A hereto on the cover, (b) Annex B hereto in the "Exchange Offer Procedures" section and the "Purpose of the Exchange Offer" section, and (c) Annex C hereto in
the "Plan of Distribution" section of such prospectus in connection with a sale of any such Exchange Securities received by such Exchanging Dealer pursuant to the Registered Exchange Offer and
(ii) an Initial Purchaser that elects to sell Securities (as defined below) acquired in exchange for Initial Securities constituting any portion of an unsold allotment, is required to deliver a
prospectus containing the information required by Items 507 or 508 of Regulation S-K under the Securities Act, as applicable, in connection with such sale. 

        The
Company shall use its reasonable best efforts to keep the Exchange Offer Registration Statement effective and to amend and supplement the prospectus contained therein, in order to
permit such prospectus to be lawfully delivered by all persons subject to the prospectus delivery requirements of the Securities Act for such period of time as such persons must comply with such
requirements in order to resell the Exchange Securities; provided, however, that (i) in the case where such prospectus and any amendment or
supplement thereto must be delivered by an Exchanging Dealer or an Initial Purchaser, such period shall be the lesser of 180 days and the date on which all Exchanging Dealers and the Initial
Purchasers have sold all Exchange Securities held by them (unless such period is extended pursuant to Section 3(j) below) and (ii) the Company shall make such prospectus and any
amendment or supplement thereto available to any broker-dealer for use in connection with any resale of any Exchange Securities for a period of not less than 180 days after the consummation of
the Registered Exchange Offer. 

        If,
upon consummation of the Registered Exchange Offer, any Initial Purchaser holds Initial Securities acquired by it as part of its initial distribution, the Company, simultaneously
with the delivery of the Exchange Securities pursuant to the Registered Exchange Offer, shall issue and deliver to such Initial Purchaser upon the written request of such Initial Purchaser, in
exchange (the "Private Exchange") for the Initial Securities held by such Initial Purchaser, a like principal amount of debt securities of the Company
issued under the Indenture and identical in all material respects to the Initial Securities (the "Private Exchange Securities"). The Initial Securities,
the Exchange Securities and the Private Exchange Securities are herein collectively called the "Securities". 

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        In
connection with the Registered Exchange Offer, the Company shall: 

        (a)   mail
to each record Holder a copy of the prospectus forming part of the Exchange Offer Registration Statement, together with an appropriate letter of transmittal and
related documents; 

        (b)   keep
the Registered Exchange Offer open for not less than 20 business days (or longer, if required by applicable law) after the date notice thereof is mailed to the
Holders; 

        (c)   utilize
the services of a depositary for the Registered Exchange Offer with an address in the Borough of Manhattan, The City of New York, which may be the Trustee or an
affiliate of the Trustee; 

        (d)   permit
Holders to withdraw tendered Securities at any time prior to the close of business, New York time, on the last business day on which the Registered Exchange Offer
shall remain open; and 

        (e)   otherwise
comply with all applicable laws. 

        As
soon as practicable after the close of the Registered Exchange Offer or the Private Exchange, as the case may be, the Company shall: 

        (x)   accept
for exchange all the Securities validly tendered and not withdrawn pursuant to the Registered Exchange Offer and the Private Exchange; 

        (y)   deliver
to the Trustee for cancellation all the Initial Securities so accepted for exchange; and 

        (z)   cause
the Trustee to authenticate and deliver promptly to each record Holder of the Initial Securities, Exchange Securities or Private Exchange Securities, as the case
may be, equal in principal amount to the Initial Securities of such Holder so accepted for exchange. 

        The
Indenture will provide that the Exchange Securities will not be subject to the transfer restrictions set forth in the Indenture and that all the Securities will vote and consent
together on all matters as one class and that none of the Securities will have the right to vote or consent as a class separate from one another on any matter. 

        Interest
on each Exchange Security and Private Exchange Security issued pursuant to the Registered Exchange Offer and in the Private Exchange will accrue from the last interest payment
date on which
interest was paid on the Initial Securities surrendered in exchange therefor or, if no interest has been paid on the Initial Securities, from the date of original issue of the Initial Securities. 

        Each
Holder participating in the Registered Exchange Offer shall be required to represent to the Company that at the time of the consummation of the Registered Exchange Offer
(i) any Exchange Securities received by such Holder will be acquired in the ordinary course of business, (ii) such Holder will have no arrangements or understanding with any person to
participate in the distribution of the Securities within the meaning of the Securities Act, (iii) such Holder is not an "affiliate," as defined in Rule 405 of the Securities Act, of the
Company or if it is an affiliate, such Holder will comply with the registration and prospectus delivery requirements of the Securities Act to the extent applicable, (iv) if such Holder is not a
broker-dealer, that it is not engaged in, and does not intend to engage in, the distribution of the Exchange Securities and (v) if such Holder is a broker-dealer, that it will receive Exchange
Securities for its own account in exchange for Initial Securities that were acquired as a result of market-making activities or other trading activities and that it will be required to acknowledge
that it will deliver a prospectus in connection with any resale of such Exchange Securities. 

        Notwithstanding
any other provisions hereof, but subject to the Company's right to suspend use of the prospectus relating to the Securities pursuant to Section 3(b), the Company
will ensure that (i) any Exchange Offer Registration Statement and any amendment thereto and any prospectus forming part 

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thereof
and any supplement thereto complies in all material respects with the Securities Act and the rules and regulations thereunder, (ii) any Exchange Offer Registration Statement and any
amendment thereto does not, when it becomes effective, contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements
therein not misleading and (iii) any prospectus forming part of any Exchange Offer Registration Statement, and any supplement to such prospectus, does not include an untrue statement of a
material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not
misleading. 

        2.     Shelf Registration. If, (i) because of any change in law or in applicable interpretations thereof by the staff of
the Commission, the Company is not permitted to effect a Registered Exchange Offer, as contemplated by Section 1 hereof, (ii) the Registered Exchange Offer is not consummated by the
250th day after the Closing Date, (iii) any Initial Purchaser so requests with respect to the Initial Securities (or the Private Exchange Securities) not eligible to be exchanged for Exchange
Securities in the Registered Exchange Offer and held by it following consummation of the Registered Exchange Offer or (iv) any Holder (other than an Exchanging Dealer) is not eligible to
participate in the Registered Exchange Offer or, in the case of any Holder (other than an Exchanging Dealer) that participates in the Registered Exchange Offer, such Holder does not receive freely
tradable Exchange Securities on the date of the exchange and any such Holder so requests, the Company shall take the following actions (the date on which any of the conditions described in the
foregoing clauses (i) through (iv) occur, including in the case of clauses (iii) or (iv) the receipt of the required notice, being a "Trigger
Date"): 

        (a)   The
Company shall promptly (but in no event more than 30 days after the Trigger Date (such 30th day being a "Filing
Deadline")) file with the Commission and thereafter use its reasonable best efforts to cause to be declared effective no later than 60 days after the Trigger Date (such
60th day being an "Effectiveness Deadline") a registration statement (the "Shelf Registration Statement"
and, together with the Exchange Offer Registration Statement, a "Registration Statement") on an appropriate form under the Securities Act relating to
the offer and sale of the Transfer Restricted Securities by the Holders thereof from time to time in accordance with the methods of distribution set forth in the Shelf Registration Statement and
Rule 415 under the Securities Act (hereinafter, the "Shelf Registration"); provided, however, that no Holder (other than an Initial Purchaser)
shall be entitled to have the Securities held by it covered by such Shelf Registration Statement unless such Holder agrees in writing to be bound by all the provisions of this Agreement applicable to
such Holder. 

        (b)   The
Company shall use its reasonable best efforts to keep the Shelf Registration Statement continuously effective in order to permit the prospectus included therein to
be lawfully delivered by the Holders of the relevant Securities, for a period of two years (or for such longer period if extended pursuant to Section 3(j) below) from the date of its
effectiveness or such shorter period that will terminate when all the Securities covered by the Shelf Registration Statement (i) have been sold pursuant thereto or pursuant to Rule 144
or (ii) are no longer restricted securities (as defined in Rule 144 under the Securities Act, or any successor rule thereof) or are saleable pursuant to Rule 144(k). 

        (c)   Notwithstanding
any other provisions of this Agreement to the contrary, but subject to the Company's right to suspend use of the prospectus relating to the Securities
pursuant to Section 3(b), the Company shall cause the Shelf Registration Statement and the related prospectus and any amendment or supplement thereto, as of the effective date of the Shelf
Registration Statement, amendment or supplement, (i) to comply in all material respects with the applicable requirements of the Securities Act and the rules and regulations of the Commission
and (ii) not to contain any untrue statement of a material fact or omit to state a material fact required to be 

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stated
therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading. 

        3.     Registration Procedures. In connection with any Shelf Registration contemplated by Section 2 hereof and, to the
extent applicable, any Registered Exchange Offer contemplated by Section 1 hereof, the following provisions shall apply: 

        (a)   The
Company shall (i) furnish to each Initial Purchaser, prior to the filing thereof with the Commission, a copy of the Registration Statement and each amendment
thereof and each supplement, if any, to the prospectus included therein and, in the event that an Initial Purchaser (with respect to any portion of an unsold allotment from the original offering) is
participating in the Registered Exchange Offer or the Shelf Registration Statement, the Company shall use its reasonable best efforts to reflect in each such document, when so filed with the
Commission, such comments as such Initial
Purchaser reasonably may propose; (ii) include the information set forth in Annex A hereto on the cover, in Annex B hereto in the "Exchange Offer Procedures" section and the "Purpose of the
Exchange Offer" section and in Annex C hereto in the "Plan of Distribution" section of the prospectus forming a part of the Exchange Offer Registration Statement and include the information set forth
in Annex D hereto in the Letter of Transmittal delivered pursuant to the Registered Exchange Offer (in each case in substantially the form set forth in Annex A, B, C or D, as applicable);
(iii) if requested by an Initial Purchaser, include the information required by Items 507 or 508 of Regulation S-K under the Securities Act, as applicable, in the prospectus
forming a part of the Exchange Offer Registration Statement; (iv) include within the prospectus contained in the Exchange Offer Registration Statement a section entitled "Plan of Distribution,"
reasonably acceptable to the Initial Purchasers, which shall contain a summary statement of the positions taken or policies made by the staff of the Commission with respect to the potential
"underwriter" status of any broker-dealer that is the beneficial owner (as defined in Rule 13d-3 under the Securities Exchange Act of 1934, as amended (the "Exchange Act")) of
Exchange Securities received by such broker-dealer in the Registered Exchange Offer (a "Participating Broker-Dealer"); and (v) in the case of a
Shelf Registration Statement, include the names of the Holders who propose to sell Securities pursuant to the Shelf Registration Statement as selling securityholders, subject to the receipt from such
Holders of such information that the Company may reasonably request. 

        (b)   The
Company shall give written notice to the Initial Purchasers, the Holders of the Securities (but not in connection with clause (ii) with respect to a
Registration Statement that has not become effective) and any Participating Broker-Dealer from whom the Company has received prior written notice that it will be a Participating Broker-Dealer in the
Registered Exchange Offer (but not in connection with clause (ii) with respect to a Registration Statement that has not become effective) (which notice pursuant to clauses
(ii)-(v) hereof shall be accompanied by an instruction to suspend the use of the prospectus until the requisite changes have been made): 

          (i)  when
the Registration Statement or any amendment thereto has been filed with the Commission and when the Registration Statement or any post-effective
amendment thereto has become effective; 

         (ii)  of
any request by the Commission for amendments or supplements to the Registration Statement or the prospectus included therein or for additional information; 

        (iii)  of
the issuance by the Commission of any stop order suspending the effectiveness of the Registration Statement or the initiation of any proceedings for that purpose; 

        (iv)  of
the receipt by the Company or its legal counsel of any notification with respect to the suspension of the qualification of the Securities for sale in any
jurisdiction or the initiation or written threat of any proceeding for such purpose; and 

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         (v)  of
the happening of any event that requires the Company to make changes in the Registration Statement or the prospectus in order that the Registration Statement or the
prospectus do not contain an untrue statement of a material fact nor omit to state a material fact required to be stated therein or necessary to make the statements therein (in the case of the
prospectus, in light of the circumstances under which they were made) not misleading. 

        (c)   The
Company shall make every reasonable effort to obtain the withdrawal at the earliest possible time, of any order suspending the effectiveness of the Registration
Statement. 

        (d)   The
Company shall furnish to each Holder of Securities included within the coverage of the Shelf Registration, without charge, at least one copy of the Shelf
Registration Statement and any post-effective amendment thereto, including financial statements and schedules, and, if the Holder so requests in writing, all exhibits thereto (including
those, if any, incorporated by reference). 

        (e)   The
Company shall deliver to each Exchanging Dealer who so requests and each Initial Purchaser, and to any other Holder who so requests, without charge, at least one
copy of the Exchange Offer Registration Statement and any post-effective amendment thereto, including financial statements and schedules, and, if any Initial Purchaser or any such Holder
requests, all exhibits thereto (including those incorporated by reference). 

        (f)    The
Company shall, during the Shelf Registration Period, deliver to each Holder of Securities included within the coverage of the Shelf Registration, without charge, as
many copies of the prospectus (including each preliminary prospectus) included in the Shelf Registration Statement and any amendment or supplement thereto as such person may reasonably request. The
Company consents, subject to the provisions of this Agreement, to the use of the prospectus or any amendment or supplement thereto by each of the selling Holders of the Securities in connection with
the offering and sale of the Securities covered by the prospectus, or any amendment or supplement thereto, included in the Shelf Registration Statement. 

        (g)   The
Company shall deliver to each Initial Purchaser, any Exchanging Dealer, any Participating Broker-Dealer and such other persons required to deliver a prospectus
following the Registered Exchange Offer, without charge, as many copies of the final prospectus included in the Exchange Offer
Registration Statement and any amendment or supplement thereto as such persons may reasonably request. The Company consents, subject to the provisions of this Agreement, to the use of the prospectus
or any amendment or supplement thereto by any Initial Purchaser, if necessary, any Participating Broker-Dealer and such other persons required to deliver a prospectus following the Registered Exchange
Offer in connection with the offering and sale of the Exchange Securities covered by the prospectus, or any amendment or supplement thereto, included in such Exchange Offer Registration Statement. 

        (h)   Prior
to any public offering of the Securities pursuant to any Registration Statement the Company shall register or qualify or cooperate with the Holders of the
Securities included therein and their respective counsel in connection with the registration or qualification of the Securities for offer and sale under the securities or "blue sky" laws of such
states of the United States as any Holder of the Securities reasonably requests in writing and do any and all other acts or things necessary or advisable to enable the offer and sale in such states of
the Securities covered by such Registration Statement; provided, however, that the Company shall not be required to (i) qualify generally to do
business in any state where it is not then so qualified or (ii) take any action which would subject it to general service of process or to taxation in any state where it is not then so subject. 

        (i)    The
Company shall cooperate with the Holders of the Securities to facilitate the timely preparation and delivery of certificates, if any, representing the Securities to
be sold pursuant to 

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any
Registration Statement free of any restrictive legends and in such denominations and registered in such names as the Holders may request a reasonable period of time prior to sales of the
Securities pursuant to such Registration Statement. 

        (j)    Upon
the occurrence of any event contemplated by paragraphs (ii) through (v) of Section 3(b) above during the period for which the Company is
required to maintain an effective Registration Statement, the Company shall promptly prepare and file a post-effective amendment to the Registration Statement or a supplement to the
related prospectus and any other required document so that, as thereafter delivered to Holders of the Securities or purchasers of Securities, the prospectus will not contain an 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 light of the circumstances under which they were made, not misleading. If
the Company notifies the Initial Purchasers, the Holders of the Securities and any known Participating Broker-Dealer in accordance with paragraphs (ii) through (v) of Section 3(b)
above to suspend the use of the prospectus until the requisite changes to the prospectus have been made, then the Initial Purchasers, the Holders of the Securities and any such Participating
Broker-Dealers shall suspend use of such prospectus, and the period of effectiveness of the Shelf Registration Statement provided for in Section 2(b) above and of the Exchange Offer
Registration Statement provided for in Section 1 above shall each be extended by the number of days from and including the date of the giving of such notice to and including the date when the
Initial Purchasers, the Holders of the Securities and any known Participating Broker-Dealer shall have received such amended or supplemented prospectus pursuant to this Section 3(j) and written
instruction from the Company that they may resume use of such amended or supplemented prospectus. 

        (k)   Not
later than the effective date of the applicable Registration Statement, the Company will provide a CUSIP number for the Initial Securities, the Exchange Securities
or the Private Exchange Securities, as the case may be, and provide the applicable trustee with printed certificates for the Initial Securities, the Exchange Securities or the Private Exchange
Securities, as the case may be, in a form eligible for deposit with The Depository Trust Company. 

        (l)    The
Company will comply with all rules and regulations of the Commission to the extent and so long as they are applicable to the Registered Exchange Offer or the Shelf
Registration and will make generally available to its security holders (or otherwise provide in accordance with Section 11(a) of the Securities Act) an earnings statement satisfying the
provisions of Section 11(a) of the Securities Act, no later than 45 days after the end of a 12-month period (or 90 days, if such period is a fiscal year) beginning
with the first month of the Company's first fiscal quarter commencing after the effective date of the Registration Statement, which statement shall cover such 12-month period. 

        (m)  The
Company shall cause the Indenture to be qualified under the Trust Indenture Act of 1939, as amended, in a timely manner and containing such changes, if any, as shall
be necessary for such qualification. In the event that such qualification would require the appointment of a new trustee under the Indenture, the Company shall appoint a new trustee thereunder
pursuant to the applicable provisions of the Indenture. 

        (n)   The
Company may require each Holder of Securities to be sold pursuant to the Shelf Registration Statement to furnish to the Company such information regarding the Holder
and the distribution of the Securities as the Company may from time to time reasonably require for inclusion in the Shelf Registration Statement, and the Company may exclude from such registration the
Securities of any Holder that fails to furnish such information within a reasonable time after receiving such request. 

        (o)   The
Company shall enter into such customary agreements (including, if requested, an underwriting agreement in customary form) and take all such other action, if any, as
any Holder of 

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the
Securities shall reasonably request in order to facilitate the disposition of the Securities pursuant to any Shelf Registration. 

        (p)   In
the case of any Shelf Registration, the Company shall, upon receipt of a confidentiality agreement reasonably satisfactory to the Company, (i) make reasonably
available for inspection by the Holders of the Securities, any underwriter participating in any disposition pursuant to the Shelf Registration Statement and any attorney, accountant or other agent
retained by the Holders of the Securities or any such underwriter all relevant financial and other records, pertinent corporate documents and properties of the Company and (ii) cause the
Company's officers, directors, employees,
accountants and auditors to supply all relevant information reasonably requested by the Holders of the Securities or any such underwriter, attorney, accountant or agent in connection with the Shelf
Registration Statement, in each case, as shall be reasonably necessary to enable such persons, to conduct a reasonable investigation within the meaning of Section 11 of the Securities Act;  provided, however,
that the foregoing inspection and information gathering shall be coordinated on behalf of the Holders and the other parties entitled
thereto, by one counsel designated by and on behalf of such Holders and such other parties. 

        (q)   In
the case of any Shelf Registration, the Company, if requested by any Holder of Securities covered thereby, shall cause (i) its counsel to deliver an opinion
and updates thereof relating to the Securities in customary form covering such matters and with such exceptions as are customarily covered or taken in opinions requested in underwritten offerings and
such other matters as may be reasonably requested by such Holders and underwriters (it being agreed that the matters to be covered by such opinion shall include, without limitation, as of the date of
the opinion and as of the effective date of the Shelf Registration Statement or most recent post-effective amendment thereto, as the case may be, a statement by such counsel regarding the
absence from such Shelf Registration Statement and the prospectus included therein, as then amended or supplemented, including the documents incorporated by reference therein, of an untrue statement
of a material fact or the omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading); (ii) its officers to execute and
deliver all customary documents and certificates and updates thereof requested by any underwriters of the applicable Securities and (iii) its independent public accountants and the independent
public accountants with respect to any other entity for which financial information is provided in the Shelf Registration Statement to provide to the selling Holders of the applicable Securities and
any underwriter therefor a comfort letter in customary form and covering matters of the type customarily covered in comfort letters in connection with primary underwritten offerings, subject to
receipt of appropriate documentation as contemplated, and only if permitted, by Statement of Auditing Standards No. 72. 

        (r)   In
the case of the Registered Exchange Offer, if reasonably requested by any Initial Purchaser or any known Participating Broker-Dealer, the Company shall cause
(i) its counsel to deliver to such Initial Purchaser or such Participating Broker-Dealer a signed opinion in the form set forth in Section 6(c) of the Purchase Agreement with such
changes as are customary in connection with the preparation of a Registration Statement and (ii) its independent public accountants and the independent public accountants with respect to any
other entity for which financial information is provided in the Registration Statement to deliver to such Initial Purchaser or such Participating Broker-Dealer a comfort letter, in customary form,
meeting the requirements as to the substance thereof as set forth in Section 6(a) of the Purchase Agreement, with appropriate date changes. 

        (s)   If
a Registered Exchange Offer or a Private Exchange is to be consummated, upon delivery of the Initial Securities by Holders to the Company (or to such other Person as
directed by the Company) in exchange for the Exchange Securities or the Private Exchange Securities, as the case may be, the Company shall mark, or caused to be marked, on the Initial Securities so 

8

 

exchanged
that such Initial Securities are being canceled in exchange for the Exchange Securities or the Private Exchange Securities, as the case may be; in no event shall the Initial Securities be
marked as paid or otherwise satisfied. 

        (t)    In
the event that any broker-dealer registered under the Exchange Act shall underwrite any Securities or participate as a member of an underwriting syndicate or selling
group or "assist in the distribution" (within the meaning of the Conduct Rules (the "Rules") of the National Association of Securities
Dealers, Inc. ("NASD")) thereof, whether as a Holder of such Securities or as an underwriter, a placement or sales agent or a broker or dealer in
respect thereof, or otherwise, the Company will assist such broker-dealer in complying with the requirements of such Rules, including, without limitation, by (i) if such Rules, including
Rule 2720, shall so require, engaging a "qualified independent underwriter" (as defined in Rule 2720) to participate in the preparation of the Registration Statement relating to such
Securities, to exercise usual standards of due diligence in respect thereto and, if any portion of the offering contemplated by such Registration Statement is an underwritten offering or is made
through a placement or sales agent, to recommend the yield of such Securities, (ii) indemnifying any such qualified independent underwriter to the extent of the indemnification of underwriters
provided in Section 5 hereof and (iii) providing such information to such broker-dealer as may be required in order for such broker-dealer to comply with the requirements of the Rules. 

        (u)   The
Company shall use its reasonable best efforts to take all other steps necessary to effect the registration of the Securities covered by a Registration Statement
contemplated hereby. 

        4.     Registration Expenses. (a) All expenses incident to the Company's performance of and compliance with this Agreement
will be borne by the Company, regardless of whether a Registration Statement is ever filed or becomes effective, including without limitation; 

          (i)  all
registration and filing fees and expenses; 

         (ii)  all
fees and expenses of compliance with federal securities and state "blue sky" or securities laws; 

        (iii)  all
expenses of printing (including printing certificates for the Securities to be issued in the Registered Exchange Offer and the Private Exchange and printing of
prospectuses), messenger and delivery services and telephone; 

        (iv)  all
fees and disbursements of counsel for the Company; 

         (v)  all
application and filing fees in connection with listing the Exchange Securities on a national securities exchange or automated quotation system pursuant to the
requirements hereof; and 

        (vi)  all
fees and disbursements of independent certified public accountants of the Company (including the expenses of any special audit and comfort letters required by or
incident to such performance). 

The
Company will bear its internal expenses (including, without limitation, all salaries and expenses of its officers and employees performing legal or accounting duties), the expenses of any annual
audit and the fees and expenses of any person, including special experts, retained by the Company. 

        (b)   In
connection with any Registration Statement required by this Agreement, the Company will reimburse the Initial Purchasers and the Holders of Transfer Restricted
Securities who are tendering Initial Securities in the Registered Exchange Offer and/or selling or reselling Securities pursuant to the "Plan of Distribution" contained in the Exchange Offer
Registration Statement or the Shelf Registration Statement, as applicable, for the reasonable fees and disbursements of not 

9

 

more
than one counsel, who shall be chosen by the Holders of a majority in principal amount of the Transfer Restricted Securities for whose benefit such Registration Statement is being prepared. 

        5.     Indemnification. (a) The Company agrees to indemnify and hold harmless each Holder of the Securities, any
Participating Broker-Dealer and each person, if any, who controls such Holder or such Participating Broker-Dealer within the meaning of the Securities Act or the Exchange Act (each Holder, any
Participating Broker-Dealer and such controlling persons are referred to collectively as the "Indemnified Parties") from and against any losses, claims,
damages or liabilities, joint or several, or any actions in respect thereof (including, but not limited to, any losses, claims, damages, liabilities or actions relating to purchases and sales of the
Securities) to which each Indemnified Party may become subject under the Securities Act, the Exchange Act or otherwise, insofar as such losses, claims, damages, liabilities or actions arise out of or
are based upon any untrue statement or alleged untrue statement of a material fact contained in a Registration Statement or prospectus or in any amendment or supplement thereto or in any preliminary
prospectus relating to a Shelf Registration, or arise out of, or are based upon, the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make
the statements therein not misleading, and shall reimburse, as incurred, the Indemnified Parties for any legal or other expenses reasonably incurred by them in connection with investigating or
defending any such loss, claim, damage, liability or action in respect thereof; provided, however, that (i) the Company shall not be liable in
any such case to the extent that such loss, claim, damage or liability arises out of or is based upon any untrue statement or alleged untrue statement or omission or alleged omission made in a
Registration Statement or prospectus or in any amendment or supplement thereto or in any preliminary prospectus relating to a Shelf Registration in reliance upon and in conformity with written
information pertaining to such Holder or Participating Broker-Dealer and furnished to the Company by or on behalf of such Holder or Participating Broker-Dealer specifically for inclusion therein and
(ii) with respect to any untrue statement or omission or alleged untrue statement or omission made in any preliminary prospectus relating to a Shelf Registration Statement, the indemnity
agreement contained in this subsection (a) shall not inure to the benefit of any Holder or Participating Broker-Dealer from whom the person asserting any such losses, claims, damages or
liabilities purchased the Securities concerned, to the extent that a prospectus relating to such Securities was required to be delivered by such Holder or Participating Broker-Dealer under the
Securities Act in connection with such purchase and any such loss, claim, damage or liability of such Holder or Participating Broker-Dealer results from the fact that there was not sent or given to
such person, at or prior to the written confirmation of the sale of such Securities to such person, a copy of the final prospectus if the Company had previously furnished copies thereof to such Holder
or Participating Broker-Dealer; provided further, however, that this indemnity agreement will be in addition to any liability which the Company may
otherwise have to such Indemnified Party. The Company shall also indemnify underwriters, their officers and directors and each person who controls such underwriters within the meaning of the
Securities Act or the Exchange Act to the same extent as provided above with respect to the indemnification of the Holders of the Securities if requested by such Holders. 

        (b)   Each
Holder of the Securities, severally and not jointly, will indemnify and hold harmless the Company, each of the directors of the Company, each of the officers of the
Company who signs a Shelf Registration Statement and each person, if any, who controls the Company within the meaning of the Securities Act or the Exchange Act from and against any losses, claims,
damages or liabilities or any actions in respect thereof, to which the Company, each of the directors of the Company, each of the officers of the Company who signs such Shelf Registration Statement or
any such controlling person may become subject under the Securities Act, the Exchange Act or otherwise, insofar as such losses, claims, damages, liabilities or actions arise out of or are based upon
any untrue statement or alleged untrue statement of a material fact contained in a Registration Statement or prospectus or in any amendment or supplement thereto or in any preliminary prospectus
relating to a Shelf Registration, or arise out of or are based upon the 

10

 

omission
or alleged omission to state therein a material fact necessary to make the statements therein not misleading, but in each case only to the extent that the untrue statement or omission or
alleged untrue statement or omission was made in reliance upon and in conformity with written information pertaining to such Holder and furnished to the Company by or on behalf of such Holder
specifically for inclusion therein; and, subject to the limitation set forth immediately preceding this clause, shall reimburse, as incurred, the Company, each of the directors of the Company, each of
the officers of the Company who signs such Shelf Registration Statement or any such controlling person for any legal or other expenses reasonably incurred by the Company, each of the directors of the
Company, each of the officers of the Company who signs such Shelf Registration Statement or any such controlling person in connection with investigating or defending any loss, claim, damage, liability
or action in respect thereof. This indemnity agreement will be in addition to any liability which such Holder may otherwise have to the Company, each of the directors of the Company, each of the
officers of the Company who signs such Shelf Registration Statement or any of its controlling persons. 

        (c)   Promptly
after receipt by an indemnified party under this Section 5 of notice of the commencement of any action or proceeding (including a governmental
investigation), such indemnified party will, if a claim in respect thereof is to be made against the indemnifying party under this Section 5, notify the indemnifying party of the commencement
thereof; but the omission so to notify the indemnifying party will not, in any event, relieve the indemnifying party from any obligations to any indemnified party other than the indemnification
obligation provided in paragraph (a) or (b) above. In case any such action is brought against any indemnified party, and it notifies the indemnifying party of the commencement thereof,
the indemnifying party will be entitled to participate therein and, to the extent that it may wish, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with
counsel reasonably satisfactory to such indemnified party (who shall not, except with the consent of the indemnified party, be counsel to the indemnifying party), and after notice from the
indemnifying party to such indemnified party of its election so to assume the defense thereof the indemnifying party will not be liable to such indemnified party under this Section 5 for any
legal or other expenses, other than reasonable costs of investigation, subsequently incurred by such indemnified party in connection with the defense thereof. No indemnifying party shall, without the
prior written consent of the indemnified party, effect any settlement of any pending or threatened action in respect of which any indemnified party is or could have been a party and indemnity could
have been sought hereunder by such indemnified party unless such settlement includes an unconditional release of such indemnified party from all liability on any claims that are the subject matter of
such action, and does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified party. 

        (d)   If
the indemnification provided for in this Section 5 is unavailable or insufficient to hold harmless an indemnified party under subsections (a) or
(b) above, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party as a result of the losses, claims, damages or liabilities (or actions in respect
thereof) referred to in subsection (a) or (b) above (i) in such proportion as is appropriate to reflect the relative benefits received by the indemnifying party or parties on the
one hand and the indemnified party on the other from the exchange of the Securities, pursuant to the Registered Exchange Offer, or (ii) if the allocation provided by the foregoing
clause (i) is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault
of the indemnifying party or parties on the one hand and the indemnified party on the other in connection with the statements or omissions that resulted in such losses, claims, damages or liabilities
(or actions in respect thereof) as well as any other relevant equitable considerations. The relative fault of the parties shall be determined by reference to, among other things, whether the untrue or
alleged untrue statement of a material fact or the omission or 

11

 

alleged
omission to state a material fact relates to information supplied by the Company on the one hand or such Holder or such other indemnified party, as the case may be, on the other, and the
parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The amount paid by an indemnified party as a result of the losses, claims,
damages or liabilities referred to in the first sentence of this subsection (d) shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in
connection with investigating or defending any action or claim which is the subject of this subsection (d). Notwithstanding any other provision of this Section 5(d), the Holders of the
Securities shall not be required to contribute any amount in excess of the amount by which the net proceeds received by such Holders from the sale of the Securities pursuant to a Registration
Statement exceeds the amount of damages which such Holders have otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. No person guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent
misrepresentation. For purposes of this paragraph (d), each person, if any, who controls such indemnified party within the meaning of the Securities Act or the Exchange Act shall have the same
rights to contribution as such indemnified party and each person, if any, who controls the Company within the meaning of the Securities Act or the Exchange Act shall have the same rights to
contribution as the Company. 

        (e)   The
agreements contained in this Section 5 shall survive the sale of the Securities pursuant to a Registration Statement and shall remain in full force and
effect, regardless of any termination or cancellation of this Agreement or any investigation made by or on behalf of any indemnified party. 

        6.     Liquidated Damages Under Certain Circumstances. (a) Liquidated damages ("Liquidated
Damages") with respect to Transfer Restricted Securities shall be assessed as follows if any of the following events occur (each such event in clauses (i) through
(iv) below being herein called a "Registration Default"): 

          (i)  any
Registration Statement required by this Agreement is not filed with the Commission on or prior to the applicable Filing Deadline; 

         (ii)  any
Registration Statement required by this Agreement is not declared effective by the Commission on or prior to the applicable Effectiveness Deadline; 

        (iii)  the
Registered Exchange Offer has not been consummated on or prior to the Consummation Deadline; or 

        (iv)  any
Registration Statement required by this Agreement has been declared effective by the Commission but (A) such Registration Statement thereafter ceases to be
effective or (B) such Registration Statement or the related prospectus ceases to be usable in connection with resales of Transfer Restricted Securities during the periods specified herein
because either (1) any event occurs as a result of which the related prospectus forming part of such Registration Statement would include any untrue statement of a material fact or omit to
state any material fact necessary to make the statements therein in the light of the circumstances under which they were made not misleading, or (2) it shall be necessary to amend such
Registration Statement or supplement the related prospectus, to comply with the Securities Act or the Exchange Act or the respective rules thereunder. 

Each
of the foregoing will constitute a Registration Default whatever the reason for any such event and whether it is voluntary or involuntary or is beyond the control of the Company or pursuant to
operation of law or as a result of any action or inaction by the Commission. 

12

 

        Liquidated
Damages shall accrue on the Transfer Restricted Securities over and above the interest set forth in the title of the Securities from and including the date on which any such
Registration Default shall occur to but excluding the date on which all such Registration Defaults have been cured, at a rate of 0.25% per annum (the "Liquidated Damages
Rate") for the first 90-day period immediately following the occurrence of such Registration Default. The Liquidated Damages Rate shall increase by an additional
0.25% per annum with respect to each subsequent 90-day period until all Registration Defaults have been cured, up to a maximum aggregate Liquidated Damages Rate for all Registration
Defaults under this Agreement of 2.0% per annum. The Company will not be required to pay Liquidated Damages for more than one Registration Default at any given time. 

        (b)   A
Registration Default referred to in Section 6(a)(iv) hereof shall be deemed not to have occurred and be continuing in relation to a Shelf Registration
Statement or the related prospectus if (i) such Registration Default has occurred solely as a result of (x) the filing of a post-effective amendment to such Shelf
Registration Statement to incorporate annual audited financial information with respect to the Company where such post-effective amendment is not yet effective and needs to be declared
effective to permit Holders to use the related prospectus or (y) other material
events with respect to the Company that would need to be described in such Shelf Registration Statement or the related prospectus and (ii) in the case of clause (y), the Company is
proceeding promptly and in good faith to amend or supplement such Shelf Registration Statement and related prospectus to describe such events; provided,
however, that in any case if such Registration Default occurs for a continuous period in excess of 45 days, Liquidated Damages shall be payable in accordance with
paragraph (a) above from the day such Registration Default occurs until such Registration Default is cured. 

        (c)   Any
amounts of Liquidated Damages due pursuant to Section 6(a) will be payable in cash on the regular interest payment dates with respect to the applicable
Transfer Restricted Securities. The amount of Liquidated Damages will be determined by multiplying the applicable Liquidated Damages Rate by the principal amount of the applicable Transfer Restricted
Securities and further multiplied by a fraction, the numerator of which is the number of days such Liquidated Damages Rate was applicable during such period (determined on the basis of a
360-day year comprised of twelve 30-day months), and the denominator of which is 360. 

        (d)   "Transfer Restricted Securities" means each Security until (i) the date on which such Security has been exchanged
by a person other than a broker-dealer for a freely transferable Exchange Security in the Registered Exchange Offer, (ii) following the exchange by a broker-dealer in the Registered Exchange
Offer of an Initial Security for an Exchange Security, the date on which such Exchange Security is sold to a purchaser who receives from such broker-dealer on or prior to the date of such sale a copy
of the prospectus contained in the Exchange Offer Registration Statement, (iii) the date on which such Security has been effectively registered under the Securities Act and disposed of in
accordance with the Shelf Registration Statement or (iv) the date on which such Security is distributed to the public pursuant to Rule 144 under the Securities Act or is saleable
pursuant to Rule 144(k) under the Securities Act. 

        7.     Rules 144 and 144A. The Company shall use its reasonable best efforts to file the reports required to be filed by
it under the Securities Act and the Exchange Act in a timely manner and, if at any time the Company is not required to file such reports, it will, upon the request of any Holder of Securities, make
publicly available other information so long as necessary to permit sales of their securities pursuant to Rules 144 and 144A. The Company covenants that it will take such further action as any
Holder of Securities may reasonably request, all to the extent required from time to time to enable such Holder to sell Securities without registration under the Securities Act within the limitation
of the exemptions provided by Rules 144 and 144A (including the requirements of Rule 144A(d)(4)). The Company will provide a copy of this Agreement to prospective purchasers of Initial
Securities identified to the Company by the Initial Purchasers upon request. Upon the request of any Holder of 

13

 

Initial
Securities, the Company shall deliver to such Holder a written statement as to whether it has complied with such requirements. Notwithstanding the foregoing, nothing in this Section 7
shall be deemed to require the Company to register any of its securities pursuant to the Exchange Act. 

        8.     Underwritten Registrations. If any of the Transfer Restricted Securities covered by any Shelf Registration are to be sold
in an underwritten offering, the investment banker or investment bankers and manager or managers that will administer the offering ("Managing
Underwriters") will be selected by the Holders of a majority in aggregate principal amount of such Transfer Restricted Securities to be included in such offering. 

        No
person may participate in any underwritten registration hereunder unless such person (i) agrees to sell such person's Transfer Restricted Securities on the basis reasonably
provided in any underwriting arrangements approved by the persons entitled hereunder to approve such arrangements and (ii) completes and executes all questionnaires, powers of attorney,
indemnities, underwriting agreements and other documents reasonably required under the terms of such underwriting arrangements. 

        9.     Miscellaneous. 

        (a)   Remedies. The Company acknowledges and agrees that any failure by the Company to comply with its obligations under
Section 1 and 2 hereof may result in material irreparable injury to the Initial Purchasers or the Holders for which there is no adequate remedy at law, that it will not be possible to measure
damages for such injuries precisely and that, in the event of any such failure, the Initial Purchasers or any Holder may obtain such relief as may be required to specifically enforce the Company's
obligations under Sections 1 and 2 hereof. The Company further agrees to waive the defense in any action for specific performance that a remedy at law would be adequate. 

        (b)   No Inconsistent Agreements. The Company will not on or after the date of this Agreement enter into any agreement with
respect to its securities that is inconsistent with the rights granted to the Holders in this Agreement or otherwise conflicts with the provisions hereof. The rights granted to the Holders hereunder
do not in any way conflict with and are not inconsistent with the rights granted to the holders of the Company's securities under any agreement in effect on the date hereof. 

        (c)   Amendments and Waivers. The provisions of this Agreement may not be amended, modified or supplemented, and waivers or
consents to departures from the provisions hereof may not be given, except by the Company and the written consent of the Holders of a majority in principal amount of the Securities affected by such
amendment, modification, supplement, waiver or consents. 

        (d)   Notices. All notices and other communications provided for or permitted hereunder shall be made in writing by hand
delivery, first-class mail, facsimile transmission, or air courier which guarantees overnight delivery: 

        (1)   if
to a Holder of the Securities, at the most current address given by such Holder to the Company. 

        (2)   if
to the Initial Purchasers; 

Credit
Suisse First Boston LLC

Eleven Madison Avenue

New York, NY 10010-3629

Fax No.: (212) 325-8278

Attention: Transactions Advisory Group 

14

 

with
a copy to: 

Skadden,
Arps, Slate, Meagher & Flom LLP

300 South Grand Avenue, Suite 3400

Los Angeles, CA 90071

Fax No.: (213) 687-5600

Attention: Gregg Noel, Esq. 

        (3)   if
to the Company, at its address as follows: 

The
Titan Corporation

3033 Science Park Road

San Diego, California 92121-1199

Fax No.: (858) 552-9759

Attention: Nicholas J. Costanza, Esq. 

with
a copy to: 

Cooley
Godward LLP

4401 Eastgate Mall

San Diego, CA 92121

Fax No.: (858) 550-6420

Attention: Barbara Borden, Esq. 

        All
such notices and communications shall be deemed to have been duly given: at the time delivered by hand, if personally delivered; three business days after being deposited in the
mail, postage prepaid, if mailed; when receipt is acknowledged by recipient's facsimile machine operator, if sent by facsimile transmission; and on the day delivered, if sent by overnight air courier
guaranteeing next day delivery. 

        (e)   Third Party Beneficiaries. The Holders shall be third party beneficiaries to the agreements made hereunder between the
Company, on the one hand, and the Initial Purchasers, on the other hand, and shall have the right to enforce such agreements directly to the extent they may deem such enforcement necessary or
advisable to protect their rights or the rights of Holders hereunder. 

        (f)    Successors and Assigns. This Agreement shall be binding upon the Company and its successors and assigns. 

        (g)   Counterparts. This Agreement may be executed in any number of counterparts and by the parties hereto in separate
counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. 

        (h)   Headings. The headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect
the meaning hereof. 

        (i)    Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK
WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAWS. 

        (j)    Severability. If any one or more of the provisions contained herein, or the application thereof in any circumstance, is
held invalid, illegal or unenforceable, the validity, legality and enforceability of any such provision in every other respect and of the remaining provisions contained herein shall not be affected or
impaired thereby. 

        (k)   Securities Held by the Company. Whenever the consent or approval of Holders of a specified percentage of principal amount
of Securities is required hereunder, Securities held by the Company or its affiliates (other than subsequent Holders of Securities if such subsequent Holders are deemed to be affiliates solely by
reason of their holdings of such Securities) shall not be counted in determining whether such consent or approval was given by the Holders of such required percentage. 

15

        If the foregoing is in accordance with your understanding of our agreement, please sign and return to the Issuer a counterpart hereof, whereupon this instrument, along with all
counterparts, will become a binding agreement among the several Initial Purchasers, the Issuer and the Guarantors in accordance with its terms. 

Very
truly yours, 

	 	 	ISSUER
	

 	
 	

THE TITAN CORPORATION
	

 	
 	

By:	

/s/  MARK W. SOPP      
	 	 	 	
 Name: Mark W. Sopp

Title: Senior Vice President, Chief Financial Officer and Treasurer
	

 	
 	
GUARANTORS
	

 	
 	

ACS TECHNOLOGIES, INC.
	

 	
 	

By:	

/s/  CHERYL L. BARR      
	 	 	 	
 Name: Cheryl L. Barr

Title: Secretary
	

 	
 	

ATLANTIC AEROSPACE ELECTRONICS CORPORATION
	

 	
 	

By:	

/s/  CHERYL L. BARR      
	 	 	 	
 Name: Cheryl L. Barr

Title: Secretary
	

 	
 	

AVERCOM CORPORATION
	

 	
 	

By:	

/s/  CHERYL L. BARR      
	 	 	 	
 Name: Cheryl L. Barr

Title: Secretary
	

 	
 	

BTG, INC.
	

 	
 	

By:	

/s/  CHERYL L. BARR      
	 	 	 	
 Name: Cheryl L. Barr

Title: Secretary
	

 	
 	

BTG TECHNOLOGY RESOURCES, INC.
	

 	
 	

By:	

/s/  CHERYL L. BARR      
	 	 	 	
 Name: Cheryl L. Barr

Title: Secretary

	 	 	BTG TECHNOLOGY SYSTEMS, INC.
	

 	
 	

By:	

/s/  CHERYL L. BARR      
	 	 	 	
 Name: Cheryl L. Barr

Title: Secretary
	

 	
 	

BTG SYSTEMS ENGINEERING, INC.
	

 	
 	

By:	

/s/  CHERYL L. BARR      
	 	 	 	
 Name: Cheryl L. Barr

Title: Secretary
	

 	
 	

C&N ENTERPRISES, INC.
	

 	
 	

By:	

/s/  CHERYL L. BARR      
	 	 	 	
 Name: Cheryl L. Barr

Title: Secretary
	

 	
 	

CALIFORNIA TUBE LABORATORY, INC.
	

 	
 	

By:	

/s/  CHERYL L. BARR      
	 	 	 	
 Name: Cheryl L. Barr

Title: Secretary
	

 	
 	

CAYENTA EUTILITY SOLUTIONS—EMUNICIPAL SOLUTIONS, INC.
	

 	
 	

By:	

/s/  CHERYL L. BARR      
	 	 	 	
 Name: Cheryl L. Barr

Title: Secretary
	

 	
 	

CAYENTA OPERATING LLC
	

 	
 	

By:	

/s/  CHERYL L. BARR      
	 	 	 	
 Name: Cheryl L. Barr

Title: Secretary
	

 	
 	

CONCEPT AUTOMATION, INC. OF AMERICA
	

 	
 	

By:	

/s/  CHERYL L. BARR      
	 	 	 	
 Name: Cheryl L. Barr

Title: Secretary

	 	 	DATACENTRIC AUTOMATION CORPORATION
	

 	
 	

By:	

/s/  CHERYL L. BARR      
	 	 	 	
 Name: Cheryl L. Barr

Title: Secretary
	

 	
 	

DBA SYSTEMS, INC.
	

 	
 	

By:	

/s/  CHERYL L. BARR      
	 	 	 	
 Name: Cheryl L. Barr

Title: Secretary
	

 	
 	

DELFIN SYSTEMS
	

 	
 	

By:	

/s/  CHERYL L. BARR      
	 	 	 	
 Name: Cheryl L. Barr

Title: Secretary
	

 	
 	

DELTA CONSTRUCTION MANAGEMENT, INC.
	

 	
 	

By:	

/s/  CHERYL L. BARR      
	 	 	 	
 Name: Cheryl L. Barr

Title: Secretary
	

 	
 	

GLOBALNET, INC.
	

 	
 	

By:	

/s/  CHERYL L. BARR      
	 	 	 	
 Name: Cheryl L. Barr

Title: Secretary
	

 	
 	

GLOBALNET INTERNATIONAL, LLC
	

 	
 	

By:	

/s/  CHERYL L. BARR      
	 	 	 	
 Name: Cheryl L. Barr

Title: Secretary
	

 	
 	

HORIZONS SERVICES COMPANY, INC.
	

 	
 	

By:	

/s/  CHERYL L. BARR      
	 	 	 	
 Name: Cheryl L. Barr

Title: Secretary

	 	 	INTERMETRICS INTERNATIONAL, INC.
	

 	
 	

By:	

/s/  CHERYL L. BARR      
	 	 	 	
 Name: Cheryl L. Barr

Title: Secretary
	

 	
 	

INTERMETRICS SECURITIES, INC.
	

 	
 	

By:	

/s/  CHERYL L. BARR      
	 	 	 	
 Name: Cheryl L. Barr

Title: Secretary
	

 	
 	

INTERNATIONAL SYSTEMS, LLC
	

 	
 	

By:	

/s/  CHERYL L. BARR      
	 	 	 	
 Name: Cheryl L. Barr

Title: Secretary
	

 	
 	

JAYCOR, INC.
	

 	
 	

By:	

/s/  CHERYL L. BARR      
	 	 	 	
 Name: Cheryl L. Barr

Title: Secretary
	

 	
 	

LINCOM CORPORATION
	

 	
 	

By:	

/s/  CHERYL L. BARR      
	 	 	 	
 Name: Cheryl L. Barr

Title: Secretary
	

 	
 	

LINCOM WIRELESS, LLC
	

 	
 	

By:	

/s/  CHERYL L. BARR      
	 	 	 	
 Name: Cheryl L. Barr

Title: Secretary
	

 	
 	

LINKABIT WIRELESS LLC
	

 	
 	

By:	

/s/  CHERYL L. BARR      
	 	 	 	
 Name: Cheryl L. Barr

Title: Secretary

	 	 	MICROLITHICS CORPORATION
	

 	
 	

By:	

/s/  CHERYL L. BARR      
	 	 	 	
 Name: Cheryl L. Barr

Title: Secretary
	

 	
 	

MIDNIGHT OIL SERVICES, INC.
	

 	
 	

By:	

/s/  CHERYL L. BARR      
	 	 	 	
 Name: Cheryl L. Barr

Title: Secretary
	

 	
 	

MJR ASSOCIATES, INC.
	

 	
 	

By:	

/s/  CHERYL L. BARR      
	 	 	 	
 Name: Cheryl L. Barr

Title: Secretary
	

 	
 	

NATIONS, INC.
	

 	
 	

By:	

/s/  CHERYL L. BARR      
	 	 	 	
 Name: Cheryl L. Barr

Title: Secretary
	

 	
 	

PROCOM SERVICES, INC.
	

 	
 	

By:	

/s/  CHERYL L. BARR      
	 	 	 	
 Name: Cheryl L. Barr

Title: Assistant Secretary
	

 	
 	

PROGRAM SUPPORT ASSOCIATES, INC.
	

 	
 	

By:	

/s/  CHERYL L. BARR      
	 	 	 	
 Name: Cheryl L. Barr

Title: Secretary
	

 	
 	

PULSE ENGINEERING, INC.
	

 	
 	

By:	

/s/  CHERYL L. BARR      
	 	 	 	
 Name: Cheryl L. Barr

Title: Secretary

	 	 	PULSE SCIENCES, INC.
	

 	
 	

By:	

/s/  CHERYL L. BARR      
	 	 	 	
 Name: Cheryl L. Barr

Title: Secretary
	

 	
 	

RW CONSULTANTS, INC.
	

 	
 	

By:	

/s/  CHERYL L. BARR      
	 	 	 	
 Name: Cheryl L. Barr

Title: Secretary
	

 	
 	

RESEARCH PLANNING, INC.
	

 	
 	

By:	

/s/  CHERYL L. BARR      
	 	 	 	
 Name: Cheryl L. Barr

Title: Secretary
	

 	
 	

SENCOM CORPORATION
	

 	
 	

By:	

/s/  CHERYL L. BARR      
	 	 	 	
 Name: Cheryl L. Barr

Title: Secretary
	

 	
 	

STAC, INC.
	

 	
 	

By:	

/s/  CHERYL L. BARR      
	 	 	 	
 Name: Cheryl L. Barr

Title: Secretary

	 	 	TITAN AFRICA, INC.
	

 	
 	

By:	

/s/  CHERYL L. BARR      
	 	 	 	
 Name: Cheryl L. Barr

Title: Secretary
	

 	
 	

TITAN SCAN TECHNOLOGIES CORPORATION
	

 	
 	

By:	

/s/  CHERYL L. BARR      
	 	 	 	
 Name: Cheryl L. Barr

Title: Secretary
	

 	
 	

TITAN VIGIL, INC.
	

 	
 	

By:	

/s/  CHERYL L. BARR      
	 	 	 	
 Name: Cheryl L. Barr

Title: Secretary
	

 	
 	

TITAN WIRELESS AFRIPA HOLDINGS, INC.
	

 	
 	

By:	

/s/  CHERYL L. BARR      
	 	 	 	
 Name: Cheryl L. Barr

Title: Secretary
	

 	
 	

TITAN WIRELESS, INC.
	

 	
 	

By:	

/s/  CHERYL L. BARR      
	 	 	 	
 Name: Cheryl L. Barr

Title: Secretary
	

 	
 	

TOMOTHERAPEUTICS, INC.
	

 	
 	

By:	

/s/  CHERYL L. BARR      
	 	 	 	
 Name: Cheryl L. Barr

Title: Secretary
	

 	
 	

UNIDYNE, LLC
	

 	
 	

By:	

/s/  CHERYL L. BARR      
	 	 	 	
 Name: Cheryl L. Barr

Title: Secretary
	

 	
 	

UNIVISION TECHNOLOGIES, INC.
	

 	
 	

By:	

/s/  CHERYL L. BARR      
	 	 	 	
 Name: Cheryl L. Barr

Title: Secretary
	

 	
 	

VISICOM LABORATORIES, INC.
	

 	
 	

By:	

/s/  CHERYL L. BARR      
	 	 	 	
 Name: Cheryl L. Barr

Title: Secretary
	

 	
 	

WAVESCIENCES, INC.
	

 	
 	

By:	

/s/  CHERYL L. BARR      
	 	 	 	
 Name: Cheryl L. Barr

Title: Secretary

	The foregoing Registration Rights Agreement is hereby confirmed and accepted as of the date first above written.	 	 	 	 
	

CREDIT SUISSE FIRST BOSTON LLC

GOLDMAN, SACHS & CO.

WACHOVIA SECURITIES, INC.	
 	

 	
 	

 
	

By: CREDIT SUISSE FIRST BOSTON LLC	
 	

 	
 	

 
	

by	
 	

/s/  TED IANTUONO      
 Name: Ted Iantuono

Title: Director	
 	

 	
 	

 

  

 
 

ANNEX A    
    

        Each
broker-dealer that receives Exchange Securities for its own account pursuant to the Exchange Offer must acknowledge that it will deliver a prospectus in connection with any resale
of such Exchange Securities. The Letter of Transmittal states that by so acknowledging and by delivering a prospectus, a broker-dealer will not be deemed to admit that it is an "underwriter" within
the meaning of the Securities Act. This Prospectus, as it may be amended or supplemented from time to time, may be used by a broker-dealer in connection with resales of Exchange Securities received in
exchange for Initial Securities where such Initial Securities were acquired by such broker-dealer as a result of market-making activities or other trading activities. The Company has agreed that, for
a period of 180 days after the Expiration Date (as defined herein), it will make this Prospectus available to any broker-dealer for use in connection with any such resale. See "Plan of
Distribution." 

A-1

  

 
 

ANNEX B    
    

        Each
broker-dealer that receives Exchange Securities for its own account in exchange for Initial Securities, where such Initial Securities were acquired by such broker-dealer as a result
of market-making activities or other trading activities, must acknowledge that it will deliver a prospectus in connection with any resale of such Exchange Securities. See "Plan of Distribution." 

B-1

  

 
 

ANNEX C    
    

 
 

PLAN OF DISTRIBUTION    
    

        Each broker-dealer that receives Exchange Securities for its own account pursuant to the Exchange Offer must acknowledge that it will deliver a prospectus in
connection with any resale of such Exchange Securities. This Prospectus, as it may be amended or supplemented from time to time, may be used by a broker-dealer in connection with resales of Exchange
Securities received in exchange for Initial Securities where such Initial Securities were acquired as a result of market-making activities or other trading activities. The Company has agreed that, for
a period of 180 days after the Expiration Date, it will make this prospectus, as amended or supplemented, available to any broker-dealer for use in connection with any such resale. In addition,
until                        , 200, all dealers effecting transactions in the Exchange Securities may be required to deliver a
prospectus.(1) 

	(1)
	In
addition, the legend required by Item 502(b) of Regulation S-K will appear on the back cover page of the Exchange Offer prospectus. 

        The
Company will not receive any proceeds from any sale of Exchange Securities by broker-dealers. Exchange Securities received by broker-dealers for their own account pursuant to the
Exchange Offer may be sold from time to time in one or more transactions in the over-the-counter market, in negotiated transactions, through the writing of options on the
Exchange Securities or a combination of such methods of resale, at market prices prevailing at the time of resale, at prices related to such prevailing market prices or negotiated prices. Any such
resale may be made directly to purchasers or to or through brokers or dealers who may receive compensation in the form of commissions or concessions from any such broker-dealer or the purchasers of
any such Exchange Securities. Any broker-dealer that resells Exchange Securities that were received by it for its own account pursuant to the Exchange Offer and any broker or dealer that participates
in a distribution of such Exchange Securities may be deemed to be an "underwriter" within the meaning of the Securities Act and any profit on any such resale of Exchange Securities and any
commission or concessions received by any such persons may be deemed to be underwriting compensation under the Securities Act. The Letter of Transmittal states that, by acknowledging that it will
deliver and by delivering a prospectus, a broker-dealer will not be deemed to admit that it is an "underwriter" within the meaning of the Securities Act. 

        For
a period of 180 days after the Expiration Date the Company will promptly send additional copies of this Prospectus and any amendment or supplement to this Prospectus to any
broker-dealer that requests such documents in the Letter of Transmittal. The Company has agreed to pay all expenses incident to the Exchange Offer (including the expenses of one counsel for the
Holders of the Securities) other than commissions or concessions of any brokers or dealers and will indemnify the Holders of the Securities (including any broker-dealers) against certain liabilities,
including liabilities under the Securities Act. 

C-1

  

 
 

ANNEX D    
    

[    ]
CHECK HERE IF YOU ARE A BROKER-DEALER AND WISH TO RECEIVE 10 ADDITIONAL COPIES OF THE PROSPECTUS AND 10 COPIES OF ANY AMENDMENTS OR SUPPLEMENTS THERETO. 

Name:
                                         
                                    

Address:
                                         
                                    
 

If
the undersigned is not a broker-dealer, the undersigned represents that it is not engaged in, and does not intend to engage in, a distribution of Exchange Securities. If the undersigned is a
broker-dealer that will receive Exchange Securities for its own account in exchange for Initial Securities that were acquired as a result of market-making activities or other trading activities, it
acknowledges that it will deliver a prospectus in connection with any resale of such Exchange Securities; however, by so acknowledging and by delivering a prospectus, the undersigned will not be
deemed to admit that it is an "underwriter" within the meaning of the Securities Act. 

D-1

QuickLinks

Exhibit 4.8

$200,000,000 THE TITAN CORPORATION 8% Senior Subordinated Notes Due 2011 REGISTRATION RIGHTS AGREEMENT

ANNEX A

ANNEX B

ANNEX C

PLAN OF DISTRIBUTION

ANNEX D<PAGE>

                                                                  EXHIBIT 10.1

                        SECURITIES PURCHASE AGREEMENT

         This Securities Purchase Agreement (this "Agreement") is dated as
                                                   ---------
of June 30, 2003, among Applied Digital Solutions, Inc., a Missouri
corporation (the "Company"), and the purchasers identified on the signature
                  -------
pages hereto (each, including its successors and assigns, a "Purchaser" and
                                                             ---------
collectively the "Purchasers").
                  ----------

         WHEREAS, subject to the terms and conditions set forth in this
Agreement and pursuant to Section 4(2) of the Securities Act of 1933, as
amended (the "Securities Act") and Rule 506 promulgated thereunder, the
              --------------
Company desires to issue and sell to the Purchasers, and each Purchaser,
severally and not jointly, desires to purchase from the Company, securities
of the Company as more fully described in this Agreement;

         WHEREAS, the Company has authorized of the issuance of $10,500,000
principal amount of 8.5% Convertible Exchangeable Debentures, which
Debentures shall be, subject to the terms therein, (i) convertible into
shares of the common stock of the Company or (ii) exchangeable for up to an
aggregate of 15,000,000 shares of the common stock of Digital Angel
Corporation; and

         WHEREAS, the Company is agreeing to pledge the shares of common
stock of Digital Angel Corporation to secure its obligations (i) to pay
interest on and principal of the Debentures and (ii) to deliver such shares
to the Purchasers upon exchange or otherwise pursuant to the terms of the
Debentures.

         NOW, THEREFORE, IN CONSIDERATION of the mutual covenants contained
in this Agreement, and for other good and valuable consideration the receipt
and adequacy of which are hereby acknowledged, the Company and the Purchaser
agrees as follows:

                                  ARTICLE I
                                 DEFINITIONS

         1.1      Definitions. In addition to the terms defined elsewhere in
                  -----------
this Agreement: (a) capitalized terms that are not otherwise defined herein
have the meanings given to such terms in the Debenture (as defined herein),
and (b) the following terms have the meanings indicated in this Section 1.1:

                  "Actual Minimum" means, as of any date, the maximum
                   --------------
         aggregate number of shares of Common Stock then issued or
         potentially issuable in the future pursuant to the Transaction
         Documents, including any Underlying Shares issuable upon exercise
         or conversion in full of all Warrants and Debentures, ignoring any
         conversion or exercise limits set forth therein, and assuming all
         interest thereon is paid in shares of Common Stock and any
         previously unconverted Debentures are held until the 29th month
         anniversary of the date of issuance of the Debentures.

<PAGE>
<PAGE>

                  "Affiliate" means any Person that, directly or indirectly,
                   ---------
         through one or more intermediaries, controls or is controlled by or
         is under common control with a Person, as such terms are used in
         and construed under Rule 144 under the Securities Act.

                  "Capital Shares" means the Common Stock and any shares of
                   --------------
         any other class of common stock whether now or hereafter
         authorized, having the right to participate in the distribution of
         earnings and assets of the Company.

                  "Capital Shares Equivalents" means any securities, rights
                   --------------------------
         or obligations that are convertible into or exchangeable for or
         give any right to subscribe for or purchase, directly or
         indirectly, any Capital Shares of the Company or any warrants,
         options or other rights to subscribe for or purchase, directly or
         indirectly, Capital Shares or any such convertible or exchangeable
         securities.

                  "Closing" means the closing of the purchase and sale of
                   -------
         the Securities pursuant to Section 2.1.

                  "Commission" means the Securities and Exchange Commission.
                   ----------

                  "Common Stock" means the common stock of the Company, par
                   ------------
         value $0.001 per share, and any securities into which such common
         stock shall hereinafter have been reclassified into.

                  "Company Closing Price" shall mean $0.4904.
                   ---------------------

                  "Company Counsel" means Holland & Knight LLP.
                   ---------------

                  "Debenture" means, the 8.5% Convertible Exchangeable
                   ---------
         Debenture due 29 months from its date of issuance unless otherwise
         set forth therein, issued by the Company to the Purchasers
         hereunder, in the form of Exhibit A.
                                   ---------

                  "Disclosure Schedules" shall have the meaning ascribed to
                   --------------------
         such term in Section 3.1 hereof.

                  "DOC" shall mean Digital Angel Corporation.
                   ---

                  "DOC Closing Price" shall mean $2.761.
                   -----------------

                  "DOC Common Stock" means the common stock, $0.005 par
                   ----------------
         value per share, of DOC and stock of any other class into which
         such shares may hereafter have been reclassified or changed.

                  "DOC VWAP" means, for any date, the price determined by
                   --------
         the first of the following clauses that applies: (a) if the DOC
         Common Stock is then listed or quoted on a Principal Market or the
         OTC Bulletin Board, the daily volume weighted average price of the
         DOC Common Stock for such date (or the nearest preceding date) on
         the Principal Market (or OTC Bulletin Board) on which the DOC
         Common Stock is then listed or

                                    -2-

<PAGE>
<PAGE>

         quoted as reported by Bloomberg Financial L.P. (based on a Trading
         Day from 9:30 a.m. ET to 4:02 p.m. Eastern Time) using the VAP
         function; (b) if the DOC Common Stock is not then listed or quoted
         on a Principal Market or the OTC Bulletin Board and if prices for
         the DOC Common Stock are then reported in the "pink sheets"
         published by the National Quotation Bureau Incorporated (or a
         similar organization or agency succeeding to its functions of
         reporting prices), the most recent bid price per share of the DOC
         Common Stock so reported; or (c) in all other cases, the fair
         market value of a share of DOC Common Stock as determined by a
         nationally recognized independent appraiser selected in good faith
         by Purchasers' Representative.

                  "DOC Shares" means the shares of DOC Common Stock pledged
                   ----------
         to the Holders of the Debentures pursuant to the terms of the
         Pledge Agreement entered into in connection with the Purchase
         Agreement, which shares when transferred in accordance with the
         terms hereunder shall be fully paid and nonassessable.

                  "DOC Warrant Shares" shall mean the shares of DOC Shares
                   ------------------
         issuable upon exercise of the Warrants.

                  "Effective Date" means the date the Registration Statement
                   --------------
         is first declared effective by the Commission.

                  "Exchange Act" means the Securities Exchange Act of 1934,
                   ------------
         as amended.

                  "Exempt Transaction" shall have the meaning ascribed to
                   ------------------
         such term in Section 4.9 hereof.

                  "FW" means Feldman Weinstein LLP with offices at 420
                   --
         Lexington Avenue, Suite 2620, New York, New York 10170-0002.

                  "GAAP" shall have the meaning ascribed to such term in
                   ----
         Section 3.1(h) hereof.

                  "Liens" shall have the meaning ascribed to such term in
                   -----
         Section 3.1(a) hereof.

                  "Losses" means any and all losses, claims, damages,
                   ------
         liabilities, settlement costs and expenses, including without
         limitation costs of preparation and reasonable attorneys' fees.

                  [OMITTED FOR CONFIDENTIALITY]

                  "Material Adverse Effect" shall have the meaning assigned
                   -----------------------
         to such term in Section 3.1(b) hereof.

                                    -3-

<PAGE>
<PAGE>

                  "Person" means an individual or corporation, partnership,
                   ------
         trust, incorporated or unincorporated association, joint venture,
         limited liability company, joint stock company, government (or an
         agency or subdivision thereof) or other entity of any kind.

                  "Pledge Agreement" means the Pledge Agreement dated June
                   ----------------
         30, 2003 by the Company in favor of the Purchasers pledging
         15,000,000 shares of DOC Common Stock as security for the payment
         of the Debentures, in the form of Exhibit E hereto.
                                           ---------

                  "Principal Market" means the American Stock Exchange, the
                   ----------------
         New York Stock Exchange, the NASDAQ Small-Cap Market or the NASDAQ
         National Market, whichever is at the time the principal trading
         exchange or market for the Common Stock or the DOC Common Stock, as
         the case may be, based upon share volume.

                  "Proxy" means the Company's proxy statement (as filed with
                   -----
         the Commission) for the Company's 2003 annual meeting of
         shareholders, scheduled for July 25, 2003.

                  "Purchasers' Representative" means Midsummer Investment,
                   --------------------------
         Ltd. If at any time Purchasers' Representative no longer holds
         Debentures or Warrants or declines to serve as Purchasers'
         Representative, then Purchasers' Representative shall appoint a
         holder of Warrants or Debentures to serve as new Purchasers'
         Representative and shall notify the other Purchasers and the
         Company of such appointment.

                  "Proceeding" means an action, claim, suit, investigation
                   ----------
         or proceeding (including, without limitation, an investigation or
         partial proceeding, such as a deposition), whether commenced or
         threatened.

                  "Registration Rights Agreement" means the Registration
                   -----------------------------
         Rights Agreement, dated the Closing Date, among the Company and the
         Purchasers, in the form of Exhibit B.
                                    ---------

                  "Required Approvals" shall have the meaning ascribed to
                   ------------------
         such term in Section 3.1(e) hereof.

                  "Required Minimum" means, as of any date, the maximum
                   ----------------
         aggregate number of shares of Common Stock then issued or
         potentially issuable in the future pursuant to the Transaction
         Documents, including any Underlying Shares issuable upon exercise
         or conversion in full of all Warrants and Debentures, ignoring any
         conversion or exercise limits set forth therein, and assuming that
         all interest is paid in shares of Common Stock and any previously
         unconverted Debenture is held until the 29th month anniversary of
         its date of issuance or, if earlier, until maturity, and the then
         Set Price at all times on and after the date of determination
         equals 75% of the actual Set Price.

                  "Rule 144" means Rule 144 promulgated by the Commission
                   --------
         pursuant to the Securities Act, as such Rule may be amended from
         time to time, or any similar rule or regulation hereafter adopted
         by the Commission having substantially the same effect as such
         Rule.

                                    -4-

<PAGE>
<PAGE>

                  "SEC Reports" shall have the meaning ascribed to such term
                   -----------
         in Section 3.1(h) hereof.

                  "Securities" means the Debentures, Warrants and the
                   ----------
         Underlying Shares.

                  "Security Agreement" means that certain Security Agreement
                   ------------------
         dated June 30, 2003 by the Company and by Computer Equity
         Corporation in favor of the Purchasers granting a security interest
         in the accounts receivable of such entities as security for the
         payment of the Debentures, in the form of Exhibit F hereto.
                                                   ---------

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

                  "Set Price" shall have the meaning ascribed to such term
                   ---------
         in the Debentures.

                  "Shareholder Approval" shall have the meaning ascribed to
                   --------------------
         such term in Section 4(a)(ii)(B) of the Debenture.

                  "Subscription Amount" means, as to each Purchaser, the
                   -------------------
         amount set forth below such Purchaser's signature block on the
         signature pages hereto and next to the heading "Subscription
         Amount" in United States dollars and in immediately available
         funds.

                  "Subsidiary" means any operating subsidiary of the Company
                   ----------
         except for DOC and its subsidiaries and except for InfoTech USA,
         Inc. and its subsidiaries.

                  "Trading Day" means any day during which the Principal
                   -----------
         Market shall be open for business.

                  "Transaction Documents" means this Agreement, the
                   ---------------------
         Debentures, the Warrants, the Pledge Agreement, the Trust
         Agreement, the Registration Rights Agreement and any other
         documents or agreements executed in connection with the
         transactions contemplated hereunder.

                  "Trust Agreement" means that certain Trust Agreement of
                   ---------------
         the Digital Angel Share Trust between Wilmington Trust Company and
         the Company, dated as of March 1, 2002, as amended June 30, 2003.

                  "Trustee" means Wilmington Trust Company, a Delaware banking
                   -------
         corporation.

                  "Underlying Shares" means the shares of Common Stock
                   -----------------
         issuable upon conversion of the Debentures and upon exercise of the
         Warrants and issued and issuable in lieu of the cash payment of
         interest on the Debentures.

                  "Underlying Shares Registration Statement" or
                   --------------------------------------------
         "Registration Statement" means a registration statement meeting the
          ----------------------
         requirements set forth in the Registration Rights Agreement and
         covering the resale of the Underlying Shares by each Purchaser as
         provided for in the Registration Rights Agreement.

                                    -5-

<PAGE>
<PAGE>

                  "VWAP" means, for any date, the price determined by the
                   ----
         first of the following clauses that applies: (a) if the Common
         Stock is then listed or quoted on a Principal Market, the daily
         volume weighted average price of the Common Stock for such date (or
         the nearest preceding date) on the Principal Market on which the
         Common Stock is then listed or quoted 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); (b) if the Common Stock is not then
         listed or quoted on a Principal Market and if prices for the Common
         Stock are then quoted on the OTC Bulletin Board, the volume
         weighted average price of the Common Stock for such date (or the
         nearest preceding date) on the OTC Bulletin Board; (c) if the
         Common Stock is not then listed or quoted on the OTC Bulletin Board
         and if prices for the Common Stock are then reported in the "Pink
         Sheets" published by the National Quotation Bureau Incorporated (or
         a similar organization or agency succeeding to its functions of
         reporting prices), the most recent bid price per share of the
         Common Stock so reported; or (d) in all other cases, the fair
         market value of a share of Common Stock as determined by a
         nationally recognized-independent appraiser selected in good faith
         by Purchasers' Representative.

                  "Warrants" means collectively the Common Stock Purchase
                   --------
         Warrants, in the form of Exhibit C delivered to the Purchasers at
         the Closing in accordance with Section 2.2 hereof, with a term of
         exercise of 4 years.

                  "Warrant Shares" means the shares of Common Stock issuable
                   --------------
         upon exercise of the Warrants.

                                 ARTICLE II
                              PURCHASE AND SALE

         2.1      Closing. On or before June 30, 2003, upon the terms and
                  -------
subject to the conditions set forth herein, the Company agrees to sell, and
the Purchasers agree to purchase in the aggregate, severally and not
jointly, $10,500,000 principal amount of the Debentures. Each Purchaser
shall deliver to, or as directed by, the Company via wire transfer or a
certified check immediately available funds equal to their Subscription
Amount and the Company shall deliver to such Purchaser a Debenture
evidencing a principal amount equal to such Purchaser's Subscription Amount
and the other items set forth in Section 2.2 issuable at the Closing. Upon
satisfaction of the conditions set forth in Section 2.2, the Closing shall
occur at the offices of FW, or such other location as the parties shall
mutually agree.

         2.2      Closing Conditions. Upon satisfaction or waiver by the party
                  ------------------
sought to be benefited thereby of the conditions set forth in this Section
2.2, the Closing shall occur.

                  (a)      At or prior to the Closing, the Company shall
         deliver or cause to be delivered to each Purchaser the following:

                           (i)      a Debenture with a principal amount equal
                  to such Purchaser's Subscription Amount, registered in the
                  name of such Purchaser;

                                    -6-

<PAGE>
<PAGE>

                           (ii)     a Warrant to purchase up to either (or any
                  combination thereof) (A) a number of shares of Common
                  Stock equal to 25% of such Purchaser's Subscription Amount
                  divided by the Company Closing Price and an exercise price
                  per Warrant Share equal to 115% of the Company Closing
                  Price, subject to adjustment therein or (B) a number of
                  DOC Shares equal to 25% of such Purchaser's Subscription
                  Amount divided by the DOC Closing Price and an exercise
                  price per DOC Warrant Share equal to 115% of the DOC
                  Closing Price, subject to adjustment therein;

                           (iii)    a legal opinion of Company Counsel, in the
                  form of Exhibit D attached hereto, addressed to the
                          ---------
                  Purchasers;

                           (iv)     Trust Agreement, executed by the Company
                  and Trustee;

                           (v)      a copy of the Final Payment Notice (as
                  defined in the Trust Agreement) with an acknowledgement of
                  receipt executed by the Trustee;

                           (vi)     a written acknowledgement from IBM Credit
                  LLC of the repurchase by the Company of the Loans and
                  other Obligations pursuant to the Forbearance Agreement,
                  Consent and Agreement among the Company, the Trustee, IBM
                  Credit LLC, and other parties, dated as of April 2, 2003;

                           (vii)    the Registration Rights Agreement duly
                  executed by the Company;

                           (viii)   the Pledge Agreement executed by the
                  Company; and

                           (ix)     the Security Agreement executed by the
                  Company and by Computer Equity Corporation.

                  (b) At or prior to the Closing, each Purchaser shall
         deliver or cause to be delivered to the Company the following:

                           (i)      such Purchaser's Subscription Amount;

                           (ii)     the Registration Rights Agreement duly
                  executed by such Purchaser.

                  (c)      All representations and warranties of the other
         party contained herein shall remain true and correct as of the
         Closing Date and all covenants of the other party shall have been
         performed;

                  (d)      There shall have been no Material Adverse Effect
         (as defined in Section 3.1(b) hereof) with respect to the Company or
         with DOC since the date hereof;

                  (e)      From the date hereof to the Closing Date, trading
         in the Common Stock or in DOC Common Stock shall not have been
         suspended by the Commission (except for any suspension of trading
         of limited duration agreed to by the Company, which

                                    -7-

<PAGE>
<PAGE>

         suspension shall be terminated prior to the Closing), and, at any
         time prior to the Closing Date, trading in securities generally as
         reported by Bloomberg Financial Markets shall not have been
         suspended or limited, or minimum prices shall not have been
         established on securities whose trades are reported by such
         service, or on the Principal Market, nor shall a banking moratorium
         have been declared either by the United States or New York State
         authorities, nor shall there have occurred any material outbreak or
         escalation of hostilities or other national or international
         calamity of such magnitude in its effect on, or any material
         adverse change in, any financial market which, in each case, in the
         reasonable judgment of the Purchasers, makes it impracticable or
         inadvisable to purchase the Debentures at the Closing.

                                 ARTICLE III
                       REPRESENTATIONS AND WARRANTIES

         3.1      Representations and Warranties of the Company. Except:
                  ---------------------------------------------
(i) as set forth under the corresponding section of the disclosure schedules
delivered to the Purchasers concurrently herewith (the "Disclosure
                                                        ----------
Schedules") which Disclosure Schedules shall be deemed a part hereof, (ii)
---------
as set forth in the SEC Reports, and (iii) in connection with the
indebtedness to IBM Credit LLC which is being satisfied at the Closing, the
Company hereby makes the representations and warranties set forth below to
the Purchasers.

                  (a)      Subsidiaries. Except as set forth in the SEC
                           ------------
         Reports, the Company has no direct or indirect Subsidiaries. Except
         for employee/director stock options, the Company owns, directly or
         indirectly, all of the capital stock or other equity interests of
         each Subsidiary free and clear of any lien, charge, security
         interest, encumbrance, right of first refusal or other restriction
         (collectively, "Liens"), and all the issued and outstanding shares
                         -----
         of capital stock of each Subsidiary are validly issued and are
         fully paid, non-assessable and free of preemptive and similar
         rights. Subsidiaries as used herein shall not include DOC or its
         subsidiaries or InfoTech USA, Inc. or its subsidiaries.

                  (b)      Organization and Qualification. Each of the Company
                           ------------------------------
         and the Subsidiaries is an entity duly incorporated or otherwise
         organized, validly existing and in good standing under the laws of
         the jurisdiction of its incorporation or organization (as
         applicable), with the requisite power and authority to own and use
         its properties and assets and to carry on its business as currently
         conducted. Neither the Company nor any Subsidiary is in violation
         of any of the provisions of its respective certificate or articles
         of incorporation, bylaws or other organizational or charter
         documents. Each of the Company and the Subsidiaries is duly
         qualified to do business and is in good standing as a foreign
         corporation or other entity in each jurisdiction in which the
         nature of the business conducted or property owned by it makes such
         qualification necessary, except where the failure to be so
         qualified or in good standing, as the case may be, would not,
         individually or in the aggregate: (i) materially adversely affect
         the legality, validity or enforceability of any Transaction
         Document, (ii) have or result in or be reasonably likely to have or
         result in a material adverse effect on the results of operations,
         assets, prospects, business or condition (financial or otherwise)
         of the Company and the Subsidiaries, taken as a whole, or (iii)
         materially adversely impair the Company's ability to perform fully
         on

                                    -8-

<PAGE>
<PAGE>

         a timely basis its obligations under any of the Transaction
         Documents (any of (i), (ii) or (iii), a "Material Adverse Effect").
                                                  -----------------------

                  (c) Authorization; Enforcement. The Company has the
                      --------------------------
         requisite corporate power and authority to enter into and to
         consummate the transactions contemplated by each of the Transaction
         Documents and otherwise to carry out its obligations hereunder or
         thereunder, including to issue the securities and to pledge and
         transfer the DOC Shares in accordance with the terms hereof and
         thereof. The execution and delivery of each of the Transaction
         Documents by the Company and the consummation by it of the
         transactions contemplated hereby or thereby, including the pledging
         and transfer of the DOC Shares, have been duly authorized by all
         necessary action on the part of the Company and no further consent
         or action is required by the Company other than Required Approvals.
         Each of the Transaction Documents has been (or upon delivery will
         be) duly executed by the Company and, when delivered in accordance
         with the terms hereof, will constitute the valid and binding
         obligation of the Company enforceable against the Company in
         accordance with its terms, subject to applicable bankruptcy,
         insolvency, fraudulent conveyance, reorganization, moratorium and
         similar laws affecting creditors' rights and remedies generally and
         general principles of equity. Neither the Company nor any
         Subsidiary is in violation of any of the provisions of its
         respective certificate or articles of incorporation, by-laws or
         other organizational or charter documents.

                  (d) No Conflicts. The execution, delivery and performance
                      ------------
         of the Transaction Documents by the Company and the consummation by
         the Company of the transactions contemplated thereby (including the
         pledge and any transfer of the DOC Shares and reservation for
         issuance and issuance of the Conversion Shares) do not and will
         not: (i) conflict with or violate any provision of the Company's or
         any Subsidiary's certificate or articles of incorporation, bylaws
         or other organizational or charter documents, or (ii) subject to
         obtaining the Required Approvals, conflict with, or constitute a
         default (or an event that 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 (with or
         without notice, lapse of time or both) of, any agreement, credit
         facility, debt or other instrument (evidencing a Company or
         Subsidiary debt or otherwise) or other understanding to which the
         Company or any Subsidiary is a party or by which any property or
         asset of the Company or any Subsidiary is bound or affected, or
         (iii) result, in a violation of any law, rule, regulation, order,
         judgment, injunction, decree or other restriction of any court or
         governmental authority to which the Company or a Subsidiary is
         subject (including federal and state securities laws and
         regulations), or by which any property or asset of the Company or a
         Subsidiary is bound or affected; except in the case of each of
         clauses (ii) and (iii), such as would not, individually or in the
         aggregate, reasonably be expected to have or result in a Material
         Adverse Effect.

                  (e) Filings, Consents and Approvals. Neither the Company
                      -------------------------------
         nor any Subsidiary is required to obtain any consent, waiver,
         authorization or order of, give any notice to, or make any filing
         or registration with, any court or other federal, state, local or
         other governmental authority or other Person in connection with the
         execution, delivery

                                    -9-

<PAGE>
<PAGE>

         and performance by the Company of the Transaction Documents, other
         than (i) the filings required under Section 4.10, (ii) the filing
                                             ------------
         with the Commission of the Underlying Shares Registration
         Statement, (iii) the notice and/or application(s) to each
         applicable Principal Market for the issuance and sale of the
         Debentures and Warrants and the listing of the Underlying Shares
         for trading thereon in the time and manner required thereby, (iv)
         the filing of Form D with the Commission and applicable Blue Sky
         filings, and (v) the consent of shareholders as discussed in the
         Proxy and as set forth in Section 4.5 hereof (collectively, the
         "Required Approvals").
          ------------------

                  (f) Issuance of the Securities. The Securities are duly
                      --------------------------
         authorized and, when issued and paid for in accordance with the
         applicable Transaction Documents, will be duly and validly issued,
         fully paid and non-assessable, free and clear of all Liens. The
         Company has reserved from its duly authorized capital stock a
         number of shares of Common Stock for issuance of the Underlying
         Shares at least equal to the Required Minimum on the date hereof.
         The Company has not, and to the knowledge of the Company, no
         Affiliate of the Company has sold, offered for sale or solicited
         offers to buy or otherwise negotiate in respect of any security (as
         defined in Section 2 of the Securities Act) that would be
         integrated with the offer or sale of the Securities in a manner
         that would require the registration under the Securities Act of the
         sale of the Securities to the Purchasers, or that would be
         integrated with the offer or sale of the Securities for purposes of
         the rules and regulations of any Principal Market.

                  (g) Capitalization. The number of shares and type of all
                      --------------
         authorized, issued and outstanding capital stock of the Company is
         set forth in the Disclosure Schedules attached hereto. No
         securities of the Company are entitled to preemptive or similar
         rights, and no Person has any right of first refusal, preemptive
         right, right of participation, or any similar right to participate
         in the transactions contemplated by the Transaction Documents.
         Except as a result of the purchase and sale of the Securities,
         there are no outstanding options, warrants, script rights to
         subscribe to, calls or commitments of any character whatsoever
         relating to, or securities, rights or obligations convertible into
         or exchangeable for, or giving any Person any right to subscribe
         for or acquire, any shares of Common Stock, or contracts,
         commitments, understandings or arrangements by which the Company or
         any Subsidiary is or may become bound to issue additional shares of
         Common Stock, or securities or rights convertible or exchangeable
         into shares of Common Stock. The issuance and sale of the
         Securities will not obligate the Company to issue shares of Common
         Stock or other securities to any Person (other than the Purchasers)
         and will not result in a right of any holder of Company securities
         to adjust the exercise, conversion, exchange or reset price under
         such securities.

                  (h) SEC Reports; Financial Statements. The Company has
                      ---------------------------------
         filed all reports required to be filed by it under the Exchange
         Act, including pursuant to Section 13(a) or 15(d) thereof, for the
         two years preceding the date hereof (or such shorter period as the
         Company was required by law to file such material) (the foregoing
         materials, along with the Company's filings pursuant to the
         Securities Act, being collectively referred to herein as the "SEC
                                                                       ---
         Reports" and, together with the Schedules to this Agreement, the
         -------
         "Disclosure Materials") on a timely basis or has received a valid
          --------------------
         extension of such time

                                    -10-

<PAGE>
<PAGE>

         of filing and has filed any such SEC Reports prior to the
         expiration of any such extension. The Company has identified and
         made available to the Purchasers a copy of all SEC Reports filed
         within the 10 days preceding the date hereof. As of their
         respective dates, the SEC Reports complied in all material respects
         with the requirements of the Securities Act and the Exchange Act
         and the rules and regulations of the Commission promulgated
         thereunder, and none of the SEC Reports, when filed, 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 Reports comply in all material respects
         with applicable accounting requirements and the rules and
         regulations of the Commission with respect thereto as in effect at
         the time of filing. Such financial statements have been prepared in
         accordance with generally accepted accounting principles applied on
         a consistent basis during the periods involved ("GAAP"), except as
                                                          ----
         may be otherwise specified in such financial statements or the
         notes thereto, and fairly present in all material respects the
         financial position of the Company and its consolidated subsidiaries
         as of and for 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, immaterial, year-end audit
         adjustments.

                  (i) Material Changes. Since the date of the latest audited
                      ----------------
         financial statements included within the SEC Reports, except as
         specifically disclosed in the SEC Reports: (i) there has been no
         event, occurrence or development that has had or that would
         reasonably be expected to result in a Material Adverse Effect, (ii)
         the Company has not incurred any liabilities (contingent or
         otherwise) other than (A) trade payables and accrued expenses
         incurred in the ordinary course of business consistent with past
         practice and (B) liabilities not required to be reflected in the
         Company's financial statements pursuant to GAAP or required to be
         disclosed in filings made with the Commission, (iii) the Company
         has not altered its method of accounting or the identity of its
         auditors, (iv) the Company has not declared or made any dividend or
         distribution of cash or other property to its stockholders or
         purchased, redeemed or made any agreements to purchase or redeem
         any shares of its capital stock, and (v) the Company has not issued
         any equity securities to any officer, director or Affiliate, except
         pursuant to existing Company stock option or similar plans.

                  (j) Litigation. There is no action, suit, inquiry, notice
                      ----------
         of violation, proceeding or investigation pending or, to the
         knowledge of the Company, threatened against or affecting the
         Company, any Subsidiary or any of their respective properties
         before or by any court, arbitrator, governmental or administrative
         agency or regulatory authority (federal, state, county, local or
         foreign) (collectively, an "Action") which: (i) adversely affects
                                     ------
         or challenges the legality, validity or enforceability of any of
         the Transaction Documents or the Securities or (ii) would, if there
         were an unfavorable decision, individually or in the aggregate,
         have or reasonably be expected to result in a Material Adverse
         Effect. Neither the Company nor any Subsidiary, nor any director or
         officer thereof, is or has been the subject of any Action involving
         a claim of violation of or liability under federal or state
         securities laws. Except in connection with responses to the
         informal investigation by the Southeast Regional Office of the
         Commission, the Company does not have pending before the Commission
         any request for confidential

                                    -11-

<PAGE>
<PAGE>

         treatment of information. There has not been, and to the knowledge
         of the Company, there is not pending or contemplated, any
         investigation by the Commission involving the Company or any
         current or former director or officer of the Company. The
         Commission has not issued any stop order or other order suspending
         the effectiveness of any registration statement filed by the
         Company or any Subsidiary under the Exchange Act or the Securities
         Act.

                  (k) Compliance. Neither the Company nor any Subsidiary:
                      ----------
         (i) is in default under or in violation of (and no event has
         occurred that has not been waived that, with notice or lapse of
         time or both, would result in a default by the Company or any
         Subsidiary under), nor has the Company or any Subsidiary received
         notice of a claim that it is in default under or that it is in
         violation of, any indenture, loan or credit agreement or any other
         agreement or instrument to which it is a party or by which it or
         any of its properties is bound (whether or not such default or
         violation has been waived), (ii) is in violation of any order of
         any court, arbitrator or governmental body, or (iii) is or has been
         in violation of any statute, rule or regulation of any governmental
         authority, except in each case as would not, individually or in the
         aggregate, reasonably be expected to have or result in a Material
         Adverse Effect.

                  (l) Labor Relations. No material labor dispute exists or,
                      ---------------
         to the knowledge of the Company, is imminent with respect to any of
         the employees of the Company.

                  (m) Regulatory Permits. The Company and the Subsidiaries
                      ------------------
         possess all certificates, authorizations and permits issued by the
         appropriate federal, state, local or foreign regulatory authorities
         necessary to conduct their respective businesses as described in
         the SEC Reports, except where the failure to possess such permits
         would not, individually or in the aggregate, have or reasonably be
         expected to result in a Material Adverse Effect ("Material
                                                           --------
         Permits"), and neither the Company nor any Subsidiary has received
         -------
         any notice of proceedings relating to the revocation or
         modification of any Material Permit.

                  (n) Title to Assets. The Company and the Subsidiaries have
                      ---------------
         good and marketable title in fee simple to all real property owned
         by them that is material to the business of the Company and the
         Subsidiaries and good and marketable title in all personal property
         owned by them that is material to the business of the Company and
         the Subsidiaries, in each case free and clear of all Liens, except
         for Liens as do not materially affect the value of such property
         and do not materially interfere with the use made and proposed to
         be made of such property by the Company and the Subsidiaries. Any
         real property and facilities held under lease by the Company and
         the Subsidiaries are held under valid, subsisting and enforceable
         leases of which the Company and the Subsidiaries are in compliance.

                  (o) Patents and Trademarks. The Company and the
                      ----------------------
         Subsidiaries have, or have rights to use, all patents, patent
         applications, trademarks, trademark applications, service marks,
         trade names, copyrights, licenses and other similar rights
         necessary or material for use in connection with their respective
         businesses as described in the SEC Reports and

                                    -12-

<PAGE>
<PAGE>

         which the failure to so have would reasonably be expected to have a
         Material Adverse Effect (collectively, the "Intellectual Property
                                                     ---------------------
         Rights"). To the knowledge of the Company, all such Intellectual
         ------
         Property Rights are enforceable and there is no existing
         infringement by another Person of any of the Intellectual Property
         Rights.

                  (p) Insurance. The Company and the Subsidiaries are
                      ---------
         insured by insurers of recognized financial responsibility against
         such losses and risks and in such amounts as are prudent and
         customary in the businesses in which the Company and the
         Subsidiaries are engaged. To the best of Company's knowledge, such
         insurance contracts and policies are accurate and complete. Neither
         the Company nor any Subsidiary has any reason to believe it will
         not be able to renew its existing insurance coverage as and when
         such coverage expires or to obtain similar coverage from similar
         insurers as may be necessary to continue its business without a
         significant increase in cost.

                  (q) Transactions With Affiliates and Employees. Except as
                      ------------------------------------------
         is so minor as to not require disclosure under the Exchange Act and
         applicable regulations, none of the officers or directors of the
         Company and, to the knowledge of the Company, none of the employees
         of the Company is presently a party to any transaction with the
         Company or any Subsidiary (other than for services as employees,
         officers and directors), including any contract, agreement or other
         arrangement providing for the furnishing of services to or by,
         providing for rental of real or personal property to or from, or
         otherwise requiring payments to or from any officer, director or
         such employee or, to the knowledge of the Company, any entity in
         which any officer, director, or any such employee has a substantial
         interest or is an officer, director, trustee or partner.

                  (r) Internal Accounting Controls. The Company and the
                      ----------------------------
         Subsidiaries maintain a system of internal accounting controls
         sufficient to provide reasonable assurance that (i) transactions
         are executed in accordance with management's general or specific
         authorizations, (ii) transactions are recorded as necessary to
         permit preparation of financial statements in conformity with GAAP
         and to maintain asset accountability, (iii) access to assets is
         permitted only in accordance with management's general or specific
         authorization, and (iv) the recorded accountability for assets is
         compared with the existing assets at reasonable intervals and
         appropriate action is taken with respect to any differences. The
         Company has established disclosure controls and procedures (as
         defined in Exchange Act Rules 13a-14 and 15d-14) for the Company
         and designed such disclosures controls and procedures to ensure
         that material information relating to the Company, including its
         subsidiaries, is made known to the certifying officers by others
         within those entities, particularly during the period in which the
         Company's Form 10-K or 10-Q, as the case may be, is being prepared.
         The Company's certifying officers have evaluated the effectiveness
         of the Company's controls and procedures as of a date within 90
         days prior to the filing date of the Form 10-Q for the quarter
         ended March 31, 2003 (such date, the "Evaluation Date"). The
                                               ---------------
         Company presented in the Form 10-Q for the quarter ended March 31,
         2003 the conclusions of the certifying officers about the
         effectiveness of the disclosure controls and procedures based on
         their evaluations as of the Evaluation Date. Since the Evaluation
         Date, there have been no significant changes in the Company's
         internal controls (as such term is defined in Item 307(b) of
         Regulation

                                    -13-

<PAGE>
<PAGE>

         S-K under the Exchange Act) or, the Company's knowledge, in other
         factors that would reasonably be expected to significantly affect
         the Company's internal controls.

                  (s) Solvency/Indebtedness. Based on the financial
                      ---------------------
         condition of the Company as of each Closing Date: (i) the fair
         saleable value of the Company's assets exceeds the amount that will
         be required to be paid on or in respect of the Company's existing
         debts and other liabilities (including known contingent
         liabilities) as they mature; (ii) the Company's assets do not
         constitute unreasonably small capital to carry on its business for
         the current fiscal year as now conducted and as proposed to be
         conducted including its capital needs taking into account the
         particular capital requirements of the business conducted by the
         Company, and projected capital requirements and capital
         availability thereof; and (iii) the current cash flow of the
         Company, together with the proceeds the Company would receive, were
         it to liquidate all of its assets, after taking into account all
         anticipated uses of the cash, would be sufficient to pay all
         amounts on or in respect of its debt when such amounts are required
         to be paid. The Company does not intend to incur debts beyond its
         ability to pay such debts as they mature (taking into account the
         timing and amounts of cash to be payable on or in respect of its
         debt). The Company has no knowledge of any facts or circumstances
         which lead it to believe that it will file for reorganization or
         liquidation under the bankruptcy or reorganization laws of any
         jurisdiction within one year from the Closing Date. The SEC Reports
         set forth as of the dates thereof all material 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 $50,000
         (other than trade accounts payable incurred in the ordinary course
         of business), (b) all guaranties, endorsements and other contingent
         obligations, 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
         in the ordinary course of business, and (c) the present value of
         any lease payments in excess of $50,000 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.

                  (t) Certain Fees. No brokerage or finder's fees or
                      ------------
         commissions are or will be payable by the Company to any broker,
         financial advisor or consultant, finder, placement agent,
         investment banker, bank or other Person with respect to the
         transactions contemplated by this Agreement, and the Company has
         not taken any action that would cause any Purchaser to be liable
         for any such fees or commissions. The Company agrees that the
         Purchasers shall have no obligation with respect to any fees or
         with respect to any claims made by or on behalf of any Person for
         fees of the type contemplated by this Section with the transactions
         contemplated by this Agreement.

                  (u) Private Placement. Assuming the accuracy of the
                      -----------------
         representations and warranties of the Purchasers set forth in
         Sections 3.2(b)-(f), the offer, issuance and sale of the Securities
         to the Purchasers as contemplated hereby are exempt from the
         registration requirements of the Securities Act. The issuance and
         sale of the Securities hereunder does not contravene the rules and
         regulations of the Principal Market except that

                                    -14-

<PAGE>
<PAGE>

         Shareholder Approval is required for the Company to issue in excess
         of 7,200,000 shares of Common Stock under the Transaction
         Documents.

                  (v) Listing and Maintenance Requirements. The Company has
                      ------------------------------------
         not, in the 12 months preceding the date hereof, received notice
         from any Principal Market on which the Common Stock is or has been
         listed or quoted to the effect that the Company is not in
         compliance with the listing or maintenance requirements of such
         Principal Market. The Company is, and has no reason to believe it
         will not in the foreseeable future continue to be, in compliance
         with all such listing and maintenance requirements, other than the
         $1 minimum bid price requirement.

                  (w) Registration Rights. Other than to IBM Credit LLC and
                      -------------------
         to shareholders whose shares are included in the registration
         statement of Form S-1 filed by the Company in June 2003, the
         Company has not granted or agreed to grant to any Person any rights
         (including "piggy-back" registration rights) to have any securities
         of the Company registered with the Commission or any other
         governmental authority that have not been satisfied.

                  (x) Application of Takeover Protections. The Company and
                      -----------------------------------
         its Board of Directors have taken all necessary action, if any, in
         order to render inapplicable any control share acquisition,
         business combination, poison pill (including any distribution under
         a rights agreement) or other similar anti-takeover provision under
         the Company's Certificate of Incorporation (or similar charter
         documents) or the laws of its state of incorporation that is or
         could become applicable to the Purchasers as a result of the
         Purchasers and the Company fulfilling their obligations or
         exercising their rights under the Transaction Documents, including
         without limitation as a result of the Company's issuance of the
         Securities and the Purchasers' ownership of the Securities.

                  (y) Seniority. As of the Closing Date, no indebtedness of
                      ---------
         the Company will be senior to the Debentures in right of payment,
         whether with respect to interest or upon liquidation or
         dissolution, or otherwise, other than indebtedness secured by
         purchase money security interests (which is senior only as to
         underlying assets covered thereby) and capital lease obligations
         (which is senior only as to the property covered thereby).

                  (z) Disclosure. The Company confirms that neither it nor
                      ----------
         any other Person acting on its behalf has provided any of the
         Purchasers or their agents or counsel with any information that
         constitutes or might constitute material, nonpublic information.
         The Company understands and confirms that the Purchasers will rely
         on the foregoing representations in effecting transactions in
         securities of the Company. All disclosure provided to the
         Purchasers regarding the Company, its business and the transactions
         contemplated hereby, including the Schedules to this Agreement,
         furnished by or on behalf of the Company with respect to the
         representations and warranties made herein are true and correct
         with respect to such representations and warranties and do not
         contain any untrue statement of a material fact or omit to state
         any material fact necessary in order to make the statements made
         therein, in light of the circumstances under which they were made,
         not misleading. The Company acknowledges and agrees that no
         Purchaser

                                    -15-

<PAGE>
<PAGE>

         makes or has made any representations or warranties with respect to
         the transactions contemplated hereby other than those specifically
         set forth in Section 3.2 hereof.

                  (aa) Form S-3 Eligibility. The Company is not eligible to
                       --------------------
         register the resale of the Underlying Shares for resale by the
         Purchaser on Form S-3 promulgated under the Securities Act.

                  (bb) Tax Status. The Company and each of its Subsidiaries
                       ----------
         has made or filed all federal, state and foreign income and all
         other tax returns, reports and declarations required by any
         jurisdiction to which it is subject (unless and only to the extent
         that the Company and each of its Subsidiaries has set aside on its
         books provisions reasonably adequate for the payment of all unpaid
         and unreported taxes) and has paid all taxes and other governmental
         assessments and charges that are material in amount, shown or
         determined to be due on such returns, reports and declarations,
         except those being contested in good faith and has set aside on its
         books provisions reasonably adequate for the payment of all taxes
         for periods subsequent to the periods to which such returns,
         reports or declarations apply. There are no unpaid taxes in any
         material amount claimed to be due by the taxing authority of any
         jurisdiction, and the officers of the Company know of no basis for
         any such claim. The Company has not executed a waiver with respect
         to the statute of limitations relating to the assessment or
         collection of any foreign, federal, statue or local tax. None of
         the Company's tax returns is presently being audited by any taxing
         authority.

                  (cc) Acknowledgment Regarding Purchasers' Purchase of
                       ------------------------------------------------
         Securities. The Company acknowledges and agrees that the Purchasers
         ----------
         are acting solely in the capacity of arm's length purchasers with
         respect to this Agreement and the transactions contemplated hereby.
         The Company further acknowledges that no Purchaser is acting as a
         financial advisor or fiduciary of the Company (or in any similar
         capacity) with respect to this Agreement and the transactions
         contemplated hereby and any statement made by any Purchaser or any
         of their respective representatives or agents in connection with
         this Agreement and the transactions contemplated hereby is not
         advice or a recommendation and is merely incidental to the
         Purchasers' purchase of the Securities. The Company further
         represents to each Purchaser that the Company's decision to enter
         into this Agreement has been based solely on the independent
         evaluation of the Company and its representatives.

                  (dd) No General Solicitation or Advertising in Regard to
                       ---------------------------------------------------
         this Transaction. Neither the Company nor, to the knowledge of the
         ----------------
         Company, any of its directors or officers (i) has conducted or will
         conduct any general solicitation (as that term is used in Rule
         502(c) of Regulation D) or general advertising with respect to the
         sale of the Debentures or the Warrants, or (ii) made any offers or
         sales of any security or solicited any offers to buy any security
         under any circumstances that would require registration of the
         Debentures, the Underlying Shares or the Warrants under the
         Securities Act or made any "directed selling efforts" as defined in
         Rule 902 of Regulation S.

                                    -16-

<PAGE>
<PAGE>

                  (ee)     No Disagreements with Accountants and Lawyers. There
                           ---------------------------------------------
         are no disagreements of any kind presently existing, or reasonably
         anticipated by the Company to arise, between the accountants and
         lawyers formerly or presently employed by the Company and the
         Company is current with respect to any fees owed to its accountants
         and lawyers.

                  (ff)     DOC Common Stock.
                           ----------------

                           (i)      The DOC Shares have been registered by DOC
                  under the Securities Act. 19,600,000 shares of DOC Common
                  Stock were registered by DOC pursuant to a registration
                  statement filed on Form S-1/A on January 21, 2003 (the
                  "DOC Registration Statement"). The "Plan of Distribution"
                   --------------------------
                  section under each of the DOC Registration Statement
                  permits the pledge and transfer of the DOC Shares as
                  required pursuant to the Transaction Documents.

                           (ii)     The Company is the beneficial owner and the
                  Trustee is the record owner of all of the DOC Shares, free
                  and clear of any Liens, and upon transfer in accordance
                  with the applicable Transaction Documents, the Company and
                  the Trustee will transfer to the Purchasers good and
                  marketable title to such DOC Shares, free and clear of any
                  Liens. Upon any such transfer to the Purchasers of any DOC
                  Shares, and assuming Purchasers are not deemed to be
                  underwriters, and otherwise assuming compliance with the
                  plan of distribution, the DOC Shares shall be unrestricted
                  and freely tradable on the Principal Market without any
                  prospectus delivery or other requirements whatsoever and
                  without the need to make any registration or other filing
                  with the Commission.

                           (iii)    As of the Closing, the Company will have no
                  legal obligation, absolute or contingent, to any other
                  Person to transfer or sell any of the DOC Shares. There is
                  no action, claim, suit, investigation or proceeding
                  pending or, to the knowledge of the Company, threatened by
                  or against or affecting the Company or the DOC Shares
                  before any court or governmental or regulatory authority
                  or body, that could effect the ability of the Company to
                  pledge and transfer to the Purchasers any DOC Shares.
                  There are no writs, decrees, injunctions or orders of any
                  court or governmental or regulatory agency, authority or
                  body outstanding against the Company with respect to the
                  DOC Shares.

         3.2      Representations and Warranties of the Purchasers. Each
                  ------------------------------------------------
Purchaser hereby, for itself and for no other Purchaser, represents and
warrants to the Company as follows:

                  (a)      Organization; Authority. Such Purchaser is an entity
                           -----------------------
         duly organized, validly existing and in good standing under the
         laws of the jurisdiction of its organization with the requisite
         corporate or partnership power and authority to enter into and to
         consummate the transactions contemplated by the Transaction
         Documents and otherwise to carry out its obligations thereunder.
         The purchase by such Purchaser of the Securities hereunder has been
         duly authorized by all necessary action on the part of such
         Purchaser. Each of this Agreement and the Registration Rights
         Agreement have been duly executed

                                    -17-

<PAGE>
<PAGE>

         by such Purchaser, and when delivered by such Purchaser in
         accordance with the terms hereof, will constitute the valid and
         legally binding obligation of such Purchaser, enforceable against
         it in accordance with its terms.

                  (b)      Investment Intent. Such Purchaser is acquiring the
                           -----------------
         Securities as principal for its own account for investment purposes
         only and not with a view to or for distributing or reselling such
         Securities or any part thereof, without prejudice, however, to such
         Purchaser's right, subject to the provisions of this Agreement, at
         all times to sell or otherwise dispose of all or any part of such
         Securities pursuant to an effective registration statement under
         the Securities Act or under an exemption from such registration and
         in compliance with applicable federal and state securities laws.
         Nothing contained herein shall be deemed a representation or
         warranty by such Purchaser to hold Securities for any period of
         time. Such Purchaser is acquiring the Securities hereunder in the
         ordinary course of its business. Such Purchaser does not have any
         agreement or understanding, directly or indirectly, with any Person
         to distribute any of the Securities.

                  (c)      Purchaser Status. At the time such Purchaser was
                           ----------------
         offered the Securities, it was, and at the date hereof it is, and
         on each date on which it exercises any Warrants or converts any
         Debentures it will be, an "accredited investor" as defined in Rule
         501(a) under the Securities Act. Such Purchaser has not been formed
         solely for the purpose of acquiring the Securities. Such Purchaser
         is not a registered broker-dealer under Section 15 of the Exchange
         Act.

                  (d)      Experience of such Purchaser. Such Purchaser, either
                           ----------------------------
         alone or together with its representatives, has such knowledge,
         sophistication and experience in business and financial matters so
         as to be capable of evaluating the merits and risks of the
         prospective investment in the Securities, and has so evaluated the
         merits and risks of such investment. Such Purchaser is able to bear
         the economic risk of an investment in the Securities and, at the
         present time, is able to afford a complete loss of such investment.

                  (e)      General Solicitation. Such Purchaser is not
                           --------------------
         purchasing the Securities as a result of any advertisement,
         article, notice or other communication regarding the Securities
         published in any newspaper, magazine or similar media or broadcast
         over television or radio or presented at any seminar or any other
         general solicitation or general advertisement.

                                 ARTICLE IV
                       OTHER AGREEMENTS OF THE PARTIES

         4.1      Transfer Restrictions.
                  ---------------------

                  (a) The Securities may only be disposed of in compliance
         with state and federal securities laws. In connection with any
         transfer of Securities other than pursuant to an effective
         registration statement, to the Company or to an Affiliate of a
         Purchaser, the Company may require the transferor thereof to
         provide to the Company an opinion of

                                    -18-

<PAGE>
<PAGE>

         counsel selected by the transferor and reasonably satisfactory to
         the Company, the form and substance of which opinion shall be
         reasonably satisfactory to the Company, to the effect that such
         transfer does not require registration of such transferred
         Securities under the Securities Act. As a condition of transfer,
         any such transferee shall agree in writing to be bound by the terms
         of this Agreement and shall have the rights of a Purchaser under
         this Agreement and the Registration Rights Agreement.

                  (b) The Purchasers agree to the imprinting, so long as is
         required by this Section 4.1(b), of the following legend on any
                          --------------
         certificate evidencing Securities:

         [NEITHER] THESE SECURITIES [NOR THE SECURITIES INTO WHICH THESE
         SECURITIES ARE [EXERCISABLE] [CONVERTIBLE]] HAVE BEEN REGISTERED
         WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES
         COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM
         REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
         "SECURITIES ACT"), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD
         EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
         SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A
         TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE
         SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES
         LAWS, ALL AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE
         TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE
         REASONABLY ACCEPTABLE TO THE COMPANY. THESE SECURITIES AND THE
         SECURITIES ISSUABLE UPON EXERCISE OF THESE SECURITIES MAY BE
         PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN
         SECURED BY SUCH SECURITIES.

         The Company acknowledges and agrees that a Purchaser may from time
         to time pledge pursuant to a bona fide margin agreement or grant a
         security interest in some or all of the Securities and, if required
         under the terms of such arrangement, such Purchaser may transfer
         pledged or secured Securities to the pledgees or secured parties.
         If required by the Company's transfer agent in order to effect a
         pledge, the Company shall cause its counsel, at no cost to the
         Purchasers, to issue an opinion of counsel to the Company's
         transfer agent. Further, no notice shall be required of such
         pledge. At the appropriate Purchaser's expense, the Company will
         execute and deliver such reasonable documentation as a pledgee or
         secured party of Securities may reasonably request in connection
         with a pledge or transfer of the Securities, including the
         preparation and filing of any required prospectus supplement under
         Rule 424(b)(3) of the Securities Act or other applicable provision
         of the Securities Act to appropriately amend the list of Selling
         Stockholders thereunder.

                  (c) Certificates evidencing Underlying Shares shall not
         contain any legend (including the legend set forth in Section
         4.1(b) hereof): (i) while a registration statement

                                    -19-

<PAGE>
<PAGE>

         (including the Underlying Shares Registration Statement) covering
         the resale of such security is effective under the Securities Act,
         or (ii) following any sale of such Underlying Shares pursuant to
         Rule 144, or (iii) if such Underlying Shares are eligible for sale
         under Rule 144(k), or (iv) if such legend is not required under
         applicable requirements of the Securities Act (including judicial
         interpretations and pronouncements issued by the staff of the
         Commission); provided, however, in connection with the issuance of
                      --------  -------
         the Underlying Shares, each Purchaser, severally and not jointly
         with the other Purchasers, hereby agrees to adhere to and abide by
         all prospectus delivery requirements under the Securities Act and
         Commission Regulations. If all or any portion of a Debenture or
         Warrant is converted or exercised (as applicable) at a time when
         there is an effective registration statement to cover the resale of
         the Underlying Shares, or if such Underlying Shares may be sold
         under Rule 144(k) or if such legend is not otherwise required under
         applicable requirements of the Securities Act (including judicial
         interpretations thereof) then such Underlying Shares shall be
         issued free of all legends. The Company agrees that following the
         Effective Date or at such time as such legend is no longer required
         under this Section 4.1(c), it will, no later than five Trading Days
         following the delivery by a Purchaser to the Company or the
         Company's transfer agent of a certificate representing Underlying
         Securities issued with a restrictive legend, deliver or cause to be
         delivered to such Purchaser a certificate representing such shares
         that is free from all restrictive and other legends. The Company
         may not make any notation on its records or give instructions to
         any transfer agent of the Company that enlarge the restrictions on
         transfer set forth in this Section.

                  (d) In addition to such Purchaser's other available
         remedies, the Company shall pay to a Purchaser, in cash, as
         liquidated damages and not as a penalty, for each $1,000 of
         Underlying Shares (based on the VWAP of the Common Stock on the
         date such Securities are submitted to the Company's transfer agent)
         delivered for removal of the restrictive legend and subject to this
         Section 4.1(c), $10 per Trading Day (increasing to $20 per Trading
         Day 3 Trading Days after such damages have begun to accrue) for
         each Trading Day after such fifth Trading Day until such
         certificate is delivered without a legend.

         4.2      Acknowledgment of Dilution. The Company acknowledges that the
                  --------------------------
issuance of the Securities may result in dilution of the outstanding shares
of Common Stock, which dilution may be substantial under certain market
conditions. The Company further acknowledges that its obligations under the
Transaction Documents, including without limitation its obligation to issue
the Underlying Shares pursuant to the Transaction Documents, are
unconditional and absolute and not subject to any right of set off,
counterclaim, delay or reduction, regardless of the effect of any such
dilution or any claim the Company may have against any Purchaser and
regardless of the dilutive effect that such issuance may have on the
ownership of the other stockholders of the Company. The Company further
acknowledges that the Purchasers may have entered into short sales of the
Common Stock and DOC Common Stock and may continue to enter into short sales
of the Common Stock and DOC Common Stock, in accordance with applicable laws
and regulations, for purposes of hedging. The Company agrees that it will
not raise any claims in connection with any such trading activity referred
to in the prior sentence (nor will the Company support any claims by third
parties in connection with any such trading activity).

                                    -20-

<PAGE>
<PAGE>

         4.3      Furnishing of Information. As long as any Purchaser owns
                  -------------------------
Securities, the Company covenants to timely file (or obtain extensions in
respect thereof and file within the applicable grace period) all reports
required to be filed by the Company after the date hereof pursuant to the
Exchange Act. Upon the request of any Purchaser, the Company shall deliver
to such Purchaser a written certification of a duly authorized officer as to
whether it has complied with the preceding sentence. As long as any
Purchaser owns Securities, if the Company is not required to file reports
pursuant to such laws, it will prepare and furnish to the Purchasers and
make publicly available in accordance with Rule 144(c) such information as
is required for the Purchasers to sell the Securities under Rule 144. The
Company further covenants that it will take such further action as any
holder of Securities may reasonably request, all to the extent required from
time to time to enable such Person to sell such Securities without
registration under the Securities Act within the limitation of the
exemptions provided by Rule 144.

         4.4      Integration. The Company shall not, and shall use its best
                  -----------
efforts to ensure that no Affiliate of the Company shall, sell, offer for
sale or solicit offers to buy or otherwise negotiate in respect of any
security (as defined in Section 2 of the Securities Act) that would be
integrated with the offer or sale of the Securities in a manner that would
require the registration under the Securities Act of the sale of the
Securities to the Purchasers, or that would be integrated with the offer or
sale of the Securities for purposes of the rules and regulations of any
Principal Market.

         4.5      Reservation and Listing of Securities.
                  -------------------------------------

                  (a) The Company shall maintain a reserve from its duly
         authorized shares of Common Stock for issuance pursuant to the
         Transaction Documents in such amount as may be required to fulfill
         its obligations in full under the Transaction Documents.

                  (b) If, on any date, the number of authorized but unissued
         (and otherwise unreserved) shares of Common Stock is less than 200%
         of (i) the Actual Minimum on such date, minus (ii) the number of
         shares of Common Stock previously issued pursuant to the
         Transaction Documents, then the Board of Directors of the Company
         shall use commercially reasonable efforts to amend the Company's
         certificate or articles of incorporation to increase the number of
         authorized but unissued shares of Common Stock to at least the
         Required Minimum at such time (minus the number of shares of Common
         Stock previously issued pursuant to the Transaction Documents), as
         soon as possible and in any event not later than the 90th day after
         such date; provided that the Company will not be required at any
         time to authorize a number of shares of Common Stock greater than
         the maximum remaining number of shares of Common Stock that could
         possibly be issued after such time pursuant to the Transaction
         Documents.

                  (c) The Company shall: (i) prior to Closing, prepare and
         file with such Principal Market an additional shares listing
         application covering a number of shares of Common Stock at least
         equal to the Required Minimum on the date of such application, (ii)
         take all steps necessary to cause such shares of Common Stock to be
         approved for listing on the Principal Market as soon as possible
         thereafter, (iii) provide to the Purchasers evidence of such
         listing, and (iv) maintain the listing of such Common Stock on such
         Principal Market or another Principal Market. In addition, the
         Company shall

                                    -21-

<PAGE>
<PAGE>

         hold a special meeting of shareholders at the earliest practical
         date, but in no event later than September 15, 2003, for the
         purpose of obtaining a proposal for Shareholder Approval, with the
         recommendation of the Company's Board of Directors that such
         proposal be approved, and the Company shall solicit proxies from
         its shareholders in connection therewith in the same manner as all
         other management proposals in such proxy statement and all
         management-appointed proxyholders shall vote their proxies in favor
         of such proposal. Further, the Company shall use commercially
         reasonable efforts to obtain the written agreement of Richard J.
         Sullivan to vote all Common Stock owned by him as of the record
         date for such meeting in favor of such proposal.

         4.6 DOC Registration Statements. At the Closing, the Company
             ---------------------------
shall deliver to each Purchaser a true, correct and complete copy of each
prospectus pursuant to the DOC Registration Statement. Any transfer of the
DOC Shares by the Company to the Purchasers shall be made pursuant to the
DOC Registration Statement if it shall then be effective, and otherwise by
any other method acceptable to each holder. The Company hereby agrees to use
its reasonable best efforts to cause DOC to, until the date that the Company
shall have transferred the DOC Shares to the Purchasers or none of the
Debentures is outstanding, keep the DOC Registration Statement continuously
effective under the Securities Act and, if and when the Company deems it
necessary, use reasonable best efforts to cause DOC to file one or more
prospectus supplements pursuant to Rule 424(b). The Company shall take all
actions necessary such that the DOC Shares shall remain free of any Lien.
The Company hereby assigns all of its rights and privileges under any
registration rights agreements with DOC to the extent necessary to allow the
Purchasers to enforce such rights with respect to the DOC Shares directly
against the DOC.

         4.7 Transfer of DOC Shares. Upon transfer of any DOC Shares to a
             ----------------------
Purchaser pursuant to the terms of the Transaction Documents, including,
without limitation, pursuant to an exchange under the Debentures, the
Company shall take all actions necessary to transfer to Purchaser, in
accordance with the applicable terms of the Transaction Documents, the DOC
Shares free and clear of all Liens or restrictions such that after such
transfer the DOC Shares will be unrestricted and freely tradable by the
Purchaser. In connection with the foregoing, the Company shall (i) deliver
any prospectus supplement dated after the Closing Date, (ii) cause its
counsel to deliver to the transfer agent of DOC a legal opinion, if required
by the transfer agent to issue any DOC Shares free of a legend, and (iii)
use reasonable best efforts to take any other actions reasonably requested
by any Purchaser in connection with any such transfer. Upon satisfaction in
full of the Debentures and upon exercise in full of the Warrant, Purchasers
shall promptly (but in any event within ten Business Days) send a Final
Payment Notice to the Trustee indicating that the Obligations (as defined in
the Trust) have been satisfied in full.

         4.8 Conversion and Exercise Procedures. The form of exercise
             ----------------------------------
included in the Warrants and the form of Conversion/Exchange Notice included
in the Debentures set forth the totality of the procedures required of the
Purchasers in order to exercise the Warrants or convert/exchange the
Debentures. No additional legal opinion or other information or instructions
shall be required of the Purchasers to exercise their Warrants or
convert/exchange their Debentures. The Company shall honor exercises of the
Warrants and conversions/exchanges of the Debentures and shall deliver
Underlying Shares or DOC Shares in accordance with the terms, conditions and
time periods set forth in the Transaction Documents.

                                    -22-

<PAGE>
<PAGE>

Further, notwithstanding any breach or alleged breach by any Purchaser of
this Agreement or any other document executed in connection herewith or any
other claim it may have against any Purchaser, the Company agrees that it
shall timely honor conversions, exercises and exchanges by the Purchasers.

         4.9 Future Financings. From the date hereof until 90 days after
             -----------------
the Effective Date, other than as contemplated by this Agreement, neither
the Company nor any Subsidiary shall (a) incur, issue, create, guarantee,
assume or otherwise become liable on account of any indebtedness other than
with a federally regulated financial institution or (b) increase any amounts
owing or to which such Person is liable under any existing obligations or
(c) issue or sell any Capital Shares or Capital Shares Equivalents.
Notwithstanding anything herein to the contrary, the 90 day period set forth
in this Section 4.9 shall be extended for the number of Trading Days during
such period in which (y) trading in the Common Stock is suspended by any
Principal Market, or (z) following the Effective Date, the Registration
Statement is not effective or the prospectus included in the Registration
Statement may not be used by the Purchasers for the resale of the Underlying
Shares. Notwithstanding anything to the contrary herein, this Section 4.9
shall not apply to the following (each of which, an "Exempt Transaction"):
(a) the granting of options to employees, officers and directors of the
Company pursuant to any stock option plan duly adopted by a majority of the
non-employee members of the Board of Directors of the Company or a majority
of the members of a committee of non-employee directors established for such
purpose, (b) the exercise of a Debenture or any other security issued by the
Company in connection with the offer and sale of this Company's securities
pursuant to this Agreement, or (c) the exercise of or conversion of any
Convertible Securities, options or warrants issued and outstanding on the
Closing Date, provided that such securities have not been amended since the
date hereof, or (d) acquisitions or strategic investments, the primary
purpose of which is not to raise capital, or (e) the lending or borrowing of
money between or among the Company and its direct or indirect subsidiaries
(including, for this purpose, DOC and InfoTechUSA, Inc. and each of their
subsidiaries), or (f) the potential [OMITTED FOR CONFIDENTIALITY], or (g) in
connection with the share issuances or re-pricing to certain former officers
as described in the Proxy, or (h) in a transaction involving the issuance of
Common Stock to satisfy a bona fide payable if less than $100,000 and if the
shares of Common Stock so issued are valued at or above the then market
price, or (i) any transaction involving the issuance of shares of Common
Stock or warrants to acquire Common Stock if in connection with the
settlement of bona fide litigation and if the shares so issued are valued at
or above the then market price and if the options, if any, have an exercise
price at or above the then market price.

         4.10 Securities Laws Disclosure; Publicity. The Company shall, by
              -------------------------------------
9:30 a.m. Eastern time on the Trading Day following the Closing Date, issue
a press release or file a Current Report on Form 8-K reasonably acceptable
to each Purchaser disclosing all material terms of the transactions
contemplated hereby. The Company and the Purchasers shall consult with each
other in issuing any press releases with respect to the transactions
contemplated hereby. Notwithstanding the foregoing, other than in any
registration statement filed pursuant to the Registration Rights Agreement
and filings related thereto, the Company shall not publicly disclose the
name of any Purchaser, or include the name of any Purchaser in any filing
with the Commission or any regulatory agency or Principal Market, without
the prior written consent of such Purchaser, except to the extent such
disclosure is required by law or Principal Market

                                    -23-

<PAGE>
<PAGE>

regulations, in which case the Company shall provide the Purchasers with
prior notice of such disclosure.

         4.11 Non-Public Information. The Company covenants and agrees that
              ----------------------
other than as it relates to the Transaction Documents (including Section
4.16) neither it nor any other Person acting on its behalf will provide any
Purchaser or its agents or counsel with any information that the Company
believes constitutes material non-public information, unless prior thereto
such Purchaser shall have executed a written agreement regarding the
confidentiality and use of such information. The Company understands and
confirms that each Purchaser shall be relying on the foregoing
representations in effecting transactions in securities of the Company.

         4.12 Use of Proceeds. The Company shall use the net proceeds from
              ---------------
the sale of the Securities hereunder for working capital purposes and for
the satisfaction of a portion of the Company's debt, but not to redeem any
Company equity or equity-equivalent securities. Prior to the receipt of
Shareholder Approval, the Company shall not declare or pay any cash dividend
on its shares of Common Stock while any Debentures remains outstanding.

         4.13 Reimbursement. If any Purchaser becomes involved in any
              -------------
capacity in any Proceeding by or against any Person who is a stockholder of
the Company, solely as a result of such Purchaser's acquisition of the
Securities under this Agreement and without causation by any other activity,
obligation, condition or liability pertaining to such Purchaser and not to
the transactions contemplated by this Agreement, the Company will reimburse
such Purchaser, to the extent such reimbursement is not provided for in
Section 4.14, for its reasonable legal and other expenses (including the
cost of any investigation, preparation and travel in connection therewith)
incurred in connection therewith, as such expenses are incurred. The
reimbursement obligations of the Company under this paragraph shall be in
addition to any liability which the Company may otherwise have, shall extend
upon the same terms and conditions to any Affiliates of the Purchasers who
are actually named in such action, proceeding or investigation, and
partners, directors, agents, employees and controlling persons (if any), as
the case may be, of the Purchasers and any such Affiliate, and shall be
binding upon and inure to the benefit of any successors, assigns, heirs and
personal representatives of the Company, the Purchasers and any such
Affiliate and any such Person. The Company also agrees that neither the
Purchasers nor any such Affiliates, partners, directors, agents, employees
or controlling persons shall have any liability to the Company or any Person
asserting claims on behalf of or in right of the Company solely as a result
of acquiring the Securities under this Agreement.

         4.14 Indemnification of Purchasers. Subject to the provisions of
              -----------------------------
this Section 4.14, the Company will indemnify and hold the Purchasers and
their directors, officers, shareholders, partners, employees and agents
(each, a "Purchaser Party") harmless from any and all losses, liabilities,
          ---------------
obligations, claims, contingencies, damages, costs and expenses, including
all judgments, amounts paid in settlements, court costs and reasonable
attorneys' fees and costs of investigation that any such Purchaser Party may
suffer or incur as a result of or relating to any breach of any of the
representations, warranties, covenants or agreements made by the Company in
this Agreement or in the other Transaction Documents. If any action shall be
brought against any Purchaser Party in respect of which indemnity may be
sought pursuant to this Agreement, such Purchaser Party shall promptly
notify the Company in writing, and the Company shall have

                                    -24-

<PAGE>
<PAGE>

the right to assume the defense thereof with counsel of its own choosing.
Any Purchaser Party shall have the right to employ separate counsel in any
such action and participate in the defense thereof, but the fees and
expenses of such counsel shall be at the expense of such Purchaser Party
except to the extent that (i) the employment thereof has been specifically
authorized by the Company in writing, (ii) the Company has failed after a
reasonable period of time to assume such defense and to employ counsel or
(iii) in such action there is, in the reasonable opinion of such separate
counsel, a material conflict on any material issue between the position of
the Company and the position of such Purchaser Party. The Company will not
be liable to any Purchaser Party under this Agreement (i) for any settlement
by an Purchaser Party effected without the Company's prior written consent,
which shall not be unreasonably withheld or delayed; or (ii) to the extent,
but only to the extent that a loss, claim, damage or liability is
attributable to any Purchaser Party's breach of any of the representations,
warranties, covenants or agreements made by the Purchasers in this Agreement
or in the other Transaction Documents.

         4.15 Shareholders Rights Plan. In the event that a shareholders
              ------------------------
rights plan is adopted by the Company, no claim will be made or enforced by
the Company or any other Person that any Purchaser is an "Acquiring Person"
under the plan or in any way could be deemed to trigger the provisions of
such plan by virtue of receiving Securities under the Transaction Documents.

         4.16 Participation in Future Financing. From the date hereof until
              ---------------------------------
such time as a Purchaser no longer holds any Debentures, and except for
Exempt Transactions, the Company shall not effect a financing of its Capital
Shares or Capital Shares Equivalents (a "Subsequent Financing") unless (i)
                                         --------------------
the Company delivers to Purchasers' Representative a written notice at least
5 Trading Days prior to the closing of such Subsequent Financing (the
"Subsequent Financing Notice") of its intention to effect such Subsequent
 ---------------------------
Financing, which Subsequent Financing Notice shall describe in reasonable
detail the proposed terms of such Subsequent Financing, the amount of
proceeds intended to be raised thereunder, the Person with whom such
Subsequent Financing is proposed to be effected, and attached to which shall
be a term sheet or similar document relating thereto and (ii) Purchasers'
Representative shall not have notified the Company by 6:30 p.m. (New York
City time) on the fifth (5th) Trading Day after its receipt of the
Subsequent Financing Notice of its and/or other Purchasers' willingness to
provide (or to cause its designee to provide), subject to completion of
mutually acceptable documentation, all or part of such financing to the
Company on the same terms set forth in the Subsequent Financing Notice. If
one or more Purchasers shall fail to so notify the Company of their
willingness to participate in the Subsequent Financing, the Company may
effect the remaining portion of such Subsequent Financing on the terms and
to the Persons set forth in the Subsequent Financing Notice; provided that
the Company must provide the Purchasers with a second Subsequent Financing
Notice, and the Purchasers will again have the right of first refusal set
forth above in this Section 4.16, if the Subsequent Financing subject to the
initial Subsequent Financing Notice is not consummated for any reason on the
terms set forth in such Subsequent Financing Notice within 60 Trading Days
after the date of the initial Subsequent Financing Notice with the Person
identified in the Subsequent Financing Notice, and if the Company still
desires to effect such financing. In the event the Company receives
responses to Subsequent Financing Notices from Purchasers seeking to
purchase more than the financing sought by the Company in the Subsequent
Financing such Purchasers shall have the right to purchase their Pro Rata
Portion (as defined below) of the Capital Shares or Capital Shares
Equivalents to be issued

                                    -25-

<PAGE>
<PAGE>

in such Subsequent Financing. "Pro Rata Portion" is the ratio of (x) the
                               ----------------
principal amount of Debentures purchased by a Purchaser and (y) the sum of
the aggregate principal amount of Debentures issued hereunder. If any
Purchaser no longer holds any Debentures, then the Pro Rata Portions shall
be re-allocated among the remaining Purchasers. Notwithstanding anything to
the contrary herein, this Section 4.16 shall not apply to the following (a)
the granting of options to employees, officers and directors of the Company
pursuant to any stock option plan duly adopted by a majority of the
non-employee members of the Board of Directors of the Company or a majority
of the members of a committee of non-employee directors established for such
purpose, or (b) the exercise of the Debenture or any other security issued
by the Company in connection with the offer and sale of this Company's
securities pursuant to this Agreement, or (c) the exercise of or conversion
of any Convertible Securities, options or warrants issued and outstanding on
the Original Issue Date, provided such securities have not been amended
since the date hereof, or (d) acquisitions or strategic investments, the
primary purpose of which is not to raise capital, or (e) any other Exempt
Transaction.

         4.17 Limit on Dividends. So long as any Debenture remains
              ------------------
outstanding, the Company shall not declare or pay any dividend on its Common
Stock in the form of cash or in the form of shares of DOC Common Stock.

                                  ARTICLE V
                                MISCELLANEOUS

         5.1 Termination. This Agreement may be terminated by any Purchaser,
             -----------
by written notice to the other parties, if the First Closing has not been
consummated on or before July 3, 2003; provided that no such termination
will affect the right of any party to sue for any breach by the other party
(or parties).

         5.2 Fees and Expenses. The Company has agreed to reimburse $50,000
             -----------------
to Midsummer Capital, LLC ("Midsummer") (of which $15,000 has been received)
                            ---------
as reimbursement for its legal, administrative and due diligence fees and
expenses incurred to prepare and negotiate the Transaction Documents. On the
Closing Date, Midsummer Investment Ltd. shall reduce its Subscription Amount
by $35,000 as payment of the remaining portion of the $50,000 referenced
above. Except as expressly set forth in the Transaction Documents to the
contrary, each party shall pay the fees and expenses of its advisers,
counsel, accountants and other experts, if any, and all other expenses
incurred by such party incident to the negotiation, preparation, execution,
delivery and performance of this Agreement. The Company shall pay all
transfer agent fees, stamp taxes and other taxes and duties levied in
connection with the issuance of any Securities. The Purchasers shall pay, on
behalf of the Company, the fees of the placement agents for this transaction
out of closing proceeds, in the aggregate amount of $430,000.

         5.3 Entire Agreement. The Transaction Documents, together with the
             ----------------
exhibits and schedules thereto, contain the entire understanding of the
parties with respect to the subject matter hereof and supersede all prior
agreements and understandings, oral or written, with respect to such
matters, which the parties acknowledge have been merged into such documents,
exhibits and schedules.

                                    -26-

<PAGE>
<PAGE>

         5.4 Notices. Any and all notices or other communications or
             -------
deliveries required or permitted to be provided hereunder shall be in
writing and shall be deemed given and effective on the earliest of (a) the
date of transmission, if such notice or communication is delivered via
facsimile at the facsimile number specified in this Section prior to 5:30
p.m. (New York City time) on a Trading Day, (b) the next Trading Day after
the date of transmission, if such notice or communication is delivered via
facsimile at the facsimile number specified in this Section on a day that is
not a Trading Day or later than 5:30 p.m. (New York City time) on any
Trading Day, or (c) the Trading Day following the date of mailing, if sent
by U.S. nationally recognized overnight courier service. The addresses for
such notices and communications are those set forth on the signature pages
hereof, or such other address as may be designated in writing hereafter, in
the same manner, by such Person.

         5.5 Amendments; Waivers. No provision of this Agreement may be
             -------------------
waived or amended except in a written instrument signed, in the case of an
amendment, by the Company and each of the Purchasers or, in the case of a
waiver, by the party against whom enforcement of any such waiver is sought.
No waiver 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 subsequent default or a waiver of any other
provision, condition or requirement hereof, nor shall any delay or omission
of either party to exercise any right hereunder in any manner impair the
exercise of any such right.

         5.6 Construction. The headings herein are for convenience only, do
             ------------
not constitute a part of this Agreement and shall not be deemed to limit or
affect any of the provisions hereof. The language used in this Agreement
will be deemed to be the language chosen by the parties to express their
mutual intent, and no rules of strict construction will be applied against
any party.

         5.7 Successors and Assigns. This Agreement shall be binding upon
             ----------------------
and inure to the benefit of the parties and their successors and permitted
assigns. The Company may not assign this Agreement or any rights or
obligations hereunder without the prior written consent of the Purchasers.
Notwithstanding anything herein to the contrary, the Company may, without
notice or other action, effect the reincorporation of the Company from
Missouri to Florida, all as set forth in the Proxy. Any Purchaser may assign
its rights under this Agreement and the Registration Rights Agreement to any
Person to whom such Purchaser assigns or transfers any Securities.

         5.8 No Third-Party Beneficiaries. This Agreement is intended for
             ----------------------------
the benefit of the parties hereto and their respective successors and
permitted assigns and is not for the benefit of, nor may any provision
hereof be enforced by, any other Person, except as otherwise set forth in
Sections 4.12.

         5.9 Governing Law; Venue; Waiver of Jury Trial. All questions
             ------------------------------------------
concerning the construction, validity, enforcement and interpretation of
this Agreement shall be governed by and construed and enforced in accordance
with the internal laws of the State of New York, without regard to the
principles of conflicts of law thereof. Each party hereby irrevocably
submits to the exclusive jurisdiction of the state and federal courts
sitting in the City of New York, borough of Manhattan, for the adjudication
of any dispute hereunder or in connection

                                    -27-

<PAGE>
<PAGE>

herewith or with any transaction contemplated hereby or discussed herein
(including with respect to the enforcement of any of the Transaction
Documents), and hereby irrevocably waives, and agrees not to assert in any
suit, action or proceeding, any claim that it is not personally subject to
the jurisdiction of any such court, that such suit, action or proceeding is
improper or inconvenient venue for such proceeding. Each party hereby
irrevocably waives personal service of process and consents to process being
served in any such suit, action or proceeding by mailing a copy thereof via
registered or certified mail or overnight delivery (with evidence of
delivery) to such party at the address in effect for notices to it under
this Agreement and agrees that such service shall constitute good and
sufficient service of process and notice thereof. Nothing contained herein
shall be deemed to limit in any way any right to serve process in any manner
permitted by law. The parties hereby waive all rights to a trial by jury. If
either party shall commence an action or proceeding to enforce any
provisions of this Agreement, then the prevailing party in such action or
proceeding shall be reimbursed by the other party for its attorneys fees and
other costs and expenses incurred with the investigation, preparation and
prosecution of such action or proceeding.

         5.10 Survival. The representations, warranties, agreements and
              --------
covenants contained herein shall survive the Closings and the delivery,
exercise and/or conversion of the Securities, as applicable, for the
applicable statute of limitations.

         5.11 Execution. This Agreement may be executed in two or more
              ---------
counterparts, all of which when taken together shall be considered one and
the same agreement and shall become effective when counterparts have been
signed by each party and delivered to the other party, it being understood
that both parties need not sign the same counterpart. In the event that any
signature is delivered by facsimile transmission, such signature shall
create a valid and binding obligation of the party executing (or on whose
behalf such signature is executed) with the same force and effect as if such
facsimile signature page were an original thereof.

         5.12 Severability. If any provision of this Agreement is held to be
              ------------
invalid or unenforceable in any respect, the validity and enforceability of
the remaining terms and provisions of this Agreement shall not in any way be
affected or impaired thereby and the parties will attempt to agree upon a
valid and enforceable provision that is a reasonable substitute therefor,
and upon so agreeing, shall incorporate such substitute provision in this
Agreement.

         5.13 Rescission and Withdrawal Right. Notwithstanding anything to
              -------------------------------
the contrary contained in (and without limiting any similar provisions of)
the Transaction Documents, whenever any Purchaser exercises a right,
election, demand or option under a Transaction Document and the Company does
not timely perform its related obligations within the periods therein
provided, then such Purchaser may rescind or withdraw, in its sole
discretion from time to time upon written notice to the Company, any
relevant notice, demand or election in whole or in part without prejudice to
its future actions and rights, provided, however, in the case of a
rescission of a conversion of a Debenture or exercise of a Warrant, the
Purchaser shall be required to return any shares of Common Stock subject to
any such conversion or exercise notice.

                                    -28-

<PAGE>
<PAGE>

         5.14 Replacement of Securities. If any certificate or instrument
              -------------------------
evidencing any Securities is mutilated, lost, stolen or destroyed, the
Company shall issue or cause to be issued in exchange and substitution for
and upon cancellation thereof, or in lieu of and substitution therefor, a
new certificate or instrument, but only upon receipt of evidence reasonably
satisfactory to the Company of such loss, theft or destruction and customary
and reasonable indemnity, if requested. The applicants for a new certificate
or instrument under such circumstances shall also pay any reasonable
third-party costs associated with the issuance of such replacement
Securities.

         5.15 Remedies. In addition to being entitled to exercise all rights
              --------
provided herein or granted by law, including recovery of damages, each of
the Purchasers and the Company will be entitled to specific performance
under the Transaction Documents. The parties agree that monetary damages may
not be adequate compensation for any loss incurred by reason of any breach
of obligations described in the foregoing sentence and hereby agrees to
waive in any action for specific performance of any such obligation the
defense that a remedy at law would be adequate. Without limiting the
generality of the foregoing, the Company expressly agrees that its breach of
the next-to-last last sentence of Section 4.7 would cause each Purchaser
irreparable harm, and consents to the granting of injunctive relief by any
court having jurisdiction to preclude any such issuance of securities.

         5.16 Payment Set Aside. To the extent that the Company makes a
              -----------------
payment or payments to any Purchaser pursuant to any Transaction Document or
a Purchaser enforces or exercises its rights thereunder, and such payment or
payments or the proceeds of such enforcement or exercise or any part thereof
are subsequently invalidated, declared to be fraudulent or preferential, set
aside, recovered from, disgorged by or are required to be refunded, repaid
or otherwise restored to the Company, a trustee, receiver or any other
person under any law (including, without limitation, any bankruptcy law,
state or federal law, common law or equitable cause of action), then to the
extent of any such restoration the obligation or part thereof originally
intended to be satisfied shall be revived and continued in full force and
effect as if such payment had not been made or such enforcement or setoff
had not occurred.

         5.17 Usury. To the extent it may lawfully do so, the Company hereby
              -----
agrees not to insist upon or plead or in any manner whatsoever claim, and
will resist any and all efforts to be compelled to take the benefit or
advantage of, usury laws wherever enacted, now or at any time hereafter in
force, in connection with any claim, action or proceeding that may be
brought by any Purchaser in order to enforce any right or remedy under any
Transaction Document. Notwithstanding any provision to the contrary
contained in any Transaction Document, it is expressly agreed and provided
that the total liability of the Company under the Transaction Documents for
payments in the nature of interest shall not exceed the maximum lawful rate
authorized under applicable law (the "Maximum Rate"), and, without limiting
                                      ------------
the foregoing, in no event shall any rate of interest or default interest,
or both of them, when aggregated with any other sums in the nature of
interest that the Company may be obligated to pay under the Transaction
Documents exceed such Maximum Rate. It is agreed that if the maximum
contract rate of interest allowed by law and applicable to the Transaction
Documents is increased or decreased by statute or any official governmental
action subsequent to the date hereof, the new maximum contract rate of
interest allowed by law will be the Maximum Rate applicable to the

                                    -29-

<PAGE>
<PAGE>

Transaction Documents from the effective date forward, unless such
application is precluded by applicable law. If under any circumstances
whatsoever, interest in excess of the Maximum Rate is paid by the Company to
any Purchaser with respect to indebtedness evidenced by the Transaction
Documents, such excess shall be applied by such Purchaser to the unpaid
principal balance of any such indebtedness or be refunded to the Company,
the manner of handling such excess to be at such Purchaser's election.

         5.18 Independent Nature of Purchasers' Obligations and Rights. The
              --------------------------------------------------------
obligations of each Purchaser under any Transaction Document are several and
not joint with the obligations of any other Purchaser, and no Purchaser
shall be responsible in any way for the performance of the obligations of
any other Purchaser under any Transaction Document. Nothing contained herein
or in any Transaction Document, and no action taken by any Purchaser
pursuant thereto, shall be deemed to constitute the Purchasers as a
partnership, an association, a joint venture or any other kind of entity, or
create a presumption that the Purchasers are in any way acting in concert or
as a group with respect to such obligations or the transactions contemplated
by the Transaction Document. Except as expressly set forth herein with
respect to the Purchasers' Representative, whose duties as to the Company's
and DOC's equity are purely ministerial, and whose discretionary duties
relate solely to the Purchasers status as secured creditors of the Company,
each Purchaser shall be entitled to independently protect and enforce its
rights, including without limitation the rights arising out of this
Agreement or out of the other Transaction Documents, and it shall not be
necessary for any other Purchaser to be joined as an additional party in any
proceeding for such purpose. Each Purchaser has been represented by its own
separate legal counsel in their review and negotiation of the Transaction
Documents. For reasons of administrative convenience only, Purchasers and
their respective counsel have chosen to communicate with the Company through
FW. FW does not represent all of the Purchasers but only Midsummer. The
Company has elected to provide all Purchasers with the same terms and
Transaction Documents for the convenience of the Company and not because it
was required or requested to do so by the Purchasers.

         5.19 Liquidated Damages. The Company's obligations to pay any
              ------------------
liquidated damages or other amounts owing under the Transaction Documents is
a continuing obligation of the Company and shall not terminate until all
unpaid liquidated damages and other amounts have been paid notwithstanding
the fact that the instrument or security pursuant to which such liquidated
damages or other amounts are due and payable shall have been canceled.

                           ***********************

                                    -30-

<PAGE>
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Securities
Purchase Agreement to be duly executed by their respective authorized
signatories as of the date first indicated above.

                                            APPLIED DIGITAL SOLUTIONS, INC.

                                            By: /s/ Scott R. Silverman
                                               --------------------------------
                                            Name: Scott R. Silverman
                                            Title: CEO

                                            Address for Notice:
                                            ------------------
                                            400 Royal Palm Way
                                            Suite 410
                                            Palm Beach, FL  33480
                                            Attn: Scott R. Silverman, CEO
                                            Tel: (561) 805-8056
                                            Fax: (561) 805-8001

With a copy to:                             Holland & Knight LLP
                                            Attn: Harvey Goldman, Esq.
                                            Tel: 305-789-7506
                                            Fax: 305-789-7799

                 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK
                    SIGNATURE PAGE FOR PURCHASER FOLLOWS]

                                    -31-

<PAGE>
<PAGE>

                          PURCHASERS SIGNATURE PAGE

         IN WITNESS WHEREOF, the undersigned have caused this Securities
Purchase Agreement to be duly executed by their respective authorized
signatories as of the date first indicated above.

ELLIOTT ASSOCIATES, L.P.                            Address for Notice:
                                                    ------------------

By: /s/ Paul Singer                                 Tel:
   -------------------------------------            Fax:
   Paul Singer, General Partner                     Attn:

Taxpayer ID#

Subscription Amount: $1,400,000

ELLIOTT INTERNATIONAL, L.P.                         Address for Notice:
By: Elliott International Capital Advisors Inc.,    ------------------
as Attorney-in-Fact

By: /s/ Paul Singer                                 Tel:
   -------------------------------------            Fax:
   Paul Singer, President                           Attn:

Taxpayer ID#

Subscription Amount: $2,100,000

                                    -32-

<PAGE>
<PAGE>

                   PURCHASERS SIGNATURE PAGE (CONT. . . )

MIDSUMMER INVESTMENT, LTD.                     Address for Notice:
                                               ------------------
                                               c/o Midsummer Capital, LLC
                                               485 Madison Avenue, 23rd Floor
                                               New York, New York 10022
By: /s/ Scott Kaufman                          Tel: (212) 584-2140
   -------------------------------------       Fax: (212) 584-2142
   Scott Kaufman, Authorized Signatory         Attn: Scott Kaufman

Taxpayer ID#

Subscription Amount: $2,000,000

With a copy to:
--------------
                                       Feldman Weinstein LLP
                                       420 Lexington Avenue
                                       New York, New York 10170
                                       Attn: Joseph A. Smith
                                       Tel: (212) 869-7000
                                       Fax: 212) 401-4741

                                    -33-

<PAGE>
<PAGE>

                   PURCHASERS SIGNATURE PAGE (CONT. . . )

OMICRON MASTER TRUST                              Address for Notice:
By: Omicron Capital L.P., as advisor              ------------------
By: Omicron Capital Inc., its general partner     c/o Omicron Capital L.P.
                                                  810 Seventh Avenue, 39th Floor
                                                  New York, New York 10019
                                                  Attn: Brian Daly
By: /s/ Bruce Bernstein                           Fax: (212) 803-5269
   ------------------------------------------
   Bruce Bernstein, President

Taxpayer ID#:

Subscription Amount: $1,500,000

                                    -34-

<PAGE>
<PAGE>

                   PURCHASERS SIGNATURE PAGE (CONT. . . )

ISLANDIA, L.P.                              Address for Notice:
                                            -------------------
                                            c/o John Lang, Inc.
                                            485 Madison Avenue, 23rd Floor
                                            New York, New York 10022
By: /s/ Richard Berner                      Tel: (212) 584-2100
   -------------------------------------    Fax: (212) 584-2199
Name: Richard Berner
Title: President of John Lang, Inc.,
         General Partner

Taxpayer ID#:

Subscription Amount: $2,000,000

                                    -35-

<PAGE>
<PAGE>

                   PURCHASERS SIGNATURE PAGE (CONT. . . )

PORTSIDE GROWTH AND OPPORTUNITY FUND

By: /s/ Jeffrey M. Solomon                       Address for Notice:
   ----------------------------------            ------------------
Name: Jeffrey M. Solomon                         c/o Ramius Capital Group, LLC
Title: Authorized Signatory                      666 Third Ave., 26th Floor
                                                 New York, NY 10017
                                                 Fax: (212) 845-7999

Taxpayer ID#:

Subscription Amount: $1,500,000

                                    -36-

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