Document:

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                                                                    EXHIBIT 10.1

                            ASSET PURCHASE AGREEMENT

                                     between

                          AMERIQUEST TECHNOLOGIES, INC.

                                       and

                         SENECA DATA DISTRIBUTORS, INC.
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                            ASSET PURCHASE AGREEMENT

         THIS ASSET PURCHASE AGREEMENT ("Agreement"), made and entered into this
30th day of March, 2001, by and between AMERIQUEST TECHNOLOGIES, INC., a
Delaware corporation ("Seller") and SENECA DATA DISTRIBUTORS, INC., a New York
corporation ("Buyer").

                               W I T N E S S E T H
         WHEREAS, Seller owns and operates a business which provides technical
consultation and services and is engaged in the sale of computers and computer
equipment, a segment of which is devoted to the sale and distribution of
computers and computer equipment to entities for the purpose of resale (such
segment being referred to herein as the "Business"); and

         WHEREAS, Seller desires to sell and Buyer desires to acquire certain
         assets and equipment of Seller used or usable for the operation of the
         Business. NOW, THEREFORE, in consideration of the mutual promises and
         covenants herein contained, the parties agree as follows:

         1. Definitions. Unless otherwise stated in this Agreement, the
following terms shall have the following meanings:

                  (a) "Closing Place" shall mean the offices of Scolaro,
Shulman, Cohen, Lawler & Burstein, P.C., in Syracuse, New York, or such other
place as the parties may mutually agree.

                  (b) "Environmental Laws" shall mean all applicable rules and
regulations of federal, state and local laws, including statutes, regulations,
ordinances, codes, rules, as amended, relating to the discharge of air
pollutants, water pollutants or process waste water or otherwise relating to the
environment or Hazardous Materials or toxic substances.

                  (c) "Hazardous Materials" shall mean substances or materials
(whether solids or gases) that are deemed hazardous, toxic, pollutants or
contaminants, including, without limitation, substances defined as "hazardous
wastes," "hazardous substances," "toxic substances," "radioactive materials," or
other similar designations in, or otherwise subject to regulation under, any
Environmental Laws.
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         2.       Assets to be Conveyed; Liabilities to be Assumed.

                  (a) On the Closing Date (as defined in Section "16") at the
Closing Place, Seller will assign, convey, transfer and deliver to Buyer, free
and clear of all Liens (as defined in Section "8(e)(i)"), and Buyer shall
purchase from Seller, all of Seller's right, title and interest in and to the
assets used in the operation of the Business which are described as follows
(collectively, the "Assets"):

                           (i) the equipment, cubicles, office supplies,
         furniture and fixtures used or usable in the operation of the Business
         described in Schedule 2(a)(i);

                           (ii) the marketing and sales data and related
         information, telephone numbers, payment history, order history and
         credit history with respect to Established Customers (as defined in
         Section "7") (the "Customer Records"), credit files, personnel records
         for employees listed on Schedule 8(k), the list of Established
         Customers, technical reports and electronic data files used in the
         operation of the Business;

                           (iii) the contracts, Work in Process (as defined in
         Section "4"), licenses, equipment leases and agreements associated with
         the operation of the Business described in Schedule 2(a)(iii)
         (collectively, the "Contracts"); and

                           (iv) the goodwill associated with the operation of
         the Business.

                  (b) Buyer does not and will not assume, incur or be charged
with any liabilities or obligations of Seller of any nature whatsoever,
contingent or otherwise, arising prior to or in connection with the Closing.
Seller shall not be responsible for, incur or be charged with any liabilities or
obligations of Buyer of any nature whatsoever, contingent or otherwise, arising
after the Closing with respect to the Assets.

         3. Excluded Assets. It is understood and agreed that the assets being
sold to Buyer do not include (i) cash, deposits, notes receivable and accounts
receivable, (ii) investment securities, (iii) life insurance, (iv) liability
insurance, (v) retirement plan assets, (vi) pre-paid expenses, (vii) trademarks,
service marks, copyrights and trade names of the Seller and all other assets of
Seller not described in Section "2(a)" and Schedules 2(a)(i) through 2(a)(iv)
inclusive, in existence as of the close of business on the day before the
Closing Date.

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         4. Unfilled Orders. Prior to Closing, Seller shall deliver to Buyer a
true and complete list of all products ordered from Seller by customers prior to
the Closing Date to be partially or entirely delivered subsequent to the Closing
Date (such orders are collectively referred to herein as "Work in Process").
Subsequent to Closing, Buyer shall complete all Work in Process and invoice the
applicable customers for the products delivered subsequent to the Closing. All
proceeds from such invoices shall be the property of Buyer.

         5. Purchase Price; Method of Payment; Allocation of Purchase Price.

                  (a) Purchase Price. The consideration to be paid by Buyer to
Seller for the Assets (the "Purchase Price") shall be an amount equal to the
Initial Payment set forth in Section "5(b)" and the Contingent Payments set
forth in Section "5(c)".

                  (b) Payment. On the Closing Date, Ten Thousand Dollars
($10,000.00) (the "Initial Payment") shall be delivered by Buyer, in cash or
otherwise immediately available funds, to Seller.

                  (c) Contingent Payments. Seller shall be entitled to receive
contingent payments (collectively, the "Contingent Payments") for certain sales
of products by Buyer for a three (3) year period following Closing. The
Contingent Payments shall be equal to the following:

                           (i) Ten percent (10%) of the Gross Profits on Sales
         (as defined below) for the period beginning on the Closing Date and
         ending one year thereafter (the "First Year");

                           (ii) Seven and one-half percent (7.5%) of the Gross
         Profits on Sales for the period beginning on the date of termination of
         the First Year and ending one (1) year thereafter (the "Second Year");
         and

                           (iii) Five percent (5%) of the Gross Profits on Sales
         for the period beginning on the date of termination of the Second Year
         and ending one (1) year thereafter (the "Third Year").

For purposes of this Agreement, "Gross Profits on Sales" for each of the time
periods described above shall mean the total revenue received by Buyer
attributable to the sale of products by Buyer to Established Customers (as
defined in Section "7") less Buyer's cost of such products (and, in the case of
IntraLink or "white box" products,

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costs attributable to assembly labor), as determined in accordance with the
historical practices of Buyer. The Contingent Payments shall be made in
accordance with Section "5(f)" below.

                  (d) Minimum Contingent Payments. Notwithstanding the
foregoing, in the event the Contingent Payments actually received by Buyer for
the three (3) year period set forth above (excluding the Advance Payment (as
defined in subparagraph "(f)" below) shall not be equal to or greater than One
Hundred Fifty Thousand Dollars ($150,000.00), Buyer shall pay to Seller an
additional amount calculated as follows. If the Contingent Payments payable
hereunder (including the Advance Payment of $100,000) do not equal at least Two
Hundred Fifty Thousand Dollars ($250,000), Buyer shall pay to Seller an amount
equal to the difference between the actual Contingent Payments (including the
Advance Payment of $100,000) and Two Hundred Fifty Thousand Dollars
($250,000.00) (the "Minimum Contingent Payment"), as illustrated in the examples
below.

                  Example 1. If the actual Contingent Payments (excluding the
                             Advance Payment of $100,000) are One Hundred Forty
                             Thousand Dollars ($140,000.00), the sum of Ten
                             Thousand Dollars ($10,000.00) shall be payable to
                             Seller.

                  Example 2. If the actual Contingent Payments (excluding the
                             Advance Payment of $100,000) are Sixty Thousand
                             Dollars ($60,000.00), the sum of Ninety Thousand
                             Dollars ($90,000.00) shall be payable to Seller.

If Seller is entitled to a Minimum Contingent Payment under this Section, such
payment shall be made within thirty (30) days of the final Contingent Payment.

                  (e) Additional Contingent Payments. If Gross Profits on Sales
for the Second Year or Third Year exceed Three Million Five Hundred Thousand
Dollars ($3,500,000.00) (the "Success Threshold"), Seller shall be entitled to
receive an additional payment for such period(s) equal to two and one-half
percent (2.5%) of all Gross Profits on Sales for such period(s) in which the
Success Threshold was achieved (the "Additional Contingent Payment(s)"). The
Additional Contingent Payment(s), if applicable, shall be made in accordance
with Section "5(f)" below.

                  (f) Method of Payment. At Closing, Buyer shall pay to Seller
an advance (the "Advance Payment") which will be charged against the Contingent
Payments in an amount equal to Ninety Thousand Dollars ($90,000.00) in cash or
otherwise immediately available funds. In consideration for the Advance Payment,
the first

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One Hundred Thousand Dollars ($100,000.00) of Contingent Payments shall be
retained by Buyer. Within ten (10) business days of the end of each calendar
quarter during the three (3) year period following Closing, commencing after the
end of the first full calendar quarter following Closing, Buyer shall deliver to
Seller the Contingent Payment and Additional Contingent Payment (if applicable)
attributable to the previous calendar quarter or portion thereof along with an
accounting thereof (collectively, the "Quarterly Payment"). In each such case,
during such time that Seller's credit facility with Fleet Capital Corporation
("Fleet") remains outstanding, including any period of time during which Seller
may be in default thereunder, such payments shall be made to the Seller's
"lockbox" account maintained with Fleet.

                  (g) Right to Dispute. Seller shall have thirty (30) days from
the receipt of each Quarterly Payment to dispute same by delivering written
notice to Buyer indicating the basis for such dispute (the "Dispute Notice"). If
Seller and Buyer are unable to resolve the dispute within a thirty (30) day
period commencing on the date of the delivery of the Dispute Notice, the dispute
shall be presented to the Syracuse, New York office of a mutually agreed upon
national accounting firm (the "Independent Accountant") for a final
determination. The Independent Accountant shall present its report within thirty
(30) days following submission and its determination shall be final, conclusive
and binding on all parties. All fees and expenses of the Independent Accountant
shall be split equally between Buyer and Seller. If Seller fails to dispute the
Quarterly Payment within the thirty (30) day period, the determination of the
Quarterly Payment amount shall be final and conclusive.

                  (h) Allocation. The Purchase Price shall be allocated among
the Assets as follows: $10,000 for the assets set forth on Schedule 2(a)(i) and
the balance to customer lists, good will and other general intangibles. Seller
and Buyer jointly shall complete and separately file Form 8594 with their
respective federal income tax returns for the tax year in which the Closing Date
occurs in accordance with such allocation and the IRS guidelines, and neither
Seller nor Buyer shall, without the written consent of the other, take a
position on any tax return or before any governmental agency charged with the
collection of any such tax, or in judicial proceeding, that is in any manner
inconsistent with the terms of such allocation.

         6.       Minimum Total Payment Obligation.

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                  (a) Subordination. Buyer and Seller agree for the benefit of
Deutsche Financial Services Corporation ("DFS") that if Buyer is obligated to
make payment to Seller under Section "5(d)" because the Contingent Payments
(excluding the Advance Payment) have not exceeded One Hundred Fifty Thousand
Dollars ($150,000.00), such payment (the "Subordinated Obligation") shall be
subordinate to the payment of any and all indebtedness, direct or contingent,
for which Buyer may now or hereafter be under obligation to pay to DFS (the
"Senior Debt").

                  So long as no event of default under any agreement related to
the Senior Debt (the "Senior Debt Documents"), as such event of default is
defined in any Senior Debt Document (an "Event of Default"), or the occurrence
of any event, condition or act which with notice or lapse of time or both would
constitute an Event of Default, Seller shall be entitled to receive payment
pursuant to the Subordinated Obligation.

                  In the event, however, that an Event of Default occurs and is
continuing, and provided that DFS has provided notice of such Event of Default
to Seller, Seller shall have no right to receive payment pursuant to the
Subordinated Obligation. DFS and Seller acknowledge that in the event that any
payment pursuant to the Subordinated Obligation is prohibited hereunder, such
payment shall be deemed to be deferred until the cure of such Event of Default
and shall accrue interest at the rate of ten percent (10%) per annum from the
date due until the date paid, and upon the cure of such Event of Default,
payment pursuant to the Subordinated Obligation so deferred (plus accrued
interest) shall immediately become due and payable. Seller shall not ask,
demand, sue for, collect, take or receive from Buyer the whole or any part of
payment pursuant to the Subordinated Obligation without the prior written
consent of DFS. In the event that Seller receives, directly or indirectly, any
sum on account of the Subordinated Obligation from Buyer, such payment shall be
held by Seller in trust for DFS and shall be promptly paid to DFS to be applied
for the account of Buyer.

                  (b) Minimum Profit Estimates. In the event that the Gross
Profits on Sales for the First Year, Second Year and Third Year do not equal or
exceed One Million Two Hundred Thousand Dollars ($1,200,000.00) (the "Profit
Estimate") in any year, then Buyer shall have no obligation to make any payment
pursuant to the Subordinated Obligation unless and until the Profit Estimate is
exceeded.

                  (c) Acer America. Buyer's obligation to make payment pursuant
to the Subordinated Obligation, if any, shall be contingent upon Acer America
being classified as a Tier II branded manufacturer selling

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through distributors and maintaining its same relationship with Buyer for the
eighteen (18) month period following Closing. This subsection "(c)" shall not
limit Buyer's payment obligations pursuant to Section 5(c) or elsewhere in this
Agreement.

                  (d) Termination by DFS. If DFS terminates its relationship
with Buyer, the Subordinated Payment shall not be made until DFS has been paid
in full. Seller agrees to subordinate the Subordinated Payment to any successor
senior debtor of Seller upon terms substantially the same as set forth in this
Agreement.

         7. Customer List. Buyer and Seller hereby agree upon a complete list of
Established Customers attached hereto as Schedule 7 (the "Established Customer
List"). For purposes of this Agreement, a customer of Seller shall be deemed to
be an "Established Customer" if, during the nine (9) months prior to the Closing
Date, Seller realized more Gross Profits on Sales with respect to such customer
than Buyer or are new customers to Buyer, in each case, as identified on
Schedule 7.

         8. Seller's Representations and Warranties. Seller makes the following
representations and warranties to Buyer, each of which is true and correct on
the date hereof, shall remain true and correct to and including the Closing
Date, shall be unaffected by any investigation heretofore or hereafter made by
Buyer, or any knowledge of Buyer other than as specifically disclosed in the
disclosure schedules delivered to Buyer at the time of the execution of this
Agreement, and shall survive the Closing of the transaction provided for herein
as specified in Section "16" of this Agreement.

                  (a) Authority. The execution and delivery of this Agreement
have been duly approved by the board of directors of Seller, and this Agreement
constitutes a valid and binding agreement of Seller in accordance with its terms
and does not require any consent, notification to or other action of any person,
entity or governmental agency other than filings with respect to sales and other
transfer taxes.

                  (b) Corporate Status. Seller is duly formed, validly existing
and in good standing under the laws of the State of Delaware, and is qualified
to conduct business and is in good standing in the State of Delaware and all
such states where its business requires such qualification, except for such
states in which the failure to so qualify or be in good standing would not have
a material adverse effect on the Seller or the Business. Seller has

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complete power to own and to sell, transfer and deliver all the Assets and
instruments to be executed to vest effectively in Buyer good and marketable
title to the Assets.

                  (c) Effect of Agreement. Except as set forth in Schedule 8(c),
the execution, delivery and performance of this Agreement by Seller is not
conditioned on or prohibited by, and will not conflict with or result in the
breach of the terms, conditions or provisions of, or constitute a default under
any organizational document of Seller, any law applicable to Seller or any
material agreement or instrument to which Seller is a party or is otherwise
subject.

                  (d) Licenses and Permits. Seller has all material permits,
licenses, franchises and authorizations necessary for the operation of the
Business as now operated, all such permits, licenses, franchises and
authorizations are valid and in full force and effect and Seller has complied in
all material respects with all laws applicable to the conduct of the Business as
such business is presently being conducted. To its knowledge, Seller has not
engaged in any activity which would cause revocation or suspension of any such
permits, licenses, franchises or authorizations, and no complaint, action or
proceeding looking to or contemplating the revocation or suspension of any
thereof is pending, or to Seller's knowledge, threatened. All material
applications, reports and other disclosures relating to the operation of the
Business required by the appropriate governmental bodies have been filed or will
have been filed by the Closing in a timely manner.

                  (e)      Assets.

                           (i) Except as set forth on Schedule 8(e), Seller has
         good and marketable title to all the Assets, free and clear of all
         mortgages, liens (statutory or otherwise), security interests, claims,
         pledges, licenses, equities, options, conditional sales contracts,
         assessments, levies, easements, covenants, reservations, restrictions,
         exceptions, limitations, charges or encumbrances of any nature
         whatsoever (collectively, "Liens"), other than Liens for taxes not yet
         due or payable and other immaterial liens arising in the ordinary
         course of business ("Permitted Liens"). Except as set forth on Schedule
         8(e), none of the Assets are subject to any restrictions with respect
         to the transferability thereof. Except as set forth on Schedule 8(e),
         Seller has complete and unrestricted power and right to sell, assign,
         convey and deliver the Assets to Buyer as contemplated hereby. At
         Closing, Buyer will receive good and marketable title to all

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         the Assets, free and clear of all Liens other than Liens that attach to
         the Assets as a result of Buyer's ownership thereof due to obligations
         or liabilities of Buyer.

                           (ii) All tangible assets constituting Assets
         hereunder are in good operating condition and repair, free from any
         defects (subject only to normal wear and tear) and have been maintained
         consistent with Seller's historical practice.

                  (f) Insurance. All of the Assets which are of an insurable
character are insured above deductible limits by financially sound and reputable
insurance companies against loss or damage by fires and other risks to the
extent and in the manner customary for such assets. Copies of all pertinent
insurance policies have been provided to Buyer. Seller will maintain such
insurance between the date hereof and the Closing Date. There are no pending
claims under any such policies with respect to the Assets. All such policies are
valid, outstanding and enforceable policies and provide insurance coverage for
the properties, assets and operations of Seller pertaining to the Business, of
the kinds, in the amounts and against the risks customarily maintained by
organizations similarly situated; and no such policy (nor any previous policy)
provides for or is subject to any currently enforceable retroactive rate or
premium adjustment, loss sharing arrangement or other actual or contingent
liability arising wholly or partially out of events arising prior to the date
hereof. No notice of cancellation or termination has been received with respect
to any such policy, and Seller has no knowledge of any act or omission of Seller
which could result in cancellation of any such policy prior to its scheduled
expiration date. Seller has not been refused any insurance with respect to any
aspect of the operation of the Business nor has its coverage been limited by any
insurance carrier to which it has applied for insurance or with which it has
carried insurance during the last three (3) years.

                  (g) Litigation. There is as of the date hereof no suit,
action or legal administrative arbitration or other proceeding or governmental
investigation (including workers' compensation claims) with respect to the
Business pending or to Seller's knowledge threatened against the Seller.

                  (h) Taxes and Tax Returns. Seller has timely filed all
federal, state, county, and local tax returns for income taxes, excise taxes,
franchise taxes, sales taxes, withholding taxes, property taxes, unemployment
taxes, and all other taxes of every kind whatsoever required by law to be filed
(collectively, the "Taxes") and such returns are accurate and complete in all
material respects. Seller has paid all Taxes shown on such returns and no

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such Taxes are now due or payable or were due and/or payable as of the Closing,
and there is no further liability (whether or not disclosed on such returns or
assessments) for any Taxes and no interest or penalties have accrued or are
accruing with respect to them. There are no tax audits pending and no claims
have been asserted or, to the best knowledge of Seller, may be asserted in the
future relating to any of Seller's federal, state, county, or local tax returns
filed for any period prior to the Closing which, if determined adversely, would
result in the asserting by any governmental agency of any deficiency or claim.
There are no agreements by Seller for the extension of the time for the
assessment of any material amount of tax.

                  (i) Contracts. Seller has delivered or made available to
Buyer true and complete copies and descriptions of all of the Contracts (and all
amendments and modifications thereto) prior to the execution of this Agreement.
Seller has complied with the provisions of the Contracts in all material
respects and is not in material default thereunder. There has not been (i) any
failure of any party to any Contract to comply in all material respects with the
provisions thereof, (ii) any material default by any party thereunder or (iii)
any threatened cancellation thereof.

                  (j) Environmental Matters. In connection with environmental
matters:

                           (i) Seller is in material compliance with all
         Environmental Laws;

                           (ii) Seller is not a party to any litigation or
         administrative proceeding or, to the best knowledge of Seller, is any
         litigation or administrative proceeding threatened against it which, in
         either case, asserts or alleges that Seller violated any Environmental
         Laws; and

                           (iii) There are no conditions known to Seller
         existing currently which would subject Seller to damages, penalties,
         injunctive relief or cleanup costs under any Environmental Laws or
         which require or are likely to require cleanup, removal, remedial
         action or other response pursuant to Environmental Laws by Seller.

                  (k)      Labor Matters.

                           (i) Schedule 8(k) sets forth the names, current
         annual salary, job position, length of employment and date and amounts
         of the most recent increases in salary of all persons who are employed
         by Seller on a full-time or part-time basis (including all persons
         currently on short or long-term disability)

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         primarily in connection with the Business, including any independent
         contractors (collectively, the "Employees").

                           (ii) Seller is in compliance in all material respects
         with all laws and regulations relating to the employment of the
         Employees, including, without limitation, provisions relating to wages,
         hours, collective bargaining, occupational safety and health, equal
         employment opportunity and the withholding of income taxes and social
         security contributions, and Seller has not received any notice alleging
         that it has failed to comply in any material respect with any of the
         foregoing.

                           (iii) There are no collective bargaining agreements,
         employment agreements or other arrangements, whether oral or written,
         between Seller and any of the Employees, and Seller is not aware of any
         current attempts to organize or establish a labor union or employee
         association for the employees of Seller. None of the Employees has any
         contractual right to continued employment by Seller following
         consummation of the transactions contemplated by this Agreement.

                           (iv) All salaries, workers' compensation assessments
         and surcharges, unemployment insurance assessments, payments under any
         employee benefit plans, sick day credits, vacation pay owed for the
         period prior to Closing have been paid. (l) Financial Statements.
         Seller has delivered to Buyer true and complete copies of the financial
         statements of Seller consisting of (i) audited financial statements of
         the Seller as of September 30, 1998; September 30, 1999 and September

30, 2000, and the related statements of income and cash flows and (ii) an
unaudited pro forma balance sheet of Seller (without notes) relating to the
Business dated as of February 28, 2001 (the "Recent Balance Sheet"). All of such
financial statements (including all notes and schedules contained therein or
annexed thereto) have been prepared in accordance with Seller's historical
practices applied on a consistent basis, have been prepared in accordance with
the books and records of Seller, and fairly present, in accordance with Seller's
historical practices, the assets, liabilities and financial position, the
results of operations and cash flows of Seller as of the dates and for the years
and periods indicated.

                  (m) Absence of Certain Changes. Except as set forth on
Schedule 8(m), since the date of the Recent Balance Sheet there has not been:

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                           (i) No Material Adverse Change. Any material adverse
         change in the financial condition, assets, liabilities, business,
         prospects or operations of Seller relating to the operation of the
         Business;

                           (ii) No Damage. Any material loss, damage or
         destruction, whether covered by insurance or not, affecting the
         Business or the Assets;

                           (iii) No Commitments. Any commitment or transaction
         by Seller relating to the Business other than in the ordinary course of
         business consistent with past practice;

                           (iv) No Disposition of Property. Any sale, lease or
         other transfer or disposition of any of the Assets, except for the sale
         of items in the ordinary course of business;

                           (v) No Liens. Any Lien made on any of the Assets,
         other than Permitted Liens;

                           (vi) No Amendment of Contracts. Any entering into,
         amendment of or termination by Seller of any Contract, or any waiver of
         material rights thereunder, other than in the ordinary course of
         business;

                           (vii) Credit. Any grant of credit to any customer or
         supplier of the Business on terms or in amounts more favorable than
         those which have been extended to such customer or supplier in the past
         which are outside Seller's normal policies or practices with respect to
         the granting of credit; or

                           (viii) No Unusual Events. Any other material event or
         condition not in the ordinary course of business of Seller relating to
         the Business.

                  (n) Absence of Undisclosed Liabilities. Except liabilities of
the type disclosed in the Recent Balance Sheet, Seller does not have any
liabilities relating to the operation of the Business other than commercial
liabilities and obligations incurred since the date of the Recent Balance Sheet
in the ordinary course of business and consistent with past practice and none of
which has or will have a material adverse effect on the business, financial
condition or results of operations of the Business following the Closing.

                  (o) Intellectual Property. All marketing and sales data and
related information, customer lists, technical reports and electronic data files
(collectively, "Intellectual Property") that are used by the Business are owned
or licensed by, registered in the name of or utilized by Seller and used or held
for use in the Business, all of which are transferable to Buyer without the
consent or action of any third party. Seller does not know of nor has

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Seller received notice of any infringement on the rights of others resulting
from the use of any Intellectual Property. Seller has delivered or made
available to Buyer true and complete copies of all Intellectual Property.

                  (p) No Deposits. Seller has not received any deposit or other
prepayment pursuant to any Work in Process.

                  (q) General Representation and Warranty. Neither this
Agreement nor any other document furnished by or on behalf of Seller in
connection with this Agreement contains any untrue statement of a material fact
or omits to state any material fact necessary to make the statements contained
herein or therein not misleading in any material respect. There is no fact or
circumstance known to Seller which materially adversely affects, or in the
future, as now reasonably foreseeable, is likely to materially adversely affect
the condition (financial or otherwise), properties, assets, liabilities,
business, operations or prospects of the Business which has not been set forth
in this Agreement or the schedules hereto.

         9. Buyer's Representations and Warranties. Buyer covenants, represents
and warrants to Seller that:

                  (a) Authority. The execution and delivery of this Agreement
have been duly approved by the shareholders and board of directors of Buyer, and
this Agreement constitutes a valid and binding agreement of Buyer in accordance
with its terms.

                  (b) Organization. Buyer is now and on the Closing Date will
be a business corporation duly organized, validly existing and in good standing
under the laws of the State of New York.

                  (c) Effects of Agreement. The execution, delivery and
performance of this Agreement by Buyer is not conditioned on or prohibited by,
and will not conflict with or result in the breach of the terms, conditions or
provisions of, or constitute a default under, its Certificate of Incorporation,
By-Laws, or any other agreement or instrument to which it is a party or
otherwise subject.

                  (d) General Representation. Neither this Agreement nor any
ancillary agreement or other documents furnished by or on behalf of Buyer in
connection with this Agreement contains any untrue statement of a material fact
or omits to state any material fact necessary to make the statements contained
herein or therein not misleading in any material respect.

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         10. Further Covenants of Seller. Seller covenants and agrees as
follows:

                  (a)      Due Diligence.

                           (i) Commencing on the date hereof and continuing
         through the Closing Date, Seller shall, and shall cause its officers,
         employees, agents and representatives to, furnish to Buyer, its
         officers, employees, agents, and representatives, at reasonable times
         and places, all information in their possession concerning the Business
         as may be requested, and give such persons access to all of the
         properties, books, records, contracts and other documents of or
         pertaining to the Business that Seller or its officers, employees,
         agents, independent accountants or representatives shall have in their
         custody or to which they have access ("Due Diligence Information").

                           (ii) Up to and through the Date of Closing, with the
         prior consent of Seller in each instance (which consent shall not be
         unreasonably withheld), Buyer and its officers, employees, agents and
         representatives, shall have access to vendors, customers, accountants
         and others having business dealings with the Business for the purpose
         of performing Buyer's due diligence investigation.

                  (b) Conduct of Business Pending the Closing Date. From the
date hereof until the Closing Date, without the prior consent of Buyer, Seller
shall conduct its affairs only in the ordinary course of business, not
materially change the terms of any agreement with any customer or supplier, use
commercially reasonable efforts to preserve the business organization and
goodwill of the Business intact, confer on a regular and frequent basis with
representatives of Buyer to report operational matters and the general status of
ongoing operations, and notify Buyer of any emergency or other change in the
normal course of Seller's businesses or in the operation of Seller's or
properties and of any governmental or third party complaints, investigations or
hearings, except to the extent limited by applicable law.

                  (c)      Restrictive Covenants.

                           (i) To assure that Buyer will realize the value and
         goodwill inherent in the Assets, Seller agrees with Buyer that Seller
         shall not:

                                    (A) Non-Compete. For a period of five (5)
         years from the Closing Date, within a geographic area consisting of all
         states east of the Mississippi River, act as an individual proprietor,
         partner, stockholder, officer, principal, agent, employee, supervisor,
         manager, consultant,

                                       14
<PAGE>   16
         guarantor, creditor, lender, co-endorser or in any other capacity
         whatsoever, own, participate in the ownership of, manage, operate,
         exercise any control over, render services to (other than services
         rendered in the ordinary course of Seller's ongoing business), or
         engage in any of the foregoing for any business, firm, corporation,
         limited liability company, its successors or assigns, partnership or
         other entity which operates a business directly competitive with the
         operations of the Business as such business is presently being
         conducted. The parties understand that Seller may continue to (i) sell
         and lease products and services directly to end users, (ii) sell
         business solutions to entities that resell such solutions and include
         the same products sold by the Business, and (iii) sell Unisys products
         through Unisys resellers.

                                    (B) Non-Solicitation. For a period of two
         (2) years from the Closing Date, solicit any business from any current
         or former valued added reseller customers of the Business for the
         purpose of selling products competitive with those offered or sold or
         provided by the Business, except in an ancillary manner as part of a
         business solutions or leasing transaction.

                           (ii) Proprietary Information. Seller shall not
         disclose to any person, firm, practice, corporation, limited liability
         company, partnership or other entity, any proprietary information or
         other confidential information relating to the Business, its successors
         or assigns, including but not limited to, confidential financial
         information, business secrets or any other information concerning the
         business or affairs of the Business, except as may be required by
         applicable law.

                           (iii) Reasonableness of Limitations. It is expressly
         understood and agreed that although the parties consider the
         restrictions contained herein reasonable as to protected business,
         duration and geographic area, in the event any court of competent
         jurisdiction deems them to be unreasonable, then such restriction shall
         apply to the broadest business, longest period and largest territory as
         may be considered reasonable by such court and this Agreement as so
         amended shall be enforced.

                           (iv) Breach of Non-Competition Covenant. The parties
         agree that upon any breach by the Seller of this Section 10(c), the
         Buyer shall suffer substantial damages to its business which would only
         be ascertained after lengthy, protracted and expensive litigation of
         the issue. Therefore, it is mutually agreed that in the event of any
         such breach, the Buyer, in addition to all remedies at law or equity to
         which it may be entitled, shall be entitled to make application for a
         preliminary and/or permanent injunction

                                       15
<PAGE>   17
         enjoining and restraining the Seller and each and every other person,
         business, firm, practice, corporation, partnership, limited liability
         company, or entity concerned thereby from the continuance of such
         prohibited acts.

                           (v) Attorneys' Fees. The Buyer shall be entitled to
         recover its reasonable attorneys fees incurred in enforcing its rights
         under this Agreement in the event that a court of competent
         jurisdiction issues a final order or judgment in favor of Buyer.

         11. Risk of Loss. The risk of any loss, damage or destruction to any of
the Assets to be transferred hereunder from fire or other casualty or cause
shall be borne by Seller at all times prior to the Closing hereunder.

         12. Conditions Precedent to Buyer's Obligations. The obligation of
Buyer to consummate the transactions contemplated hereunder is subject to the
satisfaction at or prior to the Closing of the following:

                  (a) Representations, Warranties and Covenants. The
representations, warranties and covenants of Seller contained in this Agreement
shall be true and correct in all material respects at and as of the Closing Date
as though made at and as of the Closing Date, except for changes contemplated by
this Agreement.

                  (b) Performance. Seller shall have complied with all
agreements, obligations, covenants and conditions required by this Agreement to
be met, performed or complied with by it prior to or at the Closing.

                  (c) Certification. Seller shall have furnished or caused to
be furnished to Buyer on the Closing Date the certificate as set forth in
Section "16(b)(ii)" below.

                  (d) Consents. Seller shall have obtained all consents
necessary to (i) validly assign the Contracts to Buyer at the Closing and (ii)
operate the Business, including, but not limited to consents from any
governmental entities from which consent to his transaction is required.

                  (e) Absence of Litigation. No litigation shall have been
commenced or threatened, and no investigation by any government entity shall
have been commenced against Buyer, Seller or any of the affiliates, officers or
directors of any of them, with respect to the transactions contemplated hereby.

                                       16
<PAGE>   18
                  (f) UCC Searches. Seller shall have delivered to Borrower
prior to the Closing Date Uniform Commercial Code, bankruptcy, judgment and lien
searches and any other public record searches as requested by Buyer in its
reasonable discretion.

                  (g) Sublease. Buyer and Seller shall have entered into a
sublease agreement (the "Sublease Agreement") whereby Buyer will lease to Seller
certain portions of its premises located in Willow Grove, Pennsylvania upon
terms acceptable to Buyer and containing the terms and conditions specified on
Schedule 12(h).

                  (h) Approval of DFS. Receipt of approval of DFS to this
Agreement and the transactions contemplated hereby.

         13. Conditions Precedent to Seller's Obligations. The obligation of
Seller to consummate the transactions contemplated hereunder are subject to
satisfaction at or prior to the Closing of the following:

                  (a) Representations, Warranties and Covenants. The
representations, warranties and covenants of Buyer contained in this Agreement
shall be true and correct in all material respects at and as of the Closing Date
as though such representations, warranties and covenants were made at and as of
such time.

                  (b) Performance. Buyer shall in all material respects have
complied with all agreements, obligations and conditions required by this
Agreement to be met, performed or complied with by it prior to or at the
Closing.

                  (c) Certification. Buyer shall have furnished or caused to be
furnished to Seller on the Closing Date the certificate as set forth in Section
"16

                  (c)(ii)" below.

                  (d) Delivery of Purchase Price. Buyer shall have delivered to
Seller the Initial Payment in accordance with Section "5" hereof.

                  (e) Litigation. No Litigation shall have been commenced or
threatened, and no investigation by any government entity shall have been
commenced, against Seller with respect to the transactions contemplated hereby;
provided that the obligations of Seller shall not be affected unless there is a
reasonable likelihood determined by Buyer that as a result of such action, suit,
proceeding or investigation, Seller will be unable to transfer the Assets in
accordance with the terms set forth herein.

                                       17
<PAGE>   19
                  (f) Sublease. Buyer and Seller shall have entered into the
Sublease Agreement upon terms acceptable to Buyer and containing the terms and
conditions specified on Schedule 12(h).

                  (g) Approval of Fleet. Receipt of approval of Fleet to this
Agreement and the transactions contemplated hereby.

         14.      Rights of Indemnification.

                  (a) Survival of Covenants, Warranties and Representations.
All covenants, agreements, representations and warranties of the parties under
this Agreement, in any Schedule or certificate or other document delivered
pursuant hereto, shall remain effective through and shall survive the Closing
Date for eighteen (18) months from the Closing Date (the "Expiration Date")
regardless of any investigation at any time made by or on behalf of Buyer or of
any information Buyer may have with respect thereof. Neither party shall have
any liability for indemnification hereunder as a result of breach of a
representation warranty, agreement, obligation or covenant which expires on the
Expiration Date unless on or prior to the Expiration Date the other party
notifies the indemnifying party of a claim hereunder, specifying the factual
basis of that claim in reasonable detail to the extent known by such party.

                  (b) Indemnification of Buyer. Seller shall defend, indemnify
and hold Buyer harmless from and against (1) any and all claims, liabilities and
obligations of every kind and description, contingent or otherwise, arising from
or relative to (x) the operation or ownership of the Business or the Assets
prior to or on the Closing Date, irrespective of when asserted and (y) a breach
of any of Seller's representations, warranties or covenants hereunder, and (2)
any and all actions, suits, proceedings, damages, assessments, judgments, costs
and expenses (including reasonable attorneys' fees) incident to any of the
foregoing.

                  (c) Indemnification of Seller. Buyer shall defend, indemnify
and hold Seller harmless from and against (1) any and all claims, liabilities
and obligations of every kind and description, contingent or otherwise, arising
from or relative to (x) the operation or ownership of the Business or the Assets
after the Closing Date and (y) a breach of any of Buyer's representations and
warranties hereunder, and (2) any and all actions, suits, proceedings, damages,
assessments, judgments, costs and expenses (including reasonable attorneys'
fees) incident to any of the foregoing.

                                       18
<PAGE>   20
                  (d) Summary of Obligations. The obligations and rights of the
parties under this Section "14" shall survive the Closing Date and shall be
binding upon and inure to the benefit of their respective successors and
assigns.

                  (e) Threshold. An indemnified party shall not be entitled to
indemnification hereunder with respect to an indemnifiable claim (or, if more
than one such indemnifiable claim is asserted, with respect to such
indemnifiable claims) unless the aggregate amount of damages with respect to
such indemnifiable claim or claims exceeds $10,000 (the "Threshold Amount"), but
upon exceeding the Threshold Amount, such indemnified party shall be entitled to
indemnification hereunder for damages with respect to all indemnifiable claims.

                  (f) Procedure.

                           (i) The indemnified party agrees to give prompt
         written notice (the "Notice of Claim") to the indemnifying party of any
         claim or circumstances which might give rise to a claim by the
         indemnified party against the indemnifying party stating the nature and
         basis of said claim along with all of the facts, information or
         materials relating to such claim of which the indemnified party is
         aware, and the amount thereof, to the extent known.

                           (ii) In the event any action, suit or proceeding is
         brought against the indemnified party, with respect to which the
         indemnifying party may have liability, the indemnifying party shall
         have fifteen (15) business days after receipt of the Notice of Claims
         to elect, in writing to the indemnified party, to assume the defense of
         any such action suit or proceeding at the expense of the indemnifying
         party or to settle the claim. Until written notice electing to defend
         or settle any claim that, if sustained, would give rise to a liability
         under this Agreement, the indemnified party may take, at the expense of
         the indemnifying party, any action it reasonably believes necessary to
         preserve its rights with respect to such claim, after promptly
         notifying the indemnifying party of its intention to take such action
         and the indemnifying party does not elect to take such other action.
         The indemnified party shall have the right to be represented by
         advisory counsel and accountants, at its own expense, and the
         indemnified party shall be kept fully informed of any such action, suit
         or proceeding at all stages thereof whether or not it is so
         represented. The indemnifying party shall make available to the
         indemnified party and its attorneys and accountants all books and
         records of the indemnifying party relating to such proceedings or
         litigation.

                                       19
<PAGE>   21
                           (iii) The indemnifying party shall not make any
         settlement of any claims which does not include as an unconditional
         term thereof the giving by the claimant to the indemnified party a
         release of all liability in respect of such claims, without the written
         consent of the indemnified party, which consent shall not be
         unreasonably withheld or delayed. If the indemnified party does not
         consent to such a settlement, the indemnifying party's liability to
         indemnify the indemnified party for such claim shall be limited to the
         expenses and costs reasonably necessary to preserve its rights to such
         claim (other than any costs of counsel retained by the indemnified
         party solely to monitor the indemnifying party's obligations hereunder)
         that the indemnified party has incurred up to the time of the proposed
         settlement plus the amount of the proposed settlement. The indemnified
         party agrees to use commercially reasonable efforts to cooperate with
         the indemnifying party in defending any claim, at the indemnifying
         party's expense.

                           (iv) If the indemnifying party shall fail to so elect
         to defend or settle such claim (exercising reasonable business
         judgment) at its own expense, within thirty (30) days of delivery of
         notice of the claim, or otherwise so fail to defend or settle the
         claim, the indemnified party shall have the right, but not the
         obligation, to undertake the defense of and to settle (exercising
         reasonable business judgment) the claim on behalf, for the account and
         at the risk, of the so failing party. The indemnified party shall use
         commercially reasonable efforts to settle any such claim at
         commercially reasonable amounts determined in good faith by the
         indemnifying party.

                           (v) In the event the indemnified party should have a
         claim against the indemnifying party that does not involve a claim or
         demand by a third party, the indemnified party shall promptly cause
         notice of such claim to be delivered to the indemnifying party. The
         indemnifying party shall have fifteen (15) business days after delivery
         thereof to elect, in writing to the indemnified party, to defend or
         settle the claim, exercising reasonable business judgment, at its own
         expense. If the indemnifying party does not notify the indemnified
         party within twenty (20) days after the indemnified party's notice that
         it disputes such claim, the amount of such claim shall be conclusively
         deemed as a liability of the indemnifying party. If the indemnifying
         party disputes such claim, the indemnifying party and the indemnified
         party shall attempt in good faith for a period of thirty (30) days to
         settle any such dispute.

                                       20
<PAGE>   22
         15.      Termination of Agreement.

                  (a) Termination Without Breach. This Agreement may be
terminated without further liability of any party at any prior time to the
Closing:

                           (i) by mutual written agreement of Buyer and Seller,
         or

                           (ii) by Buyer if Buyer is not satisfied with the
         results of its due diligence investigation in which event, Buyer shall
         notify Seller prior to the Closing Date;

                           (iii) by either Buyer or Seller upon notice to the
         other if the Closing shall not have occurred on or before the Closing
         Date, provided the terminating party has not, through a breach of
         representation, warranty or covenant, prevented the Closing from
         occurring on or before such date; or

                           (iv) if the Closing has not occurred by April 4,
         2001.

                  (b) Termination by Buyer or Seller. If at any time prior to
the Closing Date Seller or Buyer is in default hereunder and such default is not
cured within twenty (20) days after written notice to that effect from the other
party (the "Non-Breaching Party"), or if either party fails or refuses to close
after the conditions to its Closing have been satisfied, the Non-Breaching Party
shall have the right to terminate this Agreement by written notice to the other
party, in which event the Non-Breaching Party shall have recourse to any remedy
at law or equity, including, without limitation, specific performance (it being
agreed that the property is unique and not readily available in the open
market).

                  (c) Termination Procedure. Termination Procedure. If this
Agreement is terminated pursuant to this Section "15", the party so electing to
terminate shall give written notice to that effect to the other party, and this
Agreement shall terminate and the transactions contemplated by this Agreement
shall be abandoned without further action by either party. Buyer shall then
return to Seller all documents and copies and other materials received by Buyer.

                  (d) Effect of Termination and Breach of Agreement. Effect of
Termination and Breach of Agreement. If this Agreement is terminated other than
pursuant to a breach by Buyer or by Seller, the parties shall have no further
duties, obligations, or rights to or against each other except for the
provisions of this Agreement relating to confidentiality and use of confidential
or proprietary information. If this Agreement is terminated

                                       21
<PAGE>   23
pursuant to a breach by either Buyer or Seller, the Non-Breaching Party shall be
reimbursed by the breaching party for all of its reasonable costs and expenses
associated with the transaction contemplated hereby.

         16.      Closing.

                  (a) Closing. The closing of this transaction (the "Closing")
shall take place contemporaneously with the execution of this Agreement (such
date is referred to in this Agreement as the "Closing Date"), subject to the
fulfillment of the conditions set forth in Sections "12" and "13" herein, and
shall be effective as of 11:59 p.m. on March 31, 2001. The Closing shall take
place at the Closing Place, or at such other place as the parties shall agree
upon. The Closing Date set forth herein may be extended upon the mutual written
agreement of the parties.

                  (b) Documents to be Delivered by Seller. At the Closing,
Seller shall deliver to Buyer the Assets and the following documents, in each
case duly executed or otherwise in proper form:

                           (i) Bills of Sale. Bills of sale and such other
         instruments of assignment, transfer, conveyance and endorsement as will
         be sufficient in the opinion of Buyer and its counsel to transfer,
         assign, convey and deliver to Buyer the Assets as contemplated hereby,
         including the appropriate documentation to transfer any motor vehicles
         which are included as Assets.

                           (ii) Compliance Certificate. A certificate of Seller
         that each of the representations and warranties made by Seller in this
         Agreement is true and correct in all material respects on and as of the
         Closing Date with the same effect as though such representations and
         warranties had been made or given on and as of the Closing Date (except
         for any changes permitted by the terms of this Agreement or consented
         to in writing by Buyer), and that Seller has performed and complied
         with all of Seller's obligations under this Agreement which are to be
         performed or complied with on or prior to the Closing Date.

                           (iii) Certified Resolutions. A certified copy of the
         resolutions of the board of directors of Seller authorizing and
         approving this Agreement and the consummation of the transactions
         contemplated by this Agreement.

                                       22
<PAGE>   24
                           (iv) Good Standing Certificate. Good standing
         certificate of Seller issued by the Delaware Secretary of State dated
         not more than fifteen (15) days prior to the Closing Date.

                           (v) Consents. Fully executed consents of all third
         parties required to close this transaction.

                           (vi) Release of Liens. Proper releases of any liens
         on the Assets.

                           (vii) Sublease Agreement. An executed original of the
         Sublease Agreement.

                           (viii) Other Documents. All other documents,
         instruments or writings required to be delivered to Buyer at or prior
         to the Closing pursuant to this Agreement and such other certificates
         of authority and documents as Buyer may reasonably request.

                  (c) Documents to be Delivered by Buyer. At the Closing, Buyer
shall deliver to Seller the following documents, in each case duly executed or
otherwise in proper form:

                           (i) Initial Payment. Cash or otherwise immediately
         available funds as required by Section "5" of this Agreement.

                           (ii) Compliance Certificate. A certificate signed of
         Buyer that the representations and warranties made by Buyer in this
         Agreement are true and correct on and as of the Closing Date with the
         same effect as though such representations and warranties had been made
         or given on and as of the Closing Date (except for any changes
         permitted by the terms of this Agreement or consented to in writing by
         Seller), and that Buyer has performed and complied with all of Buyer's
         obligations under this Agreement which are to be performed or complied
         with on or prior to the Closing Date.

                           (iii) Certified Resolutions. A certified copy of the
         resolutions of the shareholders and board of directors of Buyer
         authorizing and approving this Agreement and the consummation of the
         transactions contemplated by this Agreement together with an incumbency
         certificate.

                           (iv) Good Standing Certificate. Good standing
         certificate of Seller issued by the New York Secretary of State dated
         not more than fifteen (15) days prior to the Closing Date.

                           (v) Sublease Agreement. An executed original of the
         Sublease Agreement.

                                       23
<PAGE>   25
                           (v) Other Documents. All other documents, instruments
         or writings required to be delivered to Seller at or prior to the
         Closing pursuant to this Agreement and such other certificates of
         authority and documents as Seller may reasonably request.

         17. Right of Set-Off. In the event Buyer suffers any loss for which
Seller is obligated to indemnify Buyer pursuant to Section "14" above, and
Seller for any reason fails or refuses to pay the same, Buyer shall have as the
means of recovery for any loss (in addition to any other remedies at law or in
equity), the right to set-off against any sums due to Seller pursuant to this
Agreement. Buyer shall continue to make all payments due until such time as
Seller is obligated to indemnify Buyer pursuant to Section "14" above, provided
that such payments shall be deposited in an interest-bearing escrow account with
a bank mutually agreed to by the parties. Upon resolution of an indemnification
claim in favor of Buyer pursuant to this Agreement, funds deposited in such
escrow account, up to the amount of such indemnification claim, together with
interest accrued thereon, shall be disbursed to Buyer and the remaining funds,
together with interest accrued thereon, shall be disbursed to Seller. Upon
resolution of an indemnification initiated by Buyer but resolved in favor of
Seller, funds deposited in such escrow account, together with interest accrued
thereon, shall be disbursed to Seller.

         18. Brokerage. Each party represents and warrants to the other that no
broker, finder or consultant is or has been involved in the sale and purchase of
the Business by Buyer, and each party shall indemnify, defend and hold the other
party harmless from and against any and all brokerage, finder's or consultant's
fees or any similar compensation or payment in connection with the transactions
contemplated by this Agreement as a result of the indemnifying party's agreement
with any such broker.

         19. Employees. Buyer is purchasing the Assets of Seller and, therefore,
Buyer shall not be required to employ any employees of Seller and Seller shall
be responsible for the termination of any employees it does not desire to retain
following Closing. To the extent Buyer desires, it shall have the opportunity to
interview any of Seller's employees for possible employment by Buyer upon such
terms and conditions as Buyer determines. Such interviews shall take place prior
to Closing with the consent of Seller which shall not be unreasonably withheld.

                                       24
<PAGE>   26
         20.      Post-Closing Covenants of Parties.

                  (a) Checks Received After Closing. Buyer and Seller agree that
after the Closing they will hold and will promptly transfer and deliver to the
other, from time to time as and when received by them, any cash, checks with
appropriate endorsements (using their best efforts not to convert such checks
into cash unless sent directly to the Seller's "lockbox" account maintained with
Fleet which the parties acknowledge will be swept daily to pay down Seller's
revolving line of credit), or other property that they may receive on or after
the Closing which properly belongs to the other party, including without
limitation any accounts receivable proceeds, and Buyer and Seller will account
to the other for all such receipts. For the avoidance of doubt, cash and checks
received after the Closing shall be applied to the invoice noted by the customer
or the invoice to which it can reasonably be determined such payment relates,
or, in the absence of any such notation by the customer or in the event that it
cannot be reasonably determined to which invoice the payment relates, to the
earliest outstanding invoice (whether due Seller or Buyer) then outstanding.

                  (b) Customer Records. For a period of six (6) months from and
after the Closing Date, Buyer shall not remove from Seller's facility the
Customer Records and, for the purpose of Seller collecting outstanding accounts
receivables accruing prior to the Closing Date, shall provide Seller (and,
during such time that Seller's credit facility with Fleet remains outstanding,
including any period of time during which Seller may be in default thereunder,
Fleet) with full access to the Customer Records. Following such six (6) month
period, Seller shall have the right to copy any and all Customer Records (and
retain such copies) with respect to accounts receivables accruing prior to the
Closing Date and still outstanding. Buyer shall cause the sales people and
administrative people previously employed by Seller to cooperate with Seller in
collecting Sellers accounts receivables with Established Customers and Buyer
shall permit Seller at all times to contact Established Customers with respect
to collecting outstanding accounts receivables accruing prior to the Closing
Date.

         21. Sales Tax. Any and all sales tax due and payable as a result of the
transaction contemplated by this Agreement shall be split equally between Buyer
and Seller.

                                       25
<PAGE>   27
         22. Waiver of UCC Bulk Sale Compliance. Buyer and Seller shall comply
with the requirements of the bulk transfer provisions of the New York Uniform
Commercial Code. In the event such requirements are waived by Buyer, Seller will
indemnify Buyer against all claims made by creditors of Seller and grant to
Buyer in addition to all other remedies, the right of setoff for all such claims
against any amounts required by law to be paid and actually paid by Buyer to
Seller's creditors.

         23. Notices. All necessary notices, demands and requests required or
permitted to be given under the provisions of this Agreement shall be deemed
duly given if and when sent by prepaid overnight courier or by certified or
registered mail, return receipt requested, postage prepaid addressed as follows:

                  If to Seller:     AmeriQuest Technologies, Inc.
                                    2465 Maryland Road
                                    Willow Grove, Pennsylvania 19090
                                    Attn: Jon Jensen

                  With a Copy (which shall not constitute notice) to:

                                    Morgan, Lewis & Bockius, LLP
                                    502 Carnegie Center
                                    Princeton, New Jersey 08540
                                    Attn:  Steven M. Cohen, Esq.

                  If to Buyer:      Senenca Data Distributors, Inc.
                                    7401 Round Pond Road
                                    North Syracuse, New York 13212
                                    Attn: Adolph V. Falso

                  With a Copy (which shall not constitute notice) to:

                                    Scolaro, Shulman, Cohen, Lawler & Burstein,
                                      P.C.
                                    90 Presidential Plaza
                                    Syracuse, New York 13202
                                    Attn: Jeffrey M. Fetter, Esq.

or such other addresses as the parties may from time to time designate. Notice
is deemed given and received three (3) days after mailing in the case of
registered or certified mail and next business day in the case of overnight
courier.

                                       26
<PAGE>   28
         24. Formal Press Release. Except as may be required by law, each of the
parties hereto agrees not to issue a formal press release, or make any other
public announcement to vendors, customers or employees, without the consent of
the other which shall not be unreasonably withheld. Promptly following the
execution of this Agreement, Seller and Buyer shall jointly issue a press
release.

         25. Benefit/Assignment. This Agreement shall be binding upon and inure
to the benefit of the parties hereto, their successors and assigns; provided,
however, that neither party may assign its rights or obligations under this
Agreement without the prior written consent of the other party. I n the event of
the sale of all or substantially all of the Assets by the Buyer to any person or
entity (the "Acquirer"), the Acquirer shall assume the Buyer's obligation under
Section "5" above or the Buyer and the Seller shall negotiate a buyout of the
Contingent Payment obligation set forth therein. Notwithstanding the foregoing,
at any time that Seller's credit facility with Fleet remains outstanding,
including any period of time during which Seller may be in default thereunder,
Seller may assign its rights under this Agreement to Fleet without any further
consent of Buyer required. Notwithstanding anything herein to the contrary, each
of Fleet and DFS shall be third party beneficiaries of the rights of each such
lender, respectively, in this Agreement.

         26. Other Documents. The parties shall execute such other documents as
may be necessary and desirable to the implementation and consummation of this
Agreement.

         27. Headings. The headings of the paragraphs of this Agreement are
inserted as a matter of convenience and for reference only and in no way define,
limit or describe the scope of this Agreement nor the intent of any paragraph or
section hereof.

         28. Law Governing Agreement/Attorney Fees. This Agreement shall be
construed and interpreted according to the internal laws of the State of New
York, excluding any choice of law rules that may direct the application of the
laws of another jurisdiction. The parties hereby stipulate that any dispute
arising under or in connection with this Agreement shall be resolved before
binding arbitration in accordance with the then applicable

                                       27
<PAGE>   29
rules of the American Arbitration Association in New York County, New York, each
party hereby submitting to the personal jurisdiction thereof. In the event of
any such dispute, the prevailing party shall be entitled to the expenses of such
action including reasonable attorney fees. The "prevailing party" shall be
determined by the arbitrator.

         29.      General Provisions.  This Agreement:

                  (a) may be signed by any number of counterparts with the same
effect as if the signature of each such counterpart were upon the same
instrument;

                  (b) is the only agreement between the parties hereto and
contains all of the terms and conditions agreed upon with respect to the subject
matter hereof, and supersedes all prior agreements, understandings or intents
among the parties hereto; and

                  (c) may not be modified except by a writing executed by both
parties hereto, provided, however, that sections of this agreement relating to
Fleet or DFS, respectively, shall not be modified without the prior written
consent of such lender.

                            [Signature Page Follows]

                                       28
<PAGE>   30
         IN WITNESS WHEREOF, Seller and Buyer have caused this Agreement to be
executed by their duly authorized officers on the day and year first above
written.

SELLER:                                      BUYER:

AMERIQUEST TECHNOLOGIES, INC.                SENECA DATA DISTRIBUTORS, INC.

By:  /s/ Alexander C. Kramer                 By:   /s/ Adolph V. Falso
Name:    Alexander C. Kramer                 Adolph V. Falso, Chairman and CEO
President:  President & CEO

                                       29SENIOR SECURED CONVERTIBLE DEBENTURES

                                       AND

                           WARRANTS PURCHASE AGREEMENT

                                     Between

                    World Wide Wireless Communications, Inc.

                                       and

                         the Investors Signatory Hereto

     SENIOR SECURED CONVERTIBLE DEBENTURES AND WARRANTS PURCHASE AGREEMENT dated
as of March 29, 2001 (the "Agreement"), between the Investors signatory hereto
(each an "Investor" and together the "Investors"), and World Wide Wireless
Communications, Inc., a corporation organized and existing under the laws of the
State of Nevada (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, in the aggregate, (i) $750,000 principal
amount of Convertible Debentures (as defined below) and (ii) Warrants (as
defined below); and

     WHEREAS, such investments will be made in reliance upon the provisions of
Section 4(2) ("Section 4(2)") and/or 4(6) ("Section 4(6)") of the United States
Securities Act of 1933, as amended (the "Securities Act") and/or Regulation D
("Regulation D") and the other rules and regulations promulgated thereunder,
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, in consideration of the foregoing premises, and the
promises and covenants herein contained, the receipt and sufficiency of which
are hereby acknowledged by the parties hereto, the parties, intending to be
legally bound, hereby agree as follows:

                                   ARTICLE I

                               Certain Definitions

Section 1.1. "Bid Price" shall mean the closing bid price (as reported by
Bloomberg Financial L.P.) of the Common Stock on the Principal Market on the
date in question (and, if no closing bid price is reported, the closing price as
so reported, and if neither the closing bid price nor the closing price is so
reported, the last reported price of the Common Stock as determined by an
independent evaluator mutually agreed to by the parties).

<PAGE>

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 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
Convertible Debentures 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, $0.001 par
value per share.

Section 1.7. "Conversion Shares" shall mean the shares of Common Stock issuable
upon conversion of the Convertible Debentures and any shares issuable as
interest upon the Convertible Debentures.

Section 1.8. "Convertible Debenture(s)" shall mean the 8% Senior Secured
Convertible Debenture(s) due 365 calendar days from their date of issuance, in
the form of Exhibit A hereto.

Section 1.9. "Damages" shall mean any loss, claim, damage, judgment, penalty,
deficiency, liability, costs and expenses (including, without limitation,
reasonable attorneys' fees and disbursements and reasonable costs and expenses
of expert witnesses and investigation).

Section 1.10. "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 1.11. "Escrow Agent" shall have the meaning set forth in the Escrow
Agreement.

Section 1.12. "Escrow Agreement" shall mean the Escrow Agreement in
substantially the form of Exhibit C hereto executed and delivered
contemporaneously with this Agreement.

Section 1.13. "Equity Line" shall have the meaning set forth in Section 6.9
herein.

Section 1.14. "Exchange Act" shall mean the Securities Exchange Act of 1934, as
amended, and the rules and regulations promulgated thereunder.

                                       2
<PAGE>

Section 1.15.     "Legend" shall mean the legend set forth in Section 9.1.

Section 1.16. "Material Adverse Effect" shall mean any effect on the business,
operations, properties, stock price or financial condition of the Company that
is material and adverse to the Company and its subsidiaries and affiliates,
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 Convertible Debentures, the Warrants or the Escrow Agreement in any material
respect.

Section 1.17. "Maturity Date" shall mean the date on which the outstanding
principle amount and any accrued but unpaid interest of the Convertible
Debentures are due and payable as set forth in the Convertible Debenture.

Section 1.18. "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 1.19. "Person" shall mean an individual, a corporation, a partnership, a
limited liability company, an association, a trust or other entity or
organization, including a government or political subdivision or an agency or
instrumentality thereof.

Section 1.20. "Principal Market" shall initially mean the OTC Bulletin Board and
shall also include the American Stock Exchange, the New York Stock Exchange, or
the NASDAQ National Market and the NASDAQ Small-Cap Market, whichever is at the
time the principal trading exchange or market for the Common Stock, based upon
share volume.

Section 1.21. "Purchase Price" shall mean the face principal amount of the
Convertible Debentures.

Section 1.22. "Registrable Securities" shall mean 200% of the Conversion Shares
and the Warrant Shares until the earlier of the date that (i) the Registration
Statement has been declared effective by the SEC, and all Conversion Shares and
Warrant Shares have been disposed of pursuant to the Registration Statement,
(ii) all Conversion 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 Conversion 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 Conversion 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.

                                       3
<PAGE>

Section 1.23. "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 Investors, on the date
hereof in the form annexed hereto as Exhibit B.

Section 1.24. "Registration Statement" shall mean a registration statement on
Form S-1 (if use of such form is then available to the Company pursuant to the
rules of the SEC and, if not, 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 Investors of the Registrable Securities under
the Securities Act.

Section 1.25. "Regulation D" shall have the meaning set forth in the recitals of
this Agreement.

Section 1.26. "SEC" shall mean the Securities and Exchange Commission.

Section 1.27. "SEC Documents" shall mean the Company's latest Form 10-K or
10-KSB as of the time in question, all Forms 10-Q or 10-QSB and 8-K filed
thereafter, all registration statements filed as of the time in question, 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.

Section 1.28. "Section 4(2)" and "Section 4(6)" shall have the meanings set
forth in the recitals of this Agreement.

Section 1.29. "Securities Act" shall have the meaning as set forth in the
recitals of this Agreement.

Section 1.30. "Security Documents" shall mean the Security Agreement in the form
of Exhibit G hereto and receipt of filings of all UCC-1 and similar financing
statements required to perfect the Investor's security interest, each which have
been executed by the Company or any of its direct or indirect subsidiaries in
favor of the Investors in connection therewith.

Section 1.31. "Shares" shall have the meaning set forth in the definition of
"Outstanding" herein.

Section 1.32. "Side Letters" shall have the meaning set forth in Section
2.1(b)(xii) herein.

Section 1.33. "Trading Day" shall mean any day during which the Principal Market
shall be open for business.

                                       4
<PAGE>

Section 1.34. "Warrants" shall mean the Warrants set forth in Section 2.2,
substantially in the form of Exhibit E hereto, to be issued to the Investors
pro-rata hereunder.

Section 1.35. "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 Convertible Debentures and Warrants

Section 2.1.

     (a)  Investment.

          (i)    Purchase. 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, in the aggregate,
                 $750,000 principal amount of Convertible Debentures. Each
                 Investor shall deliver to the Escrow Agent immediately
                 available funds in their proportionate amount of the Purchase
                 Price as set forth on the signature pages hereto, and the
                 Company shall deliver the Convertible Debentures evidencing
                 said principal sum and the Warrants to the Escrow Agent, in
                 each case to be held by the Escrow Agent pursuant to the Escrow
                 Agreement.

          (ii)   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 time the Escrow Agent (x) shall release
                 the Convertible Debentures 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 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;

          (ii)   delivery into escrow by each Investor of immediately available
                 funds in their proportionate amount of Purchase Price;

          (iii)  all representations and warranties of the Investors contained
                 herein shall remain true and correct as of the Closing Date;

          (iv)   all representations and warranties of the Company contained
                 herein shall remain true and correct as of the Closing Date;

                                       5
<PAGE>

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

          (vi)   the sale and issuance of the Convertible Debentures and the
                 Warrants hereunder, and the proposed issuance by the Company to
                 the Investors of the Common Stock underlying the Convertible
                 Debentures and 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 Convertible Debentures
                 and Warrants certificates to the Escrow Agent;

          (viii) delivery to the Escrow Agent of an opinion of Foley & Lardner,
                 counsel to the Company, in the form of Exhibit D hereto;

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

          (x)    there shall have been no Material Adverse Effect with respect
                 to the Company since the date hereof;

          (xi)   delivery to the Escrow Agent of the Security Documents;

          (xii)  original executed side letters from the Company to the
                 Investors (A) permanently removing the conversion price floor
                 to the 4% Convertible Debentures of the Company issued to the
                 Esquire Trading & Finance, Inc., AMRO International, S.A.,
                 Celeste Trust Reg., The Endeavor Capital Fund, S.A., The Keshet
                 Fund, L.P., Keshet, L.P. and Nesher, LTD (the "Prior
                 Investors") pursuant to that certain Securities Purchase
                 Agreement (the "Securities Agreement"), dated April 14, 2000,
                 between the Prior Investors and the Company, and (B)
                 permanently lowering the exercise price of the warrants issued
                 to the Prior Investors and the placement agent thereto pursuant
                 to the Securities Agreement to 115% of the Bid Price on the
                 date immediately preceding the Closing Date (the "Side
                 Letters"); and

          (xiii) delivery to the Escrow Agent of the Registration Rights
                 Agreement.

Section 2.2. Warrants. At the Closing, the Company shall issue to each Investor
a warrant certificate to purchase up to 50,000 shares of Common Stock (or
portion thereof) for each $100,000 principal amount of Convertible Debenture (or
portion thereof) purchased by such Investor The exercise price of the Warrants
shall be 115% of the average of the five (5) Bid Prices immediately prior to the
Closing Date. The Warrants shall be exercisable for a period of three (3) years
beginning on the Closing Date. The shares of Common Stock underlying the

                                       6
<PAGE>

Warrants shall be registered for resale on the Registration Statement for resale
by the Investors pursuant to the Registration Rights Agreement.

Section 2.3. Liquidated Damages. The parties hereto acknowledge and agree that
the sums payable pursuant to this Agreement, the Registration Rights Agreement
and the Convertible Debentures shall constitute liquidated damages and not
penalties. The parties further acknowledge that a breach by either party of this
Agreement or exhibits hereto, (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 agreements 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 of the Company to timely cause the
registration of the Registrable Securities or to deliver stock certificates upon
any conversion, and (c) the parties are sophisticated businesses and have been
represented by sophisticated and able legal and financial counsel and negotiated
this Agreement at arm's length.

                                  ARTICLE III

                 Representations and Warranties of Each Investor

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

Section 3.1. Organization. The Investor is duly organized, validly existing and
in good standing under the laws of its jurisdiction of organization.

Section 3.2. 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 Convertible Debenture, and the Warrants
or any Conversion Shares or Warrant Shares 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 Conversion Shares and Warrant Shares at any
time in accordance with federal and state securities laws applicable to such
disposition.

Section 3.3. 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 Convertible Debentures, the Warrants
and the underlying Common Stock. The Investor has been represented by counsel of
its choice. The Investor acknowledges that an investment in the Convertible
Debentures and the Warrants and the underlying Common Stock is speculative and
involves a high degree of risk.

Section 3.4. Authority. This Agreement and each agreement attached as an Exhibit
hereto which is required to be executed by the Investor has been duly authorized
and validly executed

                                       7
<PAGE>

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 3.5. 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 3.6. 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 the Investor or (a)
violate any provision of any indenture, instrument or agreement to which the
Investor is a party or is subject, or by which the 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 the 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 the Investor is
subject or to which any of its assets, operations or management may be subject.

Section 3.7. 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 3.8. 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
on the SEC Documents or on the Disclosure Schedule prepared by the Company and
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 Nevada
and has all requisite corporate authority to own its properties and to carry on
its business as now being conducted. Except as set forth on the Disclosure
Schedules, the Company does not have any subsidiaries, and does not own more
that fifty percent (50%) of or control any other business entity. The

                                       8
<PAGE>

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. (a) The Company has the requisite corporate power and
corporate authority to conduct its business as now conducted, to enter into and
perform its obligations under this Agreement, the Registration Rights Agreement,
the Escrow Agreement and the Warrants, and to issue the Convertible Debentures,
the Conversion Shares, the Warrants and the Warrant Shares pursuant to their
respective terms, (b) the execution, issuance and delivery of this Agreement,
the Registration Rights Agreement, the Escrow Agreement, the Convertible
Debentures 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 (c) this Agreement, the
Registration Rights Agreement, the Escrow Agreement, the Warrants and the
Convertible Debentures have been duly executed and delivered by the Company and
at the 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 the conversion of the Convertible
Debentures and the exercise of the Warrants. The Company understands and
acknowledges the potentially dilutive effect to the Common Stock of the issuance
of the Conversion Shares and Warrant Shares. The Company further acknowledges
that its obligation to issue Conversion Shares and Warrant Shares upon
conversion of the Convertible Debentures and Warrant Shares upon exercise of the
Warrants in accordance with this Agreement and the Convertible Debentures is
absolute and unconditional regardless of the dilutive effect that such issuance
may have on the ownership interests of other stockholders of the Company and
notwithstanding the commencement of any case under 11 U.S.C. ss. 101 et seq.
(the "Bankruptcy Code"). The Company shall not seek judicial relief from its
obligations hereunder except pursuant to the Bankruptcy Code. In the event the
Company is a debtor under the Bankruptcy Code, the Company hereby waives to the
fullest extent permitted any rights to relief it may have under 11 U.S.C. ss.
362 in respect of the conversion of the Convertible Debentures and the exercise
of the Warrants. The Company agrees, without cost or expense to the Investors,
to take or consent to any and all action necessary to effectuate relief under 11
U.S.C. ss. 362.

Section 4.3. Capitalization. The authorized capital stock of the Company
consists of 300,000,000 shares of Common Stock of which 89,417,795 shares are
issued and outstanding, and no shares of preferred stock are issued and
outstanding. Except as set forth in any of the Company's SEC Documents or
Schedule 4.3, there are no outstanding Capital Shares Equivalents nor any
agreements or understandings pursuant to which any Capital Shares Equivalents
may become outstanding. The Company is not 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 and have been issued

                                       9
<PAGE>

pursuant to valid exemptions from registration under the Securities Act and all
applicable state "blue sky" laws.

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, and such Common Stock is currently listed or quoted on, the Principal
Market. As of the date hereof, 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 on the Principal
Market.

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, the SEC Documents
complied in all material respects with the requirements of the Exchange Act, and
rules and regulations of the SEC promulgated thereunder and 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. 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 (a) as may be otherwise indicated in such financial
statements or the notes thereto or (b) 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.

Section 4.6. Exemption from Registration; Valid Issuances. Subject to the
accuracy of the Investors' representations in Article III, the sale of the
Convertible Debentures and the Conversion Shares, the Warrants and Warrant
Shares will not require registration under the Securities Act and/or any
applicable state securities law. When validly converted in accordance with the
terms of the Convertible Debentures, the Conversion Shares, the Warrants and
Warrant Shares will be duly and validly issued, fully paid, and non-assessable.
Neither the sales of the Convertible Debentures, the Conversion Shares, the
Warrants and Warrant Shares pursuant to,

                                       10
<PAGE>

nor the Company's performance of its obligations under, this Agreement, the
Registration Rights Agreement, the Escrow Agreement or the Convertible
Debentures and the Warrants will (a) result in the creation or imposition by the
Company of any liens, charges, claims or other encumbrances upon the Convertible
Debentures, the Warrants or the Conversion Shares and Warrant Shares or, except
as contemplated herein, any of the assets of the Company, or (b) 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
Convertible Debentures, the Warrants and the Conversion Shares and 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 (a) 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 Convertible
Debentures or the Warrants, or (b) 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 Convertible Debentures or the Conversion Shares and
the Warrants and 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 and payment of
interest upon the Convertible Debentures, Warrants and the Conversion Shares and
Warrant Shares, do not and will not (a) result in a violation of the Company's
Certificate of Incorporation or By-Laws or (b) 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 Convertible Debentures 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 the 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.

                                       11
<PAGE>

Section 4.9. No Material Adverse Change. Except as set forth in Schedule 4.9 or
the SEC Documents, since the date of the financial statement contained in the
Company's most recently filed Form 10-Q (or Form 10-QSB) or Form 10-K (or Form
10-KSB), no Material Adverse Effect has occurred or exists with respect to the
Company. No material supplier has given notice, oral or written, that it intends
to cease or reduce the volume of its business with the Company from historical
levels.

Section 4.10. No Undisclosed Events or Circumstances. Except as set forth in
Schedule 4.10 or the SEC Documents, since the date of the financial statement
contained in the Company's most recently filed Form 10-Q (or Form 10-QSB) or
Form 10-K (or Form 10-KSB), no event or circumstance has occurred or exists with
respect to the Company or its businesses, properties, prospects, operations or
financial condition, that, under any 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 writing to
the Investors.

Section 4.11. No Integrated Offering. Except as set forth in the SEC Documents,
and other than pursuant to an effective registration statement under the
Securities Act, or pursuant to the issuance or exercise of employee stock
options or in connection with certain acquisitions, or pursuant to its
discussion with the Investors in connection with the transactions contemplated
hereby, the Company has not issued, offered or sold the Convertible Debentures,
the Warrants or any shares of Common Stock (including for this purpose any
securities of the same or a similar class as the Convertible Debentures,
Warrants or Common Stock, or any securities convertible into a exchangeable or
exercisable for the Convertible Debentures or Common Stock or any such other
securities) 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 Convertible Debentures or shares of Common Stock),
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
Convertible Debentures (and the Conversion Shares) and the Warrants (and the
Warrant Shares) as contemplated by this Agreement.

Section 4.12. Litigation and Other Proceedings. Except as set forth in SEC
Documents or Schedule 4.12, 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. 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 Convertible Debentures 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

                                       12
<PAGE>

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 (a) if disclosed, would
reasonably be expected to have a material effect on the price of the Common
Stock, or (b) 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, as necessary to conduct
its business, 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.

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 have been prepared in compliance with all applicable
          laws; the Company has paid all Taxes due and owing by it or any
          subsidiary (whether or not such Taxes are required to be shown on a
          Tax Return) and 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, 1999, the charges, accruals and
          reserves for Taxes with respect to the Company (including any
          provisions for deferred income taxes) reflected on the books of the
          Company are adequate to cover any Tax liabilities of the Company if
          its current tax year were treated as ending on the date hereof.

     (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, to the Company's knowledge, 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 (ii) has not executed or entered into a closing
          agreement pursuant toss. 7121 of the Internal Revenue Code or any
          predecessor provision thereof or any similar provision of state, local
          or foreign law; or (ii) has not agreed to or is required to make any
          adjustments pursuant toss. 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

                                       13
<PAGE>

          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 ofss. 897(c)(2)
          of the Internal Revenue Code during the applicable period specified
          inss. 897(c)(1)(A)(ii) of the Internal Revenue Code.

     (c)  The Company has not made an election under ss. 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 (i) Treas. Reg.
          ss. 1.1502-6 (or comparable provisions of state, local or foreign
          law), (ii) as a transferee or successor, (iii) by contract or
          indemnity or (iv) otherwise. The Company is not a party to any tax
          sharing agreement. The Company has not made any payments, is not
          obligated to make payments nor is it a party to an agreement that
          could obligate it to make any payments that would not be deductible
          under ss. 280G of the Internal Revenue Code.

     (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 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 and buildings by the Company. The Company's present facilities are
adequate for the Company's reasonably foreseeable needs.

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

                                       14
<PAGE>

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, 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. 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. Internal Controls and Procedures. The Company maintains books and
records and internal accounting controls which provide reasonable assurance that
(a) 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; (b)
the recorded accounting of the Company's consolidated assets is compared with
existing assets at regular intervals; (c) access to the Company's consolidated
assets is permitted only in accordance with management's authorization; and (d)
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 4.20. Payments and Contributions. Neither the Company, any subsidiary,
nor any of its directors, officers or, to its knowledge, other employees has (a)
used any Company funds for any unlawful contribution, endorsement, gift,
entertainment or other unlawful expense relating to political activity; (b) made
any direct or indirect unlawful payment of Company funds to any foreign or
domestic government official or employee; (c) violated or is in violation of any
provision of the Foreign Corrupt Practices Act of 1977, as amended; or (d) made
any bribe, rebate, payoff, influence payment, kickback or other similar payment
to any person with respect to Company matters.

Section 4.21. Permits and Licenses. The Company holds all necessary permits and
licenses to conduct its business as presently conducted. All of such permits and
licenses are in full force and effect and the Company is not in material
violation of any thereof.

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.

Section 4.23. Related Party Transactions. The Company is not a party to any
agreement or transaction with any of its officers, directors, greater than 5%
shareholders or any Affiliate (as defined in SEC Rule 405) of any of said
persons that would require disclosure under Item 404 of Regulation S-B that will
not be disclosed in the next Form 10-K (or Form 10-KSB), as amended.

                                       15
<PAGE>

                                   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.

Section 6.2. Reservation of Common Stock. On any date hereafter, in the event
the number of Shares reserved, as to any Investor, is less than 200% of the
Conversion Shares necessary to convert all of such Investor's Convertible
Debenture, based on the then Conversion Price, and Warrant Shares to exercise
all of such Investor's Warrant (the "Trigger Amount"), then the Company shall
have seven (7) calendar days from such date to increase the number of shares
reserved as to such Investor above the Trigger Amount, unless to do so the
Company must authorize additional shares, in which case the Company shall have
sixty (60) calendar days from such date to increase the number of shares
authorized and reserved as to such Investor above the Trigger Amount. Failure to
comply with the provisions of this Section 6.2 shall result in an immediate
default of the Convertible Debentures, notwithstanding the Company's right to
cure under the Convertible Debentures.

Section 6.3. Listing of Common Stock. The Company hereby agrees to maintain the
listing of the Common Stock on a Principal Market, and as soon as reasonably
practicable following the Closing to list the Conversion 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 Conversion 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 Conversion 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
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.

                                       16
<PAGE>

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 its best 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 Securities shall be free
of legends, except as set forth in Article IX. If the Transfer Agent or the
Investor's broker-dealer requires an opinion of counsel from the Company's
counsel pursuant to the Instructions to Transfer Agent attached hereto to issue
new certificates free of a legend to an Investor and Company's counsel fails to
deliver such opinion to the Transfer Agent within two (2) Trading Days from
receipt by Company's counsel of such a request from the Transfer Agent or the
Investor's broker-dealer, then the Company will pay such Investor, pro rata on a
weekly basis, as liquidated damages for such failure and not as a penalty, ten
percent (10%) per week of the market value of the Common Stock which would be
issuable upon conversion of such Investor's Convertible Debenture upon on any
date of determination 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 such 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, without the prior
written consent of the Investors, at any time after the date hereof, effect any
merger or consolidation of the Company with or into, or a transfer more than 50%
of the assets of the Company to, another entity (a "Consolidation Event").

Section 6.8. Issuance of Convertible Debentures and Warrants. The sale of the
Convertible Debentures, the Warrants and the issuance of the Conversion Shares
upon conversion and Warrant Shares upon the exercise of the Warrants of the
Convertible Debentures 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
as may be required to be made by the Company in connection with the sale of the
Securities to the Investors, and shall provide a copy thereof to the Investors
promptly after such filing.

Section 6.9. Future Financing. Until the Investors no longer hold any
Convertible Debentures, the Company agrees to (a) draw down the maximum amount
permitted under that certain Common Stock Purchase Agreement, dated January 26,
2001, by and between the Company and Grenville Finance Ltd. (the "Equity Line")
immediately after the effective date of the registration

                                       17
<PAGE>

statement registering for resale the Common Stock purchased pursuant to the
Equity Line until the Investors no longer holds any Convertible Debentures, (b)
not set the threshold price at more than 50% of the volume weighted average
price (as reported on Bloomberg Financial, L.P.) of the Common Stock during the
Trading Day immediately prior to the delivery of any draw down notice issued
pursuant to the Equity Line, and (c) at the election of each Investor, use all
of the net proceeds received pursuant to any equity financing (including any
proceeds received in connection with the Equity Line), to redeem all of such
Investor's Convertible Debentures pursuant to Section 5 of the Convertible
Debentures.

Section 6.10. Pro-Rata Redemption. Upon any redemption of any of the Convertible
Debentures, the Company shall offer such redemption pro-rata among all Investors
in proportion to their respective initial purchases of such securities pursuant
to this Agreement.

                                  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 the 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, unless such party had
actual knowledge of such breach or violation 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 (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

                                       18
<PAGE>

          (ii)   any failure by the Company to perform in any material respect
                 any of its material 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 or
                 their respective Affiliates, 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.

     (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 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. Notwithstanding anything to the contrary herein, the
          Investors shall be liable under this Section 7.2(b) for only that
          amount as does not exceed the net proceeds to such Investors 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"), 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): (a) the Indemnifying Party shall have agreed to pay such fees,
out-of-pocket costs and expenses, (b) 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 (c) the Indemnifying Party shall have failed to employ legal counsel
reasonably satisfactory to the

                                       19
<PAGE>

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 (a), (b) or (c)
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 (regardless of whether it is ultimately determined that
an indemnified party is not entitled to indemnification hereunder; provided,
that the Indemnifying Party may require such Indemnified Party to undertake to
reimburse all such fees and expenses to the extent it is finally judicially
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 Indemnified 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.

                                  ARTICLE VIII

                              Due Diligence Review

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, Nasdaq or other
filing, all SEC Documents and other proposed 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

                                       20
<PAGE>

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)  From and after the filing of the Registration Statement, 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)  The Company will 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. 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.

                                       21
<PAGE>

                                   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 F 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. After the Effective Date, in lieu of delivering physical
certificates representing the Common Stock issuable upon the conversion of, or
in lieu of interest payments on, the Convertible Debentures, the Company shall
cause its transfer agent to electronically transmit the Conversion Shares by
crediting the account of the Investor's prime broker with the Depository Trust
Company ("DTC") Fast Automated Securities Transfer program through its Deposit
Withdrawal Agent Commission ("DWAC") system no later than the applicable date of
delivery.

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.

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.

                                       22
<PAGE>

Section 9.5. Rule 144. Subject to the applicable securities laws, the Company
acknowledges and agrees that, for the purpose of calculating the holding period
of the Shares under Rule 144, the Conversion Shares shall be deemed to have been
acquired on the Closing Date.

                                   ARTICLE X

                                  Choice of Law

Section 10.1. Governing Law. 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. The Company and each of the Investors agree to
submit themselves to the in personam jurisdiction of the state and federal
courts situated within the Southern District of the State of New York with
regard to any controversy arising out of or relating to this Agreement. The
non-prevailing party to any dispute hereunder shall pay the expenses of the
prevailing party, including reasonable attorneys' fees, in connection with any
such dispute.

Section 10.2. Specific Enforcement. The Company acknowledges and agrees that
irreparable damage would occur in the event that any of the provisions of this
Agreement or any of the exhibits hereto were not performed in accordance with
their specific terms or were otherwise breached. It is accordingly agreed that
the Investors shall be entitled to an injunction or injunctions to prevent or
cure breaches of the provisions of this Agreement and to enforce specifically
the terms and provisions hereof or thereof, this being in addition to any other
remedy to which any of them may be entitled by law or equity. The prevailing
party in such injunctive action shall be entitled to its reasonable attorneys'
fees in connection with any such specific performance.

                                   ARTICLE XI

                                   Assignment

Section 11.1. Assignment. Neither this Agreement nor any rights of the the
Company hereunder may be assigned by the Company to any other person. The
provisions of this Agreement shall inure to the benefit of, and be enforceable
by, any permitted transferee of any of the Convertible Debentures and Warrants
purchased or acquired by any Investor hereunder with respect to the Convertible
Debentures and Warrants held by such person.

                                       23
<PAGE>

                                   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 (a) hand delivered, (b) deposited in
the mail, registered or certified, return receipt requested, postage prepaid,
(c) delivered by reputable air courier service with charges prepaid, or (d)
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:                    520 Third Street, Suite 101
                                      Oakland, CA 95607
                                      Attn: Douglas P. Hafer
                                      Tel: (510) 839-6100
                                      Fax:

With copies to:                       Foley & Lardner
(which shall not constitute           One Maritime Plaza, 6th Floor
notice)                               San Francisco, CA 94111
                                      Attn:
                                      Tel:  (415) 434-4484
                                      Fax:

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

with a copy to:                       Robert Charron, Esq.
(shall not constitute notice)         Epstein Becker & Green, P.C.
                                      250 Park Avenue
                                      New York, New York
                                      Tel.:  (212) 351-4500
                                      Fax:  (212) 661-0989

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

                                       24
<PAGE>

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 Convertible
Debentures, and 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. Reporting Entity for the Common Stock. The reporting entity relied
upon for the determination of the trading price or trading volume of the Common
Stock on any given Trading Day for the purposes of this Agreement shall be
Bloomberg Financial, L.P. or any successor thereto. The written mutual consent
of the Investors and the Company shall be required to employ any other reporting
entity.

Section 13.7. Replacement of Certificates. Upon (a) receipt of evidence
reasonably satisfactory to the Company of the loss, theft, destruction or
mutilation of a certificate representing the Convertible Debentures or any
Conversion Shares or Warrants or any Warrant Shares and (b) 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
or as may be required by the Company's Transfer Agent or (c) 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.

Section 13.8. 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 the
Investors as set forth in the Escrow Agreement.

                                       25
<PAGE>

Section 13.9. Finder's and Broker's Fees. 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 as set forth in the Escrow Agreement. 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 13.10. Publicity. The Company agrees that it will not issue any press
release or other public announcement, except as required by law, 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. No release shall
name the Investors or any of their respective affiliates, representatives,
members, agents, associates, employees, consultants, companies, subsidiaries,
businesses and/or entities or agents without their express consent.

              [THE REMAINDER OF THIS PAGE IS INTENTIONALLY BLANK.]

                                       26
<PAGE>

 [SIGNATURE PAGE OF WLGS CONVERTIBLE DEBENTURES AND WARRANTS PURCHASE AGREEMENT]

     IN WITNESS WHEREOF, the parties hereto have caused this Purchase Agreement
to be executed by the undersigned, thereunto duly authorized, as this __ day of
March, 2001.

                                      WORLD WIDE WIRELESS COMMUNICATIONS, INC.

                                      By:
                                         ---------------------------------------
                                          Douglas P. Haffer, President & CEO

                                      INVESTORS:

Address:                              SPLENDID ROCK HOLDINGS, LTD.
c/o Beacon Capital Management
Harbour House, 2nd Floor
Waterfront Drive                      By:
Road Town, Tortola                       ---------------------------------------
British Virgin Islands                    David Sims, Authorized Signatory
Fax: (284) 494-4090
Purchase Price: $262,500

Address:                              ALPHA CAPITAL AG
Lettstrasse 32
Furstentum 9490
Vaduz, Liechtenstein                  By:
Fax: 011-423 232 3196                    ---------------------------------------
Purchase Price: $226,000                  Konrad Ackermann, Authorized Signatory

Address:                              THE ENDEAVOUR CAPITAL
14/14 Divrea Chaim Street             MANAGEMENT FUND, S.A.
Jerusalem 94479 Israel                By:  Endeavour Management, Inc.
Fax: 011-972-2-5824443
Purchase Price: $186,500
                                      By:
                                         ---------------------------------------
                                          Shmuli Margulies, President

                                       27
<PAGE>

 [SIGNATURE PAGE OF WLGS CONVERTIBLE DEBENTURES AND WARRANTS PURCHASE AGREEMENT]

Address                               THE KESHET FUND, L.P.
C/o KCM, LLC
135 W. 50th Street
Suite 1700                            By:
New York, New York 10020                 ---------------------------------------
Fax:                                      Name:
Purchase Price: $75,000                   Title:

                                       28

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