Document:

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                                                                   Exhibit 10.34

                         COMMON STOCK PURCHASE AGREEMENT

     This COMMON STOCK PURCHASE AGREEMENT (this "Agreement') is dated as of
April 9, 2000 by and between Aquis Communications Group, Inc., a Delaware
corporation (the "Company"), and Coxton, Limited (the "Purchaser").

     The parties hereto agree as follows:

                                    ARTICLE I

                                   DEFINITIONS

     Section 1.1 CERTAIN DEFINITIONS.

     (a) "AVERAGE DAILY PRICE" shall be the price based on the VWAP of the
Company on the Nasdaq SmallCap Market or, if the Nasdaq SmallCap Market is not
the Principal Market, on the Principal Market.

     (b) "DRAW DOWN" shall have the meaning assigned to such term in Section
6.1(a) hereof.

     (c) "DRAW DOWN EXERCISE DATE" shall have the meaning assigned to such term
in Section 6.1(b) hereof.

     (d) "DRAW DOWN PRICING PERIOD" shall mean a period of twenty-two (22)
consecutive Trading Days preceding a Draw Down Exercise Date.

     (e) "EFFECTIVE DATE" shall mean the date the Registration Statement of the
Company covering the Shares being subscribed for hereby is declared effective.

     (f) "MATERIAL ADVERSE EFFECT" shall mean any adverse effect on the
business, operations, properties or financial condition of the Company that
materially impairs the ability of the Company and its subsidiaries and
affiliates, taken as a whole, and/or any condition, circumstance, or situation
that would prohibit or otherwise materially interfere with the ability of the
Company to perform any of its material obligations under this Agreement or the
Registration Rights Agreement or to perform its obligations under any other
material agreement.

     (g) "PRINCIPAL MARKET" shall mean initially the Nasdaq SmallCap Market, and
shall include the Nasdaq National Market, the American Stock Exchange or the New
York Stock Exchange if the Company is listed and trades on such market or
exchange, but shall not include the OTC Bulletin Board without the express
consent of the Purchaser.

     (h) "REGISTRATION STATEMENT" shall mean the registration statement under
the Securities Act of 1933, as amended, to be filed with the Securities and
Exchange Commission for

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the registration of the Shares pursuant to the Registration Rights Agreement
attached hereto as EXHIBIT A.

     (i) "SEC DOCUMENTS" shall mean a draft Annual Report on Form 10-K for
fiscal year ended December 31, 1999 in the form provided to the Purchaser, the
Company's latest Form 10-K for the fiscal year ended December 31, 1998 and as of
the time in question, all Forms 10-Q or 10-QSB and 8-K filed thereafter, and the
Proxy Statement for its latest fiscal year as of the time in question until such
time as the Company no longer has an obligation to maintain the effectiveness of
a Registration Statement as set forth in the Registration Rights Agreement.

     (j) "SHARES" shall mean, collectively, the shares of Common Stock of the
Company being subscribed for hereunder.

     (k) "THRESHOLD PRICE" is the lowest Average Daily Price at which the
Company will sell its Common Stock with respect to this Agreement.

     (l) "TRADING DAY" shall mean any day on which the Principal Market is open
for business.

     (m) "VWAP" shall mean the daily volume weighted average price of the
Company' Common Stock on the Nasdaq SmallCap Market or on any Principal Market
as reported by Bloomberg Financial using the AQR function.

                                   ARTICLE II

                        PURCHASE AND SALE OF COMMON STOCK

     Section 2.1 PURCHASE AND SALE OF STOCK. Subject to the terms and conditions
of this Agreement, the Company may issue and sell to the Purchaser and the
Purchaser shall purchase from the Company up to Twenty Million Dollars
($20,000,000) of the Company's Common Stock, $0.01 par value per share (the
"Common Stock"), based on up to twelve (12) Draw Downs of up to Seven Million
Dollars ($7,000,000) per Draw Down.

     Section 2.2 THE SHARES. The Company has authorized and has reserved and
covenants to continue to reserve, free of preemptive rights and other similar
contractual rights of stockholders, 500,000 of its authorized but unissued
shares of its Common Stock to cover the Shares to be issued in connection with
all Draw Downs requested under this Agreement. Anything in this Agreement to the
contrary notwithstanding, (i) at no time will the Company request a Draw Down
which would result in the issuance of a number of shares of Common Stock
pursuant to this Agreement which exceeds 19.9% of the number of shares of Common
Stock issued and outstanding on the Closing Date without obtaining stockholder
approval of such excess issuance, and (ii) the Company may not make a Draw Down
to the extent that, after such purchase by the Purchaser, the sum of the number
of shares of Common Stock beneficially owned by the Purchaser and its affiliates
would result in beneficial ownership by the Purchaser and its affiliates of more
than 9.9% of the then outstanding shares of Common Stock. For

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purposes of the immediately preceding sentence, beneficial ownership shall be
determined in accordance with Section 13(d) of the Securities and Exchange Act
of 1934, as amended.

     Section 2.3 PURCHASE PRICE AND CLOSING. The Company agrees to issue and
sell to the Purchaser and, in consideration of and in express reliance upon the
representation, warranties, covenants, terms and conditions of this Agreement,
the Purchaser agrees to purchase that number of the Shares to be issued in
connection with each Draw Down. The closing under this Agreement shall take
place at the offices of Epstein Becker & Green, P.C., 250 Park Avenue, New York,
New York 10177 (the "Closing") at 10:00 a.m. E.S.T. on (i) April 9, 2000, or
(ii) such other time and place or on such date as the Purchaser and the Company
may agree upon (the "Closing Date"). Each party shall deliver all documents,
instruments and writings required to be delivered by such party pursuant to this
Agreement at or prior to the Closing.

                                   ARTICLE III

                         REPRESENTATIONS AND WARRANTIES

     Section 3.1 REPRESENTATION AND WARRANTIES OF THE COMPANY. The Company
hereby makes the following representations and warranties to the Purchaser:

     (a) ORGANIZATION, GOOD STANDING AND POWER. The Company is a corporation
duly incorporated, validly existing and in good standing under the laws of the
State of Delaware and has all requisite corporate authority to own, lease and
operate its properties and assets and to carry on its business as now being
conducted. The Company does not have any subsidiaries and does not own more that
fifty percent (50%) of or control any other business entity except as set forth
in the SEC Documents or in Schedule 3.1(g). The Company is duly qualified and is
in good standing as a foreign corporation to do business in every jurisdiction
in which the nature of the business conducted or property owned by it makes such
qualification necessary, other than those in which the failure so to qualify
would not have a Material Adverse Effect on the Company's financial condition.

     (b) AUTHORIZATION, ENFORCEMENT.(i) The Company has the requisite corporate
power and corporate authority to enter into and perform its obligations under
this Agreement, the Registration Rights Agreement, the Escrow Agreement and to
issue the Draw Down Shares pursuant to their respective terms, (ii) the
execution, issuance and delivery of this Agreement, the Registration Rights
Agreement and the Escrow Agreement by the Company and the consummation by it of
the transactions contemplated hereby have been duly authorized by all necessary
corporate action and no further consent or authorization of the Company or its
Board of Directors or stockholders is required, and (iii) this Agreement, the
Registration Rights Agreement and the Escrow Agreement have been duly executed
and delivered by the Company and at the initial Closing shall constitute valid
and binding obligations of the Company enforceable against the Company in
accordance with their terms, except as such enforceability may be limited by
applicable bankruptcy, insolvency, reorganization, moratorium, liquidation,
conservatorship, receivership or similar laws relating to, or affecting
generally the enforcement

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of, creditors' rights and remedies or by other equitable principles of general
application. The Company has duly and validly authorized and reserved for
issuance 500,000 shares of Common Stock for the issuance of the Draw Down Shares
and at the time of each Draw Down shall have reserved shares of Common Stock
sufficient in number for the issuance of the Draw Down Shares at each Draw Down.

     (c) CAPITALIZATION. The authorized capital stock of the company consists of
75,000,000 shares of Common Stock, $0.01 par value per share, of which
16,531,000 shares are issued and outstanding as of March 31, 2000 and 1,000,000
shares of preferred stock, $0.01 par value per share, of which 100,000 are
issued and outstanding. All of the outstanding shares of the Company's Common
Stock have been duly and validly authorized and are fully-paid and
non-assessable. Except as set forth in this Agreement and the Registration
Rights Agreement and as set forth in the SEC Documents, or on Schedule 3.1(c)
hereto, no shares of Common Stock are entitled to preemptive rights or
registration rights and there are no outstanding options, warrants, scrip,
rights to subscribe to, calls or commitments of any character whatsoever
relating to, or securities or rights convertible into, any shares of capital
stock of the Company. Furthermore, except as set forth in this Agreement and as
set forth in the SEC Documents or on SCHEDULE 3.1(C), there are no contracts,
commitments, understandings, or arrangements by which the Company is or may
become bound to issue additional shares of the capital stock of the Company or
options, securities or rights convertible into shares of capital stock of the
Company. The Company is not a party to any agreement granting registration
rights to any person with respect to any of its equity or debt securities.
Except as set forth on Schedule 3.1(c), the Company is not a party to, and it
has no knowledge of, any agreement restricting the voting or transfer of any
shares of the capital stock of the Company. Except as set forth in the SEC
Documents or on SCHEDULE 3.1(C) hereto, the offer and sale of all capital stock,
convertible securities, rights, warrants, or options of the Company issued prior
to the Closing complied with all applicable federal and state securities laws,
and no stockholder has a right of rescission or damages with respect thereto
which would have a Material Adverse Effect on the Company's financial condition
or operating results. The Company has made available to the Purchaser true and
correct copies of the Company's Certificate of Incorporation as in effect on the
date hereof (the "Certificate"), and the Company's Bylaws as in effect on the
date hereof (the "Bylaws"). The Principal Market for the Common Stock in the
United States is the Nasdaq SmallCap Market, and the Company has not received
any notice from such market questioning or threatening the continued inclusion
of the Common Stock on such market.

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

     (e) NO CONFLICTS. The execution, delivery and performance of this Agreement
by the Company and the consummation by the Company of the transactions
contemplated herein do not and will not (i) violate any provision of the
Company's Certificate or Bylaws, (ii) conflict with, or constitute a default (or
an event which with notice or lapse of time or both would become a default)
under, or give to others any rights of termination, amendment, acceleration or

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

     (f) COMMISSION DOCUMENTS, FINANCIAL STATEMENTS. The Common Stock of the
Company is registered pursuant to Section 12(b) of the Securities Exchange Act
of 1934, as amended (the "Exchange Act"), and, except as disclosed in the SEC
Documents or on SCHEDULE 3.1(F) hereto, the Company has timely filed all
reports, schedules, forms, statements and other documents required to be filed
by it with the Commission pursuant to the reporting requirements of the Exchange
Act, including material filed pursuant to Section 13(a) or 15(d) of the Exchange
Act (all of the foregoing including filings incorporated by reference therein
being referred to herein as the "Commission Documents"). The Company has
delivered or made available to the Purchaser true and complete copies of the
Commission Documents filed with the Commission since December 31, 1998. The
Company has not provided to the Purchaser any information which, according to
applicable law, rule or regulation, should have been disclosed publicly by the
Company but which has not been so disclosed, other than with respect to the
transactions contemplated by this Agreement. As of their respective dates, the
SEC Documents complied in all material respects with the requirements of the
Exchange Act and the rules and regulations of the Commission promulgated
thereunder applicable to such documents, and, as of their respective dates, none
of the SEC Documents contained any untrue statement of a material fact or
omitted to state a material fact required to be stated therein or necessary in
order to make the statements therein, in light of the circumstances under which
they were made, not misleading. The financial statements of the Company included
in the Commission Documents comply as to form in all material respects with
applicable accounting requirements and the published rules and regulations of
the Commission or other applicable rules and regulations with respect thereto.

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Such financial statements have been prepared in accordance with generally
accepted accounting principles ("GAAP") applied on a consistent basis during the
periods involved (except (i) as may be otherwise indicated in such financial
statements or the notes thereto or (ii) in the case of unaudited interim
statements, to the extent they may not include footnotes or may be condensed or
summary statements), and fairly present in all material respects the financial
position of the Company and its subsidiaries as of the dates thereof and the
results of operations and cash flows for the periods then ended (subject, in the
case of unaudited statements, to normal year-end audit adjustments).

     (g) SUBSIDIARIES. The SEC Documents or Schedule 3.1(g) hereto sets forth
each subsidiary of the Company, showing the jurisdiction of its incorporation or
organization and showing the percentage of each person's ownership of the
outstanding stock or other interests of such subsidiary. For the purposes of
this Agreement, "subsidiary" shall mean any corporation or other entity of which
at least a majority of the securities or other ownership interests having
ordinary voting power (absolutely or contingently) for the election of directors
or other persons performing similar functions are at the time owned directly or
indirectly by the Company and/or any of its other subsidiaries. All of the
outstanding shares of capital stock of each subsidiary have been duly authorized
and validly issued, and are fully paid and non-assessable. Except as et forth on
Schedule 3.1(g), there are no outstanding preemptive, conversion or other
rights, options, warrants or agreements granted or issued by or binding upon any
subsidiary for the purchase or acquisition of any shares of capital stock of any
subsidiary or any other securities convertible into, exchangeable for or
evidencing the rights to subscribe for any shares of such capital stock. Neither
the Company nor any subsidiary is subject to any obligation (contingent or
otherwise) to repurchase or otherwise acquire or retire any shares of the
capital stock of any subsidiary or any convertible securities, rights, warrants
or options of the type described in the preceding sentence. Except as set forth
on Schedule 3.1(g), neither the Company nor any subsidiary is a party to, nor
has any knowledge of, any agreement restricting the voting or transfer of any
shares of the capital stock of any subsidiary.

     (h) NO MATERIAL ADVERSE EFFECT. Since December 31, 1999, no Material
Adverse Effect has occurred or exists with respect to the Company, except as
disclosed in the SEC Documents or on SCHEDULE 3.1(H) hereof.

     (i) NO UNDISCLOSED LIABILITIES. Except as disclosed in the SEC Documents or
on SCHEDULE 3.1(I) hereto, neither the Company nor any of its subsidiaries has
any liabilities, obligations, claims or losses (whether liquidated or
unliquidated, secured or unsecured, absolute, accrued, contingent or otherwise)
that would be required to be disclosed on a balance sheet of the Company or any
subsidiary (including the notes thereto) in conformity with GAAP which are not
disclosed in the Commission Documents, other than those incurred in the ordinary
course of the Company's or its subsidiaries respective businesses since such
date and which, individually or in the aggregate, do not or would not have a
Material Adverse Effect on the Company or its subsidiaries.

     (j) NO UNDISCLOSED EVENTS OR CIRCUMSTANCES. Since December 31, 1999, no
event or circumstance has occurred or exists with respect to the Company or its
businesses, properties, prospects, operations or financial condition, that,
under applicable law, rule or

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regulation, requires public disclosure or announcement prior to the date hereof
by the Company but which has not been so publicly announced or disclosed in the
SEC Documents.

     (k) INDEBTEDNESS. The SEC Documents or SCHEDULE 3.1(K) hereto sets forth as
of the date hereof all outstanding secured and unsecured Indebtedness of the
Company or any subsidiary, or for which the Company or any subsidiary has
commitments. For the purposes of this Agreement, "Indebtedness" shall mean (a)
any liabilities for borrowed money or amounts owed in excess of $250,000 (other
than trade accounts payable incurred in the ordinary course of business), (b)
all guaranties, endorsements and contingent obligations in respect of
Indebtedness of others, whether or not the same are or should be reflected in
the Company's balance sheet (or the notes thereto), except guaranties by
endorsement of negotiable instruments for deposit or collection or similar
transactions in the ordinary course of business; and (c) the present value of
any lease payments in excess of $250,000 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.

     (l) TITLE TO ASSETS. Each of the Company and the subsidiaries has good and
marketable title to all of its real and personal property reflected in the
Commission Documents, free of any mortgages, pledges, charges, liens, security
interests or other encumbrances, except for those indicated in the SEC Documents
or on SCHEDULE 3.1(1) hereto or such that do not cause a Material Adverse Effect
on the Company's financial condition or operating results. All said leases of
the Company and each of its subsidiaries are valid and subsisting and in full
force and effect.

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

     (n) COMPLIANCE WITH LAW. The business of the Company and the subsidiaries
has been and is presently being conducted in accordance with all applicable
federal, state and local governmental laws, rules, regulations and ordinances,
except as set forth in the SEC Documents or on SCHEDULE 3.1(N) hereto or such
that do not cause a Material Adverse Effect. The Company and each of its
subsidiaries have all franchises, permits, licenses, consents and other
governmental or regulatory authorizations and approvals necessary for the
conduct of their respective businesses as now being conducted by them unless the
failure to possess such franchises, permits, licenses, consents and other
governmental or regulatory authorizations and approvals, individually or in the
aggregate, could not reasonably be expected to have a Material Adverse Effect.

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     (o) TAXES. The Company and each subsidiary has filed all Tax Returns which
it is required to file under applicable laws; all such Tax Returns are true and
accurate and has been prepared in compliance with all applicable laws; the
Company has paid all Taxes due and owing by it or any subsidiary (whether or not
such Taxes are required to be shown on a Tax Return) and have withheld and paid
over to the appropriate taxing authorities all Taxes which it is required to
withhold from amounts paid or owing to any employee, stockholder, creditor or
other third parties; and since December 31, 1998, the charges, accruals and
reserves for Taxes with respect to the Company (including any provisions for
deferred income taxes) reflected on the books of the Company are adequate to
cover any Tax liabilities of the Company if its current tax year were treated as
ending on the date hereof.

          No claim has been made by a taxing authority in a jurisdiction where
the Company does not file tax returns that the Company or any subsidiary is or
may be subject to taxation by that jurisdiction. There are no foreign, federal,
state or local tax audits or administrative or judicial proceedings pending or
being conducted with respect to the Company or any subsidiary; no information
related to Tax matters has been requested by any foreign, federal, state or
local taxing authority; and, except as disclosed above, no written notice
indicating an intent to open an audit or other review has been received by the
Company or any subsidiary from any foreign, federal, state or local taxing
authority. There are no material unresolved questions or claims concerning the
Company's Tax liability. The Company (A) has not executed or entered into a
closing agreement pursuant to Section 7121 of the Internal Revenue Code or any
predecessor provision thereof or any similar provision of state, local or
foreign law; and (B) has not agreed to or is required to make any adjustments
pursuant to Section 481 (a) of the Internal Revenue Code or any similar
provision of state, local or foreign law by reason of a change in accounting
method initiated by the Company or any of its subsidiaries or has any knowledge
that the IRS has proposed any such adjustment or change in accounting method, or
has any application pending with any taxing authority requesting permission for
any changes in accounting methods that relate to the business or operations of
the Company. The Company has not been a United States real property holding
corporation within the meaning of Section 897(c)(2) of the Internal Revenue Code
during the applicable period specified in Section 897(c)(1)(A)(ii) of the
Internal Revenue Code.

          The Company has not made an election under Section 341(f) of the
Internal Revenue Code. The Company is not liable for the Taxes of another person
that is not a subsidiary of the Company under (A) Treas. Reg. Section 1.1502-6
(or comparable provisions of state, local or foreign law), (B) as a transferee
or successor, (C) by contract or indemnity or (D) otherwise. The Company is not
a party to any tax sharing agreement. The Company has not made any payments, is
obligated to make payments or is a party to an agreement that could obligate it
to make any payments that would not be deductible under Section 280G of the
Internal Revenue Code.

          For purposes of this Section 3.1(o):

          "IRS" means the United States Internal Revenue Service.

          "TAX" or "TAXES" means federal, state, county, local, foreign, or
     other income, gross receipts, ad valorem, franchise, profits, sales or use,
     transfer, registration, excise, utility, environmental, communications,
     real or personal property, capital stock, license, payroll, wage or

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     other withholding, employment, social security, severance, stamp,
     occupation, alternative or add-on minimum, estimated and other taxes of any
     kind whatsoever (including, without limitation, deficiencies, penalties,
     additions to tax, and interest attributable thereto) whether disputed or
     not.

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

     (p) CERTAIN FEES. Except as set forth on SCHEDULE 3.1(P) hereto, no
brokers, finders or financial advisory fees or commissions will be payable by
the Company or any subsidiary with respect to the transactions contemplated by
this Agreement.

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

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

     (s) Regulatory Compliance. The Company has all necessary licenses,
registrations and permits to conduct its business as now being conducted in all
states where the Company conducts its business, other than those in which the
failure so to obtain such licenses, registrations and permits would not have a
Material Adverse Effect on the Company's financial condition.

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

     (u) MATERIAL AGREEMENTS. Except as set forth in the SEC Documents, or on
SCHEDULE 3.1(U) hereto, neither the Company nor any subsidiary is a party to any
written or oral contract, instrument, agreement, commitment, obligation, plan or
arrangement, a copy of which would be required to be filed with the Commission
as an exhibit to a registration statement on Form S-1 or other applicable form
(collectively, "Material Agreements") if the Company or any subsidiary were
registering securities under the Securities Act of 1933, as amended (the
"Securities Act"). The Company and each of its subsidiaries has in all material
respects performed all the obligations required to be performed by them to date
under the foregoing agreements, have received no notice of default and, to the
best of the Company's knowledge are not in default under any Material Agreement
now in effect, the result of which could cause a Material Adverse Effect. Except
as set forth on Schedule 3.1(u), no written or oral contract,

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instruments, agreement, commitment, obligation, plan or arrangement of the
Company or of any subsidiary limits or shall limit the payment of dividends on
the Company's Common Stock.

     (v) TRANSACTIONS WITH AFFILIATES. Except as set forth in the SEC Documents
or on SCHEDULE 3.1(V) hereto, there are no loans, leases, agreements, contracts,
royalty agreements, management contracts or arrangements or other continuing
transactions exceeding $100,000 between (a) the Company, any subsidiary or any
of their respective customers or suppliers on the one hand, and (b) on the other
hand, any officer, employee, consultant or director of the Company, or any of
its subsidiaries, or any person owning any capital stock of the Company or any
subsidiary or any member of the immediately family of such officer, employee,
consultant, director or stockholder or any corporation or other entity
controlled by such officer, employee, consultant, director or stockholder, or a
member of the immediate family of such officer, employee, consultant, director
or stockholder.

     (w) SECURITIES ACT OF 1933. The Company has complied and will comply with
all applicable federal and state securities laws in connection with the offer,
issuance and sale of the Shares hereunder. Neither the Company nor anyone acting
on its behalf, directly or indirectly, has or will sell, offer to sell or
solicit offers to buy the Shares or similar securities to, or solicit offers
with respect thereto from, or enter into any preliminary conversations or
negotiations relating thereto with, any person (other than the Purchaser), so as
to bring the issuance and sale of the Shares under the registration provisions
of the Securities Act and applicable state securities laws. Neither the Company
nor any of its affiliates, nor any person acting on its or their behalf, has
engaged in any form of general solicitation or general advertising (within the
meaning of Regulation D under the Securities Act) in connection with the offer
or sale of the Shares.

     (x) GOVERNMENTAL APPROVALS. Except as set forth in the SEC Documents or on
SCHEDULE 3.1(x) hereto, and except for the filing of any notice prior or
subsequent to the Closing that may be required under applicable federal or state
securities laws (which if required, shall be filed on a timely basis), including
the filing of a registration statement or statements pursuant to this Agreement,
no authorization, consent, approval, license, exemption of, filing or
registration with any court or governmental department, commission, board,
bureau, agency or instrumentality, domestic or foreign, is or will be necessary
for, or in connection with, the execution or delivery of the Shares, or for the
performance by the Company of its obligations under this Agreement.

     (y) EMPLOYEES. Neither the Company nor any subsidiary has any collective
bargaining arrangements or agreements covering any of its employees, except as
set forth in the SEC Documents or on SCHEDULE 3(Y) hereto. Except as set forth
in the SEC Documents or on SCHEDULE 3(Y) hereto, neither the Company nor any
subsidiary is in breach of any employment contract, agreement regarding
proprietary information, noncompetition agreement, nonsolicitation agreement,
confidentiality agreement, or any other similar contract or restrictive
covenant, relating to the right of any officer, employee or consultant to be
employed or engaged by the Company or such subsidiary. Since December 31, 1999,
no officer, consultant or key employee of the Company or any subsidiary whose
termination, either individually or in the aggregate, could have a Material
Adverse Effect, has terminated or, to the knowledge of the

                                       10
<PAGE>

Company, has any present intention of terminating his or her employment or
engagement with the Company or any subsidiary.

     (z) ABSENCE OF CERTAIN DEVELOPMENTS. Except as provided in SEC Documents or
in SCHEDULE 3.1(z) hereto, since December 31, 1999 neither the Company nor any
subsidiary has:

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

          (ii) borrowed any amount or incurred or become subject to any
     liabilities (absolute or contingent) except current liabilities incurred in
     the ordinary course of business which are comparable in nature and amount
     to the current liabilities incurred in the ordinary course of business
     during the comparable portion of its prior fiscal year, as adjusted to
     reflect the current nature and volume of the Company's or such subsidiary's
     business;

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

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

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

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

          (vii) suffered any substantial losses or waived any rights of material
     value, whether or not in the ordinary course of business, or suffered the
     loss of any material amount of prospective business;

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

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

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

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

                                       11
<PAGE>

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

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

     (aa) USE OF PROCEEDS. The proceeds from the sale of the Shares will be used
by the Company and its subsidiaries for general corporate purposes.

     (bb) ACKNOWLEDGMENT REGARDING PURCHASER'S PURCHASE OF SHARES. Company
acknowledges and agrees that Purchaser is acting solely in the capacity of arm's
length purchaser with respect to this Agreement and the transactions
contemplated hereunder. The Company further acknowledges that the Purchaser is
not acting as a financial advisor or fiduciary of the Company (or in any similar
capacity) with respect to this Agreement and the transactions contemplated
hereunder and any advice given by the Purchaser or any of its representatives or
agents in connection with this Agreement and the transactions contemplated
hereunder is merely incidental to the Purchaser's purchase of the Shares. The
Company further represents to the Purchaser that the Company's decision to enter
into this Agreement has been based solely on the independent evaluation by the
Company and its own representatives and counsel.

     Section 3.2 REPRESENTATIONS AND WARRANTIES OF THE PURCHASER. The Purchaser
hereby makes the following representations and warranties to the Company:

     (a) ORGANIZATION AND STANDING OF THE PURCHASER. The Purchaser is a
corporation duly incorporated, validly existing and in good standing under the
laws of the British Virgin Islands.

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

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

                                       12
<PAGE>

conflicts, defaults and violations as would not, individually or in the
aggregate, have a Material Adverse Effect on Purchaser). The Purchaser is not
required to obtain any consent, authorization or order of, or make any filing or
registration with, any court or governmental agency in order for it to execute,
deliver or perform any of its obligations under this Agreement or to purchase
the Shares in accordance with the terms hereof, provided that for purposes of
the representation made in this sentence, the Purchaser is assuming and relying
upon the accuracy of the relevant representations and agreements of the Company
herein.

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

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

     (f) COMPLIANCE WITH LAW. The Purchaser's trading and distribution
activities with respect to the Shares will be in compliance with all applicable
state and federal securities laws, rules and regulations and the rules and
regulations of the Principal Market.

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

                                   ARTICLE IV

                                    COVENANTS

     The Company covenants with the Purchaser as follows:

     Section 4.1 SECURITIES COMPLIANCE.

     The Company shall notify The Nasdaq Stock Market, Inc., in accordance with
their rules and regulations, of the transactions contemplated by this Agreement,
and shall take all other necessary action and proceedings as may be required and
permitted by applicable law, rule and regulation, for the legal and valid
issuance of the Shares to the Purchaser or subsequent holders.

     Section 4.2 REGISTRATION AND LISTING. The Company will cause its Common
Stock to continue to be registered under Sections 12(b) or 12(g) of the Exchange
Act, will comply in all respects with its reporting and filing obligations under
the Exchange Act, will comply with all requirements related to any registration
statement filed pursuant to this Agreement, and will not

                                       13
<PAGE>

take any action or file any document (whether or not permitted by the Securities
Act or the rules promulgated thereunder) to terminate or suspend such
registration or to terminate or suspend its reporting and filing obligations
under the Exchange Act or Securities Act, except as permitted herein. The
Company will take all action necessary to continue the listing or trading of its
Common Stock on the Nasdaq SmallCap Market or another Principal Market and will
comply in all respects with the Company's reporting, filing and other
obligations under the bylaws or rules of the NASD and The Nasdaq Stock Market.

     Section 4.3 REGISTRATION STATEMENT. The Company shall cause to be filed the
Registration Statement, which Registration Statement shall provide for the sale
of the Shares to the Purchaser and resale by the Purchaser to the public in
accordance with this Agreement. The Company shall cause such Registration
Statement to be declared effective by the Commission as expeditiously as
practicable. Before the Purchaser shall be obligated to accept a Draw Down
request from the Company, the Company shall have caused a sufficient number of
shares of Common Stock to be registered to cover the Shares to be issued in
connection with such Draw Down.

     Section 4.4 ESCROW ARRANGEMENT. The Company and the Purchaser shall enter
into an escrow arrangement with Epstein Becker & Green, P.C. (the "Escrow
Agent") in the Form of EXHIBIT B hereto respecting payment against delivery of
the Shares.

     Section 4.5 COMPLIANCE WITH LAWS. The Company shall comply, and cause each
subsidiary to comply, with all applicable laws, rules, regulations and orders,
noncompliance with which could have a Material Adverse Effect.

     Section 4.6 KEEPING OF RECORDS AND BOOKS OF ACCOUNT. The Company shall keep
and cause each subsidiary to keep adequate records and books of account, in
which complete entries will be made in accordance with GAAP consistently
applied, reflecting all financial transactions of the Company and its
subsidiaries, and in which, for each fiscal year, all proper reserves for
depreciation, depletion, obsolescence, amortization, taxes, bad debts and other
purposes in connection with its business shall be made.

     Section 4.7 AMENDMENTS. The Company shall not amend or waive any provision
the Certificate of Incorporation, Bylaws of the Company in any way that would
adversely affect the dividend rights or voting rights of the holders of the
Shares.

     Section 4.8 OTHER AGREEMENTS. The Company shall not enter into any
agreement the terms of which such agreement would restrict or impair the right
to perform of the Company or any subsidiary under this Agreement or the
Certificate of Incorporation of the Company.

     Section 4.9 NOTICE OF CERTAIN EVENTS AFFECTING REGISTRATION; SUSPENSION OF
RIGHT TO REQUEST A DRAW DOWN. The Company will immediately notify the Purchaser
upon the occurrence of any of the following events in respect of the
Registration Statement or related prospectus in respect of the Shares: (i)
receipt of any request for additional information from the Commission or any
other federal or state governmental authority during the period of effectiveness
of the Registration Statement the response to which would require any amendments
or supplements to the Registration Statement or related prospectus; (ii) the
issuance by the

                                       14
<PAGE>

Commission or any other federal or state governmental authority of any stop
order suspending the effectiveness of the Registration Statement or the
initiation of any proceedings for that purpose; (iii) receipt of any
notification with respect to the suspension of the qualification or exemption
from qualification of any of the Shares for sale in any jurisdiction or the
initiation or threatening of any proceeding for such purpose; (iv) the happening
of any event that makes any statement made in the Registration Statement or
related prospectus or any document incorporated or deemed to be incorporated
therein by reference untrue in any material respect or that requires the making
of any changes in the Registration Statement, related prospectus or documents so
that, in the case of the Registration Statement, it will not contain any untrue
statement of a material fact or omit to state any material fact required to be
stated therein or necessary to make the statements therein not misleading, and
that in the case of the related prospectus, it will not contain any untrue
statement of a material fact or omit to state any material fact required to be
stated therein or necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading; and (v) the Company's
reasonable determination that a post-effective amendment to the Registration
Statement would be appropriate; and the Company will promptly make available to
the Purchaser any such supplement or amendment to the related prospectus. The
Company shall not deliver to the Purchaser any Draw Down Notice during the
continuation of any of the foregoing events.

     Section 4.10 CONSOLIDATION; MERGER. The Company shall not, at any time
after the date hereof, effect any merger or consolidation of the Company with or
into, or a transfer of all or substantially all of the assets of the Company to,
another entity (a "Consolidation Event") unless the resulting successor or
acquiring entity (if not the Company) assumes by written instrument or by
operation of law the obligation to deliver to the Purchaser such shares of stock
and/or securities as the Purchaser is entitled to receive pursuant to this
Agreement.

     Section 4.11 LIMITATION ON FUTURE FINANCING. The Company agrees that,
except as set forth below, it will not enter into any sale of its securities for
cash at a discount to the current market price until the earlier of (i) twelve
(12) months from the effective date of the Registration Statement, or (ii) sixty
(60) days after the entire $20,000,000 of Shares has been purchased by
Purchaser. The foregoing shall not prevent or limit the Company from engaging in
any sale of securities (i) in a registered public offering by the Company which
is underwritten by one or more established investment banks, (ii) in one or more
private placements where the purchasers do not have registration rights, (iii)
pursuant to any presently existing or future employee benefit plan which plan
has been or is approved by the Company's stockholders, (iv) pursuant to any
compensatory plan for a full-time employee or key consultant, (v) in connection
with an acquisition or strategic partnership or other business transaction, the
principal purpose of which is not simply to raise money, (vi) where the
Purchaser is unable to purchase Shares due to the limitation set forth in
Section 2.2(ii), or (vii) to which Purchaser gives its written approval.

                                    ARTICLE V

                      CONDITIONS TO CLOSING AND DRAW DOWNS

                                       15
<PAGE>

     Section 5.1 CONDITIONS PRECEDENT TO THE OBLIGATION OF THE COMPANY TO SELL
THE SHARES. The obligation hereunder of the Company to issue and sell the Shares
to the Purchaser is subject to the satisfaction or waiver, at or before the
Closing, of each of the conditions set forth below. These conditions are for the
Company's sole benefit and may be waived by the Company at any time in its sole
discretion.

     (a) ACCURACY OF THE PURCHASER'S REPRESENTATIONS AND WARRANTIES. The
representations and warranties of the Purchaser shall be true and correct in all
material respects as of the date when made and as of the Closing and as of each
Draw Down Exercise Date as though made at that time, except for representations
and warranties that speak as of a particular date.

     (b) PERFORMANCE BY THE PURCHASER. The Purchaser shall have performed,
satisfied and complied in all material respects with all material covenants,
agreements and conditions required by this Agreement to be performed, satisfied
or complied with by the Purchaser at or prior to the Closing and as of each Draw
Down Exercise Date.

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

     Section 5.2 CONDITIONS PRECEDENT TO THE OBLIGATION OF THE PURCHASER TO
CLOSE. The obligation hereunder of the Purchaser to enter this Agreement is
subject to the satisfaction or waiver, at or before the Closing, of each of the
conditions set forth below. These conditions are for the Purchaser's sole
benefit and may be waived by the Purchaser at any time in its sole discretion.

     (a) ACCURACY OF THE COMPANY'S REPRESENTATIONS AND WARRANTIES. Each of the
representations and warranties of the Company shall be true and correct in all
material respects as of the date when made and as of the Closing as though made
at that time (except for representations and warranties that speak as of a
particular date).

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

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

     (d) NO PROCEEDINGS OR LITIGATION. No action, suit or proceeding before any
arbitrator or any governmental authority shall have been commenced, and no
investigation by any governmental authority shall have been threatened, against
the Purchaser or the Company or any subsidiary, or any of the officers,
directors or affiliates of the Company or any subsidiary seeking

                                       16
<PAGE>

to restrain, prevent or change the transactions contemplated by this Agreement,
or seeking damages in connection with such transactions.

     (e) OPINION OF COUNSEL, ETC. At the Closing, the Purchaser shall have
received an opinion of counsel to the Company, dated the date of Closing, in the
form of EXHIBIT C hereto, and such other certificates and documents as the
Purchaser or its counsel shall reasonably require incident to the Closing.

     (f) WARRANTS. In lieu of a minimum Draw Down commitment by the Company, the
Purchaser shall receive a warrant certificate to purchase a number of shares of
Common Stock as shall equal $1,200,000 (6% of the commitment amount) divided by
the closing bid price on the Trading Day immediately prior to the Closing Date
(the "Warrants"). The Warrants will have a three (3) year term from their date
of issuance. The Warrant strike price shall be 115% of the closing bid price of
the Common Stock on the Trading Day immediately prior to the Closing Date. The
Common Stock underlying the Warrants will be registered in the Registration
Statement referred to in Section 4.3 hereof. The Warrants shall be identical in
the form to the Warrants issued to the placement agent, Ladenburg Thalmann & Co.
Inc.

     Section 5.3 CONDITIONS PRECEDENT TO THE OBLIGATION OF THE PURCHASER TO
ACCEPT A DRAW DOWN AND PURCHASE THE SHARES. The obligation hereunder of the
Purchaser to accept a Draw Down request and to acquire and pay for the Shares is
subject to the satisfaction or waiver, at or before each Draw Down Exercise
Date, of each of the conditions set forth below. The conditions are for the
Purchaser's sole benefit and may be waived by the Purchaser at any time in its
sole discretion.

     (a) SATISFACTION OF CONDITIONS TO CLOSING. The Company shall have
satisfied, or the Purchaser shall have waived, the conditions set forth in
Section 5.2 hereof

     (b) EFFECTIVE REGISTRATION STATEMENT. The Registration Statement
registering the Shares shall have been declared effective by the Commission and
shall remain effective on each Draw Down Exercise Date.

     (c) NO SUSPENSION. Trading in the Company's Common Stock shall not have
been suspended by the Commission or The Nasdaq Stock Market, Inc. (except for
any suspension of trading of limited duration agreed to by the Company, which
suspension shall be terminated prior to each Draw Down request), and, at any
time prior to such request, trading in securities generally as reported by
Nasdaq shall not have been suspended or limited, or minimum prices shall not
have been established on securities whose trades are reported by Nasdaq.

     (d) MATERIAL ADVERSE EFFECT. No Material Adverse Effect and no
Consolidation Event shall have occurred.

     (e) OPINION OF COUNSEL The Purchaser shall have received a "down-to-date"
letter from the Company's counsel, confirming that there is no change from the
counsel's previously delivered opinion, or else specifying with particularity
the reason for any change.

                                       17
<PAGE>

                                   ARTICLE VI

                                 DRAW DOWN TERMS

     Section 6.1 DRAW DOWN TERMS. Subject to the satisfaction of the conditions
set forth in this Agreement, the parties agree as follows:

     (a) The Company, may, in its sole discretion, issue and exercise a draw
down (a "Draw Down") during each Draw Down Pricing Period, which Draw Down the
Purchaser will be obligated to accept.

     (b) Only one Draw Down shall be allowed in each Draw Down Pricing Period.
The price per share paid by the Purchaser shall be based on the Average Daily
Price on each separate Trading Day during the Draw Down Pricing Period. The
number of shares of Common Stock purchased by the Purchaser with respect to each
Draw Down shall be determined on a daily basis during each Draw Down Pricing
Period and settled at the election of the Purchaser on a weekly basis or on the
Draw Down Exercise Date, which shall be the first Trading Day following the end
of the Draw Down Pricing Period. In connection with each Draw Down Pricing
Period, the Company may set an Average Daily Price below which the Company will
not sell any Shares (the "Threshold Price"). If the Average Daily Price on any
day within the Draw Down Pricing Period is less than the Threshold Price, the
Company shall not sell and the Purchaser shall not be obligated to purchase the
Shares otherwise to be purchased for such day.

     (c) There shall be a maximum of twelve (12) Draw Downs during the terms
of this Agreement. The Company shall have the right to issue and exercise a
Draw Down of up to $7,000,000 of the Company's Common Stock per Draw Down,
subject to the limitations set forth immediately below. The minimum Draw Down
shall be $250,000 unless otherwise agreed by Purchaser.

     (d) The maximum dollar amount of each Draw Down during any Draw Down
Pricing Period shall be limited pursuant to the following formula: Average Stock
Price: Average of the Average Daily Prices for the 22 Trading Days prior to the
Draw Down Notice date. Average Trading Volume: Average daily trading volume for
the 45 Trading Days prior to the Draw Down Notice date. Maximum dollar amount of
each Draw Down: 20% of (Average Stock Price x (Average Trading Volume x 22)) the
number of Shares of Common Stock to be issued in connection with each Draw Down
shall be equal to the sum of the quotients (for each trading day within the Draw
Down Pricing Period) of (x) 1/22nd of the Draw Down amount and (y) 93% of the
Average Daily Price of the Common Stock on each Trading Day within the Draw Down
Pricing Period. If the Average Daily Price on a given Trading Day is less than
the Threshold Price, then the Purchaser's Draw Down payment will be reduced by
1/22nd and that day shall be withdrawn from the Draw Down Pricing Period.

     (e) The Company must inform the Purchaser by delivering a Draw Down Notice,
in the form of EXHIBIT D hereto, via facsimile transmission as to the amount of
the Draw Down the Company wishes to exercise before the first day of the Draw
Down Pricing Period (the "Draw Down Notice"). The Company may set the Threshold
Price, if any, prior to each Draw Down request. At no time shall the Purchaser
be required to purchase more than the scheduled

                                       18
<PAGE>

Draw Down amount for a given Draw Down Pricing Period so that if the Company
chooses not to exercise the maximum permitted Draw Down in a given Draw Down
Pricing Period the Purchaser is not obligated to purchase more than the
scheduled maximum amount in a subsequent Draw Down Pricing Period.

     (f) On or before three Trading Days after each Draw Down Exercise Date, the
Shares purchased by the Purchaser shall be delivered to The Depository Trust
Company ("DTC") on the Purchaser's behalf. The Shares shall be credited by the
Company to the DTC account designated by the Purchaser upon receipt by the
Escrow Agent of payment for the Draw Down into the Escrow Agent's trust account
as provided in the Escrow Agreement. The Escrow Agent shall be directed to pay
94% of the purchase price to the Company, net of One Thousand Five Hundred
Dollars ($1,500) as escrow expenses to the Escrow Agent, and 6% to the placement
agent. The delivery of the Shares into the Purchaser's DTC account in exchange
for payment therefor shall be referred to herein as "Settlement".

                                   ARTICLE VII

                                   TERMINATION

     Section 7.1 TERMINATION BY MUTUAL CONSENT. The term of this Agreement shall
be twelve (12) months from the Effective Date. This Agreement may be terminated
at any time by mutual consent of the parties.

     Section 7.2 OTHER TERMINATION. (a) The Purchaser may terminate this
Agreement upon one (1) Trading Day's notice if (i) an event resulting in a
Material Adverse Effect has occurred, (ii) the Common Stock is de-listed from
the Nasdaq SmallCap Market unless such de-listing is in connection with the
listing of the Common Stock on the Nasdaq National Market, the New York or
American Stock Exchanges, (iii) the Company files for protection from creditors
under any applicable law, (iv) the Company completes any financing prohibited by
Section 4.11, (v) the Registration Statement is not effective by August 31, 2000
or (vi) in the event that the officers and directors of the Company shall own
less than twenty-five percent (25%) of the outstanding Common Stock of the
Company.

     (b) The Company may terminate this Agreement upon one (1) Trading Day's
notice if the Purchaser shall fail to fund more than one properly noticed
Draw Down within three (3) Trading Days of the date payment for such Draw
Down is due.

     Section 7.3 EFFECT OF TERMINATION. In the event of termination by the
company or the Purchaser, written notice thereof shall forthwith be given to the
other party and the transactions contemplated by this Agreement shall be
terminated without further action by either party. If this Agreement is
terminated as provided in Section 7.1 or 7.2 herein, this Agreement shall become
void and of no further force and effect, except for Sections 9.1 and 9.2, and
Article VIII herein. Nothing in this Section 7.3 shall be deemed to release the
Company or the Purchaser from any liability for any breach under this Agreement,
or to impair the rights to the Company and the Purchaser to compel specific
performance by the other party of its obligations under this Agreement.

                                       19
<PAGE>

                                  ARTICLE VIII

                                 INDEMNIFICATION

     Section 8.1 GENERAL INDEMNITY. The Company agrees to indemnify and hold
harmless the Purchaser (and its directors, officers, affiliates, agents,
successors and assigns) from and against any and all losses, liabilities,
deficiencies, costs, damages and expenses (including, without limitation,
reasonable attorney's fees, charges and disbursements) incurred by the Purchaser
as a result of any inaccuracy in or breach of the representations, warranties or
covenants made by the Company herein. The Purchaser agrees to indemnify and hold
harmless the Company and its directors, officers, affiliates, agents, successors
and assigns from and against any and all losses, liabilities, deficiencies,
costs, damages and expenses (including, without limitation, reasonable attorneys
fees, charges and disbursements) incurred by the Company as result of any
inaccuracy in or breach of the representations, warranties or covenants made by
the Purchaser herein. Notwithstanding anything to the contrary herein, the
Purchaser shall be liable under this Section 8.1 for only that amount as does
not exceed the net proceeds to such Purchaser as a result of the sale of Shares
pursuant to the Registration Statement.

     Section 8.2 INDEMNIFICATION PROCEDURE. Any party entitled to
indemnification under this Article VIII (an "indemnified party") will give
written notice to the indemnifying party of any matters giving rise to a claim
for indemnification; provided, that the failure of any party entitled to
indemnification hereunder to give notice as provided herein shall not relieve
the indemnifying party of its obligations under this Article VIII except to the
extent that the indemnifying party is actually prejudiced by such failure to
give notice. In case any action, proceeding or claim is brought against an
indemnified party in respect of which indemnification is sought hereunder, the
indemnifying party shall be entitled to participate in and, unless in the
reasonable judgment of counsel to the indemnified party a conflict of interest
between it and the indemnifying party may exist with respect of such action,
proceeding or claim, to assume the defense thereof with counsel reasonably
satisfactory to the indemnified party. In the event that the indemnifying party
advises an indemnified party that it will contest such a claim for
indemnification hereunder, or fails, within thirty (30) days of receipt of any
indemnification notice to notify, in writing, such person of its election to
defend, settle or compromise, at its sole cost and expense, any action,
proceeding or claim (or discontinues its defense at any time after it commences
such defense), then the indemnified party may, at its option, defend, settle or
otherwise compromise or pay such action or claim. In any event, unless and until
the indemnifying party elects in writing to assume and does so assume the
defense of any such claim, proceeding or action, the indemnified party's costs
and expenses arising out of the defense, settlement or compromise of any such
action, claim or proceeding shall be losses subject to indemnification
hereunder. The indemnified party shall cooperate fully with the indemnifying
party in connection with any settlement negotiations or defense of any such
action or claim by the indemnifying party and shall furnish to the indemnifying
party all information reasonably available to the indemnified party which
relates to such action or claim. The indemnifying party shall keep the
indemnified party fully apprised at all times as to the status of the defense or
any settlement negotiations with respect thereto. If the indemnifying party
elects to defend any such action or claim, then the indemnified party shall be
entitled to participate in such defense with

                                       20
<PAGE>

counsel of its choice at its sole cost and expense. The indemnifying party shall
not be liable for any settlement of any action, claim or proceeding effected
without its prior written consent. Notwithstanding anything in this Article VIII
to the contrary, the indemnifying party shall not, without the indemnified
party's prior written consent, settle or compromise any claim or consent to
entry of any judgment in respect thereof which imposes any future obligation on
the indemnified party or which does not include, as an unconditional term
thereof, the giving by the claimant or the plaintiff to the indemnified party of
a release from all liability in respect of such claim. The indemnification
required by this Article VIII shall be made by periodic payments of the amount
thereof during the course of investigation or defense, as and when bills are
received or expense, loss, damage or liability is incurred, within ten (10)
Trading Days of written notice thereof to the indemnifying party so long as the
indemnified party irrevocably agrees to refund such moneys if it is ultimately
determined by a court of competent jurisdiction that such party was not entitled
to indemnification. The indemnity agreements contained herein shall be in
addition to (a) any cause of action or similar rights of the indemnified party
against the indemnifying party or others, and (b) any liabilities the
indemnifying party may be subject to.

                                   ARTICLE IX

                                  MISCELLANEOUS

     Section 9.1 FEES AND EXPENSES. The Company shall pay all fees and expenses
related to the transactions contemplated by this Agreement; provided, that the
Company shall pay, at the Closing, all attorneys and escrow fees and expenses
(exclusive of disbursements and out-of-pocket expenses) incurred by the
Purchaser of $20,000 in connection with the preparation, negotiation, execution
and delivery of this Agreement and the transactions contemplated hereunder. In
addition, the Company shall pay all reasonable fees and expenses incurred by the
Purchaser in connection with any amendments, modifications or waivers of this
Agreement or the Registration Rights Agreement or incurred in connection with
the enforcement of this Agreement and the Registration Rights Agreement,
including, without limitation, all reasonable attorneys fees and expenses. The
Company shall pay all stamp or other similar taxes and duties levied in
connection with issuance of the Shares pursuant hereto.

     Section 9.2 SPECIFIC ENFORCEMENT. The Company and the Purchaser acknowledge
and agree that irreparable damage would occur in the event that any of the
provisions of this Agreement were not performed in accordance with their
specific terms or were otherwise breached. It is accordingly agreed that the
parties shall be entitled to an injunction or injunctions to prevent or cure
breaches of the provisions of this Agreement and to enforce specifically the
terms and provisions hereof or thereof, this being in addition to any other
remedy to which any of them may be entitled by law or equity.

     Section 9.3 ENTIRE AGREEMENT; AMENDMENT. This Agreement, together with the
Registration Rights Agreement and the Escrow Agreement contains the entire
understanding of the parties with respect to the matters covered hereby and,
except as specifically set forth herein,

                                       21
<PAGE>

neither the Company nor the Purchaser makes any representations, warranty,
covenant or undertaking with respect to such matters. No provision of this
Agreement may be waived or amended other than by a written instrument signed by
the party against whom enforcement of any such amendment or waiver is sought.

     Section 9.4 NOTICES. Any notice, demand, request, waiver or other
communication required or permitted to be given hereunder shall be in writing
and shall be effective (a) upon hand delivery or facsimile at the address or
number designated below (if delivered on a business day during normal business
hours where such notice is to be received), or the first business day following
such delivery (if delivered other than on a business day during normal business
hours where such notice is to be received) or (b) on the second business day
following the date of mailing by express courier service, fully prepaid,
addressed to such address, or upon actual receipt of such mailing, whichever
shall first occur. The addresses for such communications shall be:

     If to the Company:         Aquis Communications Group, Inc.
                                1719A Route 10, Suite 300
                                Parsippany, New Jersey 07054
                                Telephone Number:  (973) 560-8000
                                Fax:  (973) 560-8053
                                Attention:  Nick Catania

     with copies to:            Buchanan Ingersoll, P.C.
                                Eleven Penn Center, 14th Floor
                                1835 Market Street
                                Philadelphia, Pennsylvania 19103
                                Telephone number: (215) 665-3879
                                Fax: (215) 665-8760
                                Attention: Joseph P. Galda

     If to Purchaser:           c/o Dr. Dr. Batliner & Partner
                                Aeulestrasse 74
                                FL-9490 Vaduz, Liechtenstein
                                Fax: 011-075-236-0405

     with copies to:            Epstein Becker & Green, P.C.
                                250 Park Avenue
                                New York, New York 10177
                                Telephone Number:  (212) 351-3771
                                Fax:  (212) 661-0989
                                Attention: Robert Charron

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

                                       22
<PAGE>

     Section 9.5 WAIVERS. No waiver by either party of any default with respect
to any provision, condition or requirement of this Agreement shall be deemed to
be a continuing waiver in the future or a waiver of any other provisions,
condition or requirement hereof, nor shall any delay or omission of any party to
exercise any right hereunder in any manner impair the exercise of any such right
accruing to it thereafter.

     Section 9.6 HEADINGS. The article, section and subsection headings in this
Agreement are for convenience only and shall not constitute a part of this
Agreement for any other purpose and shall not be deemed to limit or affect any
of the provisions hereof.

     Section 9.7 SUCCESSORS AND ASSIGNS. This Agreement shall be binding upon
and inure to the benefit of the parties and their successors and assigns. The
parties hereto may not amend this Agreement or any rights or obligations
hereunder without the prior written consent of the Company and each Purchaser to
be affected by the amendment. After Closing, the assignment by a party to this
Agreement of any rights hereunder shall not affect the obligations of such party
under this Agreement.

     Section 9.8 NO THIRD PARTY BENEFICIARIES. This Agreement is intended for
the benefit of the parties hereto and their respective permitted successors and
assigns and is not for the benefit of, nor may any provision hereof be enforced
by, any other person.

     Section 9.9 GOVERNING LAW/ARBITRATION. This Agreement shall be governed by
and construed in accordance with the internal laws of the State of New York,
without giving effect to the choice of law provisions. Any dispute under this
Agreement or any Exhibit attached hereto shall be submitted to arbitration under
the American Arbitration Association (the "AAA") in New York City, New York, and
shall be finally and conclusively determined by the decision of a board of
arbitration consisting of three (3) members (hereinafter referred to as the
"Board of Arbitration") selected as according to the rules governing the AAA.
The Board of Arbitration shall meet on consecutive business days in New York
City, New York, and shall reach and render a decision in writing (concurred in
by a majority of the members of the Board of Arbitration) with respect to the
amount, if any, which the losing party is required to pay to the other party in
respect of a claim filed. In connection with rendering its decisions, the Board
of Arbitration shall adopt and follow the laws of the State of New York. To the
extent practical, decisions of the Board of Arbitration shall be rendered no
more than thirty (30) calendar days following commencement of proceedings with
respect thereto. The Board of Arbitration shall cause its written decision to be
delivered to all parties involved in the dispute. The Board of Arbitration shall
be authorized and is directed to enter a default judgment against any party
refusing to participate in the arbitration proceeding within thirty days of any
deadline for such participation. Any decision made by the Board of Arbitration
(either prior to or after the expiration of such thirty (30) calendar day
period) shall be final, binding and conclusive on the parties to the dispute,
and entitled to be enforced to the fullest extent permitted by law and entered
in any court of competent jurisdiction. The prevailing party shall be awarded
its costs, including attorneys' fees, from the non-prevailing party as part of
the arbitration award. Any party shall have the right to seek injunctive relief
from any court of competent jurisdiction in any case where such relief is
available. The prevailing party in such injunctive action shall be awarded its
costs, including attorney's fees, from the non-prevailing party.

                                       23
<PAGE>

     Section 9.10 COUNTERPARTS. This Agreement may be executed in any number of
counterparts, all of which taken together shall constitute one and the same
instrument and shall become effective when counterparts have been signed by each
party and delivered to the other parties hereto, it being understood that all
parties need not sign the same counterpart. Execution may be made by delivery by
facsimile.

     Section 9.11 PUBLICITY. Prior to the Closing, neither the Company nor the
Purchaser shall issue any press release or otherwise make any public statement
or announcement with respect to this Agreement or the transactions contemplated
hereby or the existence of this Agreement. After the Closing, the Company may
issue a press release or otherwise make a public statement or announcement with
respect to this Agreement or the transactions contemplated hereby or the
existence of this Agreement; provided, that prior to issuing any such press
release, making any such public statement or announcement, the Company obtains
the prior consent of the Purchaser, which consent shall not be unreasonably
withheld or delayed.

     Section 9.12 SEVERABILITY. The provisions of this Agreement are severable
and, in the event that any court of competent jurisdiction shall determine that
any one or more of the provisions or part of the provisions contained in this
Agreement shall, for any reason, be held to be invalid, illegal or unenforceable
in any respect, such invalidity, illegality or unenforceability shall not affect
any other provision or part of a provision of this Agreement and this Agreement
shall be reformed and construed as if such invalid or illegal or unenforceable
provision, or part of such provision, had never been contained herein, so that
such provisions would be valid, legal and enforceable to the maximum extent
possible.

     Section 9.13 FURTHER ASSURANCES. From and after the date of this Agreement,
upon the request of the Purchaser or the Company, each of the Company and the
Purchaser shall execute and deliver such instruments, documents and other
writings as may be reasonably necessary or desirable to confirm and carry out
and to effectuate fully the intent and purposes of this Agreement.

                                       24
<PAGE>

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed by their respective authorize officer as of the date first above
written.

                              AQUIS COMMUNICATIONS GROUP, INC.

                              By: /s/ D. Brian Plunkett
                                  ---------------------------------------------
                                  D. Brian Plunkett, Chief Financial Officer

                              COXTON, LIMITED

                              By: /s/ Hans Gassner
                                  ---------------------------------------------
                                  Hans Gassner, Authorized Signatory

                                       25<PAGE>

                                                                   Exhibit 10.35

IN ARBITRATION UNDER THE RULES OF
THE COMMERCIAL ARBITRATION TRIBUNAL
OF THE AMERICAN ARBITRATION ASSOCIATION
NEW YORK CITY, NEW YORK

------------------------------------------
In the Matter of the Arbitration Between:

JOHN X. ADILETTA,

                         Claimant,

                                                          SETTLEMENT AGREEMENT
                                                          AND RELEASE AND WAIVER
                                                          OF CLAIMS.

AQUIS COMMUNICATIONS GROUP, INC.
A Delaware corporation f/k/a/ as BAP
ACQUISITION CORP.,

                         Respondent.

------------------------------------------

              SETTLEMENT AGREEMENT AND RELEASE AND WAIVER OF CLAIMS

     THIS SETTLEMENT AGREEMENT AND RELEASE AND WAIVER OF CLAIMS, dated as of
April 4, 2000 (hereinafter "Agreement"), is made and entered into by and between
Aquis Communications Group, Inc. ( "Respondent") and John X. Adiletta
("Claimant"). Respondent and Claimant may also be referred to collectively as
the "Parties."

                               W I T N E S S E T H

     WHEREAS, Claimant has filed a Demand for Arbitration and Statement of Claim
(above-captioned) and has initiated an arbitral proceeding which has alleged
among other things, claims for the alleged breach of an employment agreement,
claims for wrongful discharge and claims for alleged lost stock options and
fringe benefits (the "Arbitration");

     WHEREAS, Respondent does not admit to any acts of wrongdoing or liability
to Claimant, and specifically denies all allegations contained therein, and

<PAGE>

     WHEREAS, Respondent and Claimant desire to enter into a full and complete
settlement of ALL differences and outstanding claims between them, not only of
claims that are the subject of the Demand For Arbitration and Statement of
Claim, subject to the terms and conditions set forth herein.

     NOW, THEREFORE, in consideration of the mutual promises herein contained,
and intending to be legally bound hereby, it is agreed as follows:

     1. A. As its consideration for this Agreement, Respondent shall pay
Claimant the sum of One Hundred Thousand Dollars ($100,000.00) (hereinafter the
"Settlement Amount"). The parties intend and agree that the Settlement Amount is
to be allocated as follows: Fifty Thousand Dollars ($50,000.00) for alleged
emotional pain and suffering and the other Fifty Thousand Dollars ($50,000.00)
as damages on account of alleged breach of contract. The Settlement Amount shall
be paid as follows: A certified check in the amount of Twenty-Five Thousand
Dollars ($25,000.00) of the Settlement Amount shall be made payable to "Camhy
Karlinsky & Stein LLP as attorneys for John X. Adiletta," and shall be delivered
to Claimant's counsel by overnight mail so as to be received no later than the
third (3rd) day after the Effective Date of this Agreement subject to the
conditions set forth in this Agreement. The remaining seventy-five Thousand
Dollars ($75,000.00) of the Settlement Amount shall be applied to the principal
balance of the New Promissory Note (defined in paragraph 1.C. below) such that
the amount of indebtedness under the New Promissory Note shall be Fifty Thousand
Dollars ($50,000.00) upon the Effective Date of this Agreement. The entire
Settlement Amount is a sum of money the Claimant is entitled to receive only by
virtue of the settlement of pending litigation.

     B. As further consideration, Respondent shall issue such number of shares
(the "Settlement Shares") of restricted common stock of the Respondent, par
value $.01 per share (the

<PAGE>

"Common Stock"), upon the expiration of the Effective Date with no revocation,
to the Claimant with an aggregate market value of Four Hundred Thousand Dollars
($400,000.00), such valuation to be based upon the average of the high and low
bid and asked price of the Common Stock on the NASDAQ SmallCap Market on the
date of this Agreement (without discount relating to their restricted nature).
Claimant represents to the Respondent (x) that he is an "accredited investor"
(as such term is defined in Rule 501 under the Securities Act of 1933, as
amended (the "Securities Act")), (y) that he is familiar with the business and
operations and financial condition of the Respondent and is capable of making an
informed decision with respect to a decision to accept the Settlement Shares as
consideration for this Agreement, and (z) is acquiring the Settlement Shares for
investment purposes and not with a view to the distribution thereof.
Certificates representing the Settlement Shares shall be issued with an
appropriate restrictive legend pursuant to the Securities Act, and shall be
delivered to Claimant by overnight mail no later than the third (3rd) day after
the Effective Date of this Agreement. Respondent covenants that (i) Respondent
will file a Registration Statement under the Securities Act as soon as
practicable with respect to the Settlement Shares and all of the shares of
common stock underlying the Settlement Options (defined in paragraph 1.D.
below), (ii) that said shares shall be in the next Registration Statement filed
after the date of this Agreement by Respondent with the Securities and Exchange
Commission, and that Respondent will not file any Registration Statement unless
it includes said shares, (iii) Respondent will keep the Registration Statement
current for not less than one (1) year, and (iv) Respondent shall otherwise
subject such shares to the registration rights previously granted to Claimant in
a certain Registration Rights Agreement, dated as of March 31, 1999, which is
incorporated herein by reference, and the terms and conditions thereof (except
as modified herein).

<PAGE>

     C. As further consideration, the Respondent agrees to release the
indebtedness reflected in the Promissory Note dated December 1998 (the "Prior
Promissory Note") and which is secured by shares of Common Stock in the monetary
amount of Two Hundred Forty Thousand Dollars ($240,000.00), as well as any
interest accrued to the Effective Date, and to reduce such indebtedness, to One
Hundred and Twenty-Five Thousand Dollars ($125,000). Respondent shall terminate
any security interest in the original promissory note. The parties agree that
simultaneous with the execution of this Agreement, the Claimant will sign a new
Promissory Note (hereinafter the "Note")"reflecting the same terms and
conditions as the note referenced herein in the amount of One Hundred and
Twenty-Five Thousand Dollars ($125,000.00). Such Note shall be payable at the
earlier of (x) thirty (30) days after the effectiveness of a registration
statement under the Securities Act registering the resale of the Settlement
Shares, or (y) six months after the Effective Date of this Agreement. Respondent
shall not report as income taxable to Claimant an amount in excess of One
Hundred and Fifteen Thousand Dollars ($115,000.00) attributable to the
transactions contemplated by this section 1.C. Respondent will surrender the
Prior Promissory Note by sending it to Claimant by overnight delivery so that it
is received no later than five (5) business days after receipt of the Note
executed by Claimant. If the Prior Promissory Note can not be located,
Respondent will provide an affidavit to that effect. Respondent represents and
warrants that the Prior Promissory Note has not been pledged, hypothecated,
assigned or otherwise transferred to an unrelated third-party.

     D. As further consideration, the parties agree that of the options to
purchase Common Stock previously issued to the Respondent, Fifty-Five Thousand
(55,000) options ("Settlement Options") shall become immediately vested at an
exercise price of $1.12 per share. The Settlement Options shall be the subject
of a written option grant, a copy of which is annexed

<PAGE>

hereto and incorporated hereby as Exhibit "A." The written Option Agreement
shall be executed and delivered to the Claimant no later than two (2) business
days after the Effective Date. Respondent hereby waives all other conditions of
its current stock option plan that would prohibit the Claimant from entitlement
to such shares or to the exercise thereof consistent with this section 1.D.
Claimant hereby acknowledges that all remaining options previously granted to
him have been terminated and are null and void.

     E. Claimant will receive appropriate tax documentation for the
consideration received hereunder, which documentation shall have been reviewed
by Claimant's counsel prior to the execution of this Agreement. Claimant
acknowledges that Respondent's foregoing consideration represents a full and
complete settlement of the claims and allegations referenced above. Claimant
further acknowledges that the foregoing consideration provided by Respondent in
exchange for his waiver of claims and other covenants and promises as outlined
below is in addition to anything of value to which he is already entitled.

     2. As a material inducement for Respondent to enter into this Agreement,
Claimant hereby agrees, acknowledges and promises to forego and waive any and
all rights he may have to file a claim, action, complaint, controversy, cause of
action, lawsuit, charge, complaint, suit, demand or petition ("claim" or
"claims") in a court of law or any other tribunal against Respondent,
Respondent's owners, stockholders, predecessors, successors, assigns, agents,
directors, officers, current and former employees, representatives, attorneys,
divisions, groups, subsidiaries, affiliates and parent companies, as well as any
parent companies' owners, stockholders, predecessors, successors, assigns,
agents, directors, officers, current and former employees, representatives,
divisions, groups, subsidiaries and affiliates, and all persons acting by,
through, under, or in concert with any of them, or any of them (collectively,
"Releasees"), for any rights,

<PAGE>

claims or entitlements Claimant claims to have against Respondent and/or
releasees, known and/or unknown, choate and/or inchoate, which Claimant may now
have, own, or hold, or claim to have, own or hold, or which Claimant at any time
heretofore had, owned or held, or claimed to have, owned, or held, or which
Claimant at any time may have, own, or hold, or claim to have, own or hold
against Respondent and/or releasees, from the beginning of time to the Effective
Date of this Agreement, by reason of any claims arising from or related to
Claimant's employment relationship with Respondent or otherwise, any affiliate
of Respondent and/or releasees, and separation of any employment relationship
and any matters or allegations which are the subject matter of the
aforementioned allegations and contentions or otherwise, including any claims
arising from any alleged violation by releasees of any federal, state or local
statutes, regulations, ordinances or common law causes of action in law and in
equity (and all associated claims for attorneys' fees), including but not
limited to:

A.   the Federal Age Discrimination in Employment Act of 1967, as amended;

B.   Title VII of the Civil Rights Act of 1964, as amended;

C.   42 U.S.C. Section 1981, as amended;

D.   the Federal Equal Pay Act of 1963;

E.   the Federal Employee Retirement Income Security Act of 1974, as amended;
     including but not limited to, Section 510 claims for discrimination;

F.   the Americans With Disabilities Act, as amended;

G.   the Family and Medical Leave Act;

H.   Executive Order 11246 (applicable to Federal Government contractors and
     subcontractors);

I.   the Vietnam-Era Veteran's Readjustment Assistance Act of 1974 (applicable
     to Federal Government contracts and subcontractors);

J.   the Rehabilitation Act of 1973 (applicable to Federal Government contracts
     and subcontractors);

<PAGE>

K.   the Immigration and Nationality Act, as amended;

L.   the Uniform Services Employment and Reemployment Rights Act of 1994;

M.   the New Jersey Law Against Discrimination, the New Jersey Conscientious
     Employee Protection Act, the New Jersey Family Leave Act, the New Jersey
     Workers' Compensation Act, the New Jersey State Wage and Hours law, the New
     Jersey Political Activities of Employees law, the New Jersey Jury Duty
     Employment Protection law, the New Jersey Lie Detector Test law, the New
     Jersey Tobacco Use law, the New Jersey Genetic Testing law;

N.   Any Federal, State or local law, rule, statute, ordinance, regulation,
     executive order or guideline, including, but not limited to, those laws
     specifically described above;

O.   Any oral or written contract of employment with Respondent, express or
     implied, or any oral or written agreement, express or implied, purporting
     to establish terms and conditions of employment or addressing termination
     of employment; and

P.   Any other Federal, State or local common-law causes of action related to
     Claimant's employment with Respondent or separation from employment with
     Respondent.

     Claimant acknowledges and agrees that this release specifically includes
and resolves any and all claims (in addition to those above) for related costs
and/or attorneys' fees.

     3. This Agreement and the releases hereunder are without prejudice to (i)
the Parties' right to enforce the terms and conditions of this Agreement, and
(ii) Claimant's claims for entitlement to pension and welfare benefits
(including but not limited to any monies in Respondent's 401K plan) under either
state or Federal law, and all rights to COBRA coverage (under the terms of that
statute).

     4. Claimant acknowledges that he has not heretofore filed any claims
against Releasees in a court of law or other tribunal other than those claims
covered by the above captioned action. To the extent Claimant has previously
filed other claims, he agrees to take all steps necessary to dismiss that action
with prejudice within ten (10) calendar days of signing this Agreement and
agrees that claims raised therein are released and waived by virtue of this
Agreement. Except as

<PAGE>

required by law, Claimant further agrees that no other person, organization or
entity acting on his behalf and/or with his consent shall file such a claim
against Releasees.

     5. Respondent represents that it has Director's and Officer's liability
insurance that provides coverage for covered events during the time of the
Claimant's tenure with the Respondent as an Officer, and/or Director. The
Respondent also represents that its Certificate of Incorporation provides for
the indemnification of Officers and Directors under circumstances stated
therein. The Respondent agrees that it will not take any action to abrogate any
rights or privileges that the Claimant currently enjoys under any Director's and
Officer's Liability Policy or Certificate of Incorporation relating to the issue
of defense and/or indemnification and that it will maintain comparable insurance
for a period of no less than three (3) years from the Effective Date of the
Agreement. Claimant also represents that he will abide by all conditions
precedent or obligations thereunder in order to avail himself of such coverage
and/or such defense and indemnification. Except as heretofore provided, it is
the intent of this paragraph that the Claimant stand in no better or no worse
position in terms of defense and indemnification vis-a-vis others that were
Directors and Officers during the Claimant's tenure in such roles with the
Respondent.

     6. Respondent, on behalf of itself, the Releasees, their collective
predecessors, successors and assigns, hereby unconditionally releases,
discharges and acquits Claimant, his successors, heirs, executors,
administrators, and assigns from all actions, claims, causes of action, charges,
suits, debts, dues, sums of money, accounts, reckonings, bonds, bills,
specialties, covenants, contracts, controversies, agreements, promises,
variances, trespasses, damages, judgments, extents, demands, or any other type
of relief of any nature whatsoever, whether known or unknown, whether statutory
or common law, whether federal, state, or local, which the

<PAGE>

Respondent, the Releasees or any of them, has asserted or could have asserted,
now has, or ever had, against Claimant, his successors, heirs, executors,
administrators, and assigns from the beginning of the world to the Effective
Date. The paragraph is not intended to release personal, non-employment related
claims of the current and/or former owners, stockholders, directors, officers or
employees.

     7. It is the purpose of the mutual waiver and release paragraphs of this
Agreement for the parties to effect a full general release of each other, except
with respect to specifically stated exceptions or obligations stated hereunder.

     8. Should Claimant file a claim against Releasees with an agency or
tribunal other than a court of law which claim arose prior to or on the date
Claimant signs this Agreement and/or which claim related in any way to
Claimant's employment with Respondent, separation from employment with
Respondent and/or any matters or allegations which are the subject of the
aforementioned allegations and contentions or otherwise, Claimant agrees to
irrevocably and unconditionally release, acquit, and forever discharge Releasees
from any and all liability which may result from that claim (including
attorney's fees, costs actually incurred, and liquidated damages), of any nature
whatsoever, and he will not participate in any recoveries which may result from
that claim. This release includes, but is not limited to, any claims arising
from any alleged violation by Releasees of any federal, state or local statutes,
regulations, ordinances or common law causes of action in law and in equity,
including but not limited to, those causes of action listed above.

     9. Claimant acknowledges that he has not heretofore filed any such claims
against Releasees, and Respondent acknowledges that it has not heretofore filed
any claims against Claimant. To the extent Claimant has previously filed such a
claim, Claimant agrees to release,

<PAGE>

acquit and forever discharge the Releasees from any and all liability which may
result from that claim, of any nature whatsoever, and will not participate in
any recoveries which may result from that claim. To the extent Respondent has
previously filed such a claim, Respondent agrees to release, acquit and forever
discharge Claimant from any and all liability which may result from that claim,
of any nature whatsoever, and will not participate in any recoveries which may
result from that claim.

     10. Claimant agrees that he will be responsible for any income tax
liability which may be imposed on the receipt of consideration provided
hereunder including the Settlement Amount. Claimant also agrees to indemnify
Respondent against and hold Respondent harmless from any and all liability for
withholding taxes imposed by any federal, state or local taxing authority, as
well as liability for any fines, penalties and interest which may be imposed on
Respondent on the consideration including, the Settlement Amount, in the event
of such determination by any taxing authority.

     11. Claimant agrees that he will not voluntarily assist others in bringing
any type of claims against any of the Releasees, involving any matter allegedly
occurring and/or occurring in the past up to the date of this Agreement, or
involving and based upon any claims which are the subject of this Agreement,
unless otherwise permitted or required by law or legal process (including
subpoenas). Claimant acknowledges and agrees that his employment with Respondent
has ended, that he will never knowingly apply for employment with Respondent or
any subsidiary or affiliate and that he will not be so employed or have any
business relationship with Respondent, unless requested to do so by the
Respondent. Claimant further agrees that he is waiving any claim which he may
have to reinstatement with Respondent under any contractual, statutory or common
law cause of action. Claimant and Respondent (on behalf of itself and its

<PAGE>

Managerial Level employees, and Directors ), agrees that each shall not defame,
slander, or libel each other. Further, the Claimant agrees to assist the
Respondent by making himself reasonably available and by complying with the
reasonable requests of Respondent and Respondent's counsel, in the event that
Respondent needs his testimony or other assistance while defending any claim,
action or lawsuit brought by or against the Respondent or its affiliates,
subsidiaries, employees, officers and directors, concerning any matter about
which the Claimant has knowledge provided that Respondent shall pay for all
reasonable disbursements approved in advance, and shall pay Claimant a per diem
rate of $1,500 for his time spent with respect to assistance. Respondent also
agrees to pay reasonable attorney's fees for Claimant's counsel should separate
counsel be reasonably necessary.

     12. For and in consideration of the mutual covenants and promises contained
herein, during the term of this Agreement, and for a period of five (5) years
thereafter, neither Claimant nor any family member (defined for this purpose to
include his spouse and children) or company, partnership or trust in which
Claimant (or such family member) owns five (5%) percent or more of its equity or
voting interests or for which Claimant serves as an employee, agent, officer,
director, or partner will: (i) for the purposes of subparagraphs (ii) or (iii)
hereafter, acquire, offer to acquire, or agree to acquire, directly or
indirectly, by purchase or otherwise, any voting securities or direct or
indirect rights or options to acquire any voting securities of Respondent in
excess of 14.9% of the Respondent's issued and outstanding voting securities;
(ii) make, or in any way participate, directly or indirectly, in any
"solicitation" of "proxies" to vote (as such terms are interpreted in the proxy
rules of the Securities and Exchange Commission), or seek to advise or influence
any person or entity with respect to the voting of any voting securities of
Respondent, or (iii) form, join or in any way participate in a "group" within
the meaning of

<PAGE>

Section 13 (d) (3) of the Securities Exchange Act of 1934 with respect to any
voting securities of Respondent for the purpose of seeking to control the
management, Board of Directors or policies of Respondent. Further, the parties
acknowledge that Respondent would not have an adequate remedy at law for money
damages in the event that this covenant were not performed in accordance with
its terms and therefore Claimant agrees that Respondent shall be entitled to
specific enforcement of the terms hereof in addition to any other remedy to
which it may be entitled, at law or in equity.

     13. This Agreement shall not in any way be construed as an admission by
Respondent of any acts of wrongdoing whatsoever against Claimant or any other
person, and Respondent specifically disclaims any liability to Claimant or any
other person, on the part of itself, its affiliates, its officers, employees,
agents or parents.

     14. Claimant represents that he has not heretofore assigned or transferred,
or purported to assign or transfer, to any person or entity, any claim or any
portion of a claim covered by this Agreement.

     15. Claimant represents and acknowledges that in executing this Agreement
he does not rely, and has not relied, upon any representation or statement made
by Respondent, or any of the Releasees or their agents, representatives or
attorneys with regard to the subject matter, basis, content or effect of this
Agreement or otherwise.

     16. Claimant acknowledges that prior to the execution of this Agreement, he
sought the advice and counsel of his attorney regarding the contents of this
Agreement and that he was advised to do so in writing. Claimant acknowledges
that he has entered into this Agreement knowingly, voluntarily and of his own
free will.

<PAGE>

     17. Claimant acknowledges that he has been given a reasonable period of
time of approximately twenty-one (21) days in which to consider the terms of
this Agreement . To the extent Claimant wishes to execute this Agreement prior
to the conclusion of the twenty-one (21) day period, Claimant acknowledges that
he will only do so in a knowing and voluntary manner and of his own free will.

     18. Claimant acknowledges that for a period of seven (7) days following the
execution of this Agreement, he may revoke the Agreement and the Agreement shall
not become effective or enforceable until the revocation period has expired
("Effective Date"). Notice of Revocation must be given to Ginger D. Schroder at
Buchanan Ingersoll, P.C., 268 Main Street, Suite 201, Buffalo, New York 14202.
Claimant acknowledges that he shall not receive any of the benefits or
consideration provided in this Agreement until the seven day revocation period
has expired and the Agreement has not been revoked and all other conditions to
payment of the Settlement Amount and other consideration have been satisfied.

     19. The parties agree that any changes to this Agreement, material or
immaterial, will not restart the running of the twenty-one (21) day period
referred to above. If Claimant revokes this Agreement, it shall be null and void
and the obligations or entitlements of both parties under this Agreement shall
be eliminated.

     20. This Agreement shall be binding upon Claimant and upon his heirs,
administrators, representatives, executors, successors and assigns, and shall
inure to the benefit of Respondent and any of the Releasees and each of them,
and to their successors and assigns.

     21. This Agreement is made in the State of New Jersey and shall in all
respects be interpreted, enforced and governed under the laws of said State,
without regard to its choice of

<PAGE>

law provisions, as well as the laws of the United States of America. The
language of all parts of this Agreement shall in all cases be construed as a
whole and according to its fair meaning.

     22. Should any word, phrase, sentence, paragraph, clause or provision of
this Agreement be declared or be determined by any court or other tribunal to be
illegal or invalid, the validity of the remaining parts, terms or provision
shall not be affected thereby and said illegal or invalid part, term, or
provision shall be deemed not to be a part of this Agreement.

     23. As used in this Agreement, the singular or plural shall be deemed to
include the other whenever the context so indicates or requires.

     24. The Parties hereto shall take such further action and execute such
further instruments or documents as may be reasonably necessary to effectuate
the purpose and intent of this Agreement.

     25. This Agreement sets forth the entire Agreement among the parties
hereto, and fully supersedes any and all prior Agreements or understandings
between the parties hereto pertaining to the subject matter hereof. The failure
of either Respondent or Claimant to require the performance of any term or
obligation of this Agreement or the waiver by either Respondent or Claimant of
any breach of this Agreement, shall not prevent any subsequent enforcement of
such term or obligation and shall not be deemed a waiver of any subsequent
breach. No modification or waiver of any provision of this Agreement shall be
effective unless in writing and signed by Respondent and Claimant.

     26. All notices, requests, demands or other communications hereunder must
be in writing and shall be deemed to have been duly given if delivered by hand,
mailed within the continental United States by certified or registered mail,
postage prepaid, return receipt requested, or by a

<PAGE>

reputable overnight courier such as federal express, addressed to the party to
whom the notice is directed at the "Notice Address" of such party. The Notice
Address of each party is:

     If to Respondent:          Aquis Communications Group, Inc.
                                1719A Route 10
                                Suite 300
                                Parsippany, New Jersey 07054

     with a copy to:            Buchanan Ingersoll, P.C.
                                268 Main Street, Suite 201
                                Buffalo New York, 14202
                                Attn:  Ginger D. Schroder

                                AND

                                Buchanan Ingersoll, P.C.
                                One Oxford Centre, 20th Floor
                                301 Grant Street
                                Pittsburgh, PA 15219-1410
                                Attn:  Bryan Lawrence

     If to Claimant:             John X. Adiletta
                                42 Timber Rock Trail
                                Bernardsville, New Jersey 07924

     with a copy to:            Camhy Karlinsky & Stein LLP
                                1740 Broadway, 16th Floor
                                New York, New York 10019-4315
                                Attn:  Martin E. Karlinsky, Esq.

     27. This Agreement may be executed through the use of separate signature
pages in multiple originals and in counterparts, each of which shall be deemed
an original and all of which together shall constitute one and the same
Agreement, binding on all parties, notwithstanding that all parties are not
signatories to the same counterpart. The parties shall exchange original signed
Agreements as soon as practicable following delivery and execution as aforesaid.

                 PLEASE READ CAREFULLY. THIS AGREEMENT INCLUDES
                    A RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS

<PAGE>

                                        AQUIS COMMUNICATIONS GROUP, INC.

                                        By:
                                           -------------------------------
                                        Name:
                                             -----------------------------

                                        Title:
                                             -----------------------------

                                        ATTORNEYS FOR RESPONDENT

                                        By:
                                           -------------------------------
                                             Ginger D. Schroder
                                             BUCHANAN INGERSOLL
                                             PROFESSIONAL CORPORATION
                                             268 Main Street - Ste. 201
                                             Buffalo, NY  14202
                                             (716) 853-2332

                                        CLAIMANT JOHN X. ADILETTA

Date:
     ------------------------           ----------------------------------

                                        ATTORNEY(S) FOR CLAIMANT

                                        ----------------------------------
                                            Tal B. Marnin, Esq.
                                            CAMHY KARLINSKY & STEIN LLP
                                            Attorneys for Claimant
                                            16th Floor
                                            1740 Broadway
                                            New York, N.Y. 10019
                                            (212) 977-6600

<PAGE>

STATE OF NEW YORK   }

                     ss.

COUNTY OF NEW YORK  }

     I HEREBY CERTIFY that on this day before me, an officer duly qualified to
take acknowledgments, personally appeared Claimant, JOHN X. ADILETTA, personally
known to me or who has produced         (type of identification) and has
acknowledged before me that he executed the foregoing freely and voluntarily
for the purpose therein expressed, who did take an oath.

     WITNESS my hand and official seal at said County and State, this __ day of
____________, 2000.

                                           -------------------------------

                                           -------------------------------

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