Document:

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                                                                  EXHIBIT 10.11

                 COMMON STOCK AND WARRANTS PURCHASE AGREEMENT

                                    BETWEEN

                           FOCUS ENHANCEMENTS, INC.

                                      AND

                        THE INVESTORS SIGNATORY HERETO

     COMMON STOCK AND WARRANTS PURCHASE AGREEMENT dated as of June __, 2000 (the
"Agreement"), between the Investors signatory hereto (each an "Investor" and
together the "Investors"), and Focus Enhancements, Inc., a corporation organized
and existing under the laws of the State of Delaware (the "Company").

     WHEREAS, the parties desire that, upon the terms and subject to the
conditions contained herein, the Company shall issue and sell to the Investors,
and the Investors shall purchase (i) $1,500,000 of Common Stock (as defined
below) at the Purchase Price (as defined below) and (ii) Warrants (as defined
below) to purchase up to 120,000 shares of the Common Stock (as defined below)
at the price of 100% of the Bid Price on the date of execution hereto (as
defined below).

     WHEREAS, such investments will be made in reliance upon the provisions of
Section 4(2) ("Section 4(2)") and/or 4(6) of the United States Securities Act
and/or Regulation D ("Regulation D") and the other rules and regulations
promulgated thereunder (the "Securities Act"), and/or upon such other exemption
from the registration requirements of the Securities Act as may be available
with respect to any or all of the investments in securities to be made
hereunder.

     NOW, THEREFORE, the parties hereto agree as follows:

                                   ARTICLE I

                              CERTAIN DEFINITIONS

Section 1.1.   "Bid Price"  shall mean the closing bid price (as reported by
Bloomberg L.P.) of Common Stock on the Principal Market on the date in question.

Section 1.2.   "Capital Shares" shall mean the Common Stock and any shares of
any other class of common stock whether now or hereafter authorized, having the
right to participate in the distribution of earnings and assets of the Company.

Section 1.3.   "Capital Shares Equivalents" shall mean any securities, rights,
or obligations that are convertible into or exchangeable for or give any right
to subscribe for any Capital Shares of
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the Company or any warrants, options or other rights to subscribe for or
purchase Capital Shares or any such convertible or exchangeable securities.

Section 1.4.   "Closing" shall mean the closing of the purchase and sale of the
Common Stock and Warrants pursuant to Section 2.1.

Section 1.5.   "Closing Date" shall mean the date on which all conditions to the
Closing have been satisfied (as defined in Section 2.1 (b) hereto) and the
Closing shall have occurred.

Section 1.6.   "Common Stock" shall mean the Company's common stock, $.01 par
value per share.

Section 1.7.   "Damages" shall mean any loss, claim, damage, judgment, penalty,
deficiency, liability, costs and expenses (including, without limitation,
reasonable attorney's fees and disbursements and reasonable costs and expenses
of expert witnesses and investigation).

Section 1.8.   "Effective Date" shall mean the date on which the SEC first
declares effective a Registration Statement registering the resale of the
Registrable Securities as set forth in the Registration Rights Agreement.

Section 1.9.   "Escrow Agent" shall have the meaning set forth in the Escrow
Agreement.

Section 1.10.  "Escrow Agreement" shall mean the Escrow Agreement in
substantially the form of Exhibit A hereto executed and delivered
contemporaneously with this Agreement.

Section 1.11.  "Exchange Act" shall mean the Securities Exchange Act of 1934, as
amended, and the rules and regulations promulgated thereunder.

Section 1.12.  "Legend" shall mean the legend set forth in Section 9.1.

Section 1.13.  "Material Adverse Effect" shall mean any effect on the business,
operations, properties or financial condition of the Company that is material
and adverse to the Company and its subsidiaries and affiliates, taken as a
whole, and/or any condition, circumstance, or situation that would prohibit or
otherwise interfere with the ability of the Company to enter into and perform
any of its obligations under this Agreement, the Registration Rights Agreement,
the Escrow Agreement or the Warrants in any material respect.

Section 1.14.  "Outstanding" when used with reference to shares of Common Stock
or Capital Shares (collectively the "Shares"), shall mean, at any date as of
which the number of such Shares is to be determined, all issued and outstanding
Shares, and shall include all such Shares issuable in respect of outstanding
scrip or any certificates representing fractional interests in such Shares;
provided, however, that "Outstanding" shall not mean any such Shares then
directly or indirectly owned or held by or for the account of the Company.

Section 1.15.  "Person" shall mean an individual, a corporation, a partnership,
an association, a trust or other entity or organization, including a government
or political subdivision or an agency or instrumentality thereof.

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Section 1.16.  "Principal Market" shall mean the American Stock Exchange, the
New York Stock Exchange, the NASDAQ National or SmallCap Markets or the OTC
Bulletin Board whichever is at the time the principal trading exchange or market
for the Common Stock, based upon share volume.

Section 1.17.  "Purchase Price" shall mean $1.07 per share of Common Stock,
adjusted for any splits, reverse splits or Common Stock dividends declared by
the Company after the execution hereof.

Section 1.18.  "Registrable Securities" shall mean the Shares and the Warrant
Shares until (i) the Registration Statement has been declared effective by the
SEC, and all Shares and Warrant Shares have been disposed of pursuant to the
Registration Statement, (ii) all Shares and Warrant Shares have been sold under
circumstances under which all of the applicable conditions of Rule 144 (or any
similar provision then in force) under the Securities Act ("Rule 144") are met,
(iii) all Shares and Warrant Shares have been otherwise transferred to holders
who may trade such shares without restriction under the Securities Act, and the
Company has delivered a new certificate or other evidence of ownership for such
securities not bearing a restrictive legend or (iv) such time as, in the opinion
of counsel to the Company, all Shares and Warrant Shares may be sold without any
time, volume or manner limitations pursuant to Rule 144(k) (or any similar
provision then in effect) under the Securities Act.

Section 1.19.  "Registration Rights Agreement" shall mean the agreement
regarding the filing of the Registration Statement for the resale of the
Registrable Securities, entered into between the Company and the Investor as of
the Closing Date in the form annexed hereto as Exhibit B.

Section 1.20.  "Registration Statement" shall mean a registration statement on
Form S-1 (or on such other form promulgated by the SEC for which the Company
then qualifies and which counsel for the Company shall deem appropriate, and
which form shall be available for the resale by the Investors of the Registrable
Securities to be registered thereunder in accordance with the provisions of this
Agreement, the Registration Rights Agreement and in accordance with the intended
method of distribution of such securities), for the registration of the resale
by the Investor of the Registrable Securities under the Securities Act.

Section 1.21.  "Regulation D" shall have the meaning set forth in the recitals
of this Agreement.

Section 1.22.  "SEC" shall mean the Securities and Exchange Commission.

Section 1.23.  "Section 4(2)" and "Section 4(6)" shall have the meanings set
forth in the recitals of this Agreement.

Section 1.24.  "Securities Act" shall have the meaning set forth in the recitals
of this Agreement.

Section 1.25.  "SEC Documents" shall mean the Company's latest Form 10 or Form
10-SB, Form 10-K or 10-KSB as of the time in question, all Forms 10-Q or 10-QSB
and 8-K filed thereafter, and the Proxy Statement for its latest fiscal year as
of the time in question until such time as the Company no longer has an
obligation to maintain the effectiveness of a Registration Statement as set
forth in the Registration Rights Agreement.

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Section 1.26.  "Shares" shall mean the $1,500,000 of Common Stock purchased at
the pursuant to this Agreement.

Section 1.27.  "Trading Day" shall mean any day during which the Principal
Market shall be open for business.

Section 1.28.  "Warrants" shall mean the Warrants substantially in the form of
Exhibit C to be issued to the Investors hereunder.

Section 1.29.  "Warrant Shares" shall mean all shares of Common Stock or other
securities issued or issuable pursuant to exercise of the Warrants.

                                  ARTICLE II

                PURCHASE AND SALE OF COMMON STOCK AND WARRANTS

Section 2.1.   Investment.

     (a)  Upon the terms and subject to the conditions set forth herein, the
Company agrees to sell, and the Investors, severally and not jointly, agree to
purchase the Shares together with the Warrants as follows:

          (i)      Closing. Upon satisfaction by the Company of the Closing
                   conditions set forth in Section 2.1(b), the Investors shall
                   purchase in the aggregate $1,500,000 of Common Stock at the
                   Purchase Price. The Investors purchasing in the Closing shall
                   deliver to the Escrow Agent immediately available funds in
                   the amounts set forth next to their signatures hereto and the
                   Company shall deliver the Common Stock certificates
                   representing the shares of Common Stock so purchased and the
                   applicable number of Warrants for each Investor to the Escrow
                   Agent, each to be held by the Escrow Agent pursuant to the
                   Escrow Agreement.

          (ii)     Satisfaction of Closing. Upon satisfaction of the conditions
                   set forth in Section 2.1(b), the Closing shall occur at the
                   offices of the Escrow Agent at which the Escrow Agent (x)
                   shall release the Common Stock and the Warrants to the
                   Investors and (y) shall release the Purchase Price (after all
                   fees have been paid as set forth in the Escrow Agreement),
                   pursuant to the terms of the Escrow Agreement.

     (b)  The Closing is subject to the satisfaction or waiver by the party
sought to be benefited thereby of the following conditions:

          (i)      acceptance and execution by the Company and by the Investors,
                   of this Agreement and all Exhibits hereto;

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          (ii)     delivery into escrow by each Investor of immediately
                   available funds in the amount of the Purchase Price of the
                   Common Stock and the Warrants, as more fully set forth in the
                   Escrow Agreement;

          (iii)    all representations and warranties of the Investors contained
                   herein shall remain true and correct as of Closing Date (as a
                   condition to the Company's obligations);

          (iv)     all representations and warranties of the Company contained
                   herein shall remain true and correct as of the Closing Date
                   (as a condition to the Investors' obligations);

          (v)      the Company shall have obtained all permits and
                   qualifications required by any state for the offer and sale
                   of the Common Stock and Warrants, or shall have the
                   availability of exemptions therefrom;

          (vi)     the sale and issuance of the Common Stock and Warrants
                   hereunder, and the proposed issuance by the Company to the
                   Investors of the Common Stock underlying the Warrants upon
                   the conversion or exercise thereof shall be legally permitted
                   by all laws and regulations to which the Investors and the
                   Company are subject and there shall be no ruling, judgment or
                   writ of any court prohibiting the transactions contemplated
                   by this Agreement;

          (vii)    delivery of the original fully executed Common Stock
                   certificates to the Escrow Agent;

          (viii)   delivery to the Escrow Agent of an opinion of the general
                   counsel to the Company, in the form of Exhibit D;

          (ix)     delivery to the Escrow Agent of the Irrevocable Instructions
                   to Transfer Agent in the form attached hereto as Exhibit E;
                   and

          (x)      delivery to the Escrow Agent of the Registration Rights
                   Agreement; and

Section 2.2.   Liquidated Damages. The parties hereto acknowledge and agree that
the sums payable pursuant to the Registration Rights Agreement shall constitute
liquidated damages and not penalties. The parties further acknowledge that (a)
the amount of loss or damages likely to be incurred is incapable or is difficult
to precisely estimate, (b) the amounts specified in such Sections bear a
reasonable proportion and are not plainly or grossly disproportionate to the
probable loss likely to be incurred by the Investors in connection with the
failure by the Company to timely cause the registration of the Registrable
Securities and (c) the parties are sophisticated business parties and have been
represented by sophisticated and able legal and financial counsel and negotiated
this Agreement at arm's length.

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                                  ARTICLE III

                REPRESENTATIONS AND WARRANTIES OF THE INVESTORS

Each Investor, severally and not jointly, represents and warrants to the Company
that:

Section 3.1.   Intent. The Investor is entering into this Agreement for its own
account and not with a view to or for sale in connection with any distribution
of the Common Stock. The Investor has no present arrangement (whether or not
legally binding) at any time to sell the Shares, the Warrants or the Warrant
Shares to or through any person or entity; provided, however, that by making the
representations herein, the Investor does not agree to hold such securities for
any minimum or other specific term and reserves the right to dispose of the
Shares and Warrant Shares at any time in accordance with federal and state
securities laws applicable to such disposition.

Section 3.2.   Sophisticated Investor. The Investor is a sophisticated investor
(as described in Rule 506(b)(2)(ii) of Regulation D) and an accredited investor
(as defined in Rule 501 of Regulation D), and Investor has such experience in
business and financial matters that it has the capacity to protect its own
interests in connection with this transaction and is capable of evaluating the
merits and risks of an investment in the Common Stock and Warrants. The Investor
acknowledges that an investment in the Common Stock is speculative and involves
a high degree of risk.

Section 3.3.   Authority. This Agreement and each agreement attached as an
Exhibit hereto which is required to be executed by Investor has been duly
authorized and validly executed and delivered by the Investor and is a valid and
binding agreement of the Investor enforceable against it in accordance with its
terms, subject to applicable bankruptcy, insolvency, or similar laws relating
to, or affecting generally the enforcement of, creditors' rights and remedies or
by other equitable principles of general application.

Section 3.4.   Not an Affiliate. The Investor is not an officer, director or
"affiliate" (as that term is defined in Rule 405 of the Securities Act) of the
Company.

Section 3.5.   Absence of Conflicts. The execution and delivery of this
Agreement and each agreement which is attached as an Exhibit hereto and executed
by the Investor in connection herewith, and the consummation of the transactions
contemplated hereby and thereby, and compliance with the requirements hereof and
thereof by the Investor, will not violate any law, rule, regulation, order,
writ, judgment, injunction, decree or award binding on Investor or (a) violate
any provision of any indenture, instrument or agreement to which Investor is a
party or is subject, or by which Investor or any of its assets is bound; (b)
conflict with or constitute a material default thereunder; (c) result in the
creation or imposition of any lien pursuant to the terms of any such indenture,
instrument or agreement, or constitute a breach of any fiduciary duty owed by
Investor to any third party; or (d) require the approval of any third-party
(which has not been obtained) pursuant to any material contract, agreement,
instrument, relationship or legal obligation to which Investor is subject or to
which any of its assets, operations or management may be subject.

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Section 3.6.   Disclosure; Access to Information. The Investor has received all
documents, records, books and other publicly available information pertaining to
Investor's investment in the Company that have been requested by the Investor.
The Company is subject to the periodic reporting requirements of the Exchange
Act, and the Investor has reviewed copies of all SEC Documents deemed relevant
by Investor.

Section 3.7.  Manner of Sale. At no time was Investor presented with or
solicited by or through any leaflet, public promotional meeting, television
advertisement or any other form of general solicitation or advertising.

                                  ARTICLE IV

                 REPRESENTATIONS AND WARRANTIES OF THE COMPANY

The Company represents and warrants to the Investors that, except as set forth
in the SEC Documents or the Disclosure Schedule attached hereto:

Section 4.1. Organization of the Company. The Company is a corporation duly
incorporated and existing in good standing under the laws of the State of
Delaware and has all requisite corporate authority to own its properties 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. 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.

Section 4.2.   Authority. (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 the
Warrants and to issue the Shares, the Warrants and the Warrant Shares pursuant
to their respective terms, (ii) the execution, issuance and delivery of this
Agreement, the Registration Rights Agreement, the Escrow Agreement, the Common
Stock certificates and the Warrants 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, the Escrow Agreement, the Common Stock
certificates representing the Shares and the Warrants have been duly executed
and delivered by the Company and at each 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, or similar laws relating to, or affecting generally the
enforcement of, creditors' rights and remedies or by other equitable principles
of general application. The Company has duly and validly authorized and reserved
for issuance shares of Common Stock sufficient in number for exercise of the
Warrants and the Shares.

Section 4.3.   Capitalization. The authorized capital stock of the Company
consists of 30,000,000 shares of Common Stock, $.01 par value per share, of
which 24,504,203 shares are

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issued and outstanding as of May 31, 2000 and 3,000,000 preferred stock, $.01
par value per share, of which no shares are issued and outstanding as of May 31,
2000. Except for (i) outstanding options and warrants as set forth in the SEC
Documents, and (ii) as set forth in the Disclosure Schedule, there are no
outstanding Capital Shares Equivalents nor any agreements or understandings
pursuant to which any Capital Shares Equivalents may become outstanding, nor is
the Company a party to any agreement granting registration or anti-dilution
rights to any person with respect to any of its equity or debt securities. All
of the outstanding shares of Common Stock of the Company have been duly and
validly authorized and issued and are fully paid and non-assessable.

Section 4.4.   Common Stock. The Company has registered its Common Stock
pursuant to Section 12(b) or (g) of the Exchange Act and is in full compliance
with all reporting requirements of the Exchange Act, and the Company is in
compliance with all requirements for the continued listing or quotation of its
Common Stock on the Principal Market. As of the date hereof, the Principal
Market is the Nasdaq Small Cap Market and the Company has not received any
notice regarding, and to its knowledge there is no threat, of the termination or
discontinuance of the eligibility of the Common Stock for such listing.

Section 4.5.   SEC Documents. The Company has made available to the Investors
true and complete copies of the SEC Documents. The Company has not provided to
the Investors any information that, according to applicable law, rule or
regulation, should have been disclosed publicly prior to the date hereof by the
Company, but which has not been so disclosed. As of their respective dates, (i)
the SEC Documents complied in all material respects with the requirements of the
Exchange Act, and rules and regulations of the SEC promulgated thereunder; (ii)
the SEC Documents did not contain any untrue statement of a material fact or
omit to state a material fact required to be stated therein or necessary in
order to make the statements therein, in light of the circumstances under which
they were made, not misleading; and (iii) the financial statements of the
Company included in the SEC Documents complied in all material respects with
applicable accounting requirements and the published rules and regulations of
the SEC or other applicable rules and regulations with respect thereto at the
time of such inclusion. Such financial statements have been prepared in
accordance with generally accepted accounting principles 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 exclude footnotes or may be condensed or
summary statements) and fairly present in all material respects the financial
position of the Company as of the dates thereof and the results of operations
and cash flows for the periods then ended (subject, in the case of unaudited
interim statements, to normal year-end audit adjustments). Neither the Company
nor any of its subsidiaries has any material indebtedness, obligations or
liabilities of any kind (whether accrued, absolute, contingent or otherwise, and
whether due or to become due) that would have been required to be reflected in,
reserved against or otherwise described in the financial statements or in the
notes thereto in accordance with GAAP, which was not fully reflected in,
reserved against or otherwise described in the financial statements or the notes
thereto included in the SEC Documents or was not incurred in the ordinary course
of business consistent with the Company's past practices since the last date of
such financial statements.

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Section 4.6.   Exemption from Registration; Valid Issuances. Subject to the
accuracy of the Investors' representations in Article III, the sale of the
Shares, the Warrants and the Warrant Shares will not require registration under
the Securities Act and/or any applicable state securities law. When issued and
paid for in accordance with the Warrants, the Warrant Shares will be duly and
validly issued, fully paid, and non assessable. Neither the sales of the Shares,
the Warrants or the Warrant Shares pursuant to, nor the Company's performance of
its obligations under, this Agreement, the Registration Rights Agreement, the
Escrow Agreement or the Warrants will (i) result in the creation or imposition
by the Company of any liens, charges, claims or other encumbrances upon the
Shares, the Warrants or the Warrant Shares or, except as contemplated herein,
any of the assets of the Company, or (ii) entitle the holders of Outstanding
Capital Shares to preemptive or other rights to subscribe for or acquire the
Capital Shares or other securities of the Company. The Shares, the Warrants and
the Warrant Shares shall not subject the Investors to personal liability to the
Company or its creditors by reason of the possession thereof.

Section 4.7.   No General Solicitation or Advertising in Regard to this
Transaction. Neither the Company nor any of its affiliates nor, to the knowledge
of the Company, any person acting on its or their behalf (i) has conducted or
will conduct any general solicitation (as that term is used in Rule 502(c) of
Regulation D) or general advertising with respect to the sale of the Shares or
the Warrants, or (ii) made any offers or sales of any security or solicited any
offers to buy any security under any circumstances that would require
registration of the Shares, the Warrants or the Warrant Shares under the
Securities Act.

Section 4.8.   No Conflicts. The execution, delivery and performance of this
Agreement by the Company and the consummation by the Company of the transactions
contemplated hereby, including without limitation the issuance of the Shares,
the Warrants and the Warrant Shares, do not and will not (i) result in a
violation of the Company's Certificate of Incorporation or By-Laws or (ii)
conflict with, or constitute a material default (or an event that with notice or
lapse of time or both would become a default) under, or give to others any
rights of termination, amendment, acceleration or cancellation of, any material
agreement, indenture or instrument, or any "lock-up" or similar provision of any
underwriting or similar agreement to which the Company is a party, or (iii)
result in a violation of any federal, state or local law, rule, regulation,
order, judgment or decree (including federal and state securities laws and
regulations) applicable to the Company or by which any material property or
asset of the Company is bound or affected, nor is the Company otherwise in
violation of, conflict with or default under any of the foregoing (except in
each case for such conflicts, defaults, terminations, amendments, accelerations,
cancellations and violations as would not have, individually or in the
aggregate, a Material Adverse Effect). The business of the Company is not being
conducted in violation of any law, ordinance or regulation of any governmental
entity, except for possible violations that either singly or in the aggregate
would 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 or the Warrants in
accordance with the terms hereof (other than any SEC or state securities filings
that may be required to be made by the Company subsequent to each Closing, any
registration statement that may be filed pursuant hereto); provided that, for
purposes of the representation made in this sentence, the Company is assuming
and relying upon the accuracy of the relevant representations and agreements of
the Investors herein.

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Section 4.9.   No Material Adverse Change. Since December 31 1999, no Material
Adverse Effect has occurred or exists with respect to the Company, except as
disclosed herein and in the SEC Documents.

Section 4.10.  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 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.

Section 4.11.  No Integrated Offering. Other than pursuant to an effective
registration statement under the Securities Act, or pursuant to the issuance or
exercise of employee stock options, or pursuant to its discussion with the
Investors in connection with the transactions contemplated hereby, the Company
has not issued, offered or sold its Common Stock, or any securities convertible
into or exchangeable or exercisable for Common Stock within the six-month period
next preceding the date hereof, and the Company shall not permit any of its
directors, officers or affiliates directly or indirectly to take, any action
(including, without limitation, any offering or sale to any Person of the Shares
or Warrants), so as to make unavailable the exemption from Securities Act
registration being relied upon by the Company for the offer and sale to
Investors of the Shares or the Warrants (and the Warrant Shares) as contemplated
by this Agreement.

Section 4.12.  Litigation and Other Proceedings. Except as disclosed in the SEC
Documents, there are no lawsuits or proceedings pending or, to the knowledge of
the Company, threatened, against the Company or any subsidiary, nor has the
Company received any written or oral notice of any such action, suit, proceeding
or investigation, which could reasonably be expected to have a Material Adverse
Effect. Except as set forth in the SEC Documents, no judgment, order, writ,
injunction or decree or award has been issued by or, to the knowledge of the
Company, requested of any court, arbitrator or governmental agency which could
result in a Material Adverse Effect.

Section 4.13.  No Misleading or Untrue Communication. The Company and, to the
knowledge of the Company, any person representing the Company, or any other
person selling or offering to sell the Shares or the Warrants in connection with
the transaction contemplated by this Agreement, have not made, at any time, any
oral communication in connection with the offer or sale of the same which
contained any untrue statement of a material fact or omitted to state any
material fact necessary in order to make the statements, in the light of the
circumstances under which they were made, not misleading.

Section 4.14.  Material Non-Public Information. The Company has not disclosed to
the Investors any material non-public information that (i) if disclosed, would
reasonably be expected to have a material effect on the price of the Common
Stock or (ii) according to applicable law, rule or regulation, should have been
disclosed publicly by the Company prior to the date hereof but which has not
been so disclosed.

Section 4.15.  Insurance. The Company and each subsidiary maintains property and
casualty, general liability, workers' compensation, environmental hazard,
personal injury and other similar types of insurance with financially sound and
reputable insurers that is adequate, consistent with industry standards and the
Company's historical claims experience. The Company has not received notice
from, and has no knowledge of any threat by, any insurer (that has issued any
insurance policy to the Company) that such insurer intends to deny coverage
under or cancel, discontinue or not renew any insurance policy presently in
force.

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Section 4.16.  Tax Matters.

     (a)  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.

     (b)  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 (S) 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 (S) 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 (S) 897(c)(2) of the Internal Revenue Code
during the applicable period specified in (S) 897(c)(1)(A)(ii) of the Internal
Revenue Code.

     (c)  The Company has not made an election under (S) 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. (S) 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 (S) 280G of the Internal
Revenue Code.

                                       11
<PAGE>

     (d)  For purposes of this Section 4.16:

          "IRS" means the United States Internal Revenue Service.

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

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

Section 4.17.  Property. Neither the Company nor any of its subsidiaries owns
any real property. Each of the Company and its subsidiaries has good and
marketable title to all personal property owned by it, free and clear of all
liens, encumbrances and defects except such as do not materially affect the
value of such property and do not materially interfere with the use made and
proposed to be made of such property by the Company; and to the Company's
knowledge any real property, mineral or water rights, and buildings held under
lease by the Company as tenant are held by it under valid, subsisting and
enforceable leases with such exceptions as are not material and do not interfere
with the use made and intended to be made of such property, mineral or water
rights, and buildings by the Company.

Section 4.18.  Intellectual Property. Each of the Company and its subsidiaries
owns or possesses adequate and enforceable rights to use all patents, patent
applications, trademarks, trademark applications, trade names, service marks,
copyrights, copyright applications, licenses, know-how (including trade secrets
and other unpatented and/or unpatentable proprietary or confidential
information, systems or procedures) and other similar rights and proprietary
knowledge (collectively, "Intangibles") necessary for the conduct of its
business as now being conducted. To the Company's knowledge, except as disclosed
in the SEC Documents neither the Company nor any of its subsidiaries is
infringing upon or in conflict with any right of any other person with respect
to any Intangibles. Except as disclosed in the SEC Documents, no adverse claims
have been asserted by any person to the ownership or use of any Intangibles and
the Company has no knowledge of any basis for such claim.

Section 4.19.  Regulatory Compliance. The Company has all necessary permits and
licenses and has made all filings to such regulatory bodies to conduct its
business as it is now being conducted, and is not in material violation of any
thereof.

Section 4.20.  Internal Controls and Procedures. The Company maintains books and
records and internal accounting controls which provide reasonable assurance that
(i) all transactions to which the Company or any subsidiary is a party or by
which its properties are bound are executed with management's authorization;
(ii) the recorded accounting of the Company's consolidated assets is compared
with existing assets at regular intervals; (iii) access to the Company's
consolidated

                                       12
<PAGE>

assets is permitted only in accordance with management's authorization; and (iv)
all transactions to which the Company or any subsidiary is a party or by which
its properties are bound are recorded as necessary to permit preparation of the
financial statements of the Company in accordance with U.S. generally accepted
accounting principles.

Section 4.21.  Payments and Contributions. Neither the Company, any subsidiary,
nor any of its directors, officers or, to its knowledge, other employees has (i)
used any Company funds for any unlawful contribution, endorsement, gift,
entertainment or other unlawful expense relating to political activity; (ii)
made any direct or indirect unlawful payment of Company funds to any foreign or
domestic government official or employee; (iii) violated or is in violation of
any provision of the Foreign Corrupt Practices Act of 1977, as amended; or (iv)
made any bribe, rebate, payoff, influence payment, kickback or other similar
payment to any person with respect to Company matters.

Section 4.22.  No Misrepresentation. The representations and warranties of the
Company contained in this Agreement, any schedule, annex or exhibit hereto and
any agreement, instrument or certificate furnished by the Company to the
Investors pursuant to this Agreement, do not contain any untrue statement of a
material fact or omit to state a material fact required to be stated therein or
necessary to make the statements therein, in light of the circumstances under
which they were made, not misleading.

                                   ARTICLE V

                          COVENANTS OF THE INVESTORS

     Each Investor, severally and not jointly, covenants with the Company that:

Section 5.1.   Compliance with Law. The Investor's trading activities with
respect to shares of the Company's Common Stock will be in compliance with all
applicable state and federal securities laws, rules and regulations and rules
and regulations of the Principal Market on which the Company's Common Stock is
listed.

                                  ARTICLE VI

                           COVENANTS OF THE COMPANY

Section 6.1.   Registration Rights. The Company shall cause the Registration
Rights Agreement to remain in full force and effect and the Company shall comply
in all material respects with the terms thereof and shall use best efforts to
timely prepare and file the Registration Statement.

Section 6.2.   Reservation of Common Stock. As of the date hereof, the Company
has reserved and the Company shall continue to reserve and keep available at all
times, free of preemptive rights, shares of Common Stock and Warrant Shares
pursuant to any exercise of the Warrants. The number of shares so reserved from
time to time, as theretofore increased or reduced as hereinafter provided, may
be reduced by the number of shares actually delivered pursuant to any exercise
of the Warrants and the number of shares so reserved shall be increased or
decreased to

                                       13
<PAGE>

reflect potential increases or decreases in the Common Stock that the Company
may thereafter be obligated to issue by reason of adjustments to the Warrants.

Section 6.3.   Listing of Common Stock. The Company hereby agrees to use all
commercially reasonable efforts to maintain the listing of the Common Stock on a
Principal Market, and as soon as reasonably practicable following the Closing to
list the Shares and the Warrant Shares on the Principal Market. The Company
further agrees, if the Company applies to have the Common Stock traded on any
other Principal Market, it will include in such application the Shares and the
Warrant Shares, and will take such other action as is necessary or desirable in
the opinion of the Investors to cause the Shares and Warrant Shares to be listed
on such other Principal Market as promptly as possible. The Company will take
all action to continue the listing and trading of its Common Stock on a
Principal Market (including, without limitation, maintaining sufficient net
tangible assets) and will comply in all respects with the Company's reporting,
filing and other obligations under the bylaws or rules of the Principal Market
and shall provide Investors with copies of any correspondence to or from such
Principal Market which questions or threatens delisting of the Common Stock,
within three (3) Trading Days of the Company's receipt thereof, until the
Investors have disposed of all of their Registrable Securities.

Section 6.4.   Exchange Act Registration. The Company will cause its Common
Stock to continue to be registered under Section 12(b) or (g) of the Exchange
Act, will use commercially reasonable efforts to comply in all respects with its
reporting and filing obligations under the Exchange Act, and will not take any
action or file any document (whether or not permitted by the Exchange Act or the
rules thereunder) to terminate or suspend such registration or to terminate or
suspend its reporting and filing obligations under said Act until the Investors
have disposed of all of their Registrable Securities.

Section 6.5.  Legends. The certificates evidencing the Registrable Securities
shall be free of legends, except as set forth in Article IX. If the Transfer
Agent requires an opinion of counsel from the Company's counsel pursuant to the
Instructions to Transfer Agent attached hereto as Exhibit F to issue new
certificates free of a legend and Company's counsel fails to deliver such
opinion within five (5) days from such a request, then the Company will pay the
Investor (pro rated on a daily basis), as liquidated damages for such failure
and not as a penalty, ten percent (5%) of the market value of shares of Common
Stock purchased from the Company and surrendered by the Investor to the Transfer
Agent for removal of the legend for each week until such opinion is provided,
notwithstanding the fact that the Company has instructed the Transfer Agent to
accept such an opinion from Investor's counsel.

Section 6.6.   Corporate Existence; Conflicting Agreements. The Company will
take all steps necessary to preserve and continue the corporate existence of the
Company. The Company shall not enter into any agreement, the terms of which
agreement would restrict or impair the right or ability of the Company to
perform any of its obligations under this Agreement or any of the other
agreements attached as exhibits hereto.

Section 6.7.   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

                                       14
<PAGE>

by operation of law the obligation to deliver to the Investors such shares of
stock and/or securities as the Investors are entitled to receive pursuant to
this Agreement.

Section 6.8.   Issuance of Common Stock and Warrant Shares. The sale of the
Shares and the Warrants and the issuance of the Warrant Shares pursuant to
exercise of the Warrants shall be made in accordance with the provisions and
requirements of Section 4(2), 4(6) or Regulation D and any applicable state
securities law. The Company shall make any necessary SEC and "blue sky" filings
required to be made by the Company in connection with the sale of the Securities
to the Investors as required by all applicable laws, and shall provide a copy
thereof to the Investors promptly after such filing.

Section 6.9.   Future Financing. The Company agrees that it will enter into an
equity financing arrangement for up to Five Million Dollars ($5,000,000)
arranged through Rhino Advisors, Inc. or other equity financing agreement
approved by all of the Investors within thirty (30) days of the Closing Date,
provided the terms and conditions of such equity financing arrangement are
mutually agreeable to all parties. The Company agrees that it will not enter
into any other sale of its securities for cash at a discount to its then-current
bid price until 180 days after the Effective Date of the Registration Statement
except for any sales (i) pursuant to any presently existing employee benefit
plan which plan has been, or will be at the Company's annual meeting of
stockholders to be held on July 28, 2000, approved by the Company's
stockholders, (ii) pursuant to any compensatory plan or stock option plan for a
director, full-time employee or key consultant, (iii) pursuant to any
underwritten public offering (including any equity line of credit), (iv) the
exercise of any other warrants or options which are issued and outstanding on
the date hereof, or (v) with the prior approval of a majority in interest of the
Investors, which will not be unreasonably withheld, in connection with a
strategic partnership or other business transaction, the principal purpose of
which is not simply to raise money.

                                  ARTICLE VII

                           SURVIVAL; INDEMNIFICATION

Section 7.1.   Survival. The representations, warranties and covenants made by
each of the Company and each Investor in this Agreement, the annexes, schedules
and exhibits hereto and in each instrument, agreement and certificate entered
into and delivered by them pursuant to this Agreement, shall survive Closing and
the consummation of the transactions contemplated hereby. In the event of a
breach or violation of any of such representations, warranties or covenants, the
party to whom such representations, warranties or covenants have been made shall
have all rights and remedies for such breach or violation available to it under
the provisions of this Agreement, irrespective of any investigation made by or
on behalf of such party on or prior to the Closing Date.

Section 7.2.   Indemnity. (a) The Company hereby agrees to indemnify and hold
harmless the Investors, their respective Affiliates and their respective
officers, directors, partners and members (collectively, the "Investor
Indemnitees"), from and against any and all Damages, and agrees to reimburse the
Investor Indemnitees for all reasonable out-of-pocket expenses

                                       15
<PAGE>

(including the reasonable fees and expenses of legal counsel), in each case
promptly as incurred by the Investor Indemnitees and to the extent arising out
of or in connection with:

          (i)      any misrepresentation, omission of fact or breach of any of
                   the Company's representations or warranties contained in this
                   Agreement, the annexes, schedules or exhibits hereto or any
                   instrument, agreement or certificate entered into or
                   delivered by the Company pursuant to this Agreement; or

          (ii)     any failure by the Company to perform in any material respect
                   any of its covenants, agreements, undertakings or obligations
                   set forth in this Agreement, the annexes, schedules or
                   exhibits hereto or any instrument, agreement or certificate
                   entered into or delivered by the Company pursuant to this
                   Agreement; or

          (iii)    any action instituted against the Investors, or any of them,
                   by any stockholder of the Company who is not an Affiliate of
                   an Investor, with respect to any of the transactions
                   contemplated by this Agreement.

      Notwithstanding anything to the contrary herein, the Company shall not be
liable under this Section 7.2(a) for any amount in excess of the net proceeds to
such Investor Indemnitee as a result of the sale of Registrable Securities
pursuant to the Registration Statement.

     (b)  Each Investor, severally and not jointly, hereby agrees to indemnify
          and hold harmless the Company, its Affiliates and their respective
          officers, directors, partners and members (collectively, the "Company
          Indemnitees"), from and against any and all Damages, and agrees to
          reimburse the Company Indemnitees for all reasonable out-of-pocket
          expenses (including the reasonable fees and expenses of legal
          counsel), in each case promptly as incurred by the Company Indemnitees
          and to the extent arising out of or in connection with:

          (i)      any misrepresentation, omission of fact, or breach of any of
                   the Investor's representations or warranties contained in
                   this Agreement, the annexes, schedules or exhibits hereto or
                   any instrument, agreement or certificate entered into or
                   delivered by the Investor pursuant to this Agreement; or

          (ii)     any failure by the Investor to perform in any material
                   respect any of its covenants, agreements, undertakings or
                   obligations set forth in this Agreement, the annexes,
                   schedules or exhibits hereto or any instrument, agreement or
                   certificate entered into or delivered by the Investor
                   pursuant to this Agreement; or

any action instituted against the Investors, or any of them, by any stockholder
of the Company who is not an Affiliate of an Investor, with respect to any of
the transactions contemplated by this Agreement. Notwithstanding anything to the
contrary herein, the Investor shall not be liable under this Section 7.2(b) for
any amount in excess of the net proceeds to such Investor as a result of the
sale of Registrable Securities pursuant to the Registration Statement.

Section 7.3.   Notice. Promptly after receipt by either party hereto seeking
indemnification pursuant to Section 7.2 (an "Indemnified Party") of written
notice of any investigation, claim, proceeding or other action in respect of
which indemnification is being sought (each, a "Claim"),

                                       16
<PAGE>

the Indemnified Party promptly shall notify the party from whom indemnification
pursuant to Section 7.2 is being sought (the "Indemnifying Party") of the
commencement thereof; but the omission to so notify the Indemnifying Party shall
not relieve it from any liability that it otherwise may have to the Indemnified
Party, except to the extent that the Indemnifying Party is actually prejudiced
by such omission or delay. In connection with any Claim as to which both the
Indemnifying Party and the Indemnified Party are parties, the Indemnifying Party
shall be entitled to assume the defense thereof. Notwithstanding the assumption
of the defense of any Claim by the Indemnifying Party, the Indemnified Party
shall have the right to employ separate legal counsel and to participate in the
defense of such Claim, and the Indemnifying Party shall bear the reasonable
fees, out-of-pocket costs and expenses of such separate legal counsel to the
Indemnified Party if (and only if): (x) the Indemnifying Party shall have agreed
to pay such fees, out-of-pocket costs and expenses, (y) the Indemnified Party
reasonably shall have concluded that representation of the Indemnified Party and
the Indemnifying Party by the same legal counsel would not be appropriate due to
actual or, as reasonably determined by legal counsel to the Indemnified Party,
potentially differing interests between such parties in the conduct of the
defense of such Claim, or if there may be legal defenses available to the
Indemnified Party that are in addition to or disparate from those available to
the Indemnifying Party, or (z) the Indemnifying Party shall have failed to
employ legal counsel reasonably satisfactory to the Indemnified Party within a
reasonable period of time after notice of the commencement of such Claim. If the
Indemnified Party employs separate legal counsel in circumstances other than as
described in clauses (x), (y) or (z) above, the fees, costs and expenses of such
legal counsel shall be borne exclusively by the Indemnified Party. Except as
provided above, the Indemnifying Party shall not, in connection with any Claim
in the same jurisdiction, be liable for the fees and expenses of more than one
firm of legal counsel for the Indemnified Party (together with appropriate local
counsel). The Indemnifying Party shall not, without the prior written consent of
the Indemnified Party (which consent shall not unreasonably be withheld), settle
or compromise any Claim or consent to the entry of any judgment that does not
include an unconditional release of the Indemnified Party from all liabilities
with respect to such Claim or judgment.

     All fees and expenses of the Indemnified Party (including reasonable costs
of defense and investigation in a manner not inconsistent with this Section and
all reasonable attorneys' fees and expenses) shall be paid to the Indemnified
Party, as incurred, within ten (10) Trading Days of written notice thereof to
the Indemnifying Party; provided, that the Indemnifying Party may require such
Indemnified Party to undertake to reimburse all such fees and expenses
immediately upon notice to the extent it is determined that such Indemnified
Party is not entitled to indemnification hereunder).

Section 7.4.   Direct Claims. In the event one party hereunder should have a
claim for indemnification that does not involve a claim or demand being asserted
by a third party, the Indemnified Party promptly shall deliver notice of such
claim to the Indemnifying Party. If the Indemnifying Party disputes the claim,
such dispute shall be resolved by mutual agreement of the Indemnified Party and
the Indemnifying Party or by binding arbitration conducted in accordance with
the procedures and rules of the American Arbitration Association as set forth in
Article X. Judgment upon any award rendered by any arbitrators may be entered in
any court having competent jurisdiction thereof.

                                       17
<PAGE>

                                 ARTICLE VIII

        DUE DILIGENCE REVIEW; NON-DISCLOSURE OF NON-PUBLIC INFORMATION.

Section 8.1.   Due Diligence Review. Subject to Section 8.2, the Company shall
make available for inspection and review by the Investors, advisors to and
representatives of the Investors (who may or may not be affiliated with the
Investors and who are reasonably acceptable to the Company), any underwriter
participating in any disposition of the Registrable Securities on behalf of the
Investors pursuant to the Registration Statement, any such registration
statement or amendment or supplement thereto or any blue sky, Principal Market
or other filing, all SEC Documents and other filings with the SEC, and all other
publicly available corporate documents and properties of the Company as may be
reasonably necessary for the purpose of such review, and cause the Company's
officers, directors and employees to supply all such publicly available
information reasonably requested by the Investors or any such representative,
advisor or underwriter in connection with such Registration Statement
(including, without limitation, in response to all questions and other inquiries
reasonably made or submitted by any of them), prior to and from time to time
after the filing and effectiveness of the Registration Statement for the sole
purpose of enabling the Investors and such representatives, advisors and
underwriters and their respective accountants and attorneys to conduct initial
and ongoing due diligence with respect to the Company and the accuracy of the
Registration Statement.

Section 8.2.   Non-Disclosure of Non-Public Information.

     (a)  The Company shall not disclose material non-public information to the
          Investors, advisors to or representatives of the Investors unless
          prior to disclosure of such information the Company identifies such
          information as being non-public information and provides the
          Investors, such advisors and representatives with the opportunity to
          accept or refuse to accept such non-public information for review.
          Other than disclosure of any comment letters received from the SEC
          staff with respect to the Registration Statement, the Company may, as
          a condition to disclosing any non-public information hereunder,
          require the Investors' advisors and representatives to enter into a
          confidentiality agreement in form and content reasonably satisfactory
          to the Company and the Investors.

     (b)  Nothing herein shall require the Company to disclose material non-
          public information to the Investors or their advisors or
          representatives, and the Company represents that it does not
          disseminate material non-public information to any investors who
          purchase stock in the Company in a public offering, to money managers
          or to securities analysts, provided, however, that notwithstanding
          anything herein to the contrary, the Company will, as hereinabove
          provided, promptly notify the advisors and representatives of the
          Investors and, if any, underwriters, of any event or the existence of
          any circumstance (without any obligation to disclose the specific
          event or circumstance) of which it becomes aware, constituting
          material non-public information (whether or not requested of the
          Company specifically or generally during the course of due diligence
          by such persons or entities), which, if not disclosed in the
          prospectus included in the Registration Statement would cause such
          prospectus to include a material misstatement or to omit a material
          fact required to be stated therein in order to make the statements,
          therein in light of the circumstances in which they were made, not
          misleading.

                                       18
<PAGE>

          Nothing contained in this Section 8.2 shall be construed to mean that
          such persons or entities other than the Investors (without the written
          consent of the Investors prior to disclosure of such information as
          set forth in Section 8.2(a)) may not obtain non-public information in
          the course of conducting due diligence in accordance with the terms of
          this Agreement and nothing herein shall prevent any such persons or
          entities from notifying the Company of their opinion that based on
          such due diligence by such persons or entities, that the Registration
          Statement contains an untrue statement of a material fact or omits a
          material fact required to be stated in the Registration Statement or
          necessary to make the statements contained therein, in light of the
          circumstances in which they were made, not misleading.

                                  ARTICLE IX

                     LEGENDS; TRANSFER AGENT INSTRUCTIONS

Section 9.1.   Legends. Unless otherwise provided below, each certificate
representing Registrable Securities will bear the following legend or equivalent
(the "Legend"):

THE SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
U.S. SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR ANY OTHER
APPLICABLE SECURITIES LAWS AND HAVE BEEN ISSUED IN RELIANCE UPON AN EXEMPTION
FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND SUCH OTHER
SECURITIES LAWS. NEITHER THIS SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN
MAY BE SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED, OR OTHERWISE DISPOSED
OF, EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES
ACT OR PURSUANT TO A TRANSACTION THAT IS EXEMPT FROM SUCH REGISTRATION.

Section 9.2.   Transfer Agent Instructions. Upon the execution and delivery
hereof, the Company is issuing to the transfer agent for its Common Stock (and
to any substitute or replacement transfer agent for its Common Stock upon the
Company's appointment of any such substitute or replacement transfer agent)
instructions substantially in the form of Exhibit E hereto. Such instructions
shall be irrevocable by the Company from and after the date hereof or from and
after the issuance thereof to any such substitute or replacement transfer agent,
as the case may be.

Section 9.3.   No Other Legend or Stock Transfer Restrictions. No legend other
than the one specified in Section 9.1 has been or shall be placed on the share
certificates representing the Registrable Securities and no instructions or
"stop transfer orders," "stock transfer restrictions," or other restrictions
have been or shall be given to the Company's transfer agent with respect thereto
other than as expressly set forth in this Article IX.

                                       19
<PAGE>

Section 9.4.   Investors' Compliance. Nothing in this Article shall affect in
any way each Investor's obligations to comply with all applicable securities
laws upon resale of the Common Stock.

                                   ARTICLE X

                          CHOICE OF LAW; ARBITRATION

Section 10.1.  Governing Law/Arbitration. This Agreement shall be governed by
and construed in accordance with the laws of the State of New York applicable to
contracts made in New York by persons domiciled in New York City and without
regard to its principles of conflicts of laws. Any dispute under this Agreement
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
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 unless the matter at issue is the corporation
law of the company's state of incorporation, in which event the corporation law
of such jurisdiction shall govern such issue. 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. 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 Board of Arbitration shall be authorized and is
hereby directed to enter a default judgment against any party failing to
participate in any proceeding hereunder within the time periods set forth in the
AAA rules. 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.

                                  ARTICLE XI

                                  ASSIGNMENT

Section 11.1.  Assignment. Neither this Agreement nor any rights of the
Investors or the Company hereunder may be assigned by either party to any other
person. Notwithstanding the foregoing, (a) the provisions of this Agreement
shall inure to the benefit of, and be enforceable by, any permitted transferee
of any of the Shares or Warrants purchased or acquired by any Investor hereunder
with respect to the Shares or Warrants held by such person, and (b) upon the

                                       20
<PAGE>

prior written consent of the Company, which consent shall not unreasonably be
withheld or delayed, each Investor's interest in this Agreement may be assigned
at any time, in whole or in part, to any other person or entity (including any
Affiliate of the Investor) who agrees to make the representations and warranties
contained in Article III and who agrees to be bound by the terms of this
Agreement.

                                  ARTICLE XII

                                    NOTICES

Section 12.1.  Notices.

All notices, demands, requests, consents, approvals, and other communications
required or permitted hereunder shall be in writing and, unless otherwise
specified herein, shall be (i) hand delivered, (ii) deposited in the mail,
registered or certified, return receipt requested, postage prepaid, (iii)
delivered by reputable air courier service with charges prepaid, or (iv)
transmitted by facsimile, addressed as set forth below or to such other address
as such party shall have specified most recently by written notice.  Any notice
or other communication required or permitted to be given hereunder shall be
deemed effective (a) upon hand delivery or delivery by facsimile, with accurate
confirmation generated by the transmitting facsimile machine, 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 first business day
following the date of sending by reputable courier service, fully prepaid,
addressed to such address, or (c) upon actual receipt of such mailing, if
mailed.  The addresses for such communications shall be:

If to the Company:             600 Research Drive
                               Wilmington, Massachusetts  01887
                               Attention:  Brett Moyer
                               Telephone: (978) 988-5888
                               Facsimile: (978) 661-0160

with a copy to                 Neil Aronson, Esq.
(shall not constitute notice)  Mintz, Levin, Cohn, Ferris & Pompeo, PC
                               One Financial Center
                               Boston, MA  02109
                               Tel:  (617) 542-6000
                               Fax:  (617) 542-2241

if to the Investors:           As set forth on the signature pages hereto

with a copy to:                Robert F. Charron, Esq.
(shall not constitute notice)  Epstein Becker & Green, P.C.
                               250 Park Avenue
                               New York, New York
                               Telephone: (212) 351-3771
                               Facsimile: (212) 661-0989

                                       21
<PAGE>

Either party hereto may from time to time change its address or facsimile number
for notices under this Section 12.1 by giving written notice of such changed
address or facsimile number to the other party hereto as provided in this
Section 12.1.

                                 ARTICLE XIII

                                 MISCELLANEOUS

Section 13.1. Counterparts/ Facsimile/ Amendments. This Agreement may be
executed in multiple counterparts, each of which may be executed by less than
all of the parties and shall be deemed to be an original instrument which shall
be enforceable against the parties actually executing such counterparts and all
of which together shall constitute one and the same instrument. Except as
otherwise stated herein, in lieu of the original documents, a facsimile
transmission or copy of the original documents shall be as effective and
enforceable as the original. This Agreement may be amended only by a writing
executed by all parties.

Section 13.2. Entire Agreement. This Agreement, the agreements attached as
Exhibits hereto, which, include but are not limited to the Warrants, the Escrow
Agreement, and the Registration Rights Agreement, set forth the entire agreement
and understanding of the parties relating to the subject matter hereof and
supersedes all prior and contemporaneous agreements, negotiations and
understandings between the parties, both oral and written relating to the
subject matter hereof. The terms and conditions of all Exhibits to this
Agreement are incorporated herein by this reference and shall constitute part of
this Agreement as is fully set forth herein.

Section 13.3. Severability. In the event that any provision of this Agreement
becomes or is declared by a court of competent jurisdiction to be illegal,
unenforceable or void, this Agreement shall continue in full force and effect
without said provision; provided that such severability shall be ineffective if
it materially changes the economic benefit of this Agreement to any party.

Section 13.4. Headings. The headings used in this Agreement are used for
convenience only and are not to be considered in construing or interpreting this
Agreement.

Section 13.5. Number and Gender. There may be one or more Investors parties to
this Agreement, which Investors may be natural persons or entities. All
references to plural Investors shall apply equally to a single Investor if there
is only one Investor, and all references to an Investor as "it" shall apply
equally to a natural person.

Section 13.6. Replacement of Certificates. Upon (i) receipt of evidence
reasonably satisfactory to the Company of the loss, theft, destruction or
mutilation of a certificate representing the Shares or Warrants or any Warrant
Shares and (ii) in the case of any such loss, theft or destruction of such
certificate, upon delivery of an indemnity agreement or security reasonably
satisfactory in form to the Company (which shall not include the positing of any
bond) or (iii) in the case of any such mutilation, on surrender and cancellation
of such certificate, the Company at its expense will execute and deliver, in
lieu thereof, a new certificate of like tenor.

                                       22
<PAGE>

Section 13.7. Fees and Expenses. Each of the Company and the Investors agrees to
pay its own expenses incident to the performance of its obligations hereunder,
except that the Company shall pay the fees, expenses and disbursements of
Epstein Becker & Green, P.C., counsel to the Investors, in an amount equal to
$10,000 all as set forth in the Escrow Agreement.

Section 13.8. Brokerage. Each of the parties hereto represents that it has had
no dealings in connection with this transaction with any finder or broker who
will demand payment of any fee or commission from the other party, except for
Union Atlantic, LLC, whose fee shall be paid by the Company. The Company on the
one hand, and the Investors, on the other hand, agree to indemnify the other
against and hold the other harmless from any and all liabilities to any person
claiming brokerage commissions or finder's fees on account of services purported
to have been rendered on behalf of the indemnifying party in connection with
this Agreement or the transactions contemplated hereby.

Section 13.9. Publicity. The Company agrees that it will not issue any press
release or other public announcement of the transactions contemplated by this
Agreement without the prior consent of the Investors, which shall not be
unreasonably withheld nor delayed by more than two (2) Trading Days from their
receipt of such proposed release; provided, however, that if the Company is
advised by its outside counsel that it is required by law or the applicable
rules of any Principal Market to issue any such press release or public
announcement, then it may do so without the prior written consent of the
Investors, although it shall be required to provide prior notice (which may be
by telephone) to the Investors that it intends to issue such press release or
public announcement. No release shall name the Investors without their express
consent.

                                       23
<PAGE>

          IN WITNESS WHEREOF, the parties hereto have caused this Purchase
Agreement to be executed by the undersigned, thereunto duly authorized, as of
this __ day of June, 2000.

                              FOCUS ENCHANCEMENTS, INC.

                              By: /s/ Brett Moyer
                                  ----------------------------------------
                                  Brett Moyer, Executive Vice President &
                                  Chief Operating Officer

                              INVESTORS:

ADDRESS:                      AMRO International, S.A.
  C/o UltraFinanz
  Grossmuensterplatz 6        By: /s/ H.U. Bachofen
  Zurich CH-8022 Switzerland      ----------------------------------------
  Fax: 011-411-262-5515           H.U. Bachofen, Director
  Purchase Amount:
  $1,500,000

                                       24<PAGE>

                                                                    EXHIBIT 10.2

                              INVESTMENT AGREEMENT

          This Investment and Stockholders Agreement (the "Agreement") dated as
of July 26, 2000, by and among FATA GROUP SpA, an Italian corporation with
principle offices at Strada Statale n. 24, km. 12 - 10044 PIANEZZA (TO), Italy
("FATA" or "Purchaser"); Cyberfast Systems, Inc., a Florida corporation with
principle offices at 777 Yamato Road - Boca Raton, Florida 33431 ("Cyberfast" or
the "Company"), and the current private stockholders of Cyberfast Edward
Stackpole and Itir Stackpole, (collectively referred to as the "Controlling
Stockholders" and individually as a "Controlling Stockholder").

     WHEREAS, Cyberfast is a company active in the field of VOIP communication
and has developed in recent years good experience and reputation on the relevant
market. In particular, Cyberfast is seeking to further develop its activity
through the establishment of a number of Points of Presence (hereinafter,
"POPs") in various countries, thus fostering the provision of communication
services to and from such countries.

     WHEREAS, in view of such development, Cyberfast is interested in
strengthening its organizational and financial situation and has proposed a form
of partnership to FATA, also in consideration of the strategic support that FATA
may provide in the development of operative contacts in several countries;

     WHEREAS, Cyberfast submitted to FATA a business plan (attached hereto as
Exhibit 1 and made a part hereof) reflecting the expected development of its
activity over the next three and a half (3 1/2) years and, based on the data
resulting from such business plan, FATA has likewise expressed its interest in a
type of partnership with Cyberfast;

     WHEREAS, the parties hereto have entered into that certain Memorandum of
Understanding (the "MOU") dated as of May 5, 2000, pursuant to which they set
forth the basic terms of their prospective relationships;

     WHEREAS, FATA desires to acquire a certain number of shares of common
stock, as better specified in Section __, of the Company (the "Common Stock"),
and in particular to ensure its absolute control of the voting rights and
management of the Company and the Company desires to issue and sell to FATA such
number of shares of Common Stock and to ensure to FATA such full control and
governance of the Company, upon the terms and subject to the conditions of this
Agreement;

     WHEREAS, pursuant to the MOU, on May 5, 2000, FATA contributed to Cyberfast
a loan in an amount of three hundred thousand dollars (US $ 300,000), to be
fully reimbursed, together with interest at a rate of six percent (6 %) per
annum, upon the payment by FATA of the first tranche of its investment and, in
any case, no later than August 1, 2000, pursuant to the terms hereof.

                                                                               1
<PAGE>

     WHEREAS, Cyberfast is listed on the Pink Sheet market and is seeking re-
qualification as a "reporting company", under the Securities Act of 1934. The
Controlling Stockholders hold Class A and Class B shares of the common stock of
Cyberfast, as better described in Exhibit 2 hereto and made a part hereof. No
preferred stock of Cyberfast has been issued yet or is outstanding as of the
date hereof;

     WHEREAS FATA, the Company and the Controlling Stockholders are also,
pursuant to the terms hereof, agreeing to, among other things, certain rights
and restrictions with respect to the Common Stock of the Company and the
Company's management.

          NOW, THEREFORE, inconsideration of the mutual promises and covenants
contained in this Agreement, and intending to be legally bond hereby, the
parties hereto agree as follows:

                                   ARTICLE I
                          DEFINITIONS; INTERPRETATION

     1.1  Definitions.  As used in this Agreement, unless the context requires
          -----------
otherwise, the following terms shall have the meanings ascribed to them below
(such terms to be equally applicable to both singular and plural forms of the
terms defined or referred to):

     "Affiliate" or "affiliate" means, with respect to any specified person, (x)
      ---------      ---------
any general partner, member, director or any senior executive of, or any person
or entity that beneficially owns at least a majority of the issued and
outstanding capital stock or other equity interests of, such specified person,
or (y) any other person or group of persons directly or indirectly controlling,
controlled by other common control with, such specified person, at any time
during the period for which such affiliation is being determined, or (z) in the
case of FATA, in general any entity controlling, controlled by or under common
control with FATA, according to the definition of "control" provided in Art.
2359 of the Italian Civil Code.

     "Board" means the Board of Directors of the Company as constituted from
      -----
time to time.

     "Business Day" means any calendar day which is not a Saturday, Sunday or
      ------------
public holiday in Turin, Italy or in Boca Raton, Florida.

     "Business Plan" means the business plan that Cyberfast submitted to FATA on
      -------------
_________, 2000 and reflecting the expected development of its activity over the
next 3 and a half years;

     "Capital Stock" means at any time any then issued capital stock of any
      -------------
class or classes of the Company.  The term "Capital Stock" shall include, except
                                            -------------
as otherwise provided herein, any and all issued shares of the capital stock or
interests in the Company or any successor or assign of the Company (whether by
merger, consolidation, sale of assets or otherwise), which may be issued in
respect of, in exchange for, or in substitution for any shares of Capital Stock,
by reason of any stock dividend, split, reverse split, combination,
recapitalization, reclassification, merger, consolidation or otherwise.

                                                                               2
<PAGE>

     "Charter Documents" means the Certificate of Incorporation and By-Laws,
      -----------------
each as amended, of the Company, as may be in effect from time to time.

     "Company Material Adverse Effect" means any material adverse change in, or
      -------------------------------
material adverse effect on, the business, prospects or value of the Company, or
any event or circumstance which would likely prevent, hinder or materially delay
the consummation of any of the transactions contemplated by this Agreement.

     "Control" (including with correlative meanings, such similar terms as
      -------
"controlling", "controlled by" or "under common control with"), as applied to
any specified person, means the possession, directly or indirectly, of the power
to direct or cause the direction of the management and policies of such
specified person, whether through the ownership of voting securities, by
contract or otherwise.

     "Controlling Stockholders" means, jointly and severally, Mr. Edward
      ------------------------
Stackpole and Ms. Itir Stackpole.

     "Default" means, with respect to any particular agreement, (x) any material
      -------
breach of or default under such agreement, (y) any event which could (either
with or without notice or lapse of time or both) give rise to any right of
termination, cancellation or acceleration or any obligation to repay with
respect to such agreement, or (z) any event which could result in either a
material increase in the obligations or liabilities of, or material loss of any
benefit to which, the party in question or any of its affiliates may be entitled
or subject to under such agreement.

     "Derivatives" means (i) any equity securities of, or other equity or
      -----------
ownership interests in, the Company other than the Capital Stock and (ii) any
securities or rights convertible into, or exercisable or exchangeable for, or
evidencing the right to subscribe for Capital Stock or any of the items referred
to in clause (i) above, including, but not limited to any options to purchase
Capital Stock, warrants, or equivalent instrument.

     "FATA Loan" means the three hundred thousand dollar (US $ 300,000) loan
      ---------
that, pursuant to the MOU, FATA made to Cyberfast on May 5, 2000, and which loan
shall be fully reimbursed, together with interest at a rate of six percent (6 %)
per annum, upon the payment by FATA of the first tranche of its investment and
in any case no later than August 1, 2000.

     "First Closing" or "First Closing Date" shall be the day on which the First
      -------------      ------------------
Lot of Shares will be subscribed to and purchased by FATA, or should have been
subscribed to and purchased pursuant to Article 2.1hereof.

     "First Lot of Shares" means those Shares, as set forth in Exhibit __ hereto
      -------------------
and made a part hereof, that shall be purchased by FATA pursuant to Section 2.1
hereof, subject to adjustment as provided in Article 4 hereof;

     "GAAP" means U.S. generally accepted accounting practices, as in effect on
      ----
the date any calculation or financial statement preparation hereunder is made,
applied on a basis consistent with prior periods.

                                                                               3
<PAGE>

     "Governmental Entity" means any governmental authority, court,
      -------------------
administrative agency or commission or other governmental or regulatory body or
entity, whether federal, state, local or foreign.

     "Intellectual Property" means any patent, copyright, trademark, trade name,
      ---------------------
service mark, service name, brand mark, brand name, logo, Internet domain name
or industrial design, any registrations thereof and pending applications
therefor (to the extent applicable), any other intellectual property right
(including, without limitation, any proprietary know-how, trade secret, trade
right, formula, confidential or proprietary report or information, any marketing
data, pricing or cost data, customer list or membership list, and any computer
program, software, database right or data right), any license or other contract
relating to any of the foregoing, and any goodwill associated with any business
owning, holding or using any of the foregoing.

     "IPO" means any public offering of common equity securities of the Company
      ---
involving both the sale of Capital Stock of the Company to the general public,
whether involving a primary offering or secondary offering or a combined primary
and secondary offering of such securities on a national securities exchange or
on the NASDAQ Stock Market or NASDAQ National Market.

     "Law" means any statute, law, ordinance, rule, regulation or administrative
      ---
ruling or any governmental permit, franchise or license or any injunction,
judgment, order or consent or similar decree or agreement, whether federal,
state, local or foreign.

     "Losses" means any and all deficiencies, judgments; settlements, demands,
      ------
claims, actions or causes of action, assessments, liabilities, losses, damages
(whether direct, indirect, incidental or consequential), interest amounts,
fines, penalties, costs and expenses (including, without limitation, reasonable
legal, accounting and other costs and expenses incurred in connection with
investigating, defending, settling or satisfying any and all demands, claims,
actions, causes of action, suits, proceedings, assessments, judgments or
appeals, and in seeking indemnification therefor).

     "MOU" means the Memorandum of Understanding by and among FATA, Cyberfast
      ---
and Mr. Edward Stackpole (also on behalf of the Controlling Stockholders) dated
as of May 5, 2000.

     "person" means an individual, partnership, corporation, limited liability
      ------
company, business trust, joint stock company, trust, unincorporated association,
joint venture or other entity of whatever nature.

     "Second Closing" or "Second Closing Date" means the day on which the Second
      --------------             ------------
Lot of Shares will be subscribed and purchased by FATA, or should have been
subscribed and purchased pursuant to Article 2.1 hereof.

     "Second Lot of Shares" means those Shares, as set forth in Annex __ hereto
      --------------------
and made a part hereof, that shall be purchased by FATA pursuant to Section 2.1,
subject to adjustment as provided in Article 4 hereof;

                                                                               4
<PAGE>

     "Share Ownership Interest" means an amount, expressed as a percentage,
      ------------------------
equal to the proportionate amount of the Capital Stock that a particular person
owns or holds, in comparison to the total amount of all Capital Stock that are
owned or held by all Stockholders and other persons (including the particular
person in question), in each case as of the date in question.

     "Taxes" means (A) all taxes, charges, fees, levies, or other similar
      -----
assessments, including without limitation, income, gross receipts, ad valorem,
                                                                   -- -------
premium, excise, real property, personal property, windfall profit, sales, use,
transfer, licensing, withholding, employment, payroll, estimated and franchise
taxes imposed by the United States, any state, local, or foreign government, or
any subdivision, agency, or other similar entity of the United States, or any
such government, and any interest, fines, penalties, assessments, or additions
to tax resulting from, attributable to, or incurred in connection with any such
tax or any contest or dispute thereof, and (B) any Taxes (as defined in clause
(A)) for which the Company is liable as a transferee, indemnitor, guarantor,
surety or in a similar capacity under any contract, arrangement, understanding
or commitment, whether oral or written, or by reason of having been a member of
any affiliated, consolidated, combined or unitary group.

     "Tax Returns" means any report, return, statement, or other information
      -----------
required to be supplied to a federal, state, local or foreign taxing authority
in connection with Taxes.

     "Transfer" means any direct or indirect sale, assignment, transfer, pledge,
      --------
mortgage, charge, encumbrance, hypothecation or other disposition of the whole
or any part of any Stockholder's Capital Stock (or any beneficial interest or
voting rights therein) or any grant by such Stockholder of a warrant, option or
other right to acquire the whole or any part of such Stockholder's Capital
Stock.

     "Transferred Shares" means the First Lot of Shares and the Second Lot of
      ------------------
Shares, totaling a Share Ownership Interest of forty-five percent (45%) of
Cyberfast Capital Stock, and bearing at least fifty-one percent (51%) of all
voting rights in the Company.

     "Violation" means, with respect to any purchase of securities of the
      ---------
Company, any event or circumstance pursuant to which the purchase of such
securities (together with any other purchases of such securities pursuant to
this Agreement) would (x) conflict with or result in a violation of, any law,
statute, rule, regulation, order, writ, injunction, decree or judgment
promulgated or entered by any federal, state, local or foreign court or
governmental authority applicable to either the Company, FATA or any of their
respective subsidiaries or any of their respective assets, or (y) result in a
Default, or constitute a Default, under any agreement to which either the
Company, FATA or any of their respective subsidiaries is a party or by which any
of their respective assets may be bound.

                                   ARTICLE II
                           SHARE SUBSCRIPTION BY FATA

     2.1  Subscription and Purchase of Shares of Common Stock.
          ---------------------------------------------------

                                                                               5
<PAGE>

          (a)  Upon satisfaction of all conditions contained in this Agreement,
     on or before  July 31, 2000, and in any case not later than five (5)
     business days from the approval by its Board, FATA will subscribe to and
     purchase from the Company, and the Company hereby agrees to issue and sell
     to FATA, the First Lot of Shares, and that such First Lot of Shares shall,
     when issued at First Closing, be validly issued, fully paid and non-
     assessable and shall be free and clear of any and all Encumbrances. For the
     purposes of this Agreement, the term "Encumbrance" shall mean and include
     any mortgage, pledge, claim, charge, lien, encumbrance, interest, option,
     restriction, condition, violation, security interest, hypothecation or
     assessment of any nature affecting in any way the assets or property
     involved).

          (b)  Accordingly, FATA shall, in full payment for the First Lot of
     Shares hereunder, pay a total purchase price at First Closing of one
     million five hundred thousand dollars (US $ 1,500,000) in escrow to the
     Company's attorney via wire transfer to such U.S. bank account as may be
     designated by the Company in writing at least four (4) Business Days prior
     to the First Closing (the "First Lot Purchase Price").  FATA will however
     have the right to reduce such amount by the amount of the FATA Loan and any
     interest accrued thereon, in which case the FATA Loan will be deemed to
     have been fully repaid. Simultaneously therewith at First Closing, the
     Company through its attorney shall deliver to FATA's attorneys in New York
     a certificate or certificates representing all the Shares of the First Lot
     of Shares. Upon confirmation by FATA's attorneys of receipt of the
     certificates, Cyberfast's attorney shall release and transfer the payment
     to the Company.

          (c)  Upon satisfaction of all conditions contained in this Agreement,
     but no later than November 30, 2000, FATA will subscribe and agree to
     purchase from the Company, and the Company hereby agrees to issue and sell
     to FATA, the Second Lot of Shares , and that such Shares shall, when issued
     at Second Closing, be validly issued, fully paid and non-assessable and
     shall be free and clear of any and all Encumbrances.

          (d)  Accordingly, FATA shall, in full payment for the Second Lot of
     Shares hereunder, pay a total purchase price at Second Closing of three
     million five hundred thousand dollars (US $ 3,500,000) in escrow to the
     Company's attorney via wire transfer to such U.S. bank account as may be
     designated by the Company in writing at least four (4) Business Days prior
     to the Second Closing (the "Second Lot Purchase Price").  Simultaneously
     therewith at Second Closing, the Company through its attorney shall deliver
     to FATA's attorneys in New York a certificate or certificates representing
     all the Shares of the Second Lot of Shares. Upon confirmation by FATA's
     attorneys of receipt of the certificates, Cyberfast's attorney shall
     release and transfer the payment to the Company.

          (e)  As a result of the acquisition of the First Lot of Shares and the
     Second Lot of Shares, FATA shall hold a Share Ownership Interest of at
     least forty-five percent (45%) in Cyberfast.  Such Shares shall at all
     times after Second Closing bear at least fifty-one percent (51%) of all
     voting rights (the "Voting Interests") in the Company and give FATA full
     control of the management and governance of Cyberfast.

                                                                               6
<PAGE>

          (f)  Notwithstanding anything in this Agreement to the contrary, the
     Company and the Stockholders hereby acknowledge and agree that FATA may, in
     its sole discretion, transfer any or all of its rights, benefits, interests
     or obligations under this Agreement to any of its Affiliates, provided it
     controls more than 50% of its capital, at any time prior, at or after
     Second Closing upon sixty (60) days written notice to the Company.  Any
     such transfer shall not require the consent of the Company or of any of its
     Stockholders.

     2.2  Conversion of Class B Stock into Class A Stock by the Controlling
          -----------------------------------------------------------------
          Stockholders.
          -------------

          On or before Second Closing Date, the Controlling Stockholders shall
     request the Company to convert and the Company shall so convert at least
     _______ Class B Shares into Class A Shares, bearing 1 vote per Share. The
     Controlling Stockholders shall deliver a certificate in form and substance
     satisfactory to FATA, as well as copy of cancelled Class B Shares
     certificates and new Class A Share certificates, confirming such
     conversion.

     2.3  Resolutions. Amendments to certain Documents of Cyberfast
          ---------------------------------------------------------

          On or before Second Closing Date (and/or whenever required by the
     law), the Company and the Controlling Stockholders shall cause the
     competent organs of the Company, including but not limited to the Board of
     Directors and the Shareholders, to adopt any resolutions that may be
     necessary to fully implement and ratify the transactions contemplated by
     this Agreement, including, but not limited to, the approval of any
     necessary modification to the Company's Charter Documents or to any other
     applicable document in order to ensure that (i) fifty-one percent (51%) of
     the total voting rights are sufficient to fully control and govern the
     Company under any respect, an, in fact, to promptly take all measures to
     insure such control; and (ii) allow the transfer of Class B Shares - always
     subject to the provisions and limitations contained in this Agreement -
     without automatic conversion into Class A Shares.

                                  ARTICLE III
                              CONDITIONS PRECEDENT

     3.1  Conditions to Obligation of FATA.  Notwithstanding any other provision
          --------------------------------
of this Agreement to the contrary, the obligation of FATA to effect the
transactions contemplated herein shall be subject to the satisfaction at or
prior to the Second Closing (or the First Closing, if specified) of each of the
following conditions:

          (a)  Representations and Warranties True.  The representations and
               -----------------------------------
     warranties of the Company contained in this Agreement, including without
     limitation, the Schedules, shall be in all material respects true,
     complete, and accurate as of the date when made, and as of the Second
     Closing (and/or the First Closing, as the case may be) as though such
     representations and warranties were made at and as of such time, except for
     changes specifically permitted or contemplated by this Agreement, and
     except insofar as the representations relate expressly and solely to a
     particular date or period, in which case, they

                                                                               7
<PAGE>

     shall be true and correct in all material respects at the Second Closing
     (and/or at the First Closing) with respect to such date or period.

          (b)  Performance.  Company and Controlling Stockholders shall have
               -----------
     performed and complied in all material respects with all agreements,
     covenants, obligations, and conditions required by this Agreement to be
     performed or complied with by Company and Controlling Stockholders on or
     prior to the Second Closing and/or the First Closing, as applicable.

          (c)  Required Approvals and Consents.
               -------------------------------

               (i)    The transactions contemplated by this Agreement shall be
          approved by FATA's Board before the First Closing;

               (ii)   Before the First Closing, the Board and the Controlling
          Stockholders of Cyberfast shall have approved the transactions
          contemplated in this Agreement and taken any other resolution or
          action that is necessary and appropriate to perform this Agreement and
          the transactions contemplated hereby.

               (iii)  Any other action required by law and otherwise to be taken
          by the Company and Controlling Stockholders to authorize the
          execution, delivery, and performance of this Agreement and the
          consummation of the transactions contemplated hereby shall have been
          duly and validly taken.

               (ii)   All consents of or from Governmental Entities required
          hereunder to consummate the transactions contemplated herein, and all
          consents of or from persons and entities other than Governmental
          Entities that are identified in the Schedules (including, but not
          limited to, waiver of all pre-emptive rights; rights of first refusal
          or first offer, if any; third party options or shareholder options to
          purchase) shall have been delivered, made, or obtained, and FATA shall
          have received copies thereof to its satisfaction.

          (d)  Adverse Changes.  No material adverse change shall have occurred
               ---------------
     in the business of the Company from the Latest Balance Sheet.

          (e)  No proceeding or Litigation. No suit, action, investigation,
               ---------------------------
     inquiry, or other proceeding by any Governmental Entities or other person
     or entity shall have been instituted or threatened which questions the
     validity or legality of the transactions contemplated hereby, or which, if
     successfully asserted, would individually or in the aggregate, otherwise
     have a material adverse effect on the conduct of the businesses of Company.

          (f)  Due Diligence.  Before Second Closing FATA shall have received
               -------------
     all necessary information and completed, to its satisfaction in its
     exclusive discretion, a detailed due diligence review on Cyberfast and
     review of the Business Plan.

                                                                               8
<PAGE>

          (g)  Good Standing - Financial Statements.  Before the First Closing,
               ------------------------------------
     FATA shall have received satisfactory evidence, in its sole discretion, of
     Company's good standing and effective registration in the appropriate
     public records and registers, as well as, before Second Closing, the
     audited financial statements of Company.

     3.2  Conditions to Obligation of Cyberfast.  Notwithstanding any other
          -------------------------------------
provision of this Agreement to the contrary, the obligation of Cyberfast to
effect the transactions contemplated herein shall be subject to the satisfaction
at or prior to the Second Closing of each of the following conditions:

          (a)  Representations and Warranties True.  The representations and
               -----------------------------------
     warranties of FATA contained in this Agreement, including without
     limitation the Schedules, if any, shall be in all material respects true,
     complete, and accurate as of the date when made, and as of the Second
     Closing as though such representations and warranties were made at and as
     of such time, except for changes specifically permitted or contemplated by
     this Agreement, and except insofar as the representations relate expressly
     and solely to a particular date or period, in which case, they shall be
     true and correct in all material respects at the Second Closing with
     respect to such date or period.

          (b)  Performance.  FATA shall have performed and complied in all
               -----------
     materials respects with all agreements, covenants, obligations, and
     conditions required by this Agreement to be performed or complied with by
     FATA on or prior to the Second Closing and/or the First Closing, as
     applicable.

          (c)  Required Approvals and Consents.
               -------------------------------

               (i)   The transaction contemplated by this Agreement shall be
          approved by FATA's Board before the First Closing;

               (ii)  Any other action required by law and otherwise to be taken
          by FATA to authorize the execution, delivery, and performance of this
          Agreement and the consummation of the transactions contemplated hereby
          shall have been duly and validly taken.

               (iii) All consents of or from Governmental Entities, if any,
          required hereunder to consummate the transactions contemplated herein,
          and all consents of or from persons and entities other than
          Governmental Entities that are identified in this Agreement shall have
          been delivered, made, or obtained, and Cyberfast shall have received
          copies thereof.

                                  ARTICLE IV
                             ADJUSTMENT PROVISIONS

                                                                               9
<PAGE>

     4.1  Cyberfast accepts and acknowledges that, at Second Closing, FATA shall
hold a Share Ownership Interest of forty-five percent (45%) in Cyberfast and
that such interest shall have voting rights vested in it equal to at least
fifty-one percent (51%) of the Voting Interests in the Company and give FATA
full control and governance of Cyberfast.

     4.2  The Parties hereto acknowledge that the class, series, number and kind
of Shares to which FATA will subscribe at the First Closing and at the Second
Closing, as reflected in Article 2, have been determined on the following
assumptions which Company and Controlling Stockholders represent to be true and
accurate, as of the date hereof and at the Second Closing:
       (a)  the total number of Shares that have been issued and allocated for
            FATA and any other shareholder at Second Closing is ________ Class A
            Shares and ___________ Class B Shares;
       (b)  at least ______ Class B Shares held by the Controlling Stockholders
            are converted on or before Second Closing into Class A Shares,
            pursuant to Section __ above;
       (c)  Fifty-one percent (51%) of the total voting rights are sufficient
            to ensure full control and governance of the Company.

     4.3    In the event and to the extent that any of the conditions listed
above under Section 4.2 (a) and (b) are not satisfied by the Second Closing, the
number and/or class of Shares to which FATA will subscribe to and to be
allocated for FATA as consideration for the total payment of five million
dollars (US $ 5,000,000) shall be automatically adjusted (with no additional
consideration to be paid by FATA) to ensure that the Share Ownership Interest
held by FATA at Second Closing is equal to 45% of the Capital Stock of
Cyberfast, as resulting at Second Closing and that such Share Ownership Interest
has voting rights vested in it equal to at least 51% of the Voting Interests of
Cyberfast and gives FATA full control and governance of Cyberfast, under all
respects.

                                   ARTICLE V
                                  PUT OPTION
                                   GUARANTEE

     5.1  In the event that, for any reason whatsoever, FATA does not proceed
with the subscription and purchase of the Second Lot of Shares, FATA will have
an option (exercisable in its sole discretion) to sell to Cyberfast, and
Cyberfast shall purchase, the First Lot of Shares for a fixed price of US $1.5
million (US $ 1,500,000), plus any additional sums or consideration as of such
time loaned to or contributed into Cyberfast, plus interest at a rate of 6% per
year.  Such option shall be validly enforceable at any time but no later than
November 30, 2000.  Once enforced, the transfer of the shares and the payment of
the price shall take place within and no later than four (4) months after FATA's
request.

     5.2  In the event that Cyberfast, for any reason whatsoever, was unable to
purchase back the Shares or pay the relevant price, such obligations shall be
personally performed by Mr. Edward Stackpole and Ms. Itir Stackpole, as
guarantors of such obligations of Cyberfast. The same guarantee also applies to
the obligation to reimburse the FATA Loan.

                                                                              10
<PAGE>

     5.3  Mr. and Ms. Stackpole's personal guarantee shall be in the form of
Exhibit __ annexed hereto (the "Guarantee") and shall be secured by a mortgage
on the house in _________________________________, owned by Mr. and Mrs.
Stackpole. Such mortgage shall be in the form of Exhibit __ annexed hereto (the
"Mortgage") and shall be recorded __________________________ and, provided it is
duly recorded, shall have priority over any other right on the same property,
except for the mortgage held by ____________ for a maximum amount of US $
___________ (_______________). This personal guarantee shall be coterminous with
the Put Option.

                                  ARTICLE VI
            WARRANT TO ACQUIRE ADDITIONAL SHARE OWNERSHIP INTEREST

     6.1  Effective at Second Closing, FATA shall receive a warrant (the
"Warrant") to purchase Cyberfast Class A Common Stock at a price of three
dollars (US $ 3.00) per share. The Warrant will be exercisable to purchase that
number of shares necessary for FATA to attain a 51% Share Ownership Interest and
to retain its 51% Voting Interest as of the Second Closing Date. If any
Derivatives outstanding before the Second Closing Date are exercised after the
Second Closing Date, then FATA shall have the right to exercise the Warrant to
the extent necessary to adjust its Voting and Share Ownership Interests to 51%
calculated as of the Second Closing Date as if such exercised Derivative had
been exercised prior to the Second Closing Date. The Warrant will be exercisable
for so long as unexercised Derivatives that were outstanding on the Second
Closing Date continue to be outstanding.

                                  ARTICLE VII
                   REPRESENTATIONS, WARRANTIES AND COVENANTS

     7.1  Representations, Warranties and Covenants of Each Party. Each party
          -------------------------------------------------------
hereby represents, warrants and covenants, with respect to itself, as of the
date of this Agreement and on the Second Closing Date to the other parties
hereto:

          (a)  Valid Existence.  If such party is a corporation, partnership or
               ---------------
     other similar entity, it is duly organized and validly existing under the
     laws of the jurisdiction of its organization or incorporation and it is in
     good standing.

          (b)  Power and Authority. It has all requisite power and authority to
               -------------------
     execute and deliver, and to perform all of its obligations under, this
     Agreement and, if required, it has taken all necessary action to authorize
     such execution, delivery and performance.

          (c)  No Violation or Conflict.  The execution and delivery of, and the
               ------------------------
     performance of its obligations under this Agreement by such party do not
     and will not (A) violate any law, rule, regulation, order, writ, judgment,
     injunction, decree, determination or award presently in effect applicable
     to such party, (B) with or without the giving of notice or the passage of
     time or both, result in a breach or constitute a Default under any
     agreement or instrument to which it is a party or by which it is bound, or
     (C) require any

                                                                              11
<PAGE>

     authorizations, consents, approvals, licenses, exemption or filings with
     any party or governmental authority.

          (d)  Enforceability of Obligations.  This Agreement constitutes the
               -----------------------------
     legal, valid and binding obligation of such party, enforceable against it
     in accordance with its terms, except as such may be limited by applicable
     bankruptcy, insolvency, reorganization, moratorium or other similar laws
     affecting the enforcement of creditors' rights generally and except as may
     be limited by general principles of equity.

     7.2  Representations, Warranties and Covenants of the Company.  In addition
          --------------------------------------------------------
to the representations and warranties set forth in Section 8.1 above, the
Company hereby represents, warrants and covenants to FATA that:

          (a)  Capital Structure. Attached hereto as Schedule 7.2(a)(1) is a
               -----------------
     true and complete copy of the Charter Documents of the Company with all
     amendments, as in effect on the date hereof. As set forth in Schedule 7.2
     (a)(2), (i) the authorized capital stock of the Company consists solely of
     _______ million (________) shares of Common Stock, of which ________
     (_________) Class A Shares (each bearing one vote) and ________ (_________)
     Class B Shares (each bearing ten votes), and (ii) there are issued and
     outstanding ______________________ (__________) shares of Common Stock (of
     which _________ Class A and _________ Class B) and no other shares of
     Common Stock are issued and outstanding; no Shares are held by the Company
     in its treasury. All outstanding shares of Common Stock are validly issued,
     fully paid and non-assessable and are not subject to any preemptive or
     other similar rights. Except as set forth in Schedule 7.2(a)(2), there are
     not as of the date hereof, and there will not be at the Second Closing, (x)
     any outstanding or authorized options, warrants, calls, rights (including
     preemptive rights), commitments or any other agreements of any character
     which the Company, or any Stockholder, is a party to, or may be bound by,
     requiring it to issue, transfer, dispose of, sell, purchase, redeem or
     otherwise acquire (or to refrain from doing any of the foregoing) any
     shares of Common Stock or any shares of Capital Stock, and (y) any
     stockholders' agreements, voting trusts or other agreements or
     understandings to which the Company or, any Stockholder, is a party or by
     which it is bound relating to the voting of, or placing any restrictions
     on, any shares of the capital stock of the Company.

          (b)  Shares to be Issued to FATA; No Changes in Capital Structure.
               ------------------------------------------------------------
     Subject to adjustments as set forth in Article 4 above, once issued, the
     Shares issued to FATA shall give FATA a Share Ownership Interest equal to
     forty-five percent (45%), with at least fifty-one percent (51%) of Voting
     Interests vested therein.  Such Shares are not subject to any preemptive or
     other similar rights.  Attached hereto as Schedule 7.2(b)(1) is a true and
     complete list of all of the holders of record, as provided by the Transfer
     Agent, of Common Stock and of any other Capital Stock as of the date
     hereof. On and prior to the date hereof, except as set forth on such
     Schedule 7.2(a)(2) and except as expressly provided for in this Agreement,
     the Company has not - and shall not before Second Closing - (i) declared,
     authorized, set aside, paid or distributed any dividend or other
     distribution, or any option, warrant, call or right (including preemptive
     rights), (ii) issued, transferred, disposed, sold, purchased, redeemed or
     otherwise acquired any shares of Capital Stock, or (iii) entered into

                                                                              12
<PAGE>

     any agreement of any character requiring the Company to take any of the
     actions referred to in clauses (i) and (ii) above.

          (c)  Compliance with Laws.  Except as set forth in Schedule 7.2(c)(1)
               --------------------
     and except for those matters which in the aggregate would not result in a
     Company Material Adverse Effect (as defined below), to the best of the
     knowledge of the Company  (x) the Company is, and at all times has been, in
     material compliance with all Laws applicable to the Company or to the
     conduct of the business or operations of the Company or the use of its
     properties (including any leased properties) and assets, in any place where
     such business or operations are performed or such properties or assets are
     located, and (y) the Company has not received, and does not know of the
     issuance or threatened issuance by any Governmental Entity, of any notices
     of violation or alleged violation of any Law applicable to the Company, to
     its business and/or operations or to its properties or assets. Except as
     set forth in Schedule 7.2(c)(2), to the best of the knowledge of the
     Company there is no proposed legislation or Law which, if enacted, is
     reasonably likely to result in a Company Material Adverse Effect (other
     than any proposed legislation or Law which could affect generally companies
     located within the United States or companies operating in the same general
     industry as the Company).

          In particular (but without limitation), (i) the Company has not issued
     any unregistered securities in violation of the registration requirements
     of Section 5 of the Securities Act of 1933, as amended, or any other law,
     and is not otherwise violating any rule, regulation or requirement under
     the Securities Act of 1933, as amended, or the Securities and Exchange Act
     of 1934, as amended; and (ii), except as set forth in Schedule 7.2(c) (3),
     the Company has duly made all required filings with the Securities and
     Exchange Commission under the Securities Exchange Act of 1934 and all
     similar required filings with any other Authority and all of the reports,
     forms and documents so filed complied in all material respects with all
     applicable requirements and Laws; in this respect, the Company will
     promptly furnish to FATA an accurate and complete copy of the reports,
     forms and documents filed after the date of this Agreement or such reports,
     forms or documents reasonably requested by FATA.

          (d)  Litigation.  Except as set forth in Schedule 7.2(d)(1), there is
               ----------
     no action, suit, claim, investigation or proceeding, whether at law or in
     equity (each, a "Legal Proceeding"), pending or, to the best knowledge of
     the Company, threatened that questions the validity of this Agreement or
     any action taken or to be taken by the Company or, to the best knowledge of
     the Company, any stockholder in connection with any of the transactions
     contemplated hereby or thereby. Schedule 7.2(d)(1) sets forth an accurate
     and complete list, and a brief description (setting forth the names of the
     parties involved, the court or other governmental or mediating entity
     involved, the relief sought and the substantive allegations and the status
     thereof), of each Legal Proceeding pending or, to the best knowledge of the
     Company, threatened against or affecting the Company or any of its assets.
     In any event, none of the matters listed on such Schedule 7.2(d)(1) should,
     if adversely determined, either individually or in the aggregate,
     reasonably be expected to have a Company Material Adverse Effect. To the
     best knowledge of the Company, no event has occurred and no circumstance,
     matter or set of facts exist which would constitute a valid basis for the

                                                                              13
<PAGE>

     assertion by any Third Party of any claim or Legal Proceeding, other than
     those listed on Schedule 7.2(d)(1), which could reasonably be expected to
     result in a Company Material Adverse Effect. There is no outstanding or, to
     the best knowledge of the Company, threatened judgment, injunction,
     judgment, order or consent or similar decree or agreement of any
     Governmental Entity against, affecting or naming the Company, the
     Controlling Stockholders or the current management of Cyberfast, or
     affecting any of its properties or assets.

          For purposes of this Section 7.2(d), any reference to the Company
     shall include any corporation that merged with or into or was liquidated
     into the Company or a past subsidiary of the Company or otherwise a
     predecessor of the Company or such subsidiary.

          (e)  Taxes.  Except as set forth in Schedule 7.2(e) (i) all Taxes with
               -----
     respect to any periods ending on or before the date hereof which are due
     and payable (whether or not shown on any Tax Return) by the Company have
     been paid in full and no such Taxes remain outstanding; (ii) the Company
     has established, and prior to the Second Closing Date will have
     established, current accruals that are adequate for the payment of all
     Taxes payable by it which are not yet due and payable with respect to its
     results of operations for all periods ending on or before the Second
     Closing Date; (iii) the Company has filed all Tax Returns required to have
     been filed by it prior to the date hereof and no extension of time for
     filing a Tax Return is presently in effect; (iv) the Tax Returns that have
     been filed have been accurately prepared, duly and timely filed and are
     correct and complete in all material respects; (v) the Company has withheld
     and paid all Taxes required to have been withheld and paid by it in
     connection with amounts paid to or owing to any employee, independent
     contractor, creditor or any other third party; and (vi) to the best
     knowledge of the Company, there has been no examination by any Tax
     authority of any return of the Company or of any other person, firm or
     corporation for which the Company is liable, and there are no audits,
     actions, suits, proceedings, investigations or claims now pending or, to
     the best knowledge of the Company, threatened against the Company in
     respect of any Taxes. For purposes of this Section 7.2(e), any reference to
     the Company shall include any corporation that merged with or into or was
     liquidated into the Company or any past subsidiary of the Company or
     otherwise a predecessor of the Company or such subsidiary.

          (f)  Pension and Benefit Plans.  All employees and/or consultants of
               -------------------------
     the Company are set forth on Schedule 7.2(f)(1), and all Contracts and
     other agreements with such employees and/or consultants are set forth on
     Schedule 7.2(n)(1). There are no employee benefit, pension, profit sharing,
     deferred compensation, welfare or similar plans of the Company with respect
     to its employees.  Except as set forth on Schedule 8.2(f)(3) no Legal
     Proceedings, investigation, or claim, has commenced or been threatened in
     respect to any employee and /or consultant.

          (g)  Financial Advisors.  Except as set forth on Schedule 7.2(g), no
               ------------------
     person or entity has acted directly or indirectly as a broker, finder or
     financial advisor for or to the Company in connection with the negotiations
     relating to the transactions contemplated by this Agreement. No person or
     entity is entitled to any fee or commission or like payment, or expense
     reimbursement, in respect of this Agreement or any of the transactions

                                                                              14
<PAGE>

     contemplated hereby or thereby, based in any way on agreements,
     arrangements or understandings made by or on behalf of the Company.

          (h)  Financial Statements.  Attached hereto as Schedule 7.2(h)(1) are
               --------------------
     true, correct and complete copies of (x) the balance sheet of the Company
     and its consolidated subsidiaries (if any such subsidiaries exist) as at
     [_______] and the related statements of earnings, Stockholders' equity and
     cash flows of the Company for the period then ended (including the related
     notes and schedules thereto, the "1999 Financial Statements"), and (y) the
     balance sheet (the "Latest Balance Sheet") of the Company and its
     consolidated subsidiaries (if any such subsidiaries exist) as at
     [____________] (the "Latest Balance Sheet Date") and the related statements
     of earnings, Stockholders' equity and cash flows of the Company for the
     nine-month period then ended (the "Interim Financial Statements", and
     together with the [_______] Financial Statements, the "Financial
     Statements"). The Financial Statements were prepared in accordance with the
     books and records of the Company, are complete and correct in all material
     respects, have each been prepared in accordance with GAAP and present
     fairly the consolidated financial position, results of operations and
     changes in financial position or cash flows, whichever is applicable, of
     the Company as at the dates and for the periods indicated (subject, in the
     case of the Interim Financial Statements, to normal year-end audit
     adjustments). The documents mentioned in this section have been provided in
     draft before the execution of this Agreement and shall be provided in final
     version before the Second Closing.

          (i)  No Undisclosed Liabilities.  Except as set forth in Schedule
               --------------------------
     7.2(i)(1), both as of [_______] and since such time, the Company has not
     had, and it has not incurred, any indebtedness, obligations or liabilities
     of any kind (whether accrued, absolute, contingent or otherwise, and
     whether due or to become due or asserted or unasserted), other than in the
     ordinary course of the Company's business, and, to the best knowledge of
     the Company, there was no basis for the assertion of any claim or liability
     of any nature against the Company that would be required to be disclosed on
     a balance sheet prepared as of [_______] or since such time in conformity
     with GAAP, except for (x) those which were fully reflected in, reserved
     against or otherwise described in the Latest Balance Sheet, or (y) those
     matters which in the aggregate would not result in a Company Material
     Adverse Effect.

          (j)  Absence of Certain Material Developments. Except as set forth in
               ----------------------------------------
     Schedule 7.2(j)(1), since [_______] (a) there has been no event, condition
     or state of facts of any character that has had or is reasonably likely to
     have a Company Material Adverse Effect (other than those matters which
     affect generally companies located within the United States or companies
     operating in the same general industry as the Company), and (b) the Company
     has not entered into any transaction or contractor conducted its business,
     other than in the ordinary course of the Company's business (except for
     those matters which in the aggregate would not result in a Company Material
     Adverse Effect).

          (k)  Intellectual Property.
               ---------------------
               (i) Title; Validity; Pending Applications: Infringements, Etc.
                   ---------------------------------------------------------
          The Company has full legal and beneficial ownership of, or a valid
          right to use all

                                                                              15
<PAGE>

          Intellectual Property that it owns, holds or uses. Neither the use of
          any Intellectual Property nor the performance of any activity of the
          Company will conflict with, infringe upon, violate or interfere with
          or constitute an appropriation of any right, title or interest held by
          any other person or entity, and there have been no claims made with
          respect thereto

          (1)  Real Property. Schedule 7.2(l)(1) sets forth a description of the
               -------------
          only property leased by the Company. The Company does not own or have
          the right to acquire, pursuant to any agreement, arrangement or
          understanding, any real property

          (m)  Insurance.  The Company currently maintains, and will maintain,
               ---------
          valid insurance policies, which policies provide coverage, both in
          terms of scope and amount of coverage, for the Company and the
          operations conducted by the Business, comparable to the coverage
          typically maintained by other companies which are similarly situated
          (i.e., as to size of operations and line of business) to the Company.
          Schedule 7.2 (m)(1) summarizes all current insurance policies,
          including type, coverage, expiration dates, claims history for past
          three years and copies of respective binders.  There are no pending
          claims against such insurance by the Company or its Affiliates as to
          which the applicable insurers have denied coverage; there exist no
          claims under such insurance that have not been properly filed by the
          Company or its affiliates; and the Company has not been refused any
          insurance coverage by any insurer from which the Company has sought
          coverage.

          (n)  Material Contracts.
               ------------------

               (i) List of Certain Types of Contracts.  Except as set forth in
                   ----------------------------------
          Schedule 7.2(n)(1), the Company is not a party to, nor are any of its
          properties or assets bound by, any (A) contract not made in the
          ordinary course of the Company's business or the performance of which
          will extend over a period greater than thirty (30) days and which is
          not cancelable by the Company without penalty; (B) employment,
          consulting, independent contractor, non-competition, severance, golden
          parachute or indemnification contract; (C) advertising, public
          relations, franchise, distributorship or sales agency contract; (D)
          contract involving the commitment or payment in excess of
          ____________________ thousand dollars (US $__,000) for the future
          purchase of services, properties, materials or equipment; (E) contract
          among stockholders or granting a right of first refusal or for a
          partnership or for a joint venture or for the acquisition, sale or
          lease of any properties or assets of the Company; (F) mortgage,
          pledge, conditional sales contract, security agreement, factoring
          agreement or other similar contract with respect to any property of
          the Company; (G) loan agreement, credit agreement, promissory note,
          guarantee, subordination agreement, letter of credit, indenture
          facility or any other similar type of contract; (H) retainer contract
          with investment bankers, attorneys, accountants, actuaries, appraisers
          or other professional advisers; (I) lease, sublease or other agreement
          under which the Company uses or occupies or has the right to use or
          occupy, now or in the future, any real property or personal property
          or equipment or vehicles, (J) contract or agreement with any
          Governmental Entity; (K) contract

                                                                              16
<PAGE>

          which would be reasonably likely to limit or restrain the Company, or
          any owner or affiliate of the Company, from engaging in any line of
          business, competing with any person, firm, corporation or other
          entity, or conducting business in any particular geographic area, (L)
          contract relating to the marketing, co-marketing, promotion or co-
          promotion of the Company's services, (M) contract the performance or
          nonperformance of which by the Company is reasonably likely to cause a
          Company Material Adverse Effect, or (N) commitment or agreement to
          enter into any of the foregoing (the contracts, agreements and other
          arrangements referred to in clauses (A)through (N) above, collectively
          referred to as the "Contracts"). The Company has delivered or
          otherwise made available to FATA true, correct and complete copies of
          the Contracts listed in Schedule 7.2(n)(1), together with all
          amendments, modifications and supplements thereto and side letters to
          which the Company is a party affecting the obligations of any party
          thereunder.

               No person or entity holds a power of attorney to act on behalf of
          the Company.

               (ii) Enforceability; Defaults; Consents; Impending Terminations;
                    -----------------------------------------------------------
          Etc.  Except as set forth in Schedule 7.2(n)(2) and except for those
          ---
          matters which in the aggregate would not result in a Company Material
          Adverse Effect: (A) to the best knowledge of the Company and the
          Controlling Stockholders, each of the Contracts listed, or required to
          be listed, on Schedule 7.2(n)(1), is valid and enforceable in
          accordance with its terms, (B) no Default exists under any Contract
          listed in Schedule 7.2(n)(1) either by the Company or, to the best
          knowledge of the Company, by any other party thereto; (C) to the best
          knowledge of the Company, no third party has asserted any claim of
          Default or breach under any of the Contracts listed in Schedule
          7.2(n)(1); (D) with respect to those Contracts listed in Schedule
          7.2(n)(1) that were assigned or subleased to the Company by a third
          party, all necessary consents to such assignments or subleases have
          been obtained, and (E) to the best knowledge of the Company, there is
          no present intention on the part of any significant supplier, customer
          or other business partner of the Company to either (x) terminate or
          significantly change its existing business relationship with the
          Company, either now or in the foreseeable future, or (y) fail to renew
          or extend its existing business relationship with the Company at the
          end of the term of any existing contractual arrangement such supplier
          or customer may have with the Company.

          (o)  Related Party Transactions.  Except as set forth in Schedule
               --------------------------
          7.2(o)(1) hereto, no Affiliate, and, to the best knowledge of the
          Company, no Officer, Director or more than 5% Stockholder, Permitted
          Transferee of any such Stockholder, or member of the current
          management of Cyberfast, either (x) has lent or borrowed any monies to
          or from or has outstanding any indebtedness or other similar
          obligations to the Company, (y) owns any direct or indirect interest
          of any kind (except with respect to the ownership of not more than
          five percent (5%) of any class of equity security in a publicly-held
          company) in, or is a director, officer, employee, partner, affiliate
          or associate of or consultant or lender to, or borrower from, or has
          the right to participate in the management, operations or profits of,
          any person or entity which

                                                                              17
<PAGE>

          is (A) a competitor, supplier or distributor of the Company, (B)
          engaged in a business related to the business of the Company or (C)
          participating in, or has participated in, any material transaction to
          which the Company is a party, (iii) is otherwise a party to, or has
          been a party to, any contract, arrangement or understanding with the
          Company or (iv) owns or has any rights in any assets (including,
          without limitation, Intellectual Property), properties, licenses or
          rights which are used or leased (or were used or leased) by the
          Company in the conduct of its business.

          (p)  Subsidiaries: Schedule 7.2(p) accurately lists any subsidiaries
               -------------
          or other entities in which the Company owns an interest. The
          representations and warranties provided under this Article 8 by the
          Company shall extend and apply also to any such subsidiaries and
          entities.

          (q)  Machinery, Equipment, Vehicles, and Personal Property.  Except as
               -----------------------------------------------------
          set forth on Schedule 7.2(q)(1), Company has good and merchantable
          right, title, and interest in and to, or a leasehold interest in and
          to, all its machinery, equipment, vehicles, and other personal
          property reflected in the [Latest Balance Sheet] and purchased or
          otherwise acquired since the date of the [Latest Balance Sheet]
          (except for such items sold or leased in the ordinary course of
          business since the date of the [Latest Balance Sheet]).  All of such
          leasehold interests relating to machinery, equipment, vehicles, and
          other personal property are valid, in full force and effect, and
          enforceable in accordance with their terms, and there does not exist
          any violation, breach, or default thereof or thereunder.  None of such
          machinery, equipment, vehicles, or other personal property owned by
          the Company is subject to any Encumbrance (whether or not of record).
          All machinery, equipment, vehicles, or other personal property of the
          Company that are necessary to the conduct of its business are in good
          operating condition and repair and fit for the intended purposes
          thereof and no material maintenance, replacement, or repair has been
          deferred or neglected.

          (r)  Inventories.  Except as set forth in Schedule 7.2(r)(1), all
               -----------
          inventory of the Company, whether reflected in the [Latest Balance
          Sheet] or otherwise, consists of a quality and quantity usable and
          saleable in the ordinary course of business, and the present
          quantities of all inventory of Company are reasonable in the present
          circumstances of the businesses as currently conducted or as proposed
          to be conducted.

          (s)  Receivables and Payables.
               ------------------------

               (i)  Except as set forth in Schedule 7.2(s)(1): (A) Company has
          good right, title, and interest in and to all its accounts and notes
          receivable, and trade notes and trade accounts reflected in the
          [Latest Balance Sheet] and those acquired and generated since the date
          of the [Latest Balance Sheet] (except for those paid since date of the
          [Latest Balance Sheet]); (B) none of such accounts and notes
          receivable, and trade notes and trade accounts is subject to any
          mortgage, pledge, lien, or

                                                                              18
<PAGE>

          security interest of any kind or nature (whether or not of record);
          (C) except to the extent of applicable reserves shown in the [Latest
          Balance Sheet], accounts and notes receivable, and trade notes and
          trade accounts owing to the Company constitute valid and enforceable
          claims arising from bona fide transactions in the ordinary course of
          business and there are no claims, refusals to pay, or other rights of
          set-off against any thereof; (D) no account or note debtor whose
          account or note balance exceeds the amount set forth in the Schedules
          at the date set forth therein was delinquent in payment by more than
          ninety (90) days; (E) the aging schedule of the accounts and notes
          receivable, and trade notes and trade accounts of Company previously
          furnished to FATA is complete and accurate; and (F) there is no reason
          why any account or note receivable, or trade note or trade account
          will not be collected in accordance with its terms, other than for
          such accounts and notes which are not in excess of the reserves
          established therefor and reflected in the [Latest Balance Sheet].

               (ii) All accounts payable and notes payable by Company arose in
          bona fide transactions in the ordinary course of business and no such
          account payable or note payable is delinquent by more than ninety (90)
          days in its payment.

          (t)  Dealers and Suppliers.  Except as set forth in Schedule
               ---------------------
          7.2(t)(1), there has not been in the twelve (12) month period prior to
          the date hereof any adverse change in the business relationship of
          Company with any dealer or supplier to Company.

          (u)  Permits and other Operating Rights.  Except as set forth in
               ----------------------------------
          Schedule 7.2(u)(1), to the best of the knowledge of the Company, the
          Company does not require the Consent of any Governmental Entities to
          permit it to operate in the manner in which it is presently being
          operated, and possesses all permits and other authorizations from all
          Governmental Entities presently required to permit it to operate its
          businesses in the manner in which they are presently conducted.

          (v)  F.C.P.A..  To the best of the knowledge of the Company, the
               ---------
          Company is in compliance with the U.S. Foreign Currupt Practices Act
          and (i) has not paid, promised to pay or authorized the payment of
          money, gifts, or anything of value to a foreign official or political
          party to obtain or retain business and (ii) does not know or have
          reason to know that anything of value has been or will be offered,
          directly or indirectly, to a foreign official or political party.

          (w)  Bank Accounts; Power to Attorney.   Schedule 7.2(y) sets forth:
               --------------------------------
          (i) the names of all financial institutions, investment banking and
          brokerage houses, and other similar institutions at which the Company
          maintains accounts, deposits, safe deposit boxes of any nature, and
          the names of all persons authorized to draw thereon or make
          withdrawals therefrom; (ii) the terms and conditions thereof and any
          limitations or restrictions as to use, withdrawal or otherwise; and
          (iii) the names of all persons or entities holding general or special
          powers of attorney from the Company and a summary of the terms
          thereof.

                                                                              19
<PAGE>

          (x)  Schedules.  The Schedules set forth under this Article 7 are
               ---------
          intended for reference only and, unless otherwise expressly specified,
          do not imply any acceptance by FATA of the consequences possibly
          arising from the facts described therein. In particular, the Company
          represents and warrants that no Company Material Adverse Effect would
          result or derive - individually or in the aggregate - from any and all
          such facts and Schedules.

          (y)  No Misrepresentation.  Neither this Agreement (including the
               --------------------
          Schedules hereto), nor any information supplied by or on behalf of the
          Company or any of the Controlling Stockholders to FATA, in connection
          with this Agreement, or the transactions contemplated hereby, contains
          or will contain any untrue statement of a material fact or omits or
          will omit to state a material fact necessary to make the statements
          contained herein or therein, in light of the circumstances under which
          they were made, not misleading. To the best knowledge of the Company,
          there exist no facts or circumstances which are reasonably likely to
          cause a Company Material Adverse Effect after the date hereof
          (including after giving effect to the consummation of the transactions
          contemplated pursuant to this Agreement), which have not been set
          forth in the Financial Statements or disclosed with specificity in a
          schedule attached to this Agreement.

     7.3  Representations, Warranties and Covenants of FATA. In addition to the
          -------------------------------------------------
representations and warranties set forth in Section 7.1 above, FATA hereby
represents, warrants and covenants to Cyberfast that:

          (a)  Capital Structure. Attached hereto as Schedule 7.3(a)(1) is a
               -----------------
     true and complete copy of the By-Laws, as in effect on the date hereof.
     Schedule 7.3 (a)(2) sets forth the capital structure of FATA.

          (b)  Compliance with Laws.  FATA has not committed violations of any
               --------------------
     Laws applicable to it that may substantially affect or prevent the
     consummation of this transaction.

          (c)  Financial Advisors.  Except as set forth on Schedule 7.3(c), no
               ------------------
     person or entity has acted directly or indirectly as a broker, finder or
     financial advisor for or to FATA in connection with the negotiations
     relating to the transactions contemplated by this Agreement, that may be
     entitled to claim from the Company any fee or commission or like payment,
     or expense reimbursement, in respect of this Agreement or any of the
     transactions contemplated hereby or thereby.

          (d)  Financial Statements.  Attached hereto as Schedule 7.3(d) are
               --------------------
     true, correct and complete copies of the last balance sheet of FATA.

          (e)  Schedules.  The Schedules set forth under this Article 7 are
               ---------
     intended for reference only and, unless otherwise expressly specified, do
     not imply any acceptance by Cyberfast of the consequences possibly arising
     from the facts described therein.

                                                                              20
<PAGE>

          (f)  No Misrepresentation.  Neither this Agreement (including the
               --------------------
     Schedules hereto), nor any information supplied by or on behalf of FATA to
     the Company, in connection with this Agreement, or the transactions
     contemplated hereby, contains or will contain any untrue statement of a
     material fact or omits or will omit to state a material fact necessary to
     make the statements contained herein or therein, in light of the
     circumstances under which they were made, not misleading.

                                 ARTICLE VIII
                            MISCELLANEOUS COVENANTS

     8.1  Corporate Governance until Second Closing. From and after the date
          -----------------------------------------
hereof and until the Second Closing, each Controlling Stockholder shall vote (to
the extent entitled to vote), at each regular or special meeting of stockholders
of the Company and/or - if he/she is also a Board member - at each Board meeting
(or in any written consent executed in lieu of such a meeting of stockholders or
board meeting) and shall take all actions reasonably necessary, including - but
not limited to - causing the calling of any such meeting that is necessary, to
ensure that:

          a.   the Charter Documents do not, at any time, conflict with the
               provisions of this Agreement and no other revision shall be made
               thereto;

          b.   the Charter Documents and/or any other relevant documentation are
               amended as requested by this Agreement;

          c.   after the First Closing a person nominated by FATA is appointed
               as Board member;

          d.   should at any time after the date hereof become necessary to
               appoint a new member of the Board, this will be done only with
               FATA's prior consent on the name of the appointee;

          e.   effective at the Second Closing, three other members of the Board
               resign to allow the election by FATA of a total of four (4) new
               Board Members out of a total of seven, at the Second Closing

          f.   the Company is managed in accordance with the provisions of this
               Agreement and all the obligations that this Agreement provides to
               be fulfilled before Second Closing are complied with.

     8.2  Agreements as to Specified Matters.  (a) Except as expressly set forth
          ----------------------------------
in this Agreement and except in the ordinary course of business and consistent
with past practice, and except as may be otherwise agreed to in writing by FATA,
from the date hereof until the Second Closing, the Controlling Stockholders
shall not permit the Company and the Company shall not:

               (i)    Amend its articles or certificate of incorporation or
          bylaws, or other relevant corporate document, unless insofar as
          necessary to implement the provisions of this Agreement;

               (ii)   Borrow or agree to borrow any funds;

               (iii)  Incur assume, suffer, or become subject to, whether
          directly or by way of guarantee or otherwise, any claims, obligations,
          liabilities, or loss

                                                                              21
<PAGE>

          contingencies which, individually or in the aggregate, are material to
          the conduct of the business of Company or have or would have a Company
          Material Adverse Affect on the financial condition of Company;

               (iv)   Pay, discharge, or satisfy any material claims,
          liabilities, or obligations;

               (v)    Permit or allow any of its properties or assets material
          to the operation of its businesses to be subjected to any mortgage,
          pledge, lien, security interest, encumbrance, restriction, or charge
          of any kind;

               (vi)   Write down the value of any inventory or write off as
          uncollectable any notes or accounts receivable or any trade accounts
          or trade notes;

               (vii)  Cancel or amend any debts, waive any claims or rights to
          sell, transfer, or otherwise dispose of any properties or assets,
          other than for such debts, claims, rights, properties, or assets
          which, individually or in the aggregate, are not material to the
          conduct of its businesses;

               (viii) License, sell, transfer, pledge, modify, disclose,
          dispose of, or permit to lapse any right to the use of any
          Intellectual Property other than for such Intellectual Property which,
          individually or in the aggregate, are not material to the conduct of
          its businesses;

               (ix)   Pay or set aside for payment any dividend or other
          securities (including without limitation, distributions in redemption
          or liquidation) or redeem, purchase, or otherwise acquire any such
          shares of its Capital Stock or other securities;

               (x)    Authorize and/or perform any kind of operation on the
          capital stock of Cyberfast (such as increase in the capital stock, or
          issuance of any other shares of capital stock, options, warrants,
          debentures or other similar instruments that are or may be convertible
          into capital stock), except for issuance of additional Capital Stock,
          consequent to the exercise of any of the now and thereafter existing
          and outstanding Derivatives, except for any accelerated vesting of
          options that may be necessary to carry out the terms of this
          agreement.

               (xi)   Sell, transfer, or otherwise dispose of any properties or
          assets to, or enter into any agreement or arrangement with, any
          director, officer, employee, or Stockholder relating hereto;

               (xii)  Enter into any contractual or other arrangement with any
          of the Stockholders or any of their respective Affiliates; or effect
          any transaction (including, without limitation, the payment of any
          amounts or the delivery of any goods or services) with any of the
          Stockholders or any of their respective Affiliates;

                                                                              22
<PAGE>

               (xiii)  Agree, whether in writing or otherwise, to take any
          action described in this subsection.

     8.3  No operations on Cyberfast's capital or Shares.  In addition to what
          ----------------------------------------------
has been provided under Section 7.2(x), before the Second Closing the
Controlling Stockholders shall not sell or purchase or otherwise subscribe for
any Capital Stock of Cyberfast;

     8.4  Shareholders' loans.  The parties agree that any present or
          -------------------
future shareholder loans to Cyberfast (including Mr. and Mrs. Stackpole's
current loan), will be reimbursed only according to a plan based on available
cash flow, and in any case, without affecting the operations of the Company.
However, it is also agreed that, should the operations of the Company, as
reflected in the Business Plan, require that the Controlling Stockholders pay
new finance into the Company as shareholder's loan before the date of the First
Closing, such contributions, provided that they have been authorized by FATA and
within a maximum amount of two hundred thousand dollars (US $200,000), can be
reimbursed immediately after the First Closing.

     8.5  No Solicitation of Alternate Transaction.  Until July 31, 2000 and,
          ----------------------------------------
after the occurrence of the First Closing, until the earlier of (i) the date
FATA exercise its Put Option pursuant to Section 6.1; or (ii) the date on which
FATA informs the Company that it does not intend to proceed with the Second
Closing; or (iii) November 30, 2000, the Controlling Stockholders and Company
shall not, and shall each use its best efforts to ensure that Company's
stockholders and Company directors, officers and employees, independent
contractors, consultants, counsel, accountants, investment advisors, and other
representatives and agents shall not, directly or indirectly, solicit, initiate,
or encourage discussions or negotiations with, provide any nonpublic information
to, or enter into any agreement with, any third party concerning (or concerning
the business of the Company in connection with) any tender offer (including a
self tender offer), exchange offer, merger, consolidation, sale of substantial
assets or of a significant amount of assets, sale of securities, acquisition of
a beneficial ownership of or the right to vote securities representing any
voting power or (except as permitted herein) Capital Stock of the Company,
liquidation, dissolution, or similar transactions involving Company or any
division of Company.

     8.6  Non competition - Key employees of Cyberfast.  The Controlling
          --------------------------------------------
Stockholders hereby agree that they will not engage, directly or indirectly, in
any activity that may be in competition with Cyberfast for: (i) all the time
that they will hold shares of Cyberfast, and for a period of at least two years
thereafter, or (ii) pursuant to existing employment agreements between Cyberfast
and the respective employee, whichever length of time is the greatest. Cyberfast
has executed employment agreements with current management consistent with the
conditions set forth in this sub-paragraph 8.6. In any event, after the Second
Closing Data, FATA reserves the right to review and discuss with the management
the terms (including, but not limited to, the economical terms and any stock
option plan) of any such agreement that has not been executed, whether before or
after the date hereof, with FATA's prior consent.

     8.7  Full Access to FATA.  After the First Closing and through November 30,
          -------------------
2000, the Controlling Stockholders shall cause the Company and the Company shall
afford to FATA and its directors, officers and employees, consultants, counsel,
accountants, investment advisors, and other

                                                                              23
<PAGE>

authorized representatives and agents free and full access to the facilities,
properties, and books of the Company, and shall instruct Cyberfast's lawyers to
provide them all necessary assistance, information and documents to satisfy
FATA's requests, in order that FATA may have full opportunity to make such
investigations as it shall desire to make of the affairs of Company and may
complete its general due diligence; provided, however, that any such
investigation shall be conducted in such a manner as not to interfere
unreasonably with business operations; and the Controlling Stockholders and the
Company shall furnish such additional financial and operating data and other
information as FATA shall, from time to time, reasonably request, including,
without limitation, access to the working papers of their independent certified
public accountants; and provided, further, that any such investigation shall not
affect or otherwise diminish or obviate, in any respect, any of the
representations and warranties of Stockholders herein.

     8.8  FATA Manager to work with Cyberfast.  After the First Closing, FATA
          -----------------------------------
will appoint and send to Boca Raton a manager to assist and work together with
Cyberfast management, in order to enhance the knowledge of the business and
develop common managerial practices. The manager shall be elected a member of
Cyberfast Board, as provided herein. The relevant costs shall be borne by FATA
until the Second Closing Date.

     8.9  Confidentiality.  The Confidentiality Agreement executed by FATA
          ---------------
and Cyberfast on May 5, 2000 shall remain in full force and effect also with
reference to this Agreement.

     8.10 Filings; Consents; Removal of Objections; Exchange Listing.
          ----------------------------------------------------------
Subject to the terms and conditions contained herein, the parties hereto shall
use their best efforts to take or cause to be taken all actions, and do or cause
to be done all things necessary, proper, or advisable under applicable Laws to
consummate and make effective, as soon as reasonably practicable, the
transactions contemplated hereby, including without limitation, obtaining all
Consents of any person or entity, whether private or governmental, required in
connection with the consummation of the transactions contemplated herein.  In
furtherance, and not in limitation of the foregoing, it is the intent of the
parties to consummate the transactions contemplated herein at the earliest
practicable time. In particular, Cyberfast shall at the earliest practicable
time shall seek to obtain the re-qualification of the Company for the purposes
of a listing agreement on a national stock exchange.

     The Parties hereto agree, accept and acknowledge that a necessary element
of this Agreement shall be their common efforts to obtain a listing of Cyberfast
securities on a national securities exchange, the NASDAQ Small Capital, or
NASDAQ National Market System, as the case may be.

     8.11 Further Assurances; Cooperation; Notification.
          ---------------------------------------------

          (i) Each party hereto shall, before, at, and after Second Closing,
     execute and deliver such instruments and take such other actions as the
     other party or parties, as the case may be, may reasonably require in order
     to carry out the intent of this Agreement.

          (ii) At all times from the date hereof until Second Closing, each
     party shall promptly notify the other in writing of the occurrence of any
     event which it reasonable

                                                                              24
<PAGE>

     believes will or may result in a failure by such party to satisfy any of
     the conditions specified in this Agreement. Such notification shall have no
     effect of relieving such party from its liability, if any, in connection
     with such event and/or failure.

     8.12  Supplements to Schedules.  The Parties acknowledge that most of
           ------------------------
the Schedules will be defined and prepared after First Closing.  Prior to Second
Closing, the Company shall complete all Schedules and will supplement or amend
the Schedules with respect to any event or development which, if existing or
occurring at or prior to the date of this Agreement, would have been required to
be set forth or described in the Schedules, or which is necessary to correct any
information in the Schedules or in any representation or warranty of Company
which has been rendered inaccurate by reason of such event or development.
However, for the purposes of determining the truth and accuracy as of the date
hereof of the representations and warranties of Company and Controlling
Stockholders contained in this Agreement and in order to determine the
fulfillment of any of the conditions set forth in this Agreement, the Schedules
shall be deemed to exclude any information contained in any supplement or
amendment hereto delivered after the delivery of any such Schedule, or otherwise
prepared after the execution of this Agreement, unless the relevant information
had already been communicated to or was known by FATA before the execution of
this Agreement.

     8.13  Public Announcement.  None of the parties hereto shall disclose or
           -------------------
make any public announcement with respect to the transactions contemplated
herein without the prior written consent of the other parties, which consent
shall not be unreasonable withheld or delayed; provided, however, that any of
the parties hereto may at any time make any announcements which are required by
applicable law so long as the party so required to make an announcement promptly
upon learning of such requirement notifies the other parties of such requirement
and discusses with the other parties in good faith the exact proposed wording of
any such announcement.

     8.14  Financial Reports.  Prior to Second Closing, the Company shall
           -----------------
prepare and distribute to FATA, following the end of each fiscal quarter of the
Company, an unaudited balance sheet of the Company as at the end of the fiscal
quarter in question and the related unaudited, statements of earnings,
Stockholders' equity and cash flows of the Company for the three-month period
then ended (each such set financial statements, the "Periodic Financial
Statements").  Each set of Periodic Financial Statements shall be delivered to
FATA as soon as reasonably practicable after the end of the applicable financial
period (but in any event no later than forty-five (45) days after the end of the
fiscal quarter in question, or, with respect to any fiscal year-end financial
statements, ninety (90) days after the end of the fiscal year in question).  All
Periodic Financial Statements shall be prepared in accordance with the books and
records of the Company, shall be complete and correct in all material respects,
shall have each been prepared in accordance with GAAP and shall present fairly
the consolidated financial position, results of operations and changes in
financial position or cash flows, whichever is applicable, of the Company as at
the dates and for the periods indicated (subject, in the case of any interim,
unaudited Periodic Financial Statements, to normal year-end audit adjustments).

     8.15   Stock Certificate Legend.  A copy of this Agreement shall be filed
            ------------------------
with the corporate secretary of the Company and kept with the records of the
Company. Each of the parties agree that whatever legends (if any) are required
under the 1933 Securities Act and/or the 1934

                                                                              25
<PAGE>

Securities Exchange Act and consistent with this Investment Agreement are placed
on the certificates representing any shares of Capital Stock owned by them. The
parties to this agreement shall be bound by the requirements of such legend to
the extent that such legend is applicable. Upon any registration of any Capital
Stock under the appropriate securities act, and pursuant to an IPO, the
certificate representing such shares shall, if appropriate, be replaced, at the
expense of the Company, with certificates which do not bear the legend referred
to above.

                                  ARTICLE IX
                     SURVIVAL AND GENERAL INDEMNIFICATION

     9.1  Survival and General Indemnification.
          ------------------------------------

          (a)  Survival.  Unless expressly set forth herein, the representations
               --------
and warranties of each of the parties hereto shall survive the Second Closing.

          (b)  Indemnification by FATA.  FATA agrees to indemnify the Company
               -----------------------
from and against any and all loss, liability, or damage suffered or incurred by
it by reason of: (i) any untrue representation of, or breach of warranty by,
FATA, in any part of this Agreement, provided, however, that no claim for
indemnity may be made pursuant to this subsection after eighteen (18) months
from the Second Closing; and (ii) any non-fulfillment of any covenant,
agreement, or undertaking of FATA in any part of this Agreement which by its
terms is to remain in effect after the Second Closing and has not been
specifically waived in writing at the Second Closing by the party or parties
hereof entitled to the benefits thereof. Such indemnification shall include any
and all costs and expenses, including without limitation, legal fees and
expenses, in connection with enforcing the indemnification rights of the
Company.

          (c)  Indemnification by - Untrue Representation or Breach of Warranty.
               ----------------------------------------------------------------
     The Company agrees to indemnify FATA from and against any and all loss,
     liability, or damage suffered or incurred by it by reason of: (i) any
     untrue representation of, or breach of warranty by, any Stockholder in this
     Agreement, provided, however, that no claim for indemnity may be made
     pursuant to this subsection after eighteen (18) months from the Second
     Closing; and (ii) any non-fulfillment of any covenant, agreement, or
     undertaking of any Controlling Stockholder in this Agreement which by its
     terms is to remain in effect after the Second Closing and has not been
     specifically waived in writing at the Second Closing by the party or
     parties hereof entitled to the benefits thereof. Such indemnification shall
     include any and all costs and expenses, including without limitation, legal
     fees and expenses, in connection with enforcing the indemnification rights
     of FATA.

          (d)  Exemption from Indemnification by the Controlling Stockholders.
               -------------- -----------------------------------------------
     The Controlling Stockholders shall not be responsible for a breach of
     warranty that it is solely attributable to the action of another director
     or officer of the Company and of which the Controlling Shareholders were
     not (nor should have been) aware of.

                                                                              26
<PAGE>

          (e) Basket Amount.  Notwithstanding anything in this Article 9 to the
              -------------
     contrary, FATA shall not be entitled to any indemnification under such
     subsections if the aggregate amount of all claims thereunder is less than
     two hundred thousand U.S. dollars ($200,000) (the "Exception Amount"), but
     if the aggregate amount of all claims equals or exceeds the Exception
     Amount, then FATA shall be entitled to full indemnification of all claims
     and there shall be no Exception Amount.  The parties hereto do not intend
     that the Exception Amount be deemed to be a definition of what is
     "material" for any purpose in this Agreement.

          (f) Claims for Indemnification.  The parties intend that all
              --------------------------
     indemnification claims hereunder be made as promptly as practicable by the
     party seeking indemnification (the "Indemnified Party").  Whenever any
     claim shall arise for indemnification hereunder, the Indemnified Party
     shall promptly notify the party from whom indemnification is sought (the
     "Indemnifying Party") of the claim and, when known, the facts constituting
     the basis for such claim.  In the case of claim against the Controlling
     Stockholders, the notification shall be made jointly to the Stockholders
     identified on the signature page hereof at the address specified under Art.
     11.5.  In the case of any such claim for indemnification hereunder
     resulting from or in connection to any claim or legal proceedings of a
     third party, the notice to the Indemnifying Party shall specify, if known,
     the amount or an estimate of the amount of the liability arising therefrom.
     The Indemnified Party shall not settle or compromise any claim by a third
     party for which it is entitled to indemnification, or is not entitled to
     indemnification in the amount claimed in such notice, it shall deliver,
     within ten (10) Business Days after the receipt of such notice, a written
     objection to such claim and written specifications in reasonable detail of
     the aspects or details objected to, and the grounds for such objection.  If
     the Indemnifying Party shall file timely written notice of objection to any
     claim for indemnification, the validity and amount of such claim shall be
     determined by arbitration pursuant to Section 11.1 hereof.  If timely
     notice of objection is not delivered, or if a claim by an Indemnified Party
     is admitted in writing by an Indemnifying Party, or if an arbitration award
     is made in favor of an Indemnified Party, the Indemnified Party, as a non-
     exclusive remedy, shall have the right to set-off the amount of such claim
     or award against any amount yet owed, whether due or to become due, by the
     Indemnified Party or any subsidiary thereof to any Indemnifying Party by
     reason of this Agreement or any agreement or arrangement or contract to be
     entered into at the Second Closing.

                                   ARTICLE X
                             SPECIFIC PERFORMANCE

      10.1  Specific Performance.  Each of the parties hereto acknowledges and
            --------------------
agrees that in the event of any breach of this Agreement, the non-breaching
party or parties would be irreparably harmed, no adequate remedy at law would
exist and damages would be difficult to determine. It is accordingly agreed that
(x) in the event of a breach of any provision of this Agreement, the aggrieved
party may be entitled to specific performance of this Agreement (without the
necessity of proving actual damages and without posting bond or other security),
in addition to any other remedy to which such aggrieved party may be entitled at
law or in equity, and (y) each of the

                                                                              27
<PAGE>

parties hereto shall waive the defense in any action for specific performance or
other equitable relief that a remedy at law would be adequate.

                                  ARTICLE XI
                                 MISCELLANEOUS

      11.1  Arbitration.  Any controversies, disputes, actions, causes of
            -----------
action, or other claims arising out of or in connection with the provisions of
this Agreement which cannot be settled by mutual agreement shall be finally
settled by arbitration in New York City, NY in accordance with the Rules of the
American Arbitration Association. The arbitrator may enter a default decision
against any party who fails to participate in the arbitration proceedings. The
decision of the arbitrator on the points in dispute will be final, unappealable
and binding and judgment on the award may be entered in any court having
jurisdiction thereof. So long as this Agreement has not previously been
terminated in accordance with its provisions, the parties shall continue their
performance under this Agreement while the arbitration proceeding is pending.
The arbitrator will be authorized to apportion its fees and expenses and the
reasonable attorney's fees and expenses of the parties hereto as the arbitrator
deems appropriate. In the absence of any such apportionment, the fees and
expense of the arbitrator will be borne equally by each party, and each party
will bear the fees and expenses of its own attorney. The parties agree that this
clause has been included to rapidly and inexpensively resolve any disputes
between them with respect to this Agreement, and that this clause shall be
grounds for dismissal of any court action commenced by either party with respect
to this Agreement, other than post-arbitration actions seeking to enforce an
arbitration award and actions seeking equitable, injunctive or other similar
relief.

      11.2  Relationship of Parties.  It is understood and agreed that the
            -----------------------
relationship of the parties created under this Agreement is that of independent
contracting parties, and no partnership, joint venture, agency or other
relationship is intended or created hereby, nor shall either party nor any of it
affiliates, employees or representatives be construed to be an affiliate,
employee, agent or representative of the other party hereto. Except as otherwise
expressly set forth in this Agreement - and in particular without prejudice for
the "non competition" obligations binding Cyberfast's management and the
Controlling Stockholders - the parties hereto acknowledge and agree that each
party hereto shall be free to enter into any contractual, business or other
relationship(s) with any person with respect to any area of business.

      11.3  Expenses.  Except as otherwise expressly set forth in this
            --------
Agreement, all costs and expenses, including all fees and expenses of attorneys,
accountants and other advisers, incurred in connection with this Agreement or
any matters related hereto, shall be paid by the party incurring such costs and
expenses.

     11.4   Governing Law and Jurisdiction.  This Agreement shall be governed
            -------------------------------
by, and construed in accordance with, the laws of New York.  The parties hereto
hereby consent and submit to the exclusive jurisdiction of New York with respect
to any suit, action or proceeding arising out of or in connection with this
Agreement.  The parties further agree that, notwithstanding any contrary
provision of law, process will be sufficient and effective if and only if served
in accordance with the notice provisions set forth in Section 12.5 hereof.

                                                                              28
<PAGE>

     11.5   Notices.  For the purposes of this Agreement, all notices,
            -------
requests, demands and other communications to be given hereunder shall be given
by hand or by overnight delivery service or by registered mail; and by telecopy.
Any notice delivered by hand shall become effective when received (which may be
established, without limitation, by the sender by receipt of written
confirmation of delivery signed by a person who is or purports to be an employee
of the receiving entity). Any notice delivered by overnight delivery service or
by registered mail shall become effective on the date of receipt (which may be
established, without limitation, by reference to evidence of delivery provided
by the overnight delivery service).  Any such notice shall be addressed
expressly to the attention of the officer or individual named below for each
party and shall be addressed as follows:

If to Cyberfast:
          Cyberfast Systems, Inc.
          777 Yamato Road, Suite 105
          Boca Raton, Florida 33431
          Attention: Mr. Edward Stackpole
          Fax  561-995-6256

          Copy to:
          .  Theresa Mehringer
               Smith McCullogh, P.C.
               Regency Plaza one
               4643 South Ulster St. - Suite 900
               DENVER, Colorado
               Fax 303-221-6001

If to the Controlling Shareholders:
          Ed Stackpole
          Itir Stackpole
          1006 Grand Court
          Highland Beach, Fla. 33487
          Fax 561 361 8830

          Copy to:
          Theresa Mehringer (as above)

If to FATA:
          FATA GROUP SpA
          Strada Statale n. 24, km. 12
          10044 PIANEZZA (TO), Italy
          Fax: 011 967 2673

          Attn: Rag Andrea Lombardi

          Copy to:

                                                                              29
<PAGE>

          Avv. Giuseppe Dell'Acqua
               Pavia e Ansaldo
               Via dell' Annunciata, 7
               20121 MILAN (Italy)
               Fax: 02-6551576

     11.6   Entire Agreement: Waivers; Amendments.  This Agreement, together
            -------------------------------------
with the schedules and Exhibits attached hereto, constitute the entire agreement
between the parties as to the subject matter hereof, and shall supersede (with
the only exception of the Confidentiality Agreement dated May 5, 2000 - to the
extent that their provisions have not been clearly amended or derogated from by
the provisions of this Agreement) all prior understandings, letters, agreements,
contracts and other documents. No failure or delay by any party to exercise, and
no course of dealing with respect to, any right of any such party regarding an
obligation of any other party to this Agreement, shall operate as a waiver
thereof, unless agreed to in writing by the parties in question. Any single or
partial waiver by either party of any obligation of the other party under this
Agreement shall constitute a waiver of such obligation only as specified in such
waiver and shall not constitute a waiver of any other obligation; in addition,
no single or partial exercise of any power or right shall preclude any party's
other or further exercise or the exercise of any other power or right. This
Agreement may not be amended, modified or supplemented, and no waivers of,
consents to or departures from the provisions hereof may be given, without the
prior written consent of the Company and FATA and/or any then current
controlling stockholder(s) owning in the aggregate at least a 51% Share
Ownership Interest.

     11.7   Construction: Headings.  The construction and interpretation of this
            ----------------------
Agreement shall not be strictly construed against the drafter. The headings in
this Agreement are for reference only, and shall not affect the interpretation
of this Agreement.

     11.8   Successors; Assigns: Transferees.  The provisions of this Agreement
            --------------------------------
shall be binding upon and accrue to the benefit of the parties hereto and their
respective heirs, permitted successors and permitted assigns and legal
representatives. Unless specifically provided by this Agreement, neither this
Agreement nor any right hereunder may be assigned, whether voluntarily or by
operation of law, by either party hereto without the prior written consent of
the other party hereto (which consent may not be unreasonably withheld);
provided that no such consent shall be necessary for such an assignment,
transfer or delegation by any party hereto to any of its Affiliates, so long as
such assigning party remains liable with respect to its obligations hereunder
and such Affiliate enters into a supplementary agreement.

     11.9   No Third Party Beneficiaries; Defaults.  Nothing in this Agreement
            --------------------------------------
is intended to confer any rights or remedies on any person or entity which is
not a party to this Agreement. A default by any party to this Agreement in such
party's compliance with any of the conditions or covenants hereof or performance
of any of the obligations of such party hereunder shall not constitute a default
by any other party.

     11.10  Severability.  The invalidity or unenforceability of any provision
            ------------
of this Agreement in any jurisdiction shall not affect the validity, legality or
enforceability of the remainder of this Agreement in such jurisdiction or the
validity, legality or enforceability of this Agreement,

                                                                              30
<PAGE>

including any such provision, in any other jurisdiction, it being intended that
all rights and obligations of the parties hereunder shall be enforceable to the
fullest extent permitted by law.

     11.11  Further Assurances.  Each party hereto or person or entity subject
            ------------------
hereto shall do and perform or cause to be done and performed all such further
acts and things and shall execute and deliver all such other agreements,
certificates, instruments and documents as any other party hereto or person or
entity subject hereto may reasonably request in order to carry out the intent
and accomplish the purposes of this Agreement and the consummation of the
transactions contemplated hereby.

     11.12  Counterparts.  This Agreement may be executed in two or more
            ------------
counterparts, each of which shall be deemed an original but all of which shall
constitute one and the same Agreement.

     11.13  Interpretation. The parties hereto agree that, whenever any matter
            --------------
is stated in this Agreement to be (a) to the "knowledge of the Company" or to
the "best knowledge of the Company", such reference shall be deemed to include
the knowledge of each of the officers and directors of the Company, in each case
after reasonable inquiry by such persons as to such matter, and (b) "in the
ordinary course of the Company's business" or any phrase of similar meaning,
such reference shall be deemed to refer to the ordinary course of the Company's
business, consistent with the normal business practices of companies in the same
industry as the Company and, where applicable, entered into on an arm's length
basis.

     11.14  Recapitalization. etc.  In the event that any capital stock or
            ---------------------
other securities are issued in respect of, in exchange for, or in substitution
of, any shares of Capital Stock by reason of any reorganization, any
recapitalization, reclassification, merger consolidation, spin-off, partial or
complete liquidation, stock dividend, split-up, sale of assets, distribution to
stockholders or combination of the shares of Capital Stock or any other change
in the Company's capital structure, appropriate adjustments shall be made in the
percentages specified herein.

                                                                              31
<PAGE>

IN WITNESS WHEREOF, the parties have caused their respective representatives to
execute this agreement as of the date affixed above.

Cyberfast Systems, Inc.

                                        /s/ Edward J. Stackpole
________________________________________________________________________________
By:  Edward J. Stackpole
     Chairman/Chief Executive Officer

Controlling Shareholders
                                        /s/ Edward J. Stackpole
________________________________________________________________________________
Edward J. Stackpole

                                        /s/ Itir Stackpole
________________________________________________________________________________
Itir Stackpole

The FATA Group S.p.A.

                                        /s/ Ignacio Moncada
________________________________________________________________________________
By:  Ignacio Moncada
     Managing Director

                                                                              32

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