Document:

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                                                                    EXHIBIT 10.1

                           THE 1999 STOCK OPTION PLAN
                                       OF
                          SIGHTSOUND.COM INCORPORATED

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                          THE 1999 STOCK OPTION PLAN
                         OF SIGHTSOUND.COM INCORPORATED

          SightSound.com Incorporated, a Pennsylvania corporation (the
"Company"), has adopted The 1999 Stock Option Plan of SightSound.com
Incorporated (the "Plan"), effective December 21, 1999, for the benefit
of its eligible employees and directors.

          The purpose of this Plan is to enable the Company to obtain and retain
the services of selected executives and other key employees ("Employees") and
directors considered essential to the long range success of the Company by
offering them an opportunity to own stock in the Company which will reflect the
growth, development and financial success of the Company.
<PAGE>

                                   ARTICLE I

                                  DEFINITIONS

          Whenever the following terms are used in this Plan they shall have the
meanings specified below, unless the context clearly indicates otherwise.

          1.01  Board.  "Board" shall mean the Board of Directors of the
                -----
Company.

          1.02  Change of Control.  "Change of Control" shall mean any of the
                -----------------
following:

                (a) the acquisition, after the date of the adoption of the Plan
by the Board, directly or indirectly, by any person, entity or "group" within
the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act (other than by
the Company or any of its Subsidiaries or any employee benefit plan of the
Company or any of its Subsidiaries) of beneficial ownership (within the meaning
of Rule 13d-3 promulgated under the Exchange Act) of 50% or more of either the
then-outstanding shares of Common Stock or the combined voting power of the
Company's then-outstanding voting securities entitled to vote generally in the
election of directors ("Voting Power"); except that, for purposes hereof, no
such person, entity or group shall be deemed to have acquired:

                    (i) any securities acquired by the Company or a Subsidiary
         or any employee benefit plan (or any related trust) of the Company or
         any Subsidiary,

                    (ii) any securities acquired pursuant to a benefit plan of
         the Company or a Subsidiary,

                    (iii) any securities issuable pursuant to an option, warrant
         or right owned by such person, entity or group as of the close of
         business on the business day immediately preceding the date of the
         adoption of the Plan by the Board,

                    (iv) any securities that were otherwise beneficially owned
         by such person, entity or group as of the close of business on the
         business day immediately preceding the date of the adoption of the Plan
         by the Board, and

                    (v)  any securities issued in connection with either:

                         (A) a stock split, stock dividend or similar
              recapitalization or reorganization with respect to shares owned
              immediately prior to the date of the adoption of the Plan by the
              Board, and

                         (B)  any shares covered by the foregoing exceptions;

                                      -2-
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               provided, however, that no Change of Control shall be deemed to
     have occurred solely by reason of any such acquisition by a corporation
     with respect to which, after such acquisition, more than 50% of both the
     then-outstanding common shares of such corporation and the Voting Power of
     such corporation are then- beneficially owned, directly or indirectly, by
     the persons who were the beneficial owners of the Stock and voting
     securities of the Company immediately before such acquisition in
     substantially the same proportions as their respective ownership,
     immediately before such acquisition, of the then-outstanding shares of
     Stock or the Voting Power of the Company, as the case may be; or

              (b)  The approval by the stockholders of the Company of:

                (i) a merger, reorganization or consolidation with respect to
         which persons who were the respective beneficial owners of the Stock
         and Voting Power of the Company immediately before such merger,
         reorganization or consolidation do not, immediately thereafter,
         beneficially own, directly or indirectly, more than 50% of,
         respectively, the then-outstanding common shares and the Voting Power
         of the corporation resulting from such merger, reorganization or
         consolidation,

                (ii) a liquidation or dissolution of the Company or,

                (iii) the sale or other disposition of all or substantially all
         of the assets of the Company; provided, however, that for the purposes
         of this subsection (b) the votes of all Section 16 Persons shall be
         disregarded in determining whether stockholder approval has been
         obtained.

              Notwithstanding the foregoing, (1) Change of Control shall be
deemed not to have occurred with respect to any Section 16 Person if such
Section 16 Person is, by agreement (written or otherwise), a participant on such
Section 16 Person's own behalf in a transaction which causes the Change of
Control to occur and (2) an IPO shall not be deemed to be a Change of Control.

          1.03  Code.  "Code" shall mean the Internal Revenue Code of 1986, as
                ----
amended from time to time.

          1.04  Committee.  "Committee" shall mean the Compensation Committee of
                ---------
the Board, or another committee of the Board, appointed as provided in Section
7.01.  In the absence of any Compensation Committee or other committee appointed
by the Board, "Committee" shall mean the members of the Board.

          The Chairman of the Board is authorized to implement decisions under
this Plan in behalf of the Board; provided, however, that the Chief Executive
Officer of the Company shall act in behalf of the Board in matters affecting the
Chairman as an Optionee under the Plan.

                                      -3-
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          1.05  Common Stock.  "Common Stock" shall mean the common stock of the
                ------------
Company, nominal par value per share, and any equity security of the Company
issued or authorized to be issued in the future, but excluding any preferred
stock and any warrants, options or other rights to purchase Common Stock.  Debt
securities of the Company convertible into Common Stock shall be deemed equity
securities of the Company.

          1.06  Company.  "Company" shall mean SightSound.com Incorporated, a
                -------
Pennsylvania corporation.

          1.07  Director.  "Director" shall mean a member of the Board.
                --------

          1.08  Disability.  "Disability" shall mean, for purposes of the
                ----------
exercise of an Incentive Stock Option after Termination of Employment, a
permanent and total disability within the meaning of Section 422(e)(3) of the
Code, and for all other purposes, a mental or physical condition which, in the
opinion of the Committee, renders an Optionee unable or incompetent to carry out
the job responsibilities which such Optionee held or the tasks to which such
Optionee was assigned at the time that the disability was incurred, which
condition is expected to be permanent or continues for a period of time of at
least one (1) year.

          1.09  Independent Director.  "Independent Director" shall mean a
                --------------------
member of the Board who is not an Employee of the Company.

          1.10  Employee.  "Employee" shall mean any officer or other employee
                --------
(as defined in accordance with Section 3401(c) of the Code) of the Company, or
of any corporation which is a Subsidiary.

          1.11  Exchange Act.  "Exchange Act" shall mean the Securities Exchange
                ------------
Act of 1934, as amended.

          1.12 Fair Market Value. "Fair Market Value" of a share of Common Stock
               -----------------
as of a given date shall be:

               (a) as of any applicable date (other than on the IPO Date):

                (i) the closing price of a share of Common Stock on the
         principal exchange on which shares of Common Stock are then trading, if
         any (or as reported on any composite index which includes such
         principal exchange), on the trading day previous to such date, or if
         shares were not traded on the trading day previous to such date, then
         on the next preceding date on which a trade occurred; or

                (ii) if Common Stock is not traded on an exchange but is quoted
         on NASDAQ or a successor quotation system, the mean between the closing
         representative bid and the asked prices for the Common Stock on the
         trading day previous to such date as reported by NASDAQ or such
         successor quotation system; or

                                      -4-
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                (iii) if Common Stock is not publicly traded on an exchange and
         not quoted on NASDAQ or a successor quotation system, the Fair Market
         Value of a share of Common Stock shall be established by the Committee
         acting in good faith.

              (b) as of the IPO Date, the price to the public pursuant to the
form of final prospectus used in connection with the IPO, as indicated on the
cover page of such prospectus or otherwise.

          1.13  Incentive Stock Option.  "Incentive Stock Option" shall mean an
                ----------------------
option which conforms to the applicable provisions of Section 422 of the Code
and which is designated as an Incentive Stock Option by the Committee.

          1.14  Involuntary Termination.  "Involuntary Termination" shall mean
                -----------------------
when either the employee-employer relationship or the Director-employer
relationship between an Optionee and the Company or any Subsidiary is terminated
by choice of the Company (and not the Optionee) and is not a Termination for
Cause.

          1.15  IPO.  "IPO" shall mean an initial public offering of Common
                ---
Stock.

          1.16  IPO Date.  "IPO Date" shall mean the effective date of the
                --------
underwriting agreement between the Company and the underwriters of the IPO.

          1.17  Non-Qualified Stock Option.  "Non-Qualified Stock Option" shall
                --------------------------
mean an Option which is not designated as an Incentive Stock Option by the
Committee.

          1.18  Option.  "Option" shall mean a stock option granted under
                ------
Article III of this Plan.  An Option granted under this Plan shall, as
determined by the Committee, be either a Non-Qualified Stock Option or an
Incentive Stock Option, provided, however, that Options granted to Independent
Directors shall be Non-Qualified Stock Options.

          1.19  Option Shares.  "Option Shares" shall mean shares of Common
                -------------
Stock acquired by Optionees through the exercise of Options under this Plan.

          1.20  Optionee.  "Optionee" shall mean an Employee or Independent
                --------
Director who is granted an Option under this Plan.

          1.21  Person.  "Person" shall mean a corporation, an association, a
                ------
partnership, a trust, a limited liability company, an organization, a business
or an individual.

          1.22  Plan.  "Plan" shall mean The 1999 Stock Option Plan of
                ----
SightSound.com Incorporated.

          1.23  Public Offering.  "Public Offering" shall mean the registration
                ---------------
of an offering of shares of at least ten million dollars ($10,000,000) of Common
Stock under the Securities Act which becomes effective (other than by a
registration on Form S-8 or any successor or similar forms).

                                      -5-
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          1.24  Related Person.  "Related Person" shall mean, in the event of a
                --------------
Person's death, such Person's executors, administrators, testamentary trustees,
legatees or beneficiaries or the executors, administrators, testamentary
trustees, legatees or beneficiaries of a Person who has become a holder of
Options or Option Shares in accordance with the terms of this Plan.;

          1.25  Rule 16b-3.  "Rule 16b-3" shall mean that certain Rule 16b-3
                ----------
under the Exchange Act, as such rule may be amended from time to time.

          1.26  Section 16 Person.  "Section 16 Person" means a person, whether
                -----------------
or not a Grantee, who is potentially subject to liability under Section 16(b) of
the Exchange Act with respect to transactions involving equity securities of the
Company, irrespective of whether such person was subject to such liability at
the time of the grant of any particular award.

          1.27  Securities Act.  "Securities Act" shall mean the Securities Act
                --------------
of 1933, as amended.

          1.28  Subsidiary.  "Subsidiary" shall mean any corporation in an
                ----------
unbroken chain of corporations beginning with the Company if each of the
corporations other than the last corporation in the unbroken chain then owns
stock possessing fifty percent (50%) or more of the total combined voting power
of all classes of stock in one (1) of the other corporations in such chain.

          1.29  Termination of Directorship.  "Termination of Directorship"
                ---------------------------
shall mean the time when an Optionee who is an Independent Director ceases to be
a Director for any reason, including, but not by way of limitation, a
termination by resignation, failure to be elected, death, Disability or
retirement.  The Board, in its sole and absolute discretion, shall determine the
effect of all matters and questions relating to Termination of Directorship with
respect to Independent Directors.

          1.30  Termination of Employment.  "Termination of Employment" shall
                -------------------------
mean the time when the employee-employer relationship between an Optionee and
the Company or any Subsidiary is terminated for any reason, with or without
cause, including, but not by way of limitation, a termination by resignation,
discharge, death, Disability or retirement; but excluding

                (a) terminations where there is a simultaneous reemployment or
continuing employment of an Optionee by the Company or any Subsidiary in a
similarly responsible position,

                (b) at the discretion of the Committee, terminations which
result in a temporary severance of the employee-employer relationship, and

                (c) at the discretion of the Committee, terminations which are
followed by the simultaneous establishment of a consulting relationship by the
Company or a Subsidiary with the former employee which is satisfactory to the
Employee.

                                      -6-
<PAGE>

          The Committee, in its absolute discretion, shall determine the effect
of all matters and the questions relating to Termination of Employment,
including, but not by way of limitation, the question of whether a Termination
of Employment is a Termination for Cause, or an Involuntary Termination and all
questions of whether particular leaves of absence constitute Terminations of
Employment; provided, however, that unless otherwise determined by the Committee
in its discretion, a leave of absence, change in status from an employee to an
independent contractor or other change in the employee-employer relationship
shall constitute a Termination of Employment if, and to the extent that, such
leave of absence, change in status or other change interrupts employment for the
purposes of Section 422(a)(2) of the Code and the then applicable regulations
and revenue rulings under said Section.

          Notwithstanding any other provision of this Plan, the Company or any
Subsidiary has an absolute and unrestricted right to terminate an Employee's
employment at any time for any reason whatsoever, with or without cause, except
to the extent expressly provided otherwise in writing.

          1.31  Termination for Cause.  "Termination for Cause" shall mean the
                ---------------------
time when either the employee-employer relationship or the Director-employer
relationship between an Optionee and the Company or any Subsidiary is terminated
on account of:

               (a)  conviction of the Optionee of a felony;

               (b) the violations by the Optionee of policies of the Company or
a Subsidiary;

               (c) the gross negligence by the Optionee in the performance of
the Optionee's duties to the Company or a Subsidiary;

               (d) engaging in any activity in competition with the Company; or

               (e) the willful and intentional action or omission to act in
connection with the Optionee's duties to the Company or a Subsidiary resulting,
in the opinion of the Committee, in injury to the Company or a Subsidiary.

                                      -7-
<PAGE>

                                   ARTICLE II

                             SHARES SUBJECT TO PLAN

          2.01 Shares Subject to Plan.  The shares of stock subject to Options
               ----------------------
shall be Common Stock.  The aggregate number of such shares for which Options
may be granted under the Plan shall not exceed:

          .     3,000,000 for the 1999 calendar year, and
          .     500,000 per calendar year for calendar years 2000 through 2009.

          To the extent that the above limit is not used entirely for a
particular calendar year, the unused portion of the limit may be carried over
and added to the 500,000 share limit that would otherwise apply to any one of
the succeeding calendar years 2000 through 2009.

          Furthermore, if and to the extent that an Option shall expire or
terminate for any reason without having been exercised in full, or shall be
forfeited, without, in either case, the Optionee having enjoyed any of the
benefits of stock ownership (other than dividends that are likewise forfeited or
voting rights), the number of shares of Common Stock associated with such Option
shall be added to the 500,000 share limit otherwise applicable for any future
calendar year 2000 through 2009.

          The shares of Common Stock of the Company issuable upon exercise of
such options may be either previously authorized but unissued shares or treasury
shares.  The limits under this section shall be adjusted pursuant to Section
8.03.

          No Options may be granted after the date of the tenth (10th)
anniversary of the adoption of this Plan by the Board (or by the Company
shareholders, if earlier).

                                      -8-
<PAGE>

                                  ARTICLE III

                              GRANTING OF OPTIONS

          3.01 Eligibility.  Any Employee or Independent Director selected by
               -----------
the Committee (or the Board in the case of Options granted to Independent
Directors) pursuant to Section 3.04(a)(i) shall be eligible to be granted an
Option.

          3.02 Disqualification for Stock Ownership.  No person may be granted
               ------------------------------------
an Incentive Stock Option under this Plan if such person, at the time the
Incentive Stock Option is granted, owns stock possessing more than ten percent
(10%) of the total combined voting power of all classes of issued and
outstanding stock of the Company or any then existing Subsidiary (in accordance
with the principles of Section 422 of the Code) unless such Incentive Stock
Option conforms to the applicable provisions of Section 422 of the Code.

          3.03 Qualification of Incentive Stock Options.  No Incentive Stock
               ----------------------------------------
Options shall be granted to any person who is not an Employee.

          3.04  Granting of Options.
                -------------------

          (a) Subject to Sections 3.02 and 3.03, the Committee (or the Board in
the case of Options granted to Independent Directors) shall from time to time,
in its absolute discretion, and subject to applicable limitations of this Plan:

              (i) Determine which Employees and Independent Directors should be
     granted Options;

              (ii) Determine the number of shares to be subject to such Options
     granted to the selected Employees and Independent Directors;

              (iii)    Subject to Section 3.02, determine whether such Options
     are to be Incentive Stock Options or Non-Qualified Stock Options and
     whether such Options are to qualify as performance-based compensation as
     described in Section 162(m)(4)(C) of the Code; and

              (iv) Determine the terms and conditions of such Options,
     consistent with this Plan; provided, however, that the terms and conditions
     of Options intended to qualify as performance-based compensation as
     described in Section 162(m)(4)(C) of the Code shall include, but not be
     limited to, such terms and conditions as may be necessary to meet the
     applicable provisions of Section 162(m) of the Code.

          (b) The Committee (or the Board in the case of Options granted to
Independent Directors) may, in its discretion and on such terms as it deems
appropriate, require as a condition on the grant of an Option to an Employee or
Independent Director that such Employee or Independent Director surrender for
cancellation some or all of the unexercised

                                      -9-
<PAGE>

Options or other rights which have been previously granted to such Employee or
Independent Director under this Plan or otherwise. An Option, the grant of which
is conditioned upon such surrender, may have an option price lower (or higher)
than the exercise price of such surrendered Option or other award, may cover the
same (or a lesser or greater) number of shares as such surrendered Option or
other award, may contain such other terms as the Committee (or the Board in the
case of Options granted to Independent Directors) deems appropriate, and shall
be exercisable in accordance with its terms, without regard to the number of
shares, price, exercise period or any other term or condition of such
surrendered Option or other award.

          (c) Any Incentive Stock Option granted under this Plan may be modified
by the Committee with the consent of the Employee to disqualify such option for
treatment as an "Incentive Stock Option" under Section 422 of the Code.

                                      -10-
<PAGE>

                                   ARTICLE IV

                                TERMS OF OPTIONS

          4.01 Option Agreement.  Each Option shall be evidenced by a written
               ----------------
Stock Option Agreement, which shall be executed by the Optionee and an
authorized officer of the Company and which shall contain such terms and
conditions as the Committee (or the Board in the case of Options granted to
Independent Directors) shall determine, consistent with this Plan.  Stock Option
Agreements evidencing Options intended to qualify as performance-based
compensation as described in Section 162(m)(4)(C) of the Code shall contain such
terms and conditions as may be necessary to meet the applicable provisions of
Section 162(m) of the Code.  Stock Option Agreements evidencing Incentive Stock
Options shall contain such terms and conditions as may be necessary to meet the
applicable provisions of Section 422 of the Code.

          4.02 Option Price.  The price per share of the shares subject to each
               ------------
Option shall be set by the Committee (or the Board in the case of Options
granted to Independent Directors); provided, however, that:

          (a) In the case of Incentive Stock Options and Options intended to
qualify as performance-based compensation as described in Section 162(m)(4)(C)
of the Code, such price shall not be less than one hundred percent (100%) of the
Fair Market Value of a share of Common Stock on the date the Option is granted;
and

          (b) In the case of Incentive Stock Options granted to an individual
then owning (within the meaning of Section 424(d) of the Code) more than ten
percent (10%) of the total combined voting power of all classes of issued and
outstanding stock of the Company or any Subsidiary such price shall not be less
than one hundred and ten percent (110%) of the Fair Market Value of a share of
Common Stock on the date that the Option is granted.

          4.03 Option Term.  The term of the Option shall be set by the
               -----------
Committee (or the Board in the case of Options granted to Independent Directors)
in its discretion; provided, however, that:

          (a) No Option may have a term that extends beyond the expiration of
ten (10) years from the date the Option was granted;

          (b) In the case of Incentive Stock Options, the term shall not be more
than ten (10) years from the date the Incentive Stock Option is granted, or five
(5) years from such date if the Incentive Stock Option is granted to an
individual then owning (within the meaning of Section 424(d) of the Code) more
than ten percent (10%) of the total combined voting power of all classes of
issued and outstanding stock of the Company or any Subsidiary;

          (c) Except as limited by requirements of Section 422 of the Code and
regulations and rulings thereunder applicable to Incentive Stock Options, the
Committee (or the Board in the case of Options granted to Independent Directors)
may extend the term of any

                                      -11-
<PAGE>

outstanding Option in connection with any Termination of Directorship or
Termination of Employment of the Optionee, or amend any other term of condition
of such Option relating to such termination; and

          (d) In the event of an Optionee's Termination of Directorship or
Termination of Employment for any reason except Disability (as defined by
Section 22(e)(3) of the Code) or Termination for Cause, the Optionee shall have
up to three (3) months from the date of such Termination of Directorship or
Termination of Employment to exercise the Option, and in the event of an
Optionee's Termination of Directorship or Termination of Employment due to the
Optionee's Disability (as defined by Section 22(e)(3) of the Code), the Optionee
shall have up to one (1) year from the date of such Termination of Directorship
or Termination of Employment to exercise the Option.  Notwithstanding the
foregoing, if an Optionee's Termination of Directorship or Termination of
Employment also qualifies as a Termination for Cause, the Company, in its
discretion, may terminate the Optionee's right to exercise his or her Options on
the date of such termination or such other time as the Committee (or the Board
in the case of Options granted to Independent Directors), in its discretion,
shall deem appropriate.  Notwithstanding the foregoing, an Optionee's right to
exercise an Option shall cease if he engages in any activity in competition with
the Company.

          4.04  Option Vesting.
                --------------

          (a) The period during which the right to exercise an Option in whole
or in part vests in the Optionee shall be set by the Committee (or the Board in
the case of Options granted to Independent Directors) and the Committee (or the
Board in the case of Options granted to Independent Directors) may determine
that an Option may not be exercised in whole or in part for a specified period
after it is granted; provided, however, that, subject to Section 4.04(b):

              (i) each Option shall become exercisable no later than five (5)
     years after such Option is granted and such Option shall become exercisable
     with respect to at least twenty percent (20%) of the shares of Common Stock
     subject to such Option, as determined by the Committee (or the Board in the
     case of Options granted to Independent Directors) in its sole discretion,
     on each anniversary of the date of the grant of such option;

              (ii) unless the Committee (or the Board in the case of Options
     granted to Independent Directors) otherwise provides in the terms of the
     Stock Option Agreement or this Plan otherwise so dictates, no Option shall
     be exercisable by any Optionee who is then subject to Section 16 of the
     Exchange Act within the period ending six months and one day after the date
     the Option is granted;

              (iii) upon the occurrence of a Change of Control, each outstanding
     Option of a current Employee or Independent Director shall automatically
     become fully exercisable for all of the shares of Common Stock subject to
     such Option; and

                                      -12-
<PAGE>

              (iv) if an Employee or Independent Director has an Involuntary
     Termination or dies or has a Disability while employed by the Company or a
     Subsidiary, each outstanding Option of such Employee or Independent
     Director shall automatically become full exercisable for all of the shares
     of Common Stock subject to Such option.

          (b) No portion of an Option which is unexercisable at Termination of
Directorship or Termination of Employment shall thereafter become exercisable,
except as may be otherwise provided by the Committee (or the Board in the case
of Options granted to Independent Directors) either in the Stock Option
Agreement or by action of the Committee (or the Board in the case of Options
granted to Independent Directors) following the grant of the Option.

          (c) To the extent that the aggregate Fair Market Value of Common Stock
with respect to which "Incentive Stock Options" (within the meaning of Section
422 of the Code, but without regard to Section 422(d) of the Code) are
exercisable for the first time by an Optionee during any calendar year (under
the Plan and all other Incentive Stock Option plans of the Company and any
Subsidiary) exceeds $100,000, such Options shall be treated as Non-Qualified
Options to the extent required by Section 422 of the Code.  The rule set forth
in the preceding sentence shall be applied by taking Options into account in the
order in which they were granted.  For purposes of this Section 4.04(c), the
Fair Market Value of Common Stock shall be determined as of the time the Option
with respect to such Common Stock is granted.

                                      -13-
<PAGE>

                                   ARTICLE V

                              EXERCISE OF OPTIONS

          5.01 Partial Exercise.  An exercisable Option may be exercised in
               ----------------
whole or in part.  However, an Option shall not be exercisable with respect to
fractional shares and the Committee (or the Board in the case of Options granted
to Independent Directors) may require that, by the terms of the Option, a
partial exercise be with respect to a minimum number of shares.

          5.02 Manner of Exercise.  All or a portion of an exercisable Option
               ------------------
shall be deemed exercised upon delivery of all of the following to the Secretary
of the Company or such Secretary's office.

          (a) A written notice complying with the applicable rules established
by the Committee (or the Board in the case of Options granted to Independent
Directors) stating that the Option, or a portion thereof, is exercised.  The
notice shall be signed by the Optionee or other person then entitled to exercise
the Option or such portion;

          (b) Such representations and documents as the Committee (or the Board
in the case of Options granted to Independent Directors), in its absolute
discretion, deems necessary or advisable to effect compliance with all
applicable provisions of the Securities Act and any other federal or state
securities laws or regulations.  The Committee (or the Board in the case of
Options granted to Independent Directors) may, in its absolute discretion, also
take whatever additional actions it deems appropriate to effect such compliance
including, without limitation, placing legends on share certificates and issuing
stop-transfer notices to agents and registrars;

          (c) In the event that the Option shall be exercised pursuant to
Section 8.01 by any person or person other than the Optionee, appropriate proof
of right of such person or persons to exercise the Option; and

          (d) Full cash payment to the Secretary of the Company for the shares
and for payment of any applicable withholding or other applicable employment
taxes with respect to which the Option, or portion thereof, is exercised.
However, the Committee (or the Board in the case of Options granted to
Independent Directors), may in its discretion:

              (i) allow payment, in whole or in part, through the delivery of
     shares of Common Stock owned by the Optionee, duly endorsed for transfer to
     the Company with a Fair Market Value on the date of delivery equal to the
     aggregate exercise price of the Option or exercised portion thereof;

              (ii) allow payment, in whole or in part, through the surrender of
     shares of Common Stock then issuable upon exercise of the Option having a
     Fair Market Value on the date of Option exercise equal to the aggregate
     exercise price of the Option or exercised portion thereof;

                                      -14-
<PAGE>

              (iii) allow payment, in whole or in part, through the delivery of
     a notice that the Optionee has placed a market sell order with a broker
     with respect to shares of Common Stock then issuable upon exercise of the
     Option, and that the broker has been directed to pay a sufficient portion
     of the net proceeds of the sale to the Company in satisfaction of the
     Option exercise price and any applicable withholding or other employment
     taxes; or

              (iv) allow payment through any combination of the consideration
     provided in the foregoing paragraphs (i), (ii), or (iii).

          5.03 Conditions to Issuance of Stock Certificates.  The Company shall
               --------------------------------------------
not be required to issue or deliver any certificate or certificates for shares
of Common Stock purchased upon the exercise of any Option or portion thereof
prior to fulfillment of all of the following conditions:

          (a) the admission of such shares to listing on all stock exchanges, if
any, on which such class of stock is then listed;

          (b) the completion of any registration or other qualification of such
shares under any state or federal law, or under the rulings or regulations of
the Securities and Exchange Commission or any other governmental regulatory body
which the Committee or the Board shall, in its absolute discretion, deem
necessary or advisable;

          (c) the obtaining of any approval or other clearance from any state or
federal government agency which the Committee or the Board shall, in its
absolute discretion, determine to be necessary or advisable;

          (d) the lapse of such reasonable period of time following the exercise
of the Option as the Committee or the Board may establish from time to time for
reasons of administrative convenience; and

          (e) the receipt by the company of full payment for such shares,
including payment of any applicable withholding tax.

          5.04 Rights as Shareholders.  The holders of Options shall not be, nor
               ----------------------
have any of the rights or privileges of, shareholders of the Company in respect
of any shares purchasable upon the exercise of any part of an Option unless and
until certificates representing such shares have been issued by the Company to
such holders.

                                      -15-
<PAGE>

                                   ARTICLE VI

             RIGHTS AND RESTRICTIONS WITH RESPECT TO OPTION SHARES

          6.01 Transfer Restrictions.  No Optionee may transfer, assign, pledge
               ---------------------
or otherwise encumber any Option Shares except as expressly provided otherwise
in this Article VI and the corporate by-laws of the Company; provided, however,
that Option Shares may be transferred at any time to a Related Person, provided
that the Related Person agrees in writing to be bound by the terms of this Plan.
Also, the Optionee may transfer Option Shares as part of his or her estate
planning if and only if the Committee provides written approval of such
transfer.

          6.02 Lapse of Stock Restrictions and Rights.  The transfer
               --------------------------------------
restrictions set forth in Section 6.01 shall terminate and cease to be of any
further force or effect upon the completion of a Public Offering, or a series of
Public Offerings, which result in public ownership of Common Stock of the
Company possessing at least ten percent (10%) of the total combined voting power
of such Common Stock (or such lesser percentage as dictated by applicable
securities laws).

          6.03 Ownership and Transfer Restrictions.  The Committee (or the Board
               -----------------------------------
in the case of Options granted to Independent Directors), in its absolute
discretion, may impose additional restrictions on the ownership and
transferability of the Option Shares purchasable upon the exercise of an Option
as it deems appropriate.  Any such restriction shall be set forth in the
respective Stock Option Agreement and may be referred to on the certificates
evidencing such shares.

          6.04 Legend.  Each certificate representing Option Shares shall be
               ------
endorsed with the following legend, which legend shall be removed upon
termination of the stock restrictions set forth in this Article 6.  Also see the
last sentence of Section 6.05.

               THE SALE OR TRANSFER OF THE SECURITIES REPRESENTED BY THIS
               CERTIFICATE IS SUBJECT TO THE TERMS AND CONDITIONS OF THE
               CORPORATE BY-LAWS AND A CERTAIN 1999 STOCK OPTION PLAN OF
               SIGHTSOUND.COM. INCORPORATED.  COPIES OF THE CORPORATE BY-LAWS
               AND SUCH STOCK OPTION PLAN MAY BE OBTAINED UPON WRITTEN REQUEST
               TO THE SECRETARY OF THE CORPORATION.

          6.05  Disposition of Shares.  Notwithstanding and in addition to the
                ---------------------
foregoing, each Optionee shall be required to give the Company prompt notice of
any disposition of shares of Common Stock acquired by exercise of an Incentive
Stock Option either:

                (i) within two (2) years from date of granting such Option to
          such Optionee or

                                      -16-
<PAGE>

                (ii) within one (1) year after the transfer of such Option
         Shares to such Optionee.

          Certificates evidencing shares acquired by exercise of an Incentive
Stock Option shall refer to such requirement to give prompt notice of
disposition.

                                      -17-
<PAGE>

                                  ARTICLE VII

                                 ADMINISTRATION

          7.01 Committee.  Prior to the Company's initial registration of Common
               ---------
Stock under Section 12 of the Exchange Act, the Committee shall consist of the
entire Board, provided, however, that the Board does hereby appoint the
Compensation Committee (per Section 1.04) to administer this Plan as soon as
such committee has been created.  Following such registration, the Committee may
(if so decided by the Board) consist solely of two or more Independent Directors
appointed by and holding office at the pleasure of the Board, each of whom is
both a "non-employee director" as defined by Rule 16(b)-3 and an "outside
director" for purposes of Section 162(m) of the Code.  Appointment of Committee
members shall be effective upon acceptance of appointment.  Committee members
may resign at any time by delivering written notice to the Board.  Vacancies in
the Committee may be filled by the Board.

          7.02 Duties and Powers of Committee.  It shall be the duty of the
               ------------------------------
Committee to conduct the general administration of this Plan in accordance with
its provisions.  The Committee shall have the power to interpret this Plan and
the agreements pursuant to which Options are granted or awarded, and to adopt
such rules for the administration, interpretation, and application of this Plan
as are consistent therewith and to interpret, amend or revoke any such rules.
Notwithstanding the foregoing, the full Board, acting by a majority of its
members in office, shall conduct the general administration of the Plan with
respect to Options granted to Independent Directors.  Any such grant or award
under this Plan need not be the same with respect to each Optionee.  Any such
interpretations and rules with respect to Incentive Stock Options shall be
consistent with the provisions of Section 422 of the Code.  In its absolute
discretion, the Board may at any time and from time to time exercise any and all
rights and duties of the Committee under this Plan except with respect to
matters which under Rule 16b-3 or Section 162(m) of the Code, or any regulations
or rules issued thereunder, are required to be determined in the sole discretion
of the Committee.

          7.03 Majority Rule; Unanimous Written Consent.  The Committee shall
               ----------------------------------------
act by a majority of its members in attendance at a meeting at which a quorum is
present or by a memorandum or other written instrument signed by all members of
the Committee.

          7.04 Compensation; Professional Assistance; Good Faith Actions.
               ---------------------------------------------------------
Members of the Committee shall receive such compensation for their services as
members as may be determined by the Board.  All expenses and liabilities which
members of the Committee incur in connection with the administration of this
Plan shall be borne by the Company.  The Committee may, with the approval of the
Board, employ attorneys, consultants, accountants, appraisers, brokers, or other
persons.  The Committee, the Company and the Company's officers and Directors
shall be entitled to rely upon the advice, opinions or valuations of any such
persons.  All actions taken and all interpretations and determinations made by
the Committee or the Board in good faith shall be final and binding upon all
Optionees, the Company and all other interested persons.  No members of the
Committee or Board shall be personally liable for any actions, determinations or
interpretation made in good faith with respect to this Plan or Options,

                                      -18-
<PAGE>

and all members of the Committee and the Board shall be fully protected by the
Company in respect of any such action, determination or interpretation.

                                      -19-
<PAGE>

                                  ARTICLE VIII

                            MISCELLANEOUS PROVISIONS

          8.01 Not Transferable.  Options under this Plan shall be subject to
               ----------------
the corporate by-laws and may not be sold, pledged, assigned, or transferred in
any manner other than by will or the laws of descent and distribution unless and
until such options have been exercised, or the shares underlying such Options
have been issued, and all restrictions applicable to such shares have lapsed.
No Option or interest or right therein shall be liable for the debts, contracts
or engagements of the Optionee or the Optionee's successors in interest or shall
be subject to disposition by transfer, alienation, anticipation, pledge,
encumbrance, assignment or any other means whether such disposition be voluntary
or involuntary or by operation of law by judgment, levy, attachment, garnishment
or any other legal or equitable proceedings (including bankruptcy), and any
attempted disposition thereof shall be null and void and of no effect, except to
the extent that such disposition is permitted by the preceding sentence.

          During the lifetime of the Optionee, only such Optionee may exercise
an Option (or any portion thereof) granted to such Optionee under the Plan.
After the death of the Optionee, any exercisable portion of an Option may, prior
to the time when such portion becomes unexercisable under the Plan or the
applicable Stock Option Agreement or other agreement, be exercised by the
Optionee's personal representative or by any person empowered to do so under the
deceased Optionee's will or under the then applicable laws of descent and
distribution.

          8.02 Amendment, Suspension or Termination of this Plan.  Except as
               -------------------------------------------------
otherwise provided in this Section 8.02, this Plan may be wholly or partially
amended or otherwise modified, suspended or terminated at any time or from time
to time by the Board or the Committee; provided, however, that without approval
of the Company's shareholders given within twelve months before or after the
action by the Board or the Committee, no action of the Board or the Committee
may, except as provided in Section 8.03, increase the limits imposed in Section
2.01 on the maximum number of shares which may be issued under this Plan, and no
action of the Board or the Committee may be taken that would otherwise require
shareholder approval as a matter of applicable law, regulation or rule.  No
amendment, suspension or termination of this Plan shall, without the consent of
the holder of Options, alter or impair any rights or obligations under any
Options theretofore granted or awarded, unless the award itself otherwise
expressly so provides.  No Options may be granted or awarded during any period
of suspension or after termination of this Plan, and in no event may any
Incentive Stock Option be granted under this Plan after the first to occur of
the following events:

          (a) The expiration of ten (10) years from the date the Plan is adopted
by the Board; or

          (b) The expiration of ten (10) years from the date the Plan is
approved by the Company's shareholders under Section 8.04.

                                      -20-
<PAGE>

          8.03 Changes in Common Stock or Assets of the Company, Acquisition or
               ----------------------------------------------------------------
Liquidation of the Company and Other Corporate Events.
------------------------------------------------------

               (a)  Subject to Section 8.03(c)

                   (i) in the event that the Committee (or the Board in the case
     of Options granted to Independent Directors) determines that any dividend
     or other distribution (whether in the form of cash, Common Stock, other
     securities, or other property), recapitalization, reclassification,
     reorganization, merger, consolidation, split-up, spin-off, combination,
     repurchase, liquidation, dissolution, or sole, transfer, exchange or other
     disposition of all or substantially all of the assets of the Company, or
     exchange of Common Stock or other securities of the Company, issuance of
     warrants or other rights to purchase Common Stock or other securities of
     the Company, or other similar corporate transaction or event, in the
     Committee's sole discretion (or the Board in the case of Options granted to
     Independent Directors), affects the Common Stock such that an adjustment is
     determined by the Committee (or the Board in the case of Options granted to
     Independent Directors) to be appropriate in order to prevent dilution or
     enlargement of the benefits or potential benefits intended to be made
     available under the Plan or with respect to an Option, or

                   (ii) in the event of any stock split or reverse stock split,
     the Committee (or the Board in the case of Options granted to Independent
     Directors) shall, in such manner as it may deem equitable, adjust any or
     all of:

                        (A) the number and kind of shares of Common Stock (or
          other securities or property) with respect to which Options may be
          granted under the Plan, (including, but not limited to, adjustments of
          the limitations in Section 2.01 on the maximum number and kind of
          shares which may be issued),

                        (B) the number and kind of shares of Common Stock (or
          other securities or property) subject to outstanding Options, and

                        (C) the grant or exercise price with respect to any
Option.

          (b) Subject to Section 8.03(c) and 8.08, the Committee (or the Board
in the case of Options granted to Independent Directors) may, in its discretion,
include further provisions and limitations in any Option as it may deem
equitable and in the best interest of the Company.

          (c) With respect to Incentive Stock Options and Options intended to
qualify as performance-based compensation under Section 162(m), no adjustment or
action described in this Section 8.3 or in any other provision of the Plan shall
be authorized to the extent that such adjustment or action would cause the Plan
to violate Section 422(b)(1) of the Code or would cause such option to fail to
so qualify under Section 162(m), as the case may be, or any successor provisions
thereto. Furthermore, no such adjustment or action shall be authorized to the
extent such adjustment or action would result in short-swing profits liability
under Section 16 or violate

                                      -21-
<PAGE>

the exemptive conditions of Rule 16b-3 unless the Committee (or the Board in the
case of Options granted to Independent Directors) determines that the Option is
not to comply with such exemptive conditions. The number of shares of Common
Stock subject to any Option shall always be rounded to the next whole number.

          8.04 Approval of Plan by Shareholders.  This Plan will be submitted
               --------------------------------
for the approval of the Company's shareholders within twelve months after the
date of the Board's initial adoption of this Plan.  Options may be granted prior
to such shareholder approval, provided that such Options shall not be
exercisable prior to the time when this Plan is approved by the shareholders,
and provided further that if such approval has not been obtained at the end of
said twelve-month period, all Options previously granted under this Plan shall
thereupon be canceled and become null and void.

          8.05 Tax Withholding.  The Company shall be entitled to require
               ---------------
payment in cash or deduction from other compensation payable to each Optionee of
any sums required by federal, state or local tax law to be withheld with respect
to the issuance, vesting or exercise of any Option.  The Committee (or the Board
in the case of Options granted to Independent Directors) may in its discretion
and in satisfaction of the foregoing requirement allow such Optionee to elect to
have the Company withhold shares of Common Stock otherwise issuable under such
Option (or allow the return of shares of Common Stock) having a Fair Market
Value equal to the sums required to be withheld.

          8.06 Loans. The committee may, in its discretion, extend one (1) or
               -----
more loans to key Employees in connection with the exercise or receipt of an
Option granted under this Plan. The terms and conditions of any such loan shall
be set by the Committee (or the Board in the case of Options granted to
Independent Directors) who shall prescribe the form of any promissory note used
for this purpose and the security to be given for such note. The Option may not
be exercised, however, by delivery of a promissory note or by a loan from the
Company when or where such loan or other extension of credit is prohibited by
law.

          8.07  Forfeiture Provisions.  Pursuant to its general authority to
                ---------------------
determine the terms and conditions applicable to awards under the Plan, the
Committee (or the Board in the case of Options granted to Independent Directors)
shall have the right (to the extent consistent with the applicable exemptive
conditions of Rule 16b-3 and to the extent permitted under applicable state law)
to provide, in the terms of Options made under the Plan, or to require the
recipient to agree by separate written instrument, that

                (a) any proceeds, gains or other economic benefit actually or
constructively received by the recipient upon any receipt or exercise of an
Option, or upon the receipt or resale of any Common Stock underlying such Option
must be paid to the Company, and

                (b) the Option shall terminate and any unexercised portion of
such Option (whether or not vested) shall be forfeited, if

                                      -22-
<PAGE>

                    (i) a Termination of Directorship or Termination of
     Employment occurs prior to a specified date, or within a specified time
     period following receipt or exercise of the Option,

                    (ii) the recipient at any time, or during a specified time
     period, engages in any activity in competition with the Company, or which
     is adverse, contrary or harmful to the interests of the Company, as further
     defined by the Committee (or the Board in the case of Options granted to
     Independent Directors), or

                    (iii) the Optionee has a Termination for Cause at any time,
or during a specified time period.

          8.08 Limitation Applicable to Section 16 Persons and Performance-Based
               -----------------------------------------------------------------
Compensation.  Notwithstanding any other provision of this Plan, this Plan, and
------------
any Option granted to any individual who is then subject to Section 16 of the
Exchange Act, shall be subject to any additional limitations set forth in any
applicable exemptive rule under Section 16 of the Exchange Ace (including any
amendment to Rule 16b-3 of the Exchange Act) that are requirements for the
application of such exemptive rule.  To the extent permitted by applicable law,
the Plan and Options granted or awarded hereunder shall be deemed amended to the
extent necessary to conform to such applicable exemptive rule.  Furthermore,
notwithstanding any other provision of this Plan, any Option intended to qualify
as performance-based compensation as described in Section 162(m)(4)(C) of the
Code shall be subject to any additional limitations set forth in Section 162(m)
of the Code (including any amendment to Section 162(m) of the Code) or any
regulation or rulings issued thereunder that are requirements for qualification
as performance-based compensation as described in Section 162(m)(4)(C) of the
Code, and this Plan shall be deemed amended to the extent necessary to conform
to such requirements.

          8.09 Effect of Plan Upon Options and Compensation Plans. The adoption
               --------------------------------------------------
of this Plan shall not affect any other compensation or incentive plans in
effect for the Company or any Subsidiary. Nothing in this plan shall be
construed to limit the right of the Company

               (a) to establish any other forms of incentives or compensation
for Employees or Directors of the Company or any Subsidiary or

               (b) to grant or assume options or other rights otherwise than
under this Plan in connection with any proper corporate purpose including but
not by way of limitation, the grant or assumption of options in connection with
the acquisition of purchase, lease, merger, consolidation or otherwise of the
business, stock or assets of any corporation, partnership, limited liability
company, firm or association.

          8.10.  Compliance with Laws.  This Plan, the granting and vesting of
                 --------------------
Options under this Plan and the issuance and delivery of shares of Common Stock
and the payment of money under this Plan or under Options granted hereunder are
subject to compliance with all applicable federal and state laws, rules and
regulations (including but not limited to state and federal securities law and
federal margin requirements) and to such approvals by any listing, regulatory or
governmental authority as may, in the opinion of counsel for the company, be

                                      -23-
<PAGE>

necessary or advisable in connection therewith.  Any securities delivered under
this Plan shall be subject to such restrictions, and the person acquiring such
securities shall, if requested by the Company, provide such assurances and
representations to the Company as the Company may deem necessary or desirable to
assure compliance with all applicable legal requirements.  To the extent
permitted by applicable law, the Plan and Options granted or awarded hereunder
shall be deemed amended to the extent necessary to conform to such laws, rules
and regulations.

          8.11 Titles.  Titles are provided herein for convenience only and are
               ------
not to service as a basis for interpretation or construction of this Plan.

          8.12 Governing Law.  This Plan and any agreements hereunder shall be
               -------------
administered, interpreted and enforced under the internal laws of the
Commonwealth of Pennsylvania(or the laws of the state in which Company is
incorporated) without regard to conflicts of law thereof.

                                      -24-
<PAGE>

          I hereby certify that the foregoing Plan was duly adopted by the Board
of Directors of SightSound.com Inc. on December ____________, 1999.

          Executed on this ______________ day of ________________, _____.

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

                                    Secretary

plans\sightsound\stock option plan

                                      -25-<PAGE>

                                                                Exhibit 10.1

================================================================================

                        COMMON STOCK PURCHASE AGREEMENT

                                By and Between

                             WOLFPACK CORPORATION

                               (the "Purchaser")

                                      and

                       JETCO COMMUNICATIONS CORPORATION

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

                         Dated as of January 13, 2000

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

================================================================================
<PAGE>

                              TABLE OF CONTENTS
<TABLE>
<CAPTION>

                                                                           Page
                                                                           ----
<S>                                                                        <C>
Article I        Certain Definitions.....................................   1
Article II       Purchase of Common Stock................................   3
Article III      Representations and Warranties..........................   3
Article IV       Other Agreements of the Parties.........................   8
Article V        Defaults and Remedies...................................  10
Article VI       Conditions Precedent to Closing.........................  11
Article VII      Conditions Subsequent to Closing........................  12
Article VIII     Termination.............................................  12
Article IX       Legal Fees..............................................  13
Article X        Miscellaneous...........................................  13
</TABLE>

Schedule 3.1(a)  Subsidiaries
Schedule 3.1(c)  Capitalization
Schedule 3.1(f)  Required Consents and Approvals
Schedule 3.1(g)  Litigation

Appendix A       Notice of Exercise

                                       i
<PAGE>

          PURCHASE AGREEMENT, dated as of January 13, 2000 (this "Agreement"),
                                                                  ---------
by and between JetCo Communications Corporation, a Texas corporation (the
"Company"), with its principal office at 8111 LBJ Freeway, Suite 1100, Dallas
 -------
Texas 75251, and Wolfpack Corporation, a Delaware corporation, with its
principal office at 17 Glenwood Avenue, Raleigh, North Carolina 27603 (the
"Purchaser").

          WHEREAS, the Company desires to issue and sell to the Purchaser and
the Purchaser desires to acquire One Hundred Fifty Thousand (150,000) shares
(the "Shares") of the authorized but unissued common stock, $.001 par value per
share (the "Common Stock") of the Company.

          IN CONSIDERATION of the mutual covenants, promises and agreements set
forth herein and for good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the parties agree as follows:

                                   ARTICLE I

                              CERTAIN DEFINITIONS
                              -------------------

     Section 1.1. Certain Definitions. As used in this Agreement, and unless the
                  -------------------
context requires a different meaning, the following terms have the meanings
indicated:

          "Affiliate" means, with respect to any Person, any Person that,
           ---------
directly or indirectly, controls, is controlled by or is under common control
with such Person. For the purposes of this definition, "control" (including,
with correlative meanings, the terms "controlled by" and "under common control
                                      -------------       --------------------
with") shall mean the possession, directly or indirectly, of the power to direct
----
or cause the direction of the management and policies of such Person, whether
through the ownership of voting securities by contract or otherwise.

          "Business Day" means any day except Saturday, Sunday and any day which
           ------------
is a legal holiday or a day on which banking institutions in the state of New
York are authorized or required by law or other government actions to close,
between the hours of 9:30 a.m. and 6:00 p.m. New York Time.

          "Closing" shall have the meaning set forth in Section 2.1(b).
           -------                                      --------------

          "Closing Date" shall mean the date of Closing, as set forth in
           ------------
Section 2.1(b).

          "Code" means the Internal Revenue Code of 1986, as amended, and the
           ----
rules and regulations thereunder as in effect on the date hereof.

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

                                  Page 1 of 17
<PAGE>

          "Common Stock" means shares now or hereafter authorized of the class
           ------------
of Common Stock, $.001 par value, of the Company and stock of any other class
into which such shares may thereafter have been classified or changed.

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

          "Lien" means, with respect to any asset, any mortgage, lien, pledge,
           ----
encumbrance, charge or security interest of any kind in or on such asset or the
revenues or income thereon or therefrom.

          "Material" shall mean having a financial consequence in excess of
           --------
$100,000.

          "Material Adverse Effect" shall have the meaning set forth in Section
           -----------------------                                      -------
3.1(a).
------

          "NASD" means the National Association of Securities Dealers, Inc.
           ----

          "Per Share Consideration" shall have the meaning set forth in Section
           -----------------------                                      -------
2.1(a).
------

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

          "Purchase Price" shall have the meaning set forth in Section 2.1(a).
           --------------                                      --------------

          "Required Approvals" shall have the meaning set forth in Section
           ------------------                                      -------
3.1(f).
------

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

          "Subsidiaries" shall have the meaning set forth in Section 3.1(a).
           ------------                                      --------------

                                  Page 2 of 17
<PAGE>

                                  ARTICLE II

                           PURCHASE OF COMMON STOCK
                           ------------------------

     Section 2.1.  Purchase of Common Stock; Closing
                   ---------------------------------

          (a)  Subject to the terms and conditions herein set forth, the Company
shall issue and sell to the Purchaser, and the Purchaser shall purchase from the
Company on the Closing Date, One Hundred Fifty Thousand (150,000) Shares of
Common Stock, at a price per Share of US$1.00 (the "Per Share Consideration").
                                                    -----------------------
The Per Share Consideration multiplied by the number of Shares to be purchased
by the Purchasers hereunder is hereinafter referred to as the "Purchase Price. "
                                                               --------------
The total Purchase Price is $150,000.

          (b)  The closing of the purchase and sale of the Shares of Common
Stock (the "Closing") shall take place at the offices of the Company on or
            -------
before January 14, 2000. The date of the Closing is hereinafter referred to as
the "Closing Date".
     ------------

          (c)  At the Closing, (i) the Purchaser shall deliver to the Company
(A) US$150,000 of the Purchase Price as determined pursuant to this Article I in
                                                                    ---------
immediately available funds by wire transfer to an account designated in writing
by the Company prior to the Closing and (B) all documents, instruments and
writings required to have been delivered at or prior to Closing by the Purchaser
pursuant to this Agreement, and (ii) immediately upon receipt of the Purchase
Price, the Company shall deliver to the Purchaser Agent (A) certificates for One
Hundred Fifty Thousand (150,000) shares of Common Stock registered in the name
of the Purchaser (B) all documents, instruments and writings required to have
been delivered at or prior to Closing by the Company pursuant to this Agreement.

                                  ARTICLE III

                        REPRESENTATIONS AND WARRANTIES
                        ------------------------------

     3.1. Representations and Warranties of the Company. The Company hereby
          ---------------------------------------------
represents and warrants to the Purchaser as follows:

          (a)  Organization and Qualification. The Company is a corporation,
               ------------------------------
duly incorporated, validly existing and in good standing under the laws of the
jurisdiction of its incorporation, with the requisite corporate power and
authority to own and use its properties and assets and to carry on its business
as currently conducted. The Company has no subsidiaries other than as set forth
in Schedule 3.1(a) (collectively, the "Subsidiaries"). Each of the Subsidiaries
                                       ------------
is a corporation, duly incorporated, validly existing and in good standing under
the laws of the jurisdiction of its incorporation, with the full corporate power
and authority to own and use its

                                  Page 3 of 17
<PAGE>

properties and assets and to carry on its business as currently conducted. Each
of the Company and the Subsidiaries is duly qualified to do business and is in
good standing as a foreign corporation in each jurisdiction in which the nature
of the business conducted or property owned by it makes such qualification
necessary, except where the failure to be so qualified or in good standing, as
the case may be, could not reasonably be expected to have, individually or in
the aggregate, a material adverse effect on (a) the results of operations,
assets, prospects, or financial condition of the Company and the Subsidiaries,
or (b) the Purchaser's rights under this Agreement (a "Material Adverse
                                                       ----------------
Effect").
------

          (b)  Authorization; Enforcement. The Company has the requisite
               --------------------------
corporate power and authority to enter into and to consummate the transactions
contemplated hereby and otherwise to carry out its obligations hereunder and
thereunder. The execution and delivery of this Agreement by the Company and the
consummation by it of the transactions contemplated hereby and thereby have been
duly authorized by all necessary action on the part of the Company. This
Agreement has been duly executed and delivered by the Company and constitutes
the valid and binding obligation of the Company enforceable against the Company
in accordance with its terms, except as such enforceability may be limited by
applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or
similar laws relating to, or affecting generally the enforcement of, creditors'
rights and remedies or by other equitable principles of general application.

          (c)  Capitalization. The authorized, issued and outstanding capital
               --------------
stock of the Company and each of the Subsidiaries is set forth in Schedule
3.1(c). No shares of Common Stock are entitled to preemptive or similar rights.
Except as specifically disclosed in Schedule 3.1(c), there are no outstanding
options, warrants, script rights to subscribe to, calls or commitments of any
character whatsoever relating to, or, securities, rights or obligations
convertible into or exchangeable for, or giving any person any right to
subscribe for or acquire any shares of Common Stock, or contracts, commitments,
understandings, or arrangements by which the Company or any Subsidiary is or may
become bound to issue additional shares of Common Stock, or securities or rights
convertible or exchangeable into shares of Common Stock. Neither the Company nor
any Subsidiary is in violation of any of the provisions of its respective
certificate of incorporation, bylaws or other charter documents.

          (d)  Issuance of the Common Stock. The Shares of Common Stock have
               ----------------------------
been duly and validly authorized for issuance, offer and sale pursuant to this
Agreement and, when issued and delivered as provided hereunder against payment
in accordance with the terms hereof, shall be valid and binding obligations of
the Company enforceable in accordance with their terms. When issued in
accordance with the terms hereof, the Shares of Common Stock will be duly
authorized, validly issued, fully paid and nonassessable.

          (e)  No Conflicts. The execution, delivery and performance of this
               ------------
Agreement by the Company and the consummation by the Company of the transactions
contemplated hereby and thereby do not and will not (i) conflict with or violate
any provision of its certificate of incorporation or bylaws or (ii) subject to
obtaining the consents referred to in Section 3.1(f), conflict with, or

                                  Page 4 of 17
<PAGE>

constitute a default (or an event which with notice or lapse of time or both
would become a default) under, or give to others any rights of termination,
amendment, acceleration or cancellation of, any agreement, indenture or
instrument to which the Company is a party, or (iii) to the knowledge of the
Company result in a violation of any law, rule, regulation, order, judgment,
injunction, decree or other restriction of any court or governmental authority
to which the Company is subject (including Federal and state securities laws and
regulations), or by which any property or asset of the Company is bound or
affected, except in the case of each of clauses (ii) and (iii), such conflicts,
defaults, terminations, amendments, accelerations, cancellations and violations
as would not, individually or in the aggregate, have a Material Adverse Effect.
The business of the Company is not being conducted in violation of any law,
ordinance or regulation of any governmental authority, except for violations
which, individually or in the aggregate, do not have a Material Adverse Effect.

          (f)  Consents and Approvals. Except as specifically set forth in
               ----------------------
Schedule 3.1(f), neither the Company nor any Subsidiary is required to obtain
any consent, waiver, authorization or order of, or make any filing or
registration with, any court or other federal, state, local or other
governmental authority or other Person in connection with the execution,
delivery and performance by the Company of this Agreement, other than the making
of the applicable blue-sky filings under state securities laws, and other than,
in all cases, where the failure to obtain such consent, waiver, authorization or
order, or to give or make such notice or filing, would not materially impair or
delay the ability of the Company to effect the Closing and deliver to the
Purchaser the Shares of Common Stock free and clear of all Liens (collectively,
the "Required Approvals").
     ------------------

          (g)  Litigation; Proceedings. Except as specifically disclosed in
               -----------------------
Schedule 3.1(g), there is no action, suit, notice of violation, proceeding or
investigation pending or, to the best knowledge of the Company, threatened
against or affecting the Company or any of its Subsidiaries or any of their
respective properties before or by any court, governmental or administrative
agency or regulatory authority (Federal, State, county, local or foreign) which
(i) relates to or challenges the legality, validity or enforceability of this
Agreement or the Shares of Common Stock (ii) could, individually or in the
aggregate, have a Material Adverse Effect or (iii) could, individually or in the
aggregate, materially impair the ability of the Company to perform fully on a
timely basis its obligations under this Agreement.

          (h)  No Default or Violation. Neither the Company nor any Subsidiary
               -----------------------
(i) is in default under or in violation of any indenture, loan or credit
agreement or any other agreement or instrument to which it is a party or by
which it or any of its properties is bound, except such conflicts or defaults as
do not have a Material Adverse Effect, (ii) is in violation of any order of any
court, arbitrator or governmental body, except for such violations as do not
have a Material Adverse Effect, or (iii) is in violation of any statute, rule or
regulation of any governmental authority which could (individually or in the
aggregate) (x) adversely affect the legality, validity or enforceability of this
Agreement, (y) have a Material Adverse Effect or (z) adversely impair the
Company's ability or obligation to perform fully on a timely basis its
obligations under this Agreement.

                                  Page 5 of 17
<PAGE>

          (i)  Certain Fees.  No fees or commission will be payable by the
               ------------
Company to any investment banker or bank with respect to the consummation of the
transactions contemplated hereby.

          (j)  Non-Registered Offering. Neither the Company nor any Person
               -----------------------
acting on its behalf has taken or will take any action (including, without
limitation, any offering of any securities of the Company under circumstances
which would require the integration of such offering with the offering of the
Shares of Common Stock under the Securities Act) which might subject the
offering, issuance or sale of the Shares of Common Stock to the registration
requirements of Section 5 of the Securities Act.

          (k)  Non-Reporting Company; Eligibility to use Exemption under Rule
               --------------------------------------------------------------
506 of Regulation D. The Company is not subject to the reporting requirements of
-------------------
Section 13 or Section 15(d) of the Exchange Act. The Company is eligible to
issue securities exempt from the registration requirements of Section 5 of the
Securities Act pursuant to Rule 506 of Regulation D promulgated under the
Securities Act.

     Section 3.2.  Representations and Warranties of the Purchasers. The
                   ------------------------------------------------
Purchasers hereby represents and warrants to the Company as follows:

          (a)  Organization; Authority. The Purchaser is a corporation duly and
               -----------------------
validly existing and in good standing under the laws of the jurisdiction of its
incorporation. The Purchaser has the requisite power and authority to enter into
and to consummate the transactions contemplated hereby and otherwise to carry
out its obligations hereunder and thereunder. The purchase of the shares of
Common Stock by the Purchaser hereunder has been duly authorized by all
necessary action on the part of the Purchaser. This Agreement has been duly
executed and delivered by the Purchaser or on its behalf and constitutes the
valid and legally binding obligation of the Purchaser, enforceable against the
Purchaser in accordance with its terms, subject to bankruptcy, insolvency,
fraudulent transfer, reorganization, moratorium and similar laws of general
applicability relating to or affecting creditors' rights generally and to
general principles of equity.

          (b)  Investment Intent. The Purchaser is acquiring the Shares of
               -----------------
Common Stock for its own account for investment purposes only and not with a
view to or for distributing or reselling such Shares or any part thereof or
interest therein, without prejudice, however, to the Purchaser's right, subject
to the provisions of this Agreement, at all times to sell or otherwise dispose
of all or any part of such Shares in compliance with applicable federal and
State securities laws.

          (c)  Purchaser's Status. At the time the Purchaser was offered the
               ------------------
Shares, it was not, and at the date hereof, is not, and at the Closing Date,
will not be "accredited investor" as defined in Rule 501(a) under the Securities
Act. The Purchaser was not organized for the specific purpose of acquiring the
shares of Common Stock of the Company. The Purchaser is purchasing the Shares
for its own account.

                                  Page 6 of 17
<PAGE>

          (d)  Experience of Purchaser. The Purchaser, either alone or
               -----------------------
together with its representatives, has such knowledge, sophistication and
experience in business and financial matters so as to be capable of evaluating
the merits and risks of the prospective investment in the Shares, and has so
evaluated the merits and risks of such investment.

          (e)  Ability of Purchasers to Bear Risk of Investment. The Purchaser
               ------------------------------------------------
is able to bear the economic risk of an investment in the Shares and, at the
present time, is able to afford a complete loss of such investment.

          (f)  Prohibited Transactions. The Shares to be purchased by the
               -----------------------
Purchaser are not being acquired, directly or indirectly, with the assets of any
"employee benefit plan", within the meaning of Section 3(3) of the Employee
Retirement Income Security Act of 1974, as amended.

          (g)  Access to Information. The Purchaser acknowledges that it has
               ---------------------
been afforded (i) the opportunity to ask such questions as it has deemed
necessary of, and to receive answers from, representatives of the Company
concerning the terms and conditions of the offering of the Shares and the merits
and risks of investing in the Shares; (ii) access to information about the
Company and the Company's financial condition, results of operations, business,
properties, management and prospects sufficient to enable it to evaluate its
investment in the Common Stock; and (iii) the opportunity to obtain such
additional information which the Company possesses or can acquire without
unreasonable effort or expense that is necessary to make an informed investment
decision with respect to the Shares.

          (h)  Reliance. The Purchaser understands and acknowledges that (i) the
               --------
Shares are being offered and sold, to them without registration under the
Securities Act in a transaction that is exempt from the registration provisions
of the Securities Act, (ii) the availability of such exemption, depends in part
on, and that the Company will rely upon the accuracy and truthfulness of, the
foregoing representations and the Purchaser hereby consents to such reliance,
and (iii) that the certificates representing the shares will bear the
appropriate legend stating the restrictions on the resale and transfer of the
shares.

          The Company acknowledges and agrees that the Purchaser makes no
representation or warranty with respect to the transactions contemplated hereby
other than those specifically set forth in Article III herein.
                                           -----------

                                  Page 7 of 17
<PAGE>

                                  ARTICLE IV

                        OTHER AGREEMENTS OF THE PARTIES
                        -------------------------------

     Section 4.1. Manner of Offering. The Shares of Common Stock and the Option
                  ------------------
Shares are being issued pursuant to Rule 506 of Regulation D promulgated under
Section 4(2) of the Securities Act. The Shares of Common Stock will not be
exempt from restrictions on transfer, and certificates for the shares of Common
Stock will carry a restrictive legend with respect to the restrictions on the
resale and transfer of the Shares.

     Section 4.2. Furnishing of Information. As long as the Purchaser owns the
                  -------------------------
Shares, the Company will promptly furnish to it all annual and quarterly reports
comparable to those required by Section 13(a) or 15(d) of the Exchange Act.

     Section 4.3. Notice of Certain Events. The Company shall (i) advise the
                  ------------------------
Purchaser promptly after obtaining knowledge thereof, and, if requested by the
Purchaser, confirm such advice in writing, of (A) the issuance by any state
securities commission of any stop order suspending the qualification or
exemption from qualification of the Common Stock for offering or sale in any
jurisdiction, or the initiation of any proceeding for such purpose by any state
securities commission or other regulatory authority, or (B) any event that makes
any statement of a material fact made by the Company in Section III untrue or
that requires the making of any additions to or changes in the Company's
representations or warranties in order to make the statements therein, in the
light of the circumstances under which they are made, not misleading, (ii) use
its best efforts to prevent the issuance of any stop order or order suspending
the qualification or exemption from qualification of the Common Stock under any
state securities or Blue Sky laws, and (iii) if at any time any state securities
commission or other regulatory authority shall issue an order suspending the
qualification or exemption from qualification of the Common Stock under any such
laws, use its best efforts to obtain the withdrawal or lifting of such order at
the earliest possible time.

     Section 4.4. Blue Sky Laws. The Company shall cooperate with the Purchaser
                  -------------
in connection with the exemption from registration of the Shares under the
securities or Blue Sky laws of such jurisdictions as the Purchaser may request
and to continue such exemption at all times through the fourth anniversary of
the Closing Date; provided, however, that neither the Company nor its
                  --------  -------
Subsidiaries shall be required in connection therewith to qualify as a foreign
corporation where they are not now so qualified. The Company agrees that it will
execute all necessary documents and pay all necessary state filing or notice
fees to enable the Company to sell the Shares and the Option Shares under
Section 4.9 to the Purchaser.

     Section 4.5  Integration. The Company shall not and shall use its best
                  -----------
efforts to ensure that no Affiliate shall sell, offer for sale or solicit offers
to buy or otherwise negotiate in respect of any security (as defined in Section
2 of the Securities Act) that would be integrated with the offer or sale of the
Shares in a manner that would require the registration under the Securities Act
of the sale of the Shares to the Purchaser.

                                  Page 8 of 17
<PAGE>

     Section 4.6  Solicitation Materials. The Company shall not (i) distribute
                  ----------------------
any offering materials in connection with the offering and sale of the Shares
other than the information previously supplied to the Purchaser or (ii) solicit
any offer to buy or sell the Shares by means of any form of general solicitation
or advertising.

     Section 4.7. Prohibition on Certain Actions. From the date hereof through
                  ------------------------------
the Closing Date, the Company shall not and shall cause the Subsidiaries not to,
without the consent of the Purchaser, (i) amend its Certificate of
Incorporation, bylaws or other charter documents so as to adversely affect any
rights of the Purchaser; (ii) split, combine or reclassify its outstanding
capital stock; (iii) declare, authorize, set aside or pay any dividend or other
distribution with respect to the Common Stock; (iv) redeem, repurchase or offer
to repurchase or otherwise acquire shares of its Common Stock; or (v) enter into
any agreement with respect to any of the foregoing.

     Section 4.8. Use of Purchase Price. The Company shall apply the Purchase
                  ---------------------
Price exclusively for the use in the acquisition of FaithNet (the "FaithNet
Acquisition"), in order that FaithNet become a wholly-owned subsidiary of the
Company and the acquisition of the customer base of one of the following
companies; Trinity, USA Telco, OPM or Home Phone (the "Customer Base
Acquisition").

     Section 4.9  Stock Option. The Company hereby grants to the Purchaser the
                  ------------
option (the "Option") to purchase up to 550,000 Shares of the Common Stock of
the Company for a period of 18 months from the date of this Agreement, subject
to the following conditions:

          (a)     Exercise Price. The exercise price per share shall be $1.00.
                  --------------
                  The Shares issued by the Company under the Option shall not be
                  registered pursuant to Section 5 of the Securities Act and the
                  certificates representing such shares will bear the
                  appropriate legend restricting the transfer and sales of such
                  shares.

          (b)     Notice of Exercise. The Purchaser shall exercise the Option by
                  ------------------
                  giving written notice ("the Exercise Notice") to the Company
                  in the form attached hereto as APPENDIX A and delivery of the
                  exercise price. Delivery of the Exercise Notice shall be made
                  by facsimile and payment of the exercise price shall be made
                  in immediately available funds by wire transfer to the account
                  designated by the Company in Section 2.1(c).

          (c)     Delivery of Option Shares. Within two (2) Business Days of
                  -------------------------
                  receipt of the exercise price, the Company shall deliver the
                  Option Shares to the Purchaser within two (2) Business Days.

          (d)     Additional Consideration.  In the event that the Company
                  ------------------------
                  closes the FaithNet Acquisition and the Customer Base
                  Acquisition within ninety (90) days from the date of this
                  Agreement, then the Company shall have the right to require
                  additional consideration in order for the Option to continue.
                  Within thirty

                                  Page 9 of 17
<PAGE>

                  (30) Business Days of the closing of the FaithNet Acquisition
                  and the Customer Base Acquisition, the Company shall send
                  written notice by facsimile to the Purchaser of the closing
                  date of the FaithNet Acquisition and the Customer Base
                  Acquisition, and the required additional consideration. The
                  Purchaser shall have up to sixty (60) Business Days from its
                  receipt of the notice from the Company to send written notice
                  by facsimile of whether it agrees to pay the additional
                  consideration or rejects the payment of the additional
                  consideration. If the Purchaser agrees to the payment of the
                  additional consideration, then the Purchaser shall pay such
                  additional consideration within five (5) Business Days. If the
                  Purchaser does not agree to pay the additional consideration,
                  then the Option will terminate immediately upon the Company's
                  receipt of the notice of rejection from the Purchaser.

                                   ARTICLE V

                             DEFAULT AND REMEDIES

     In the event the Company desires to change the use of the Purchase Price
for some purpose other than the FaithNet Acquisition and the Customer Base
Acquisition (the "Original Use"), the Company shall send a written notice by
facsimile to the Purchaser explaining the change in the use of the Purchase
Price (the "Change Notice"). The Change Notice shall include all information
necessary to the satisfaction of the Purchaser to understand the change in the
use of the Purchase Price. The Purchaser shall have four (4) Business Days from
the receipt of the Change Notice to consent in writing to the change in the use
of the Purchase Price or notify the Company in writing that such consent is not
granted. In the event that the Purchaser does not grant such consent, the
Company shall have two (2) Business Days to give written notice (the "Decision
Notice") to the Purchaser if the Company will change the use of the Purchase
Price from the Original Use. If the Company notifies the Purchaser that it will
change the use of the Purchase Price from the Original Use, then this Agreement
shall be voidable at the sole option of the Purchaser. In order to declare this
Agreement void, the Purchaser shall send written notice within five (5) Business
Days of Purchaser's receipt of the Decision Notice that the Purchaser is
electing to void this Agreement (the "Voiding Notice"). Upon the Purchaser
sending the Voiding Notice, this Agreement shall become void, and within five
(5) Business Days of receipt of the Voiding Notice, the Company shall return the
full amount of the Purchase Price to the Purchaser. Upon receipt of the Purchase
Price, the Purchaser shall return the certificates representing the Shares of
Common Stock to the Company.

                                 Page 10 of 17
<PAGE>

                                  ARTICLE VI

                        CONDITIONS PRECEDENT TO CLOSING
                        -------------------------------

     Section 6.1. Conditions Precedent to Obligations of the Purchaser. The
                  ----------------------------------------------------
obligation of the Purchaser to purchase the shares of Common Stock is subject to
the satisfaction or waiver by the Purchaser, at or prior to the Closing, of each
of the following conditions:

          (a)     Legal Opinion. The Purchaser shall have received the legal
                  -------------
opinion, addressed to it and dated the Closing Date from the legal counsel for
the Company. Such legal opinion shall address the Company's authority to enter
into this Agreement, the availability of Rule 506 of Regulation D for the offer
and sale of the Shares and that upon issuance, the shares of Common Stock and
the Option Shares shall be fully paid, validly issued and non-assessable;

          (b)     Accuracy of the Company's Representations and Warranties. The
                  --------------------------------------------------------
representations and warranties of the Company contained herein shall be true and
correct in all material respects as of the date when made and as of the Closing
Date as though made at that time (except that representations and warranties
that are made as of a specific date need be true in all material respects only
as of such date);

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

          (d)     No Material Adverse Effect. There has been no event which had
                  --------------------------
a Material Adverse Effect on the Company which has not been disclosed to the
Purchaser;

          (e)     No Prohibitions. The purchase of and payment for the shares of
                  ---------------
Common Stock hereunder (i) shall not be prohibited or enjoined (temporarily or
permanently) by any applicable law or governmental regulation and (ii) shall not
subject the Purchaser to any penalty, or in its reasonable judgment, other
onerous condition under or pursuant to any applicable law or governmental
regulation that would materially reduce the benefits to the Purchaser of the
purchase of the shares (provided, however, that such regulation, law or onerous
condition was not in effect in such form at the date of this Agreement);

          (f)     Company Certificates. The Purchaser shall have received a
                  --------------------
certificate, dated the Closing Date, signed by the Secretary or an Assistant
Secretary of the Company and certifying (i) that attached thereto is a true,
correct and complete copy of (A) the Company's Certificate of Incorporation, as
amended to the date thereof, (B) the Company's By-Laws, as amended to the date
thereof, and (C) resolutions duly adopted by the Board of Directors of the
Company authorizing the execution and delivery of this Agreement, the issuance
and sale of the Shares and (ii) the incumbency of officers executing this
Agreement;

                                 Page 11 of 17
<PAGE>

     Section 6.2. Conditions Precedent to Obligations of the Company. The
                  --------------------------------------------------
obligation of the Company to issue and sell the Shares of Common Stock hereunder
is subject to the satisfaction or waiver by the Company, at or to the Closing,
of each of the following conditions:

          (a)     Accuracy of the Purchaser's Representations and Warranties.
                  ----------------------------------------------------------
The representations and warranties of the Purchasers shall be true and correct
in all material respects as of the date when made and as of the Closing Date as
though made at that time (except that representations and warranties that are
made as of a specific date need be true in all material respects only as of such
date);

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

          (c)     No Prohibitions. The sale of the Shares of Common Stock
                  ---------------
hereunder (i) shall not be prohibited or enjoined (temporarily or permanently)
by any applicable law or governmental regulation and (ii) shall not subject the
Company to any penalty, or in its reasonable judgment, any other onerous
condition under or pursuant to any applicable law or governmental regulation
that would materially reduce the benefits to the Company of the sale of Shares
to the Purchaser (provided, however, that such regulation, law or onerous
condition was not in effect in such form at the date of this Agreement).

                                  ARTICLE VII

                       CONDITIONS SUBSEQUENT TO CLOSING
                       --------------------------------

     The Company shall deliver to the Purchaser a certificate of good standing
from the Secretary of State of Texas within seven (7) Business Days from the
Closing Date.

                                 ARTICLE VIII

                                  TERMINATION
                                  -----------

     Section 8.1. Termination by Mutual Consent. This Agreement may be
                  -----------------------------
terminated at any time prior to Closing by the mutual consent of the Company and
the Purchaser.

     Section 8.2. Termination by the Company or the Purchaser. This Agreement
                  -------------------------------------------
may be terminated prior to Closing by either the Company or the Purchaser, by
giving written notice of such termination to the other party, if:

                                 Page 12 of 17
<PAGE>

          (a)      the Closing shall not have occurred by January 14, 2000;
provided that the terminating party is not then in material breach of its
-------- ----
obligations under this Agreement in any manner that shall have caused the
failure referred to in this paragraph (a); or

          (b)      there shall be in effect any statute, rule, law or regulation
that prohibits the consummation of the Closing or if the consummation of the
Closing would violate any non-appealable final judgment, order, decree, ruling
or injunction of any court of or governmental authority having competent
jurisdiction; or

     Section 8.3.  Termination by the Company. This Agreement may be terminated
                   --------------------------
prior to Closing by the Company, by giving written notice of such termination to
the Purchaser, if the Purchaser has materially breached any representation,
warranty, covenant or agreement contained in this Agreement and such breach is
not cured within five (5) Business Days following receipt by the Purchaser of
notice of such breach.

     Section 8.4.  Termination by the Purchaser. This Agreement may be
                   ----------------------------
terminated prior to Closing by the Purchaser, by giving written notice of such
termination to the Company, if:

          (a)      the Company has breached any representation, warranty,
covenant or agreement contained in this Agreement and such breach is not cured
within five (5) Business Days following receipt by the Company of notice of such
breach; or

          (b)      there has occurred an event which could reasonably be
expected to have a Material Adverse Effect and which is not disclosed in this
Agreement; or

                                  ARTICLE IX

                                  LEGAL FEES
                                  ----------

     In the event any Party commences a legal action to enforce its rights under
this Agreement, the non-prevailing party shall pay all reasonable costs and
expenses (including reasonable attorney's fees, accountant's fees, appraiser's
fees, and investigative fees) incurred in enforcing such rights.

                                   ARTICLE X

                                 MISCELLANEOUS
                                 -------------

     Section 10.1. Fees and Expenses. Except as set forth above, each party
                   -----------------
shall pay the fees and expenses of its advisers, counsel, accountants and other
experts, if any, and all other expenses incurred by such party incident to the
negotiation, preparation, execution, delivery and performance of this Agreement.
The Company shall pay all stamp and other taxes and duties levied in connection
with the issuance of the Shares pursuant hereto. The Purchaser shall be
responsible for its own tax

                                 Page 13 of 17
<PAGE>

liability that may arise as a result of the investment hereunder or the
transactions contemplated by this Agreement. Whether or not the transactions
contemplated by this Agreement are consummated or this Agreement is terminated,
the Company shall pay all costs, expenses, fees and all taxes incident to and in
connection with: (A) all preliminary and final Blue Sky memoranda and all other
agreements, memoranda, correspondence and other documents prepared and delivered
in connection herewith (B) the issuance and delivery of the Shares, (C) the
qualification of the Shares for offer and sale under the securities or Blue Sky
laws of the several states (including, without limitation, the fees and
disbursements of the Purchaser's counsel relating to such registration or
qualification), and (D) the preparation of certificates for the Shares
(including, without limitation, printing and engraving thereof).

     Section 10.2. Entire Agreement; Amendments. This Agreement, together with
                   ----------------------------
the Exhibits, Annexes and Schedules hereto, contain the entire understanding of
the parties with respect to the subject matter hereof and supersede all prior
agreements and understandings, oral or written, with respect to such matters.
This agreement shall be deemed to have been drafted and negotiated by both
parties hereto and no prescriptions as to interpretation, construction or
enforceability shall be made by or against either party in such regard.

     Section 10.3. Notices. Any notice or other communication required or
                   -------
permitted to be given hereunder shall be in writing and shall be deemed to have
been made upon facsimile (with transmission confirmation report) at the 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) whichever shall first occur. The addresses
for such communications shall be:

          If to the Company:  William Evans, President and Chairman
                              JetCo Communications Corporation
                              8111 LBJ Freeway
                              Suite 1100
                              Dallas, TX 75251
                              Tel: (972) 939-1499
                              Fax: (972) 690-0441

          With copies to:     __________________
                              __________________
                              __________________
                              Tel:
                              Fax:

                                 Page 14 of 17
<PAGE>

            If to the Purchaser:   Peter L. Coker, Sr., President
                                   Wolfpack Corporation
                                   17 Glenwood Avenue
                                   Raleigh, North Carolina 27603
                                   Tel: (919) 831-1351
                                   Fax: (919) 831-0577

            With copies to:        Adam S. Gottbetter
                                   Kaplan Gottbetter & Levenson, LLP
                                   630 Third Avenue
                                   New York, NY 10017
                                   Tel: 212-983-6900
                                   Fax: 212-983-9210

or such other address as may be designated in writing hereafter, in the same
manner, by such person.

     Section 10.4  Amendments; Waivers. No provision of this Agreement may be
                   -------------------
waived or amended except in a written instrument signed, in the case of an
amendment, by both the Company and the Purchaser, or, in the case of a waiver,
by the party against whom enforcement of any such waiver is sought. No waiver of
any default with respect to any provision, condition or requirement of this
Agreement shall be deemed to be a continuing waiver in the future or a waiver of
any other provision, condition or requirement hereof, nor shall any delay or
omission of either party to exercise any right hereunder in any manner impair
the exercise of any such right accruing to it thereafter.

     Section 10.5. Headings. The headings herein are for convenience only, do
                   --------
not constitute a part of this Agreement and shall not be deemed to limit or
affect any of the provisions hereof.

     Section 10.6. Successors and Assigns. This Agreement may not be assigned by
                   ----------------------
any party without the prior written consent of all the parties hereto. This
Agreement shall be binding upon and inure to the benefit of the parties and
their successors and permitted assigns. The assignment by a party of this
Agreement or any rights hereunder shall not affect the obligations of such party
under this Agreement.

     Section 10.7. No Third Party Beneficiaries. This Agreement is intended for
                   ----------------------------
the benefit of the parties hereto and their respective permitted successors and
assigns and is not for the benefit of, nor may any provision hereof be enforced
by, any other person.

     Section 10.8. Governing Law: Service of Process. This Agreement shall be
                   ---------------------------------
governed by and construed and enforced in accordance with the internal laws of
the State of New York without regard to the principles of conflicts of law
thereof. Any action to enforce the terms of this Agreement or any of its
exhibits shall be exclusively brought in the state and/or federal courts in the
State and County of New York. Service of process in any action by Purchasers to
enforce the terms

                                 Page 15 of 17
<PAGE>

of this Agreement may be made by serving a copy of the summons and complaint, in
addition to any other relevant documents, by commercial overnight courier to the
Company at its principal address set forth in this Agreement.

     Section 10.9.  Survival. The representations and warranties of the Company
                    --------
and the Purchaser contained in Article III and the agreements and covenants of
                               -----------
the parties contained in Article IV, the default and remedies contained in
                         ----------
Article V and this Article IX shall survive the Closing (or any earlier
---------          ----------
termination of this Agreement).

     Section 10.10. Counterpart Signatures. This Agreement may be executed in
                    ----------------------
two or more counterparts, all of which when taken together shall be considered
one and the same agreement and shall become effective when counterparts have
been signed by each party and delivered to the other party, it being understood
that both parties need not sign the same counterpart. In the event that any
signature is delivered by facsimile transmission, such signature shall create a
valid and binding obligation of the party executing (or on whose behalf such
signature is executed) the same with the same force and effect as if such
facsimile signature page were an original thereof.

     Section 10.11. Publicity. The Company and the Purchaser shall consult with
                    ---------
each other in issuing any press releases or otherwise making public statements
with respect to the transactions contemplated hereby and neither party shall
issue any such press release or otherwise make any such public statement without
the prior written consent of the other, which consent shall not be unreasonably
withheld or delayed.

     Section 10.12. Severability. In case any one or more of the provisions of
                    ------------
this Agreement shall be invalid or unenforceable in any respect, the validity
and enforceability of the remaining terms and provisions of this Agreement shall
not in any way be affecting or impaired thereby and the parties will attempt to
agree upon a valid and enforceable provision which shall be a reasonable
substitute therefor, and upon so agreeing, shall incorporate such substitute
provision in this Agreement.

     Section 10.13. Remedies. In addition to being entitled to exercise all
                    --------
rights provided herein or granted by law, including recovery of damages, the
Purchaser will be entitled to specific performance of the obligations of the
Company under this Agreement and the Company will be entitled to specific
performance of the obligations of the Purchaser hereunder with respect to the
subsequent transfer of Shares. Each of the Company and the Purchaser agrees that
monetary damages would not be adequate compensation for any loss incurred by
reason of any breach of its obligations described in the foregoing sentence and
hereby agrees to waive in any action for specific performance of any such
obligation the defense that a remedy at law would be adequate.

                            Signature Page Follows

                                 Page 16 of 17
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed as of the date first indicated above.

                                   Company:

                                   JETCO COMMUNICATIONS CORPORATION

                                   By:  /s/ WILLIAM EVANS
                                      ---------------------------------------
                                       Name:  William Evans
                                       Title: President

                                   Purchaser:

                                   WOLFPACK CORPORATION

                                   By:  /s/ PETER L. COKER
                                      ---------------------------------------
                                       Name: Peter L. Coker
                                       Title: President

                                 Page 17 of 17
<PAGE>

                              [Schedules omitted]
<PAGE>

                                  APPENDIX 1

                              NOTICE OF EXERCISE
                              ------------------

          1.   The undersigned hereby elects to exercise the option to purchase
shares of the Common Stock $.001 par value per share of JetCo Communications
Corporation ( the "Company") at $1.00 per share for a total of $___________ and
pursuant to the terms of the Common Stock Purchase Agreement dated January __,
2000 between the Company and Wolfpack Corporation, and tenders herewith payment
of the purchase price of such shares in full.

          2.   Please issue a certificate or certificates representing said
shares in the name of the undersigned or in such other name as is specified
below:

          3.   The undersigned represents it is acquiring the shares solely for
its own account and not with a view toward the resale or distribution thereof
except in compliance with applicable securities laws.

                                                 ---------------------------
                                                         (Signature)

-------------
   (Date)

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