Document:

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                                                                    Exhibit 10.2

                          SECURITIES PURCHASE AGREEMENT

                  THIS SECURITIES PURCHASE AGREEMENT, dated as of October 26,
1999 (this "Agreement"), is entered into by and between INTELLIQUIS
INTERNATIONAL, INC., a Nevada corporation (the "Company"), and ROBI Investors
LLC, a Delaware limited liability company.

                              W I T N E S S E T H:

                  WHEREAS, the Company and the Purchaser are executing and
delivering this Agreement in reliance upon the exemptions from registration
provided by Regulation D ("Regulation D") promulgated by the Securities and
Exchange Commission (the "Commission") under the Securities Act of 1933, as
amended (the "Securities Act"), and/or Section 4(2) of the Securities Act; and

                  WHEREAS, the Purchaser wishes to purchase, and the Company
wishes to issue and sell, upon the terms and conditions of this Agreement for an
aggregate purchase price of two million dollars ($2,000,000), two thousand
(2,000) shares (the "Initial Shares") of the Company's 6% Convertible Series A
Preferred Stock, stated value one thousand dollars ($1,000) per share, par value
$.001 per share (the "Preferred Stock") which shall be subject to the
Certificate of Designation attached hereto as Exhibit A (the "Certificate of
Designation") and warrants ("Stock Purchase Warrants") to purchase one hundred
thousand (100,000) shares (the "Initial Warrants") of the Company's common
stock, par value $.001 per share (the "Common Stock"); and

                  WHEREAS, the Series A Preferred Stock is convertible into
shares of the Company's Common Stock on the terms set forth in the Certificate
of Designation, and Stock Purchase Warrants (which shall be in substantially the
form attached as Exhibit B) may be exercised for the purchase of Common Stock,
on the terms set forth therein; and

                  WHEREAS, the Purchaser wishes to purchase, and the Company
wishes to issue and sell, upon the terms and subject to the conditions of this
Agreement for an aggregate purchase price of one hundred dollars ($100), a
warrant (the "Conditional Warrant"), to purchase for an aggregate purchase price
of three million dollars ($3,000,000) up to an additional three thousand (3,000)
shares of Series A Preferred Stock ("Additional Shares"), and Stock Purchase
Warrants to purchase up to an additional one hundred fifty thousand (150,000)
shares of Common Stock ("Additional Warrants"), which Conditional Warrant shall
be in substantially the form attached as Exhibit C

                  NOW, THEREFORE, in consideration of the premises and the
mutual covenants contained herein and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties agree as
follows:

1.   AGREEMENT TO PURCHASE; PURCHASE PRICE

                  Purchase of Initial Shares and Warrants. Purchaser hereby
agrees to purchase from the Company, and the Company hereby agrees to issue and
sell to the Purchaser, the Initial Shares and the Initial Warrants for an
aggregate purchase price of two million dollars

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($2,000,000) which shall be payable on the Initial Closing Date (as defined
herein) in immediately available funds.

                  Purchase of Conditional Warrant. Purchaser hereby agrees to
purchase from the Company, and the Company hereby agrees to issue and sell to
the Purchaser, the Conditional Warrant for a purchase price of one hundred
dollars ($100), which shall be payable on the Initial Closing Date in
immediately available funds.

                  Closings. The Initial Shares, the Initial Warrants and
Conditional Warrant to be purchased by Purchaser hereunder, in definitive form,
and in such denominations as Purchaser or its representative, if any, may
request upon at least twenty-four hours' prior notice to the Company, shall be
delivered by or on behalf of the Company for the account of Purchaser, against
payment by the Purchaser of the aggregate purchase price of two million one
hundred dollars ($2,000,100) therefor by wire transfer to an account of the
Company, all at the offices of Pryor Cashman Sherman & Flynn LLP, 410 Park
Avenue, New York, New York 10022, New York time on the date hereof, or at such
other time and date as Purchaser or their representative, if any, and the
Company may agree upon in writing, such date being referred to herein as the
"Initial Closing Date." The Closing dates for the purchase of the Additional
Shares and the Additional Warrants are as set forth in the Conditional Warrant.

2.       REPRESENTATIONS AND WARRANTIES OF THE PURCHASER; ACCESS TO INFORMATION;
         INDEPENDENT INVESTIGATION

                  The Purchaser represents and warrants to, and covenants and
agrees with, the Company as follows:

         a. The Purchaser and each of its equity owners is (i) experienced in
making investments of the kind described in this Agreement and the related
documents, (ii) able, by reason of the business and financial experience of its
management, to protect its own interests in connection with the transactions
described in this Agreement and the related documents (iii) is an accredited
investor as defined under Rule 501 of Regulation D of the Securities Act, (iv)
will be acquiring the Shares solely for the Purchaser's own account, for
investment and are not with a view to or for the resale, distribution,
subdivision or fractionalization thereof; and the Purchaser has no present plans
to enter into any such contract, undertaking, agreement or arrangement and (v)
able to afford the entire loss of its investment in the Initial Shares, the
Initial Warrants and the Conditional Warrant.

         b. All subsequent offers and sales of the Initial Shares, the Initial
Warrants and the Conditional Warrant, and, if the Conditional Warrant shall be
exercised, the Additional Shares and the Additional Warrants and the Common
Stock issuable upon conversion or exercise of, or in lieu of dividend payments
on the Initial Shares and the Initial Warrants and, if the Conditional Warrant
is exercised, the Additional Shares and the Additional Warrants, it shall have
purchased, shall be made pursuant to an effective registration statement under
the Securities Act or pursuant to an applicable exemption from such
registration.

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         c. The Purchaser understands that the Initial Shares, the Initial
Warrants and the Conditional Warrant are being offered and sold to it in
reliance upon exemptions from the registration requirements of the United States
federal securities laws, and that the Company is relying upon the truth and
accuracy of the Purchaser's representations and warranties, and the Purchaser's
compliance with its agreements, each as set forth herein, in order to determine
the availability of such exemptions and the eligibility of the Purchaser to
acquire the Initial Shares, the Initial Warrants and the Conditional Warrant.

         d. The Purchaser: (A) has been provided with sufficient information
with respect to the business of the Company and such documents relating to the
Company as the Purchaser has requested and Purchaser has carefully reviewed the
same including, without limitation, the Company's Form 10-KSB for the fiscal
year ended December 31, 1998 filed with the Securities and Exchange Commission
(the "Commission"), (B) has been provided with such additional information with
respect to the Company and its business and financial condition as the
Purchaser, or the Purchaser's agent or attorney, has requested, and (C) has had
access to management of the Company and the opportunity to discuss the
information provided by management of the Company and any questions that the
Purchaser had with respect thereto have been answered to the full satisfaction
of the Purchaser.

         e. The Purchaser has the requisite corporate power and authority to
enter into this Agreement and the registration rights agreement, dated as of the
date hereof, between the Company and the Purchaser (the "Registration Rights
Agreement").

         f. This Agreement and the Registration Rights Agreement and the
transactions contemplated hereby and thereby, have been duly and validly
authorized by the Purchaser; and such agreements, when executed and delivered by
each of the Purchaser and the Company will each be a valid and binding agreement
of the Purchaser, enforceable in accordance with their respective terms, except
to the extent that enforcement of each such agreement may be limited by
bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or
other similar laws now or hereafter in effect relating to creditors' rights
generally and to general principles of equity.

3.       REPRESENTATIONS OF THE COMPANY

                  The Company represents and warrants to the Purchaser that:

         a. Organization. The Company is a corporation duly organized, validly
existing and in good standing under the laws of the State of Nevada. Each of the
Company's subsidiaries, if any, is a corporation duly organized, validly
existing and in good standing under the laws of its respective jurisdiction.
Each of the Company and its subsidiaries, if any, is duly qualified as a foreign
corporation in all jurisdictions in which the failure to so qualify would have a
material adverse effect on the Company and its subsidiaries taken as a whole.
Schedule 3(a) lists all subsidiaries of the Company and, except as noted
therein, all of the outstanding capital stock of all such subsidiaries is owned
of record and beneficially by the Company.

         b. Capitalization. On the date hereof, the authorized capital of the
Company consists of 50,000,000 shares of Common Stock, par value $.001 per
share, of which 33,462,420

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shares are issued and outstanding and 5,000,000 shares of preferred stock, $.001
par value, none of which are outstanding. Schedule 3(b) sets forth all of the
options, warrants and convertible securities of the Company, and any other
rights to acquire securities of the Company (collectively, the "Derivative
Securities") which are outstanding on the date hereof, including in each case
(i) the name and class of such Derivative Securities, (ii) the issue date of
such Derivative Securities, (iii) the number of shares of Common Stock of the
Company into which such Derivative Securities are convertible as of the date
hereof, (iv) the conversion or exercise price or prices of such Derivative
Securities as of the date hereof, (v) the expiration date of any conversion or
exercise rights held by the owners of such Derivative Securities and (vi) any
registration rights associated with such Derivative Securities or outstanding
Common Stock.

         c. Concerning the Common Stock and the Warrants. The Initial Shares,
the Initial Warrants, and if the Conditional Warrant shall be exercised, the
Additional Shares and the Additional Warrants and Common Stock issuable upon (i)
conversion of, or in lieu of dividend payments on, the Initial Shares, and upon
exercise of the Initial Warrants, and (ii) if the Conditional Warrant is
exercised, conversion of, or in lieu of dividend payments on, the Additional
Shares, and upon exercise of the Additional Warrants when issued, shall be duly
and validly issued, fully paid and non-assessable, will not be subject to
preemptive rights and will not subject the holder thereof to personal liability
by reason of being such a holder. There are currently no preemptive rights of
any stockholder of the Company, as such, to acquire the Initial Shares, the
Initial Warrants or the Conditional Warrant, or the Common Stock issuable to the
Purchaser pursuant to the terms of the Initial Shares, the Initial Warrants,
and, if the Conditional Warrant is exercised, the Additional Shares and the
Additional Warrant.

         d. Reporting Company Status. The Company has duly filed all materials
and documents required to be filed pursuant to all reporting obligations under
either Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended
(the "Exchange Act"), if any, prior to the offer and sale of the Units. The
Common Stock is listed and traded on the OTC Bulletin Board, and the Company is
not aware of any pending or contemplated action or proceeding of any kind to
suspend the trading of the Common Stock.

         e. Authorized Shares. The Company has available a sufficient number of
authorized and unissued shares of Common Stock as may be necessary to effect (i)
the conversion of the Initial Shares and the exercise of the Initial Warrants,
and (ii) if the Conditional Warrant is exercised, the conversion of the
Additional Shares and the exercise of the Additional Warrants. The Company
understands and acknowledges the potentially dilutive effect to the Common Stock
of the issuance of shares of Common Stock upon the (i) conversion of the Initial
Shares and the exercise of the Initial Warrants, and (ii) if the Conditional
Warrant is exercised, the conversion of the Additional Shares and the exercise
of the Additional Warrants. The Company further acknowledges that its obligation
to issue shares of Common Stock upon (i) conversion of the Initial Shares and
upon exercise of the Initial Warrants, and (ii) if the Conditional Warrant is
exercised, the conversion of the Additional Shares and the exercise of the
Additional Warrants is absolute and unconditional regardless of the dilutive
effect that such issuance may have on the ownership interests of other
stockholders of the Company and notwithstanding the commencement of any case
under 11 U.S.C. ss. 101 et seq. (the "Bankruptcy Code").

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         f. Legality. The Company has the requisite corporate power and
authority to enter into this Agreement and the Registration Rights Agreement,
and to issue and deliver the Initial Shares, the Initial Warrants, the
Conditional Warrant and the Common Stock issuable upon conversion of, or in lieu
of dividend payments on, (i) the Initial Shares and the exercise of the Initial
Warrants, and (ii) if the Conditional Warrant is exercised, the conversion of
the Additional Shares and the Additional Warrants.

         g. Transaction Agreements. This Agreement, the Registration Rights
Agreement, the Certificate of Designation, the Conditional Warrant and the Stock
Purchase Warrants (collectively, the "Primary Documents"), and the transactions
contemplated hereby and thereby, have been duly and validly authorized by the
Company; this Agreement has been duly executed and delivered by the Company and
this Agreement is, and the other Primary Documents, when executed and delivered
by the Company, will each be, a valid and binding agreement of the Company,
enforceable in accordance with their respective terms, except to the extent that
enforcement of each of the Primary Documents may be limited by bankruptcy,
insolvency, reorganization, moratorium, fraudulent conveyance or other similar
laws now or hereafter in effect relating to creditors' rights generally and to
general principles of equity.

         h. Non-contravention. The execution and delivery of this Agreement and
each of the other Primary Documents, and the consummation by the Company of the
transactions contemplated by this Agreement and each of the other Primary
Documents, does not and will not conflict with or result in a breach by the
Company of any of the terms or provisions of, or constitute a default under, the
Articles of Incorporation or By-laws of the Company, or any material indenture,
mortgage, deed of trust or other agreement or instrument to which the Company or
any of its subsidiaries is a party or by which they or any of their properties
or assets are bound, or any existing applicable law, rule, or regulation or any
applicable decree, judgment or order of any court or United States or foreign
federal or state regulatory body, administrative agency, or any other
governmental body having jurisdiction over the Company, its subsidiaries, or any
of their properties or assets. Except as set forth on Schedule 3(h), neither the
filing of the registration statement required to be filed by the Company
pursuant to the Registration Rights Agreement nor the offering or sale of the
Initial Shares, the Initial Warrants or the Conditional Warrant as contemplated
by this Agreement and if the Conditional Warrant is exercised, the Additional
Warrants and Additional Shares, and the shares of Common Stock into which all
such securities may be converted or exercised, as applicable, gives rise to any
rights, other than those which have been waived or satisfied on or prior to the
Initial Closing Date, for or relating to the registration of any shares of the
Common Stock.

         i. Approvals. No authorization, approval or consent of any court,
governmental body, regulatory agency, self-regulatory organization, stock
exchange or market or the stockholders of the Company is required to be obtained
by the Company for the entry into or the performance of this Agreement and the
other Primary Documents.

         j. SEC Filings. None of the reports or documents filed by the Company
with the Commission (the "SEC Documents") contained, at the time they were
filed, any untrue statement of a material fact or omitted to state any material
fact required to be stated therein, or necessary to make the statements made
therein, in light of the circumstances under which they were made, not
misleading.

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         k. Stabilization. Neither the Company, nor any of its affiliates, has
taken or may take, directly or indirectly, any action designed to cause or
result in, or which has constituted or which might reasonably be expected to
constitute, the stabilization or manipulation of the price of the shares of
Common Stock.

         l. Absence of Certain Changes. Except as disclosed in the Company's SEC
Documents, since December 31, 1998, there has been no material adverse change
nor any material adverse development in the business, properties, operations,
financial condition, prospects, outstanding securities or results of operations
of the Company.

         m. Full Disclosure. There is no fact known to the Company (other than
general economic conditions known to the public generally) that has not been
disclosed in writing to the Purchaser (i) that could reasonably be expected to
have a material adverse effect upon the condition (financial or otherwise) or
the earnings, business affairs, properties or assets of the Company or (ii) that
could reasonably be expected to materially and adversely affect the ability of
the Company to perform the obligations set forth in the Primary Documents. The
representations and warranties of the Company set forth in this Agreement (and
the schedules thereto) do not contain any untrue statement of a material fact or
omit any material fact necessary to make the statements contained herein, in
light of the circumstances under which they were made, not misleading.

         n. Title to Properties; Liens and Encumbrances. The Company has good
and marketable title to all of its material properties and assets, both real and
personal, and has good title to all its leasehold interests, in each case
subject only to mortgages, pledges, liens, security interests, conditional sale
agreements, encumbrances or charges created in the ordinary course of business.

         o. Patents and Other Proprietary Rights. The Company has sufficient
title and ownership of all patents, trademarks, service marks, trade names,
copyrights, trade secrets, information, proprietary rights and processes
necessary for the conduct of its business as now conducted and as proposed to be
conducted, and such business does not and would not conflict with or constitute
an infringement on the rights of others.

         p. Permits. The Company has all franchises, permits, licenses and any
similar authority necessary for the conduct of its business as now conducted,
the lack of which would materially and adversely affect the business or
financial condition of the Company. The Company is not in default in any respect
under any of such franchises, permits, licenses or similar authority.

         q. Absence of Litigation. Except as disclosed in the Company's SEC
Documents, there is no action, suit, proceeding, inquiry or investigation before
or by any court, public board or body pending or, to the knowledge of the
Company or any of its subsidiaries, threatened against or affecting the Company
or any of its subsidiaries, in which an unfavorable decision, ruling or finding
would have a material adverse effect on the properties, business, condition
(financial or other) or results of operations of the Company and its
subsidiaries, taken as a whole, or the transactions contemplated by the Primary
Documents, or which would adversely affect the

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validity or enforceability of, or the authority or ability of the Company to
perform its obligations under, the Primary Documents.

         r. No Default. Each of the Company and its subsidiaries is not in
default in the performance or observance of any obligation, covenant or
condition contained in any indenture, mortgage, deed of trust or other
instrument or agreement to which it is a party or by which it or its property
may be bound.

         s. Transactions with Affiliates. Except as disclosed in the Company's
SEC Documents, there are no agreements, understandings or proposed transactions
between the Company and any of its officers, directors or affiliates that, had
they existed on December 31, 1998, would have been required to be disclosed in
the Company's 1998 Annual Report to stockholders.

         t. Employment Matters. The Company is in compliance in all respects
with all presently applicable provisions of the Employee Retirement Income
Security Act of 1974, as amended, including the regulations and published
interpretations thereunder ("ERISA"); no "reportable event" (as defined in
ERISA) has occurred with respect to any "pension plan" (as defined in ERISA) for
which the Company would have any liability; the Company has not incurred and
does not expect to incur liability under (i) Title IV of ERISA with respect to
termination of, or withdrawal from, any "pension plan" or (ii) Sections 412 or
4971 of the Internal Revenue Code of 1986, as amended, including the regulations
and published interpretations thereunder (the "Code"); and each "pension plan"
for which the Company would have any liability that is intended to be qualified
under Section 401(a) of the Code is so qualified in all material respects and
nothing has occurred, whether by action or by failure to act, which would cause
the loss of such qualification.

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

         v. Taxes. All applicable tax returns required to be filed by the
Company and each of its subsidiaries have been prepared and filed in compliance
with all applicable laws, or if not yet filed have been granted extensions of
the filing dates which extensions have not expired, and all taxes, assessments,
fees and other governmental charges upon the Company, its subsidiaries, or upon
any of their respective properties, income or franchises, shown in such returns
and on assessments received by the Company or its subsidiaries to be due and
payable have been paid, or adequate reserves therefor have been set up if any of
such taxes are being contested in good faith; or if any of such tax returns have
not been filed or if any such taxes have not been paid or so reserved for, the
failure to so file or to pay would not in the aggregate have a material adverse
effect on the business or financial condition of the Company and its
subsidiaries, taken as a whole.

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

         x. Internal Controls. The Company maintains a system of internal
accounting controls sufficient to provide reasonable assurances that (i)
transactions are executed in accordance with management's general or specific
authorization; (ii) transactions are recorded as necessary to permit preparation
of financial statements in conformity with generally accepted accounting
principles and to maintain accountability for assets; (iii) access to assets is
permitted only in accordance with management's general or specific
authorization; and (iv) the recorded accountability for assets is compared with
existing assets at reasonable intervals and appropriate action is taken with
respect to any differences.

         y. Investment Company Act. The Company is not conducting, and will not
conduct, its business in a manner which would cause it to become, an "investment
company," as defined in Section 3(a) of the Investment Company Act of 1940, as
amended.

         z. Agent Fees. Other than (i) the cash payments of seven and one-half
percent (7.5%) of the aggregate purchase price of (x) the Initial Shares and
Initial Warrants purchased by the Purchaser on the Initial Closing Date and (y)
upon exercise of the Conditional Warrant, the Additional Shares and Additional
Warrants and (ii) the issuance of (x) sixty thousand (60,000) Stock Purchase
Warrants on the Initial Closing Date and (y) upon the exercise of the
Conditional Warrant up to ninety thousand (90,000) Stock Purchase Warrants, as
payment to Next Millennium Capital Holdings, LLC as placement agent, the Company
has not incurred any liability for any finder's or brokerage fees or agent's
commissions in connection with the offer and sale of the transactions
contemplated by this Agreement.

         aa. Private Offering. Subject to the accuracy of the Purchaser's
representations and warranties set forth in Section 2 hereof, (i) the offer,
sale and issuance of the Initial Shares, the Initial Warrants and the
Conditional Warrant, (ii) the issuance of Common Stock in lieu of dividend
payments on the Initial Shares, and if the Conditional Warrant is exercised, the
Additional Warrants, (iii) if the Conditional Warrant is exercised, the issuance
of the Additional Shares and the Additional Warrants, and (iv) the conversion
and/or exercise of such securities into shares of Common Stock, each as
contemplated by the Primary Documents are exempt from the registration
requirements of the Securities Act. The Company agrees that neither the Company
nor anyone acting on its behalf will offer any of the Preferred Stock, the Stock
Purchase Warrants or the Conditional Warrant, or any similar securities for
issuance or sale, or solicit any offer to acquire any of the same from anyone so
as to render the issuance and sale of such securities subject to the
registration requirements of the Securities Act. The Company has not offered or
sold the Preferred Stock, the Stock Purchase Warrants or the Conditional Warrant
by any form of general solicitation or general advertising, as such terms are
used in Rule 502(c) under the Securities Act.

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         bb. Year 2000 Processing. The computer systems used by the Company and
its subsidiaries (the "Systems"), both hardware and software, are in good
working order. The Company has taken steps that are reasonable to ensure that
the occurrence of the year 2000 will not materially and adversely affect the
Systems of the Company, its subsidiaries, or their business, and no material
expenditures in excess of currently budgeted items will be required in order to
cause such Systems to operate properly following the change of the year 1999 to
2000. The Company and its subsidiaries have resolved or are in the process of
resolving any issues discovered as a result of year 2000 inquires or compliance
testing or otherwise known to the Company, and the Company is not aware of any
fact that would lead one reasonably to conclude that the Company will be unable
to resolve any of such issues prior to December 31, 1999.

         cc. Environmental Matters. Neither the Company and its subsidiaries,
nor any predecessor in interest nor, to the Company's knowledge, after due
inquiry, any other person has ever caused or permitted any Hazardous Material
(as defined below) to be released, treated or disposed of on, at, under or
within any real property owned, leased or operated by the Company and its
subsidiaries or any predecessor in interest, and no such real property has ever
been used (either by the Company and its subsidiaries, any predecessor in
interest or, to the Company's knowledge, after due inquiry, by any other person)
as a treatment, storage or disposal site for any Hazardous Material. The Company
has no liabilities with respect to Hazardous Materials, and to the knowledge of
the Company, after due inquiry, no facts or circumstances exist which could give
rise to liabilities with respect to Hazardous Materials, which could have any
reasonable likelihood of having a material adverse effect on the Company. For
purposes of this Agreement "Hazardous Materials" shall mean (a) any pollutants
or contaminations, (b) any asbestos or insulation or other material composed of
or containing asbestos and (c) any petroleum product and any hazardous, toxic or
dangerous waste, substance or material defined as such in, or for purposes of,
the Comprehensive Environmental Response, Compensation and Liability Act, any
so-called "Superfund" or "Superlien" law, or (d) any other applicable federal,
state, local or other statute, law, ordinance, code, rule, regulation, order or
decree concerning the protection of human health or the environment or otherwise
regulating, relating to, or imposing liability or standards of conduct
concerning, any hazardous, toxic or dangerous waste, substance or material, as
now or at any time hereafter in effect.

          dd. Intellectual Property. Except as set forth in the SEC Documents,
to the best of the Company's knowledge, each of the Company and its subsidiaries
owns or possesses adequate rights to use all material patents, patent rights,
inventions, trade secrets, know-how, trademarks, service marks, trade names and
copyrights which are described in the SEC Documents; except as set forth in the
SEC Documents, the Company has not received any notice of, and has no knowledge
of, any infringement of or conflict with asserted rights of the Company by
others with respect to any patent, patent rights, inventions, trade secrets,
know-how, trademarks, service marks, trade names and copyrights which, singly or
in the aggregate, if the subject of an unfavorable decision, ruling or finding,
would have a material adverse effect on the condition (financial or otherwise),
earnings, operations, business of the Company and its subsidiaries, taken as a
whole, as presently conducted; and, except as set forth in the SEC Documents,
the Company has not received any notice of, and has no knowledge of, any
infringement of or conflict with the asserted rights of others with respect to
any patent, patent rights, inventions, trade secrets, know-how, trademarks,
service marks, trade names and copyrights which, singly or

                                       9

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in the aggregate, if the subject of an unfavorable decision, ruling or finding,
would have a material adverse effect on the condition (financial or otherwise),
earnings, operations, or business of the Company and its subsidiaries, taken as
a whole, as presently conducted.

4.   CERTAIN COVENANTS AND ACKNOWLEDGMENTS

a. Transfer Restrictions. The Purchaser acknowledges that, except as provided in
the Registration Rights Agreement, (1) neither (i) the Initial Shares, the
Initial Warrants, the Conditional Warrant or the Common Stock issuable upon
conversion of, or in lieu of dividend payments on, the Initial Shares or upon
exercise of the Initial Warrants, nor (ii) if the Conditional Warrant is
exercised, the Additional Shares, the Additional Warrants or the Common Stock
issuable upon conversion of, or in lieu of dividend payments on, the Additional
Shares or upon exercise of the Additional Warrants, have been, or are being,
registered under the Securities Act, and such securities may not be transferred
unless (A) subsequently registered thereunder or (B) they are transferred
pursuant to an exemption from such registration; and (2) any sale of (i) the
Initial Shares, the Initial Warrants, the Conditional Warrant or the Common
Stock issuable upon conversion or exchange thereof (collectively, the "Initial
Securities") or (ii) if the Conditional Warrant is exercised, the Additional
Shares, the Additional Warrants or the Common Stock issuable upon conversion or
exchange thereof, (the "Additional Securities" and, collectively with the
Initial Securities, the "Securities") made in reliance upon Rule 144 under the
Securities Act may be made only in accordance with the terms of said Rule. The
provisions of Section 4(a) and 4(b) hereof, together with the rights of the
Purchaser under this Agreement and the other Primary Documents, shall be binding
upon any subsequent transferee of the Preferred Stock and the Stock Purchase
Warrants.

b. Restrictive Legend. The Purchaser acknowledges and agrees that, until such
time as the Securities shall have been registered under the Securities Act or
the Purchaser demonstrates to the reasonable satisfaction of the Company and its
counsel that such registration shall no longer be required, such Securities may
be subject to a stop-transfer order placed against the transfer of such
Securities, and such Securities shall bear a restrictive legend in substantially
the following form:

                  THESE SECURITIES (INCLUDING ANY UNDERLYING SECURITIES) HAVE
                  NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
                  AMENDED. THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED,
                  HYPOTHECATED OR OTHERWISE TRANSFERRED IN THE ABSENCE OF AN
                  EFFECTIVE REGISTRATION STATEMENT AS TO THE SECURITIES UNDER
                  SAID ACT OR AN OPINION OF COUNSEL OR OTHER EVIDENCE REASONABLY
                  SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION SHALL NO
                  LONGER BE REQUIRED.

         c. Filings. The Company undertakes and agrees that it will make all
required filings in connection with the sale of the Securities to the Purchaser
as required by United States laws and regulations, or by any domestic securities
exchange or trading market, and if applicable, the filing of a notice on Form D
(at such time and in such manner as required by the Rules and

                                       10
<PAGE>

Regulations of the Commission), and to provide copies thereof to the Purchaser
promptly after such filing or filings.

         d. NASDAQ Listing. Within forty-five (45) days of the date hereof, the
Company undertakes and agrees that it will file an application with the NASDAQ
market to list the Company's Common Stock (including, but not limited to, all of
the shares of Common Stock issuable upon conversion of, or in lieu of dividend
payments on, the Initial Shares and the Additional Shares and upon exercise of
the Initial Warrants and the Additional Warrants) on the NASDAQ SmallCap Market.
The Company further agrees and covenants that, once the Company's Common Stock
becomes listed on the NASDAQ SmallCap Market it will not seek to have the
trading of its Common Stock through the NASDAQ SmallCap Market suspended or
terminated, will use its best efforts to maintain its eligibility for trading on
the NASDAQ Small-Cap Market (including, the filing of a listing application with
NASDAQ to list all of the shares of Common Stock issuable upon conversion of, or
in lieu of dividend payments on, the Initial Shares and upon the exercise of the
Initial Warrants, and if the Conditional Warrant is exercised, upon conversion
of, or in lieu of dividend payments on, the Additional Shares and upon exercise
of the Additional Warrants and, if such trading of its Common Stock is suspended
or terminated, will use its best efforts to requalify its Common Stock or
otherwise cause such trading to resume. The Company shall promptly provide to
the Purchaser copies of any notices it receives from the Nasdaq SmallCap Market
regarding the continued eligibility of the Common Stock for listing on such
automated quotation system. The Company shall pay all fees and expenses in
connection with satisfying its obligations under this Section 4(d).

         e. Reporting Status. So long as the Purchaser beneficially owns any of
the Securities or any shares of Common Stock issuable upon conversion thereof
(collectively with the Securities, the "Collective Securities"), the Company
shall timely file all reports required to be filed with the Commission pursuant
to Section 13 or 15(d) of the Exchange Act and shall not terminate its status as
an issuer required to file reports under the Exchange Act even if the Exchange
Act or the rules and regulations thereunder would permit such termination.

         f State Securities Filings. The Company shall from time to time
promptly take such action as the Purchaser or any of its representatives, if
applicable, may reasonably request to qualify the Collective Securities for
offering and sale under the securities laws (other than United States federal
securities laws) of the jurisdictions in the United States as shall be so
identified to the Company, and to comply with such laws so as to permit the
continuance of sales therein, provided that in connection therewith, the Company
shall not be required to qualify as a foreign corporation or to file a general
consent to the service of process in any jurisdiction.

         g. Use of Proceeds. The Company will use all of the net proceeds from
the issuance of the Collective Securities to enable the Company to meet and
maintain the net tangible asset requirements of Nasdaq (for its anticipated
listing), for acquisitions, and for general working capital and not for the
repayment of indebtedness or satisfaction of any judgments.

         h. Reservation of Common Stock. The Company will at all times have
authorized and reserved for the purpose of issuance a sufficient number of
shares of Common Stock to provide for the conversion of the Initial Shares and
the exercise of the Initial Warrants, if the Conditional Warrant is exercised,
for the conversion of the Additional Shares and the exercise of the

                                       11
<PAGE>

Additional Warrants. The Company will use its best efforts at all times to
maintain a number of shares of Common Stock so reserved for issuance that is no
less than the sum of (i) two (2) times the sum of (x) maximum number of shares
of Common Stock that could be issuable upon the conversion of the Initial Shares
and (y) the maximum number that could be issuable upon conversion of the
Additional Shares and (ii) the sum of the number of shares of Common Stock
issuable upon exercise in full of the Initial Warrants and the Additional
Warrant, in each case without regard to whether the Conditional Warrant shall
have been exercised.

         i. Sales of Additional Shares. The Company shall not, directly or
indirectly, without the prior written consent of the Purchaser, such consent
shall not be unreasonably withheld, offer, sell, offer to sell, contract to sell
or otherwise dispose of any shares of its capital stock or any security or other
instrument convertible into or exchangeable for shares of Common Stock, in each
case for a period of two-hundred and seventy (270) days after the later of (A)
the Initial Closing Date, (B) any Conditional Closing Date (as defined in the
Conditional Warrant) or (C) the date on which a registration statement relating
to Common Stock issuable upon conversion of any of the Initial Shares, the
Initial Warrants, the Additional Shares, or the Additional Warrants is declared
effective by the Securities and Exchange Commission (the "Lock-Up Period"),
except that the Company may issue securities for the aggregate consideration of
at least ten million dollars in connection with a bona fide, firm commitment,
underwritten public offering under the Securities Act. In addition, the Company
agrees that it will not cause any shares of its capital stock that are issued in
connection with a transaction of the type contemplated by such clause (or upon
the conversion or exercise of other securities that are issued in connection
with such transaction) or that were issued in connection with any financing,
acquisition or other transaction that occurred prior to the date of this
Agreement to be covered by a registration statement that is declared effective
by the Commission until the earlier to occur of (A) the expiration of the
Lock-Up Period or (B) the registration statement filed by the Company pursuant
to its obligations under the Registration Rights Agreement has been effective
under the Securities Act for a period of at least two-hundred and seventy (270)
days, during which two hundred seventy (270) day period the Company shall not
have notified the Purchaser that such registration statement or the prospectus
included in such registration statement includes an untrue statement of a
material fact or omits to state a material fact required to be stated therein in
order to make the statements therein, in light of the circumstances under which
they were made, not misleading.

         j. Right of First Refusal. Subject to Section 4(i), if during the
eighteen (18) month period following the Lock-Up Period the Company shall desire
to sell, offer to sell, contract to sell or otherwise dispose of any securities
or any security or other instrument convertible into or exchangeable for shares
of Common Stock (collectively, the "Offered Securities") to a prospective
investor (the "Prospective Investor"), the Company shall notify (the "Offer
Notice") the Purchaser in accordance with Section 10 hereof of the terms (the
"Third Party Terms") on which the Company proposes to sell, contract to sell or
otherwise dispose of the Offered Securities to the Prospective Investor. If,
within the five (5) day period following the Purchaser's receipt of the Offer
Notice, the Purchaser delivers a written notice (the "Acceptance Notice") to the
Company stating its desire to purchase all or any portion of the Offered
Securities on the Third Party Terms, the Company shall be required to sell the
Offered Securities (or any portion thereof so desired by the Purchaser) to the
Purchaser at the price and on the terms set forth in the Offer Notice and the
Company shall not be permitted to sell such Offered Securities

                                       12
<PAGE>

to the Prospective Investor. If the Purchaser does not deliver an Acceptance
Notice to the Company in such five (5) day period then for a period of sixty
(60) days following the date of the Offer Notice the Company may sell the
Offered Securities to the Prospective Investor on the terms set forth in the
Officer Notice.

         k. Additional Registration Statements. At any time during the period
ending on the first date that follows a period of one hundred eighty (180)
consecutive days following the effectiveness of the Registration Statement (as
defined in the Registration Rights Agreement) during which there has been no
Blackout Event (as defined in the Registration Rights Agreement) relating to
such Registration Statement, the Company agrees that it will not cause any
registration statement (other than the Registration Statement) to be declared
effective by the Commission.

         l. Stockholder Approval. If required in accordance with Nasdaq Rule
4310 or 4460, the Company agrees to use its best efforts (including obtaining
any vote of its stockholders required by applicable law or Nasdaq rules) to
authorize and approve the issuance of the Common Stock issuable upon conversion
of the Initial Shares, the Additional Shares and upon exercise of the Initial
Warrants and the Additional Warrants, to the extent that such conversion or
issuance results in the issuance of 20% or more of the Company's outstanding
Common Stock; provided, however, that the failure to obtain any such stockholder
approval shall not limit any of Purchaser's rights hereunder or pursuant to any
Primary Document.

         m. Ownership. At no time shall the Purchaser (including its officers,
directors and affiliates) maintain in the aggregate beneficial ownership (as
defined for purposes of Section 16 of the Securities Exchange Act of 1934, as
amended) of shares of Common Stock in excess of 9.9% of the Company's
outstanding Common Stock unless the Purchaser gives the Company at least
sixty-one (61) days notice that it intends to increase its ownership percentage.

         n. Return of Certificates on Conversion and Stock Purchase Warrants on
Exercise. (i) Upon any conversion by Purchaser of less than all of the Shares of
Preferred Stock pursuant to the terms of the Certificate of Designations, the
Company shall issue and deliver to Purchaser within four (4) days of the Series
A Preferred Stock Conversion Date (as defined in the Certificate of
Designations), a new certificate or certificates for, as applicable, the total
number of shares of Preferred Stock, in each case, which Purchaser has not yet
elected to convert (with the number of and denomination of such new
certificate(s) designated by Purchaser).

                  (ii) Upon any partial exercise by Purchaser of Stock Purchase
Warrants, the Company shall issue and deliver to Purchaser within four (4) days
of the date on which such Stock Purchase Warrants are exercised, a new Stock
Purchase Warrant or Stock Purchase Warrants representing the number of adjusted
Shares covered thereby, in accordance with the terms thereof.

         o. Replacement Certificates and Stock Purchase Warrants. (i) The
certificate(s) representing the shares of Preferred Stock, held by Purchaser
shall be exchangeable, at the option of Purchaser, at any time and from time to
time at the office of Company, for certificates with different denominations
representing, as applicable, an equal aggregate number of shares of

                                       13
<PAGE>

Preferred Stock, as requested by Purchaser upon surrendering the same. No
service charge will be made for such registration or transfer or exchange.

                  (ii) The Stock Purchase Warrants will be exchangeable, at the
option of Purchaser, at any time and from time to time at the office of the
Company, for other Stock Purchase Warrants of different denominations entitling
the holder thereof to purchase in the aggregate the same number of shares of
Common Stock as are purchasable under such Stock Purchase Warrants. No service
charge will be made for such transfer or exchange.

         p. Dividends or Distributions; Purchases of Equity Securities. So long
as any portion of the Initial Shares, the Initial Warrants, the Conditional
Warrant, the Additional Shares, or the Additional Warrants remain outstanding,
the Company agrees that it shall not (a) declare or pay any dividends or make
any distributions to any holder or holders of Common Stock, or (b) purchase or
otherwise acquire for value, directly or indirectly, any shares of Common Stock
or equity security of the Company.

         q. Bankruptcy Waiver. In the event the Company becomes a debtor under
the Bankruptcy Code, the Company hereby waives to the fullest extent permitted
any rights to relief it may have under 11 U.S.C. ss. 362 in respect of (i) the
conversion of the Initial Shares and the exercise of the Initial Warrants, and
(ii) if the Conditional Warrant is exercised, the conversion of the Additional
Shares and the exercise of the Additional Warrants. At the direction of
Purchaser, the Company agrees, without cost or expense to the Purchaser, to take
or consent to any and all action necessary to effectuate relief under 11 U.S.C.
ss. 362.

         s. Conversion Limitations. Notwithstanding anything herein or in the
Certificate of Designation to the contrary (i) during the first thirty (30) day
period after the date hereof, the Purchaser may convert up to a maximum of six
hundred sixty-six and sixty-six hundredths (666.66) shares of Preferred Stock
into shares of Common Stock; (ii) during the second thirty (30) day period after
the date hereof, the Purchaser may convert up to a maximum of one thousand three
hundred thirty-three and thirty-two hundredths (1,333.32) shares of Preferred
Stock into shares of Common Stock, inclusive of the number of shares of
Preferred Stock converted pursuant to clause (i) above; and (iii) during the
third thirty (30) day period after the date hereof, the Purchaser may convert
all two thousand (2,000) shares of Preferred Stock purchased hereunder into
shares of Common Stock.

5.   TRANSFER AGENT INSTRUCTIONS

         a. The Company warrants that no instruction, other than the
instructions referred to in this Section 5 and stop transfer instructions to
give effect to Sections 4(a) and 4(b) hereof prior to the registration and sale
under the Securities Act of the Common Stock issuable upon conversion of the
Initial Shares, the Additional Shares or the shares of Common Stock issuable
upon exercise of the Initial Warrants or the Additional Warrants, will be given
by the Company to the transfer agent and that the shares of Common Stock
issuable upon (i) conversion of, or in lieu of dividend payments on, the Initial
Shares or upon exercise of the Initial Warrants, (ii) if the Conditional Warrant
is exercised, the conversion of, or in lieu of dividend payments on the
Additional Shares or upon exercise of the Additional Warrants, shall otherwise
be freely transferable on the books and records of the Company as and to the
extent provided in this

                                       14
<PAGE>

Agreement, the Registration Rights Agreement and applicable law. Nothing in this
Section shall affect in any way the Purchaser's obligations and agreement to
comply with all applicable securities laws upon resale of the Collective
Securities. If the Purchaser provides the Company with an opinion of counsel
that registration of a resale by the Purchaser of any of the Collective
Securities in accordance with clause (1)(B) of Section 4(a) of this Agreement is
not required under the Securities Act, the Company shall permit the transfer of
the Collective Securities and, in the case of the Common Stock, promptly
instruct the Company's transfer agent to issue one or more certificates for
Common Stock without legend in such names and in such denominations as specified
by the Purchaser.

         b. Purchaser shall exercise its right to (i) convert the Initial Shares
or to exercise the Initial Warrants or (ii) if the Conditional Warrant is
exercised, to convert the Additional Shares or to exercise the Additional
Warrants, by faxing an executed and completed Notice of Conversion or Form of
Election to Purchase, as applicable, to the Company, and delivering within four
(4) business days thereafter, the original Notice of Conversion (and the related
certificates representing the shares of Preferred Stock, as applicable) or Form
of Election to Purchase (and the related original Stock Purchase Warrants) to
the Company by hand delivery or by express courier, duly endorsed. Each date on
which a Notice of Conversion or Form of Election to Purchase is faxed in
accordance with the provisions hereof shall be deemed a "Conversion Date." The
Company will transmit the certificates representing the Common Stock issuable
upon conversion of any shares of Preferred Stock or upon exercise of any Stock
Purchase Warrants (together with the shares of Preferred Stock not so converted
or the Stock Purchase Warrants not so exercised) to the Purchaser via express
courier as soon as practicable, but in all events no later than four (4)
business days after the Conversion Date relating to shares of Preferred Stock or
Stock Purchase Warrants (each such delivery date, together with the Dividend
Delivery Date referred to in paragraph c below, is referred to herein as a
"Delivery Date"). For purposes of this Agreement, any conversion of the Initial
Shares, the Additional Shares or the exercise of the Initial Warrants or the
Additional Warrants shall be deemed to have been made immediately prior to the
close of business on the Conversion Date.

         c. The Company will transmit the certificates representing the Common
Stock issuable in lieu of dividends payable on any shares of Preferred Stock to
the Purchaser via express courier as soon as practicable, but in all events no
later than four (4) business days after the dividend payment date applicable to
which such Common Stock is delivered (the "Dividend Delivery Date").

         d. In lieu of delivering physical certificates representing the Common
Stock issuable upon the conversion of, or in lieu of dividends on, the Initial
Shares, the Additional Shares or upon the exercise of the Initial Warrants or
the Additional Warrants, provided the Company's transfer agent is participating
in the Depositary Trust Company ("DTC") Fast Automated Securities Transfer
program, on the written request of the Purchaser, who shall have previously
instructed the Purchaser's prime broker to confirm such request to the Company's
transfer agent, the Company shall cause its transfer agent to electronically
transmit such Common Stock to the Purchaser by crediting the account of the
Purchaser's prime broker with DTC through its Deposit Withdrawal Agent
Commission ("DWAC") system no later than the applicable Delivery Date.

                                       15
<PAGE>

         e. The Company understands that a delay in the issuance of Common Stock
beyond the applicable Delivery Date could result in an economic loss to the
Purchaser. As compensation to the Purchaser for such loss, the Company agrees to
pay to the Purchaser for late issuance of Common Stock upon conversion of, or in
lieu of dividend payments on, the Initial Shares or the Additional Shares or
upon exercise of the Initial Warrants or the Additional Warrants, the sum of
three thousand dollars ($3,000) per day for each (i) one hundred thousand
dollars ($100,000) of aggregate Stated Value (as defined in the Certificate of
Designation) amount of Initial Shares or Additional Shares that are being
converted, or (ii) twenty-five thousand (25,000) shares of Common Stock
purchased upon the exercise of Initial Warrants or Additional Warrants. The
Company shall pay any payments that are payable to the Purchaser pursuant to
this Section 5 in immediately available funds upon demand. Nothing herein shall
limit the Purchaser's right to pursue actual damages for the Company's failure
to so issue and deliver Common Stock to the Purchaser. Furthermore, in addition
to any other remedies which may be available to the Purchaser, in the event that
the Company fails for any reason to effect delivery of such Common Stock within
five (5) business days after the relevant Delivery Date, the Purchaser will be
entitled to revoke the relevant Notice of Conversion or Form of Election to
Purchase by delivering a notice to such effect to the Company, whereupon the
Company and the Purchaser shall each be restored to their respective positions
immediately prior to delivery of such Notice of Conversion or Form of Election
to Purchase. For purposes of this Section 5, "business day" shall mean any day
in which the financial markets of New York are officially open for the conduct
of business therein.

6.       CONDITIONS TO THE COMPANY'S OBLIGATION TO ISSUE THE INITIAL SHARES, THE
         INITIAL WARRANTS AND THE CONDITIONAL WARRANT

                  The Purchaser understands that the Company's obligation to
issue the Initial Shares, the Initial Warrants and the Conditional Warrant on
the Initial Closing Date to the Purchaser pursuant to this Agreement is
conditioned upon:

         a. The accuracy on the Initial Closing Date of the representations and
warranties of the Purchaser contained in this Agreement as if made on the
Initial Closing Date and the performance by the Purchaser on or before the
Initial Closing Date of all covenants and agreements of the Purchaser required
to be performed on or before the Initial Closing Date.

         b. The absence or inapplicability of any and all laws, rules or
regulations prohibiting or restricting the transactions contemplated hereby, or
requiring any consent or approval which shall not have been obtained.

7.       CONDITIONS TO THE PURCHASER'S OBLIGATION TO PURCHASE THE INITIAL
         SHARES, THE INITIAL WARRANTS AND THE CONDITIONAL WARRANT

                  The Company understands that the Purchaser's obligation to
purchase the Initial Shares, the Initial Warrants and the Conditional Warrant on
the Initial Closing Date is conditioned upon:

                                       16
<PAGE>

         a. The Certificate of Designation shall have been filed with the
Secretary of State of the State of Nevada, and a copy thereof certified by such
Secretary of State shall have been delivered to the Purchaser.

         b. The accuracy on the Initial Closing Date of the representations and
warranties of the Company contained in this Agreement as if made on the Initial
Closing Date, and the performance by the Company on or before the Initial
Closing Date of all covenants and agreements of the Company required to be
performed on or before the Initial Closing Date.

         c. On the Initial Closing Date, the Purchaser shall have received an
opinion of counsel for the Company, dated the Initial Closing Date, in
substantially the form as attached in Exhibit E.

         d. The Company shall have executed and delivered to the Purchaser (i) a
signed counterpart to the Registration Rights Agreement, (ii) the Initial
Shares, (iii) the Initial Warrants and (iv) the Conditional Warrant.

         e. On the Initial Closing Date, the Purchaser shall have received a
certificate executed by the President or the Chairman of the Company and by the
Chief Financial Officer of the Company, stating that all of the representations
and warranties of the Company set forth in this Agreement are accurate as of the
Initial Closing Date and that the Company has performed all of its covenants and
agreements required to be performed under this Agreement on or before the
Initial Closing Date.

         f. On the Initial Closing Date, the Purchaser shall have received from
the Company such other certificates and documents as it or its representatives,
if applicable, shall reasonably request, and all proceedings taken by the
Company in connection with the Primary Documents contemplated by this Agreement
and the other Primary Documents and all documents and papers relating to such
Primary Documents shall be satisfactory to the Purchaser.

         g. On or prior to the Initial Closing Date, there shall not have
occurred any of the following: (i) a suspension or material limitation in the
trading of securities generally on the New York Stock Exchange, NASDAQ or the
NASDAQ Bulletin Board; (ii) a general moratorium on commercial banking
activities in New York declared by the applicable banking authorities; or (iii)
the outbreak or escalation of hostilities involving the United States, or the
declaration by the United States of a national emergency or war

         h. The Company shall have delivered to the Purchaser reimbursement of
the Purchaser's out-of-pocket costs and expenses incurred in connection with the
transactions contemplated by this Agreement (including fees and disbursements of
the Purchaser's legal counsel).

8.   EXPENSES

                  The Company covenants and agrees with the Purchaser that the
Company will pay or cause to be paid the following: (a) the fees, disbursements
and expenses of the Purchaser and its counsel in connection with the issuance of
the Collective Securities payable on the Initial Closing Date up to a maximum of
twenty-five thousand dollars ($25,000), (b) all expenses in

                                       17
<PAGE>

connection with registration or qualification of the Collective Securities for
offering and sale under state securities laws as provided in Section 4(f)
hereof, and (c) all other costs and expenses incident to the performance of its
obligations hereunder which are not otherwise specifically provided for in this
Section 8, including the fees and disbursements of the Company's counsel,
accountants and other professional advisors, if any. If the Company fails to
satisfy its obligations or to satisfy any condition set forth in this Agreement,
as a result of which the Collective Securities are not delivered to the
Purchaser on the terms and conditions set forth herein, the Company shall
reimburse the Purchaser for any out-of-pocket expenses reasonably incurred in
making preparations for the purchase, sale and delivery of the Collective
Securities not so delivered.

9.  GOVERNING LAW; MISCELLANEOUS

                  This Agreement shall be governed by and interpreted in
accordance with the laws of the State of New York, without regard to principles
of conflict of laws. Each of the parties consents to the jurisdiction of the
federal courts whose districts encompass any part of the City of New York or the
state courts of the State of New York sitting in the City of New York in
connection with any dispute arising under this Agreement or any of the
transactions contemplated hereby, and hereby waives, to the maximum extent
permitted by law, any objection, including any objections based on forum non
conveniens, to the bringing of any such proceeding in such jurisdictions. This
Agreement may be signed in one or more counterparts, each of which shall be
deemed an original. The headings of this Agreement are for convenience of
reference only and shall not form part of, or affect the interpretation of this
Agreement. This Agreement and each of the Primary Documents have been entered
into freely by each of the parties, following consultation with their respective
counsel, and shall be interpreted fairly in accordance with its respective
terms, without any construction in favor of or against either party. If any
provision of this Agreement shall be invalid or unenforceable in any
jurisdiction, such invalidity or unenforceability shall not affect the validity
or enforceability of the remainder of this Agreement or the validity or
unenforceability of this Agreement in any other jurisdiction. This Agreement
shall inure to the benefit of, and be binding upon the successors and assigns of
each of the parties hereto, including any transferees of the Initial Shares, the
Initial Warrants, the Conditional Warrant, and, if the Conditional Warrant shall
be exercised, the Additional Shares and the Additional Warrants. This Agreement
may be amended only by an instrument in writing signed by the party to be
charged with enforcement. This Agreement supersedes all prior agreements and
understandings among the parties hereto with respect to the subject matter
hereof.

10.  NOTICES

                  Any notice required or permitted hereunder shall be given in
writing (unless otherwise specified herein) and shall be effective upon personal
delivery, via facsimile (upon receipt of confirmation of error-free transmission
and mailing a copy of such confirmation, postage prepaid by certified mail,
return receipt requested) or two business days following deposit of such notice
with an internationally recognized courier service, with postage prepaid and
addressed to each of the other parties thereunto entitled at the following
addresses, or at such

                                       18
<PAGE>

other addresses as a party may designate by five days advance written notice to
each of the other parties hereto.

(a)      if to the Company, to:             Intelliquis International, Inc.
                                            352 West 123rd South, Suite #300
                                            Draper, Utah  84020
                                            Attention:  Bernard Yaw
                                            Tel:  (801) 990-2600
                                            Fax: (801) 990-2612

         with a copy to:                    Law Offices of Michael Eisner
                                            499 North Canon Drive
                                            Beverly Hills, California  90210
                                            Attention:  Michael Eisner, Esq.
                                            Tel:  (310) 887-7035
                                            Fax: (310) 887-7036

(b)      if to the Purchaser to:            ROBI Investors LLC
                                            WEC Asset Management LLC
                                            One World Trade Center, Suite 4563
                                            New York, New York  10048
                                            Attention:  Daniel J. Saks
                                            Tel:  (212) 775-9299
                                            Fax: (212) 775-9311

         with a copy to:                    Pryor Cashman Sherman & Flynn LLP
                                            410 Park Avenue
                                            New York, New York  10022
                                            Attention:  Mark Saks, Esq.
                                            Tel:  (212) 326-0140
                                            Fax:  (212) 326-0806

 11.     SURVIVAL

                  The agreements, covenants representations and warranties of
the Company and the Purchaser shall survive the execution and delivery of this
Agreement and the delivery of the Securities hereunder.

12. INDEMNIFICATION

                  The Company agrees to indemnify the Purchaser and each
officer, director, employee, agent, partner, stockholder, member and affiliate
of the Purchaser (collectively, the "Indemnified Parties") for, and hold each
Indemnified Party harmless from and against: (i) any and all damages, losses,
claims and other liabilities of any and every kind, including, without
limitation, judgments and costs of settlement, and (ii) any and all reasonable
out-of-pocket costs and expenses of any and every kind, including, without
limitation, reasonable fees and disbursements of counsel for such Indemnified
Parties (all of which expenses periodically shall

                                       19
<PAGE>

be reimbursed as incurred), in each case, arising out of or suffered or incurred
in connection with any of the following: (a) any misrepresentation or any breach
of any warranty made by the Company herein or in any of the other Primary
Documents, (b) any breach or non-fulfillment of any covenant or agreement made
by the Company herein or in any of the other Primary Documents and (c) any claim
relating to or arising out of a violation of applicable federal or state
securities laws by the Company in connection with the sale or issuance of the
Initial Shares, Additional Shares, Initial Warrants, Additional Warrants or
Conditional Warrant by the Company to the Purchaser (collectively, the
"Indemnified Liabilities"). To the extent that the foregoing undertaking by the
Company may be unenforceable for any reason, the Company shall make the maximum
contribution to the payment and satisfaction of each of the Indemnified
Liabilities which is permissible under applicable law.

         [REMAINDER OF PAGE INTENTIONALLY BLANK, SIGNATURE PAGE FOLLOWS]

                                       20
<PAGE>

                  IN WITNESS WHEREOF, this Securities Purchase Agreement has
been duly executed by each of the undersigned.

                                           INTELLIQUIS INTERNATIONAL, INC.

                                           By: /s/ Bernard Yaw
                                              ----------------------------
                                                Name: Bernard Yaw
                                                Title:President

                                           ROBI INVESTORS LLC

                                           By:  WEC Asset Management LLC,
                                                    Manager

                                           By: /s/ Danniel J. Saks
                                              ----------------------------
                                                Name:   Daniel J. Saks
                                                Title:  Managing Director

                                       21
<PAGE>

                                  EXHIBIT INDEX

EXHIBIT A                       FORM OF CERTIFICATE OF DESIGNATION

EXHIBIT B                       FORM OF STOCK PURCHASE WARRANT

EXHIBIT C                       FORM OF CONDITIONAL WARRANT

EXHIBIT D                       FORM OF REGISTRATION RIGHTS AGREEMENT

EXHIBIT E                       OPINION OF COUNSEL

                          SCHEDULE INDEX

SCHEDULE 3(a)                    LIST OF SUBSIDIARIES

SCHEDULE 3(b)                    CAPITALIZATION, DERIVATIVE SECURITIES AND
                                 REGISTRATION RIGHTS

SCHEDULE 3(h)                    NON-CONTRAVENTION

<PAGE>

                                                                   SCHEDULE 3(a)

                              LIST OF SUBSIDIARIES

Direct Media Corporation
1475 Saratoga Avenue
Suite 101
San Jose, CA 95129
(408) 973-9932
(408) 973-9942 Fax

<PAGE>

                                                                   SCHEDULE 3(b)

         CAPITALIZATION, DERIVATIVE SECURITIES AND REGISTRATION RIGHTS

<TABLE>
<CAPTION>

Derivative Securities

         Name                       Service Type                       Amount of Options     Exercise Price
         ------------------         --------------------------         -----------------     --------------
<S>                                 <C>                                <C>                   <C>
         Patrick Lucci              Consulting                               6,000                $4.00

</TABLE>

Registration Rights

None

<PAGE>

                                                                   SCHEDULE 3(h)

                                NON-CONTRAVENTION

None

<PAGE>

                                                                 EXHIBIT 3.5

                         CERTIFICATE OF DESIGNATIONS OF
                   SERIES A 6% CONVERTIBLE PREFERRED STOCK OF
                         INTELLIQUIS INTERNATIONAL, INC.

                   Pursuant to Section 78.1955 of the General
                     Corporation Law of the State of Nevada

                   The undersigned, Bernard Yaw and Mark Tippets, hereby certify
that:

                  I. They are the duly elected and acting President and
Secretary, respectively, of Intelliquis International, Inc., a Nevada
corporation (the "Corporation").

                  II. The Certificate of Incorporation of the Corporation
authorizes five million (5,000,000) shares of preferred stock, $0.001 par value
per share.

                  III. The following is a true and correct copy of resolutions
duly adopted by the Board of Directors of the Corporation (the "Board of
Directors") on October 21, 1999 pursuant to the Articles of Incorporation of the
Corporation and in accordance with the provisions of the General Corporation Law
of the State of Nevada.

RESOLUTIONS

                  WHEREAS, the Board of Directors is authorized to provide for
the issuance of the shares of preferred stock in series, and by filing a
certificate pursuant to the applicable law of the State of Nevada, to establish
and issue one or more series of preferred stock with such voting powers, full or
limited, or no voting powers, and such designations, preferences and relative,
participating, optional or other special rights, and with such qualifications,
limitations or restrictions thereon as the Board of Directors may determine.

                  WHEREAS, the Board of Directors desires, pursuant to its
authority as aforesaid, to designate a new series of preferred stock, set the
number of shares constituting such series and fix the rights, preferences,
privileges and restrictions of such series.

                  NOW, THEREFORE, BE IT RESOLVED, that the Board of Directors
hereby designates a new series of preferred stock and the number of shares
constituting such series and fixes the rights, preferences, privileges and
restrictions relating to such series as follows:

                  A. Designation, Amount and Par Value. The series of preferred
stock shall be designated as the Series A 6% Convertible Preferred Stock (the
"Series A Preferred Stock"), and the number of shares so designated shall be
five thousand (5,000) (which shall not be subject to increase or decrease). Each
share of Series A Preferred Stock shall have a par value of $0.001 per share and
a stated value (the "Stated Value") of the Liquidation Preference (as
hereinafter defined in Section C(1)).

<PAGE>

                  B.       Dividends.

                           (1) Holders of the Series A Preferred Stock shall be
entitled to receive, out of funds legally available therefor, dividends at a
rate equal to 6% (the "Dividend Rate") of the Liquidation Preference per share
per annum (subject to appropriate adjustments in the event of any stock
dividend, stock split, combination or other similar recapitalization affecting
such shares), and no more, payable in accordance with the provisions of this
Certificate of Designations.

                           (2) At the election of the Corporation, each dividend
on Series A Preferred Stock shall be paid either in shares of Common Stock of
the Corporation, $.001 par value per share ("Common Stock") or in cash on the
Delivery Date (as defined in Subsection G(2)(a) of this Certificate of
Designations) with respect to any shares of Series A Preferred Stock which are
the subject of a Notice of Conversion (as defined in Subsection G(2) of this
Certificate of Designations). Dividends paid in shares of Common Stock shall be
paid (based on an assumed value of $1,000 per share) in full shares only, with a
cash payment equal to the value of any fractional shares. Each dividend paid in
cash shall be mailed to the holders of record of the Series A Preferred Stock as
their names and addresses appear on the share register of the Corporation or at
the office of the transfer agent on the corresponding dividend payment date.
Holders of Series A Preferred Stock will receive written notification from the
Corporation or the transfer agent if a dividend is paid in kind, which
notification will specify the number of shares of Common Stock paid as a
dividend and the recipient's aggregate holdings of Common Stock as of that
dividend payment date and after giving effect to the dividend. All holders of
shares of Common Stock issued as dividends shall be entitled to all of the
rights and benefits relating to shares of Common Stock as set forth in the
Corporation's Articles of Incorporation, as amended, and By-laws.

                           (3) Holders of the Series A Preferred Stock shall be
entitled to payment of any dividends in preference and priority to any payment
of any cash dividend on Common Stock or any other class or series of capital
stock of the Corporation. Dividends on the Series A Preferred Stock shall accrue
with respect to each share of the Series A Preferred Stock from the date on
which such share is issued and outstanding and thereafter shall be deemed to
accrue from day to day whether or not earned or declared and whether or not
there exists profits, surplus or other funds legally available for the payment
of dividends, and shall be cumulative so that if such dividends on the Series A
Preferred Stock shall not have been paid, or declared and set apart for payment,
the deficiency shall be fully paid or declared and set apart for payment before
any dividend shall be paid or declared or set apart for any Common Stock or
other class or series of capital stock ranking junior to the Series A Preferred
Stock (such stock being collectively referred to herein as the "Junior Stock")
and before any purchase or acquisition of any Junior Stock is made by the
Corporation. At the earlier of: (1) the redemption or conversion of the Series A
Preferred Stock or (2) the liquidation of the Corporation, any accrued but
undeclared dividends shall be paid to the holders of record of outstanding
shares of the Series A Preferred Stock in accordance with the provisions of this
Certificate of Designations. No accumulation of dividends on the Series A
Preferred Stock shall bear interest.

                                       2
<PAGE>

                  C.       Liquidation, Dissolution or Winding Up.

                           (1) In the event of any voluntary or involuntary
liquidation, dissolution or winding up of the Corporation, the holders of shares
of the Series A Preferred Stock then outstanding shall be entitled to be paid
out of the assets of the Corporation available for distribution to its
stockholders, before any payment shall be made to the holders of Junior Stock by
reason of their ownership thereof, an amount equal to one thousand dollars
($1,000) per share of Series A Preferred Stock (the "Liquidation Preference")
plus any accrued but unpaid dividends (whether or not declared). If upon any
such liquidation, dissolution or winding up of the Corporation the remaining
assets of the Corporation available for distribution to its stockholders shall
be insufficient to pay the holders of shares of the Series A Preferred Stock the
full amount to which they shall be entitled, the holders of shares of the Series
A Preferred Stock shall share ratably in any distribution of the remaining
assets and funds of the Corporation in proportion to the respective amounts
which would otherwise be payable in respect of the shares held by them upon such
distribution if all amounts payable on or with respect to such shares were paid
in full.

                           (2) After the payment of all preferential amounts
required to be paid to the holders of the Series A Preferred Stock upon the
dissolution, liquidation, or winding up of the Corporation, all of the remaining
assets and funds of the Corporation available for distribution to its
stockholders shall be distributed ratably among the holders of the Series A
Preferred Stock and the Junior Stock, with each share of Series A Preferred
Stock being deemed, for such purpose, to be equal to the number of shares of
Common Stock, including fractions of a share, into which such share of Series A
Preferred Stock is convertible immediately prior to the close of business on the
business day fixed for such distribution.

                  D.       Voting.

                           Except as specifically provided herein or in
accordance with the General Corporation Law of the State of Nevada, the holders
of shares of Series A Preferred Stock shall not be entitled to vote on matters
required or permitted to the submitted to the shareholders of the Corporation
for their approval.

                  E.       Other Securities. Subject to any limitations
contained in this Certificate of Designations, the Corporation's Articles of
Incorporation and/or the Primary Documents (as defined in the Securities
Purchase Agreement, dated as of October 26, 1999, hereinafter the "Securities
Purchase Agreement"), the Board of Directors of the Corporation reserves the
right to establish additional classes and/or series of capital stock of the
Corporation and to designate the preferences, limitations and relative rights of
any such classes and/or series; provided, however, that no such class and/or
series may have preferences, limitations and relative rights which are superior
to or senior to the preferences, limitations and relative rights granted to the
holders of the Series A Preferred Stock.

                  F.       Capital Reorganization. If the Corporation shall
at any time hereafter subdivide or combine its outstanding shares of Common
Stock, declare a dividend payable in Common Stock, or in case of any capital
reorganization or reclassification of the shares of Common Stock of the
Corporation, the number of shares of the Series A Preferred Stock and the

                                       3
<PAGE>

Stated Value of the Series A Preferred Stock shall be adjusted appropriately to
allow the holders of the Series A Preferred Stock, as nearly as reasonably
possible, to maintain (i) the aggregate Sated Value of the Series A Preferred
Stock and (ii) their pro rata interest in the Corporation and in the Common
Stock upon conversion of the Series A Preferred Stock, that each holder had
prior to any such subdivision, combination, stock dividend, reorganization or
reclassification.

                  G.       Conversion.

                           (1) The holders of the Series A Preferred Stock shall
have conversion rights as follows (the "Series A Preferred Stock Conversion
Rights"):

                                    (a) Each share of Series A Preferred Stock
         shall be convertible, at the option of the holder thereof, at any time
         and from time to time, into such number of fully paid and nonassessable
         shares of Common Stock as is determined by dividing $1,000, plus the
         amount of any accrued and unpaid dividends the Corporation elects to
         pay in Common Stock, by the Conversion Price (as defined below) in
         effect at the time of conversion. The Conversion Price at which shares
         of Common Stock shall be deliverable upon conversion of Series A
         Preferred Stock without the payment of additional consideration by the
         holder thereof (the "Conversion Price") shall be the lower of (i) 115%
         of the average Closing Bid Price of the shares of Common Stock for the
         five (5) trading days immediately preceding the Initial Closing Date
         (as defined in the Securities Purchase Agreement) or (ii) 80% of the
         average of the three lowest Closing Bid Prices of the shares of Common
         Stock for the twenty (20) trading days immediately preceding the Series
         A Preferred Stock Conversion Date (as hereinafter defined). For
         purposes of these Articles of Amendment, the term "Closing Bid Price"
         means, for any security as of any date, the closing bid price on the
         principal securities exchange or trading market where the Common Stock
         is listed or traded as reported by Bloomberg, L.P. ("Bloomberg") or, if
         applicable, the closing bid price of the Common Stock in the
         over-the-counter market on the electronic bulletin board for such
         security as reported by Bloomberg, or, if no closing bid price is
         reported for the Common Stock by Bloomberg, then the average of the bid
         prices of any market makers for such security as reported in the "pink
         sheets" by the National Quotation Bureau, Inc. If the Closing Bid Price
         of the Common Stock can not be calculated on such date on any of the
         foregoing bases, the Closing Bid Price of the Common Stock on such date
         shall be the fair market value as determined by the holders of a
         majority of the outstanding shares of Series A Preferred Stock being
         converted for which the calculation of the Closing Bid Price is
         required in order to determine the Conversion Price of such shares.
         "Trading day" shall mean any day on which the Corporation's Common
         Stock is traded for any period on the principal securities exchange or
         other securities market on which the Common Stock is then being traded.
         If, during any period following October 26, 1999 (the "Original Issue
         Date"), as a result of the occurrence of any of the events set forth in
         Section 3(f) or 3(g) of the Registration Rights Agreement, dated as of
         October 12, 1999, by and between the Corporation and the Purchaser set
         forth therein (the "Registration Rights Agreement"), the Purchasers set
         forth therein are not able to sell shares of Common Stock issuable upon
         conversion of, or in lieu of dividends on, shares of Series A Preferred
         Stock pursuant to a registration statement filed pursuant to such
         agreement, the holders of shares of Series A Preferred Stock shall have
         the right, for any purpose during such period and thereafter, to
         designate

                                       4
<PAGE>

         as the Conversion Price any Conversion Price that would have been
         applicable during such period had such Series A Preferred Stock
         shareholder delivered a Notice of Conversion with respect to any such
         Series A Preferred Stock.

                                    (b) In the event that the Corporation's
         stock is listed on the Nasdaq SmallCap or National Market, at any time
         that the number of shares of Common Stock issued (A) upon conversion of
         the Series A Preferred Stock and (B) in lieu of dividend payments on
         the Series A Preferred Stock, shall equal 20% or more of the
         Corporation's outstanding Common Stock (a "Common Stock Redemption
         Event"), the Corporation shall (x) redeem, at a price per share equal
         to (A) the quotient of (i) the Liquidation Preference per share of
         Series A Preferred Stock plus all accrued but unpaid dividends on such
         shares of Series A Preferred Stock and (ii) the Conversion Price as if
         the Series A Preferred Stock had been converted on the Series A
         Preferred Stock Redemption Date multiplied by (B) the average Closing
         Bid Price of shares of Common Stock for the five (5) trading days
         immediately preceding the Series A Preferred Stock Redemption Date, all
         of the outstanding Series A Preferred Stock or (y) call a special
         meeting of its stockholders for the purpose of approving the
         transactions contemplated by the Securities Purchase Agreement,
         including the issuance of the Series A Preferred Stock on the terms set
         forth therein, together with any other approvals that shall be required
         so as to cause the transactions contemplated by the Securities Purchase
         Agreement to remain in compliance with the Rules and Regulations of The
         Nasdaq Stock Market (including Rules 4300 and 4310 of Nasdaq's
         Non-Qualitative Designation Criteria in connection with conversions of
         Series A Preferred Stock; such approvals are referred to herein as the
         "Required Approvals"). The Corporation shall determine within five (5)
         business days following the receipt of a Notice of Conversion which of
         such actions it shall take, and shall promptly furnish notice to each
         of the holders of Series A Preferred Stock as to such determination,
         including, if applicable, a notice of redemption. In no event shall the
         Corporation issue shares of Common Stock upon conversion of, or in lieu
         of dividend payments on, the Series A Preferred Stock, after the
         occurrence of a Common Stock Redemption Event until the Required
         Approvals, if any, are obtained.

                                    (c) If the Corporation elects to call a
         special meeting of its stockholders pursuant to Subsection G(1)(b) of
         this Certificate of Designations to obtain the Required Approvals, the
         Corporation shall use its best efforts to obtain such Required
         Approvals within thirty (30) days of the Initial Closing Date (such
         forty five (45) day period is referred to herein as an "Approval
         Period"). If the Corporation does not obtain the Required Approvals
         within the Approval Period and the Corporation receives a Notice of
         Conversion after the termination of the Approval Period, the
         Corporation must redeem, in accordance with this Subsection G of this
         Certificate of Designations, any shares of Series A Preferred Stock
         outstanding after the Corporation has issued in excess of 6,692,484
         shares of Common Stock in connection with conversions of the Series A
         Preferred Stock.

                                    (d) If the Corporation elects, pursuant to
         this Subsection G, to redeem the Series A Preferred Stock on the
         occurrence of a Common Stock Redemption Event, it shall redeem such
         Series A Preferred Stock at the price determined in accordance with
         Subsection G(1)(b) of this Certificate of Designations. If the

                                       5
<PAGE>

         Corporation shall have elected, pursuant to this Subsection G(1), to
         obtain the Required Approvals but shall not have done so by the later
         of the occurrence of the Common Stock Redemption Event or the
         expiration of the Approval Period, it shall furnish a redemption notice
         to the Purchaser within three (3) business days after the expiration of
         the Approval Period.

                           (2) The Series A Preferred Stock Conversion Rights
shall be exercised as follows:

                                    (a) The Corporation will permit each holder
         of Series A Preferred Stock to exercise its right to convert the Series
         A Preferred Stock by faxing an executed and completed notice of
         conversion (the "Notice of Conversion") to the Corporation, and
         delivering within four (4) business days thereafter, the original
         Notice of Conversion (and the certificates representing the related
         shares of Series A Preferred Stock) to the Corporation by hand delivery
         or by express courier, duly endorsed. Each date on which a Notice of
         Conversion is faxed in accordance with the provisions hereof shall be
         deemed a "Series A Preferred Stock Conversion Date." The Corporation
         will transmit the certificates representing the Common Stock issuable
         upon conversion of the Series A Preferred Stock (together with
         certificates representing the related shares of Series A Preferred
         Stock not so converted and, if applicable, a check representing any
         fraction of a share not converted) to such holder via express courier
         as soon as practicable, but in all events no later than (the "Delivery
         Date") four (4) business days after the Series A Preferred Stock
         Conversion Date. For purposes of this Certificate of Designations, such
         conversion of the Series A Preferred Stock shall be deemed to have been
         made immediately prior to the close of business on the Series A
         Preferred Stock Conversion Date.

                                    (b) In lieu of delivering physical
         certificates representing the Common Stock issuable upon the conversion
         of the Series A Preferred Stock, provided that the Corporation's
         transfer agent is participating in the Depository Trust Corporation
         ("DTC") Fast Automated Securities Transfer program, on the written
         request of a holder of Series A Preferred Stock who shall have
         previously instructed such holder's prime broker to confirm such
         request to the Corporation's transfer agent, the Corporation shall use
         its best efforts to cause its transfer agent to electronically transmit
         such Common Stock to such holder by crediting the account of the
         holder's prime broker with DTC through its Deposit Withdrawal Agent
         Commission system no later than the applicable Delivery Date.

                                    (c) The Corporation will at all times have
         authorized and reserved for the purpose of issuance a sufficient number
         of shares of Common Stock to provide for the conversion of the Series A
         Preferred Stock. The Corporation will use its best efforts at all times
         to maintain a number of shares of Common Stock so reserved for issuance
         that is no less than the sum of (i) two (2) times the number that would
         then actually be issuable upon the conversion of five thousand (5,000)
         shares of Series A Preferred Stock and (ii) the exercise of the Initial
         Warrants and the Additional Warrants (each as defined in the Securities
         Purchase Agreement). Before taking any action which would cause an
         adjustment reducing the Conversion Price below the established par
         value

                                       6
<PAGE>

         of the shares of Common Stock issuable upon conversion of the Series A
         Preferred Stock, the Corporation shall take any corporate action which
         may, in the opinion of its counsel or in the opinion of counsel to
         holders of the Series A Preferred Stock, be necessary in order that the
         Corporation may validly and legally issue fully paid and nonassessable
         shares of Common Stock at such adjusted Conversion Price.

                           (3) In the event of a liquidation of the Corporation,
the Series A Preferred Stock Conversion Rights shall terminate at the close of
business on the first full day preceding the date fixed for the payment of any
amounts distributable on liquidation to the holders of the Series A Preferred
Stock.

                           (4) If the conversion is in connection with an
underwritten offer of securities registered pursuant to the Securities Act of
1933, as amended, the conversion may, at the option of any holder tendering
Series A Preferred Stock for conversion, be conditioned upon the closing with
the underwriter of the sale of securities pursuant to such offering, in which
event the person(s) entitled to receive the Common Stock issuable upon such
conversion of the Series A Preferred Stock shall not be deemed to have converted
such Series A Preferred Stock until immediately prior to the closing of the sale
of securities.

                           (5) At no time shall any holder of the Series A
Preferred Stock convert such amount of Series A Preferred Stock as shall result
in such Purchaser's ownership, after such conversion, exceeding 9.9% of the
Corporation's outstanding Common Stock.

                           (6) No fractional shares of Common Stock shall be
issued upon conversion of the Preferred Stock. In lieu of fractional shares, the
Corporation shall pay cash equal to such fraction multiplied by the then
effective and applicable Conversion Price.

                           (7) The Corporation will not, by amendment of its
Articles of Incorporation or through any reorganization, transfer of assets,
consolidation, merger, dissolution, issue or sale of securities or any other
voluntary action, avoid or seek to avoid the observance or performance of any of
the terms to be observed or performed under this Certificate of Designations by
the Corporation, but will at all times in good faith assist in the carrying out
of all the provisions of this Certificate of Designations and in the taking of
all such action as may be necessary or appropriate in order to protect the
Series A Preferred Stock Conversion Rights of the holders of the Series A
Preferred Stock against impairment.

                           (8) In the event (a) that the Corporation declares a
dividend (or any other distribution) on its Common Stock payable in Common Stock
or other securities of the Corporation, (b) that the Corporation subdivides or
combines its outstanding shares of Common Stock, (c) of any reclassification of
the Common Stock of the Corporation (other than a subdivision or combination of
its outstanding shares of Common Stock or a stock dividend or stock distribution
thereon), (d) of any consolidation or merger of the Corporation into or with
another corporation, (e) of the sale of all or substantially all of the assets
of the Corporation, or (f) of the involuntary or voluntary dissolution,
liquidation or winding up of the Corporation, then the Corporation shall cause
to be filed at its principal office or at the office of the transfer agent of
the Series A Preferred Stock, and shall cause to be mailed to each holder of the
Series A Preferred Stock at their last address as shown on the records of the
Corporation or such transfer

                                       7
<PAGE>

agent, at least ten (10) days prior to the record date specified in (i) below or
twenty (20) days before the date specified in (ii) below, a notice stating

                                        (i) the record date of such dividend,
         distribution, subdivision or combination, or, if a record is not to be
         taken, the date as of which the holders of Common Stock of record to be
         entitled to such dividend, distribution, subdivision or combination are
         to be determined, or

                                        (ii) the date on which such
         reclassification, consolidation, merger, sale, dissolution, liquidation
         or winding up is expected to become effective, and the date as of which
         it is expected that holders of Common Stock of record shall be entitled
         to exchange their shares of Common Stock for securities or other
         property deliverable upon such reclassification, consolidation, merger,
         sale, dissolution or winding up.

                  H. Sinking Fund. There shall be no sinking fund for the
payment of dividends, or liquidation preferences on the Series A Preferred Stock
or the redemption of any shares thereof.

                  I. Redemption Events. In case one or more of the following
events each a redemption event shall have occurred:

                                    (a) If the Corporation fails to have a
         registration statement effective within one hundred eighty (180) days
         of the date of the Stock Purchase Agreement, at the option of the
         Purchaser, the Corporation shall redeem the outstanding shares of
         Series A Preferred Stock at a redemption price of one hundred
         twenty-five percent (125%) of the Stated Value per share plus accrued
         and unpaid dividends thereon, if any; or

                                    (b) failure to deliver the shares of Common
         Stock required to be delivered upon conversion of the shares of Series
         A Preferred Stock in the manner and at the time required by Section 5
         of the Securities Purchase Agreement; or

                                    (c) failure of the Corporation to have
         authorized the number of shares of Common Stock issuable upon
         conversion of the shares of Series A Preferred Stock or exercise of the
         Stock Purchase Warrants (as defined in the Securities Purchase
         Agreement), including conversion of any shares of Series A Preferred
         Stock or exercise of any Stock Purchase Warrants, issuable upon
         conversion of the Conditional Warrant (as defined in the Securities
         Purchase Agreement); or

                                    (d) failure on the part of the Corporation
         to duly observe or perform any of the provisions of this Certificate of
         Designations or any of its other covenants or agreements contained in
         the Securities Purchase Agreement, or to cure any material breach in a
         material representation or covenant contained in the Securities
         Purchase Agreement or the Registration Rights Agreement for a period of
         ten (10) days after the date on which written notice of such failure or
         breach requiring the same to be remedied has been given by a registered
         holder of shares of Series A Preferred Stock to

                                       8
<PAGE>

         the Corporation; or

                                    (e) a decree or order by a court having
         jurisdiction has been entered adjudging the Corporation (or any
         Material Subsidiary) a bankrupt or insolvent, or approving a petition
         seeking reorganization of the Corporation (or any Material Subsidiary)
         under any applicable bankruptcy law and such decree or order has
         continued undischarged or unstayed for a period of sixty (60) days; or
         a decree or order of a court having jurisdiction for the appointment of
         a receiver or liquidator or trustee or assignee in bankruptcy or
         insolvency of the Corporation (or any Material Subsidiary) or of all or
         substantially all of its property, or for the winding-up or liquidation
         of its affairs, has been entered, and has remained in force
         undischarged or unstayed for a period of sixty (60) days; or

                                    (f) the Corporation (or any Material
         Subsidiary) institutes proceedings to be adjudicated a voluntary
         bankrupt, or consents to the filing of a bankruptcy proceeding against
         it, or files a petition or answer or consent seeking reorganization
         under applicable law, or consents to the filing of any such petition or
         to the appointment of a receiver or liquidator or trustee or assignee
         in bankruptcy or insolvency of it or of all or substantially all of its
         property, or makes an assignment for the benefit of creditors, or
         admits in writing its inability to pay its debts generally as they
         become due; or if the Corporation (or any Material Subsidiary) shall
         suffer any writ of attachment or execution or any similar process to be
         issued or levied against it or any significant part of its property
         which is not released, stayed, bonded or vacated within sixty (60) days
         after its issue or levy; or if the Corporation (or any Material
         Subsidiary) takes corporate action in furtherance of any of the
         aforesaid purposes or conditions; or

                                    (g) If any default shall occur under any
         indenture, mortgage, agreement, instrument or commitment evidencing or
         under which there is at the time outstanding any indebtedness of the
         Corporation (or a Material Subsidiary, as hereinafter defined), in
         excess of $50,000, or which results in such indebtedness, in an
         aggregate amount (with other defaulted indebtedness) in excess of
         $50,000 becoming due and payable prior to its due date and if such
         indenture or instrument so requires, the holder or holders thereof (or
         a trustee on their behalf) shall have declared such indebtedness due
         and payable; or (h) If any of the Corporation or its subsidiaries shall
         default in the observance or performance of any material term or
         provision of a material agreement to which it is a party or by which it
         is bound, and such default is not waived or cured within the applicable
         grace period; or

                                    (i) If a final judgment which, either alone
         or together with other outstanding final judgments against the
         Corporation and its subsidiaries, exceeds an aggregate of $50,000 shall
         be rendered against the Corporation (or any Material Subsidiary) and
         such judgment shall have continued undischarged or unstayed for thirty
         (30) days after entry thereof; or

                                    (j) If there shall occur a Change in Control
         of the Corporation (as defined below). Nothing in this subsection shall
         limit the right of a holder of Series A Preferred Stock to convert
         their shares of Series A Preferred Stock on or prior to such

                                       9
<PAGE>

         Change in Control. For purposes hereof, a "Change in Control" shall be
         deemed to have occurred if (A) any person or group (as defined for
         purposes of Regulation 13D of the Securities Exchange Act of 1934, as
         amended (the "Exchange Act")) shall have become the beneficial owner or
         owners of more than 50% of the outstanding voting stock of the
         Corporation; (B) there shall have occurred a merger or consolidation in
         which the Corporation or an affiliate of the Corporation is not the
         survivor or in which holders of the Common Stock of the Corporation
         shall have become entitled to receive cash, securities of the
         Corporation other than voting common stock or securities of any other
         person; (C) at any time persons constituting the Existing Board of
         Directors cease for any reason whatsoever to constitute at least a
         majority of the members of the Board of Directors of the Corporation;
         or (D) there shall have occurred a sale of all or substantially all the
         assets of the Corporation. For purposes hereof, the term "Existing
         Board of Directors" shall mean the persons constituting the Board of
         Directors of the Corporation on the date hereof, together with each new
         director whose election, or nomination for election by the
         Corporation's stockholders is approved by a vote of the majority of the
         members of the Existing Board of Directors who are in office
         immediately prior to the election or nomination of such director.

                                    then, and in each and every such case, so
         long as such redemption event has not been remedied, the holders of not
         less than fifty-one percent (51%) of the shares of Series A Preferred
         Stock then outstanding, by notice in writing to the Corporation (the
         date of such notice the "Redemption Notice Date"), may demand that the
         Corporation redeem, and the Corporation shall redeem, each share of
         Series A Preferred Stock then outstanding at a price per share equal to
         one hundred twenty-five percent (125%) of the sum of (x) the Stated
         Value and (y) the aggregate accrued and unpaid dividends on such
         Redemption Notice Date

                  For purposes of this Section I "Material Subsidiary" means any
subsidiary with respect to which the Corporation has directly or indirectly
invested, loaned, advanced or guaranteed the obligations of, an aggregate amount
exceeding fifteen percent (15% ) of the Corporation's gross assets, or the
Corporation's proportionate share of the assets or net income of which (based on
the subsidiary's most recent financial statements) exceed fifteen percent (15%)
of the Corporation's gross assets or net income, respectively, or the gross
revenues of which exceed fifteen percent (15%) of the gross revenues of the
Corporation based upon the most recent financial statements of such subsidiary
and the Corporation.

                  J.       Redemption by the Corporation.

         (a) The Corporation shall be permitted to redeem for cash or
immediately available funds, to the extent permitted under law and provisions of
senior and subordinated debt agreements of the Corporation, at any time and from
time to time, any or all of the shares of Series A Preferred Stock then
outstanding at a price per share equal to the Redemption Price on the date of
redemption for which the holder of such Series A Preferred Stock has not
delivered Notice of Conversion to the Corporation. Any redemption by the
Corporation of less than all shares of Series A Preferred Stock than outstanding
shall be pro rata among the holders of the shares of Series A Preferred Stock
based upon the number of shares held by each such holder.

                                       10
<PAGE>

         (b) In connection with any redemption of shares pursuant to this
Section 5, the Corporation shall give at least fifteen (15) days but not more
than thirty (30) days' prior written notice of such redemption (a "Redemption
Notice"), by hand delivery, by registered or certified mail or nationwide
overnight delivery service (with charges prepaid) or sent via telecopier (if
within a reasonable period of time a permanent copy is given by any of the
methods described above), to all holders of record of Series A Preferred Stock,
as applicable, such notice to be addressed to each holder at its address as it
appears on the stock transfer books of the Corporation and to specify the
redemption date (the "Redemption Date") and the Redemption Price and to state
that the holders must surrender the certificates for their shares of Series A
Preferred Stock on or after the Redemption Date in order to receive payment of
the Redemption Price. Notwithstanding anything herein contained to the contrary,
all shares of Series A Preferred Stock may be converted, including shares of
Series A Preferred Stock subject to a Redemption Notice given pursuant to this
Section J, during the period from the date of such Redemption Notice through the
Redemption Date. Within five (5) days of delivery of such certificates subject
to a Redemption Notice by the holders of the Series A Preferred Stock, the
Corporation shall pay the aggregate Redemption Price in cash or immediately
available funds to such shareholder for the shares of Series A Preferred Stock
being redeemed. In the event the shareholders of such Series A Preferred Stock
does not receive such aggregate Redemption Price within such five (5) day
period, the Corporation pay interest on any unpaid amount payable at a rate of
ten percent (10%) per month. From and after the Redemption Date, except as set
forth below, any holder of shares of Series A Preferred Stock that has been
redeemed who has not duly surrendered its Series A Preferred Stock to be
redeemed shall cease to be entitled to any rights except the right to receive
payment of the Redemption Price. If the Corporation shall not legally have funds
available to make any such redemption provided for herein, the Corporation shall
take such action as may be lawfully permitted in order to enable the
Corporation, if possible, lawfully to redeem the Series A Preferred Stock.
Anything herein contained to the contrary notwithstanding, in the event and to
extent that the Corporation cannot or does not make or tender full payment
therefor, such shares shall continue to be outstanding, to the extent permitted
under law and provisions of senior and subordinated debt agreements of the
Corporation, and entitled to all rights and benefits of the Rights until full
payment is made or tendered therefor as aforesaid. Shares of Series A Preferred
Stock which have been redeemed may not be reissued by the Corporation as shares
of such series.

         (c) For purposed of this Section J, "Redemption Price" shall mean as
follows:

         (i) in the event that the Redemption date is less than forty-five (45)
days after the Initial Closing Date (as defined in the Securities Purchase
Agreement), an amount per share equal to the sum of (x) one hundred ten percent
(110%) of the Stated Value per share and (y) the amount of dividends which would
have accrued on such share pursuant to Section B if such share had been
outstanding for a full three (3) month period;

         (ii) in the event that the Redemption Date is more than forty-four (44)
days and less than ninety (90) days after the Initial Closing Date, an amount
per share equal to the sum of (x) one hundred fifteen percent (115%) of the
Stated Value per share and (y) the amount of dividends which would have accrued
on such share pursuant to Section B if such share had been outstanding for a
full three (3) month period; and

                                       11
<PAGE>

         (iii) in the event that the Redemption Date is more than eighty-nine
(89) days after the Initial Closing Date, an amount per share equal to (A) the
quotient of (i) the Liquidation Preference per share of Series A Preferred Stock
plus all accrued but unpaid dividends on such shares of Series A Preferred Stock
and (ii) the Conversion Price as if the Series A Preferred Stock had been
converted on the Redemption Date multiplied by (B) the average Closing Bid Price
of shares of Common Stock for the five (5) trading days immediately preceding
the Redemption Notice Date, all of the outstanding Series A Preferred Stock

                  K. Amendment. This Certificate of Designations constitutes an
agreement between the Corporation and the holders of the Series A Preferred
Stock. The Corporation shall not amend this Certificate of Designations or alter
or repeal the preferences, rights, powers or other terms of the Series A
Preferred Stock so as to affect adversely the Series A Preferred Stock, without
the written consent or affirmative vote of the holders of at least sixty-six and
two-thirds percent (66-2/3%) of the then outstanding shares of Series A
Preferred Stock, given in writing or by vote at a meeting, consenting or voting
(as the case may be) separately as a class.

                  IN WITNESS WHEREOF, Intelliquis International, Inc., has
caused its corporate seal to be hereunto affixed and this certificate to be
signed by Bernard Yaw, its President, and attested by Mark Tippets, its
Secretary, this 26th day of October, 1999.

                                          INTELLIQUIS INTERNATIONAL, INC.

                                          By: /s/ Bernard Yaw
                                              -----------------------
                                              Name: Bernard Yaw
                                              Title:   President

Attest:

By: /s/ Mark Tippets
    ---------------------------
      Name: Mark Tippets
      Title: Secretary

                                       12<PAGE>

                                                                    EXHIBIT 10.3

THIS WARRANT AND THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY
STATE, AND MAY NOT BE TRANSFERRED IN VIOLATION OF SUCH ACT, THE RULES AND
REGULATIONS THEREUNDER OR ANY STATE SECURITIES LAWS OR THE PROVISIONS OF THIS
WARRANT.

                     No. of Shares of Common Stock: 100,000

                                     WARRANT

                           To Purchase Common Stock of

                         INTELLIQUIS INTERNATIONAL, INC.

                  THIS IS TO CERTIFY THAT ROBI Investors LLC, a Delaware limited
liability company, or its registered assigns, is entitled, at any time from the
Warrant Issuance Date (as hereinafter defined) to the Expiration Date (as
hereinafter defined), to purchase from Intelliquis International, Inc., a Nevada
corporation (the "Company"), one hundred thousand (100,000) shares of Common
Stock (as hereinafter defined and subject to adjustment as provided herein), in
whole or in part, including fractional parts, at a purchase price per share
equal to $3.03 (subject to any adjustments made to such amount pursuant to
Section 4 hereto) on the terms and conditions and pursuant to the provisions
hereinafter set forth.

1.   DEFINITIONS

                  As used in this Warrant, the following terms have the
respective meanings set forth below:

                  "Additional Shares of Common Stock" shall mean all shares of
Common Stock issued by the Company after the Closing Date, other than Warrant
Stock.

                  "Book Value" shall mean, in respect of any share of Common
Stock on any date herein specified, the consolidated book value of the Company
as of the last day of any month immediately preceding such date, divided by the
number of Fully Diluted Outstanding shares of Common Stock as determined in
accordance with GAAP (assuming the payment of the exercise prices for such
shares) by a firm of independent certified public accountants of recognized
national standing selected by the Company and reasonably acceptable to the
Holder.

                  "Business Day" shall mean any day that is not a Saturday or
Sunday or a day on which banks are required or permitted to be closed in the
State of New York.

                  "Closing Date" shall have the meaning set forth in the
Securities Purchase Agreement.

                  "Commission" shall mean the Securities and Exchange Commission
or any other federal agency then administering the Securities Act and other
federal securities laws.

<PAGE>

                  "Common Stock" shall mean (except where the context otherwise
indicates) the Common Stock, par value $.01 per share, of the Company as
constituted on the Closing Date, and any capital stock into which such Common
Stock may thereafter be changed, and shall also include (i) capital stock of the
Company of any other class (regardless of how denominated) issued to the holders
of shares of Common Stock upon any reclassification thereof which is also not
preferred as to dividends or assets over any other class of stock of the Company
and which is not subject to redemption and (ii) shares of common stock of any
successor or acquiring corporation received by or distributed to the holders of
Common Stock of the Company in the circumstances contemplated by Section 4.4.

                  "Convertible Securities" shall mean evidences of indebtedness,
shares of stock or other securities which are convertible into or exchangeable,
with or without payment of additional consideration in cash or property, for
shares of Common Stock, either immediately or upon the occurrence of a specified
date or a specified event.

                  "Current Warrant Price" shall mean, $3.03 subject to any
adjustments to such amount made in accordance with Section 4 hereof.

                   "Exchange Act" shall mean the Securities Exchange Act of
1934, as amended, or any successor federal statute, and the rules and
regulations of the Commission thereunder, all as the same shall be in effect
from time to time.

                  "Exercise Period" shall mean the period during which this
Warrant is exercisable pursuant to Section 2.1.

                  "Expiration Date" shall mean October 26, 2002.

                  "Fully Diluted Outstanding" shall mean, when used with
reference to Common Stock, at any date as of which the number of shares thereof
is to be determined, all shares of Common Stock Outstanding at such date and all
shares of Common Stock issuable in respect of this Warrant, outstanding on such
date, and other options or warrants to purchase, or securities convertible into,
including without limitation the shares of Common Stock outstanding on such date
which would be deemed outstanding in accordance with GAAP for purposes of
determining book value or net income per share.

                  "GAAP" shall mean generally accepted accounting principles in
the United States of America as from time to time in effect.

                   "Holder" shall mean the Person in whose name the Warrant or
Warrant Stock set forth herein is registered on the books of the Company
maintained for such purpose.

                  "Market Price" per Common Share means the average of the
closing bid prices of the Common Shares as reported on the National Association
of Securities Dealers Automated Quotation System for the National Market,
("NASDAQ") or, if such security is not listed or admitted to trading on the
NASDAQ, on the principal national security exchange or quotation system on which
such security is quoted or listed or admitted to trading, or, if not quoted or
listed or admitted to trading on any national securities exchange or quotation
system, the closing bid price of such security on the over-the-counter market on
the day in question as reported by the National Association of Security Dealers,
Inc., or a similar generally accepted reporting service, as the case may be, for
the five (5) trading days immediately preceding the date of determination.

                  "Other Property" shall have the meaning set forth in Section
4.4.

                                       2
<PAGE>

                  "Outstanding" shall mean, when used with reference to Common
Stock, at any date as of which the number of shares thereof is to be determined,
all issued shares of Common Stock, except shares then owned or held by or for
the account of the Company or any subsidiary thereof, and shall include all
shares issuable in respect of outstanding scrip or any certificates representing
fractional interests in shares of Common Stock.

                  "Person" shall mean any individual, sole proprietorship,
partnership, joint venture, trust, incorporated organization, association,
corporation, institution, public benefit corporation, entity or government
(whether federal, state, county, city, municipal or otherwise, including,
without limitation, any instrumentality, division, agency, body or department
thereof).

                  "Registration Rights Agreement" shall mean the Registration
Rights Agreement dated a date even herewith by and between the Company and ROBI
Investors LLC, as it may be amended from time to time.

                  "Restricted Common Stock" shall mean shares of Common Stock
which are, or which upon their issuance on the exercise of this Warrant would
be, evidenced by a certificate bearing the restrictive legend set forth in
Section 9.1(a).

                  "Securities Act" shall mean the Securities Act of 1933, as
amended, or any successor federal statute, and the rules and regulations of the
Commission thereunder, all as the same shall be in effect at the time.

                  "Securities Purchase Agreement" shall mean the Securities
Purchase Agreement dated as of a date even herewith by and between the Company
and ROBI Investors LLC, as it may be amended from time to time.

                  "Transfer" shall mean any disposition of any Warrant or
Warrant Stock or of any interest in either thereof, which would constitute a
sale thereof within the meaning of the Securities Act.

                  "Transfer Notice" shall have the meaning set forth in Section
9.2.

                  "Warrant Issuance Date" shall mean any date on which Warrants
are issued pursuant to the Securities Purchase Agreement.

                  "Warrants" shall mean this Warrant and all warrants issued
upon transfer, division or combination of, or in substitution for, any thereof.
All Warrants shall at all times be identical as to terms and conditions and
date, except as to the number of shares of Common Stock for which they may be
exercised.

                  "Warrant Price" shall mean an amount equal to (i) the number
of shares of Common Stock being purchased upon exercise of this Warrant pursuant
to Section 2.1, multiplied by (ii) the Current Warrant Price as of the date of
such exercise.

                  "Warrant Stock" shall mean the shares of Common Stock
purchased by the holders of the Warrants upon the exercise thereof.

2.   EXERCISE OF WARRANT

                  2.1. Manner of Exercise. From and after the Warrant Issuance
Date and until 5:00 P.M., New York City time, on the Expiration Date, Holder may
exercise this Warrant, on

                                       3
<PAGE>

any Business Day, for all or any part of the number of shares of Common Stock
purchasable hereunder.

                  In order to exercise this Warrant, in whole or in part, Holder
shall deliver to the Company at the office or agency designated by the Company
pursuant to Section 12, (i) a written notice of Holder's election to exercise
this Warrant, which notice shall specify the number of shares of Common Stock to
be purchased, (ii) payment by cash, check or bank draft payable to the Company
of the Warrant Price in cash or by wire transfer or cashier's check drawn on a
United States bank or by the Holder's surrender of Warrant Stock (or the right
to receive such number of shares) having an aggregate Market Price equal to the
Warrant Price for all shares then being purchased and (iii) this Warrant. Such
notice shall be substantially in the form of the subscription form appearing at
the end of this Warrant as Exhibit A, duly executed by Holder or its agent or
attorney. Upon receipt of the items referred to in clauses (i), (ii) and (iii)
above, the Company shall, as promptly as practicable, and in any event within
four (4) Business Days thereafter, execute or cause to be executed and deliver
or cause to be delivered to Holder a certificate or certificates representing
the aggregate number of full shares of Common Stock issuable upon such exercise,
together with cash in lieu of any fraction of a share, as hereinafter provided.
The stock certificate or certificates so delivered shall be, to the extent
possible, in such denomination or denominations as Holder shall request in the
notice and shall be registered in the name of Holder or, subject to Section 9,
such other name as shall be designated in the notice. This Warrant shall be
deemed to have been exercised and such certificate or certificates shall be
deemed to have been issued, and Holder or any other Person so designated to be
named therein shall be deemed to have become a holder of record of such shares
for all purposes, as of the date the Warrant has been exercised by payment to
the Company of the Warrant Price. If this Warrant shall have been exercised in
part, the Company shall, at the time of delivery of the certificate or
certificates representing Warrant Stock, deliver to Holder a new Warrant
evidencing the rights of Holder to purchase the unpurchased shares of Common
Stock called for by this Warrant, which new Warrant shall in all other respects
be identical with this Warrant.

                  The Holder shall be entitled to exercise the Warrant
notwithstanding the commencement of any case under 11 U.S.C. ss. 101 et seq.
(the "Bankruptcy Code"). In the event the Company is a debtor under the
Bankruptcy Code, the Company hereby waives to the fullest extent permitted any
rights to relief it may have under 11 U.S.C. ss. 362 in respect of the Holder's
exercise right. The Company hereby waives to the fullest extent permitted any
rights to relief it may have under 11 U.S.C. ss. 362 in respect of the exercise
of the Warrant. The Company agrees, without cost or expense to the Holder, to
take or consent to any and all action necessary to effectuate relief under 11
U.S.C. ss. 362.

                  2.2. Payment of Taxes and Charges. All shares of Common Stock
issuable upon the exercise of this Warrant pursuant to the terms hereof shall be
validly issued, fully paid and nonassessable, and without any preemptive rights.
The Company shall pay all expenses in connection with, and all taxes and other
governmental charges that may be imposed with respect to, the issue or delivery
thereof.

                  2.3. Fractional Shares. The Company shall not be required to
issue a fractional share of Common Stock upon exercise of any Warrant. As to any
fraction of a share which Holder would otherwise be entitled to purchase upon
such exercise, the Company shall pay a

                                       4
<PAGE>

cash adjustment in respect of such final fraction in an amount equal to the same
fraction of the Market Price per share of Common Stock on the relevant exercise
date.

                  2.4. Continued Validity. A holder of shares of Common Stock
issued upon the exercise of this Warrant, in whole or in part (other than a
holder who acquires such shares after the same have been publicly sold pursuant
to a Registration Statement under the Securities Act or sold pursuant to Rule
144 thereunder), shall continue to be entitled with respect to such shares to
all rights to which it would have been entitled as Holder under Sections 9, 10
and 14 of this Warrant. The Company will, at the time of exercise of this
Warrant, in whole or in part, upon the request of Holder, acknowledge in
writing, in form reasonably satisfactory to Holder, its continuing obligation to
afford Holder all such rights; provided, however, that if Holder shall fail to
make any such request, such failure shall not affect the continuing obligation
of the Company to afford to Holder all such rights.

                  2.5. Right to Convert Warrant. The Holder shall have the right
to convert, in whole or in part, this Warrant (the "Conversion Right") at any
time prior to the expiration of the Exercise Period, into shares of Common Stock
in accordance with this Section 2.5. Upon exercise of the Conversion Right, the
Company shall deliver to the Holder (without payment by the Holder of the
Warrant Price) that number of shares of Common Stock equal to the quotient
obtained by dividing (x) the value of the portion of this Warrant being
converted at the time the Conversion Right is exercised (determined by
subtracting the Warrant Price for the portion of this Warrant being converted
(in effect immediately prior to the exercise of the Conversion Right) from the
amount obtained by multiplying the number of shares of Common Stock issuable
upon the whole or partial exercise of this Warrant, as the case may be, by the
Market Price immediately prior to the exercise of the Conversion Right) by (y)
the Market Price of one share of Common Stock immediately prior to the exercise
of the Conversion Right.

                  The Conversion Right may be exercised by the Holder, at any
time or from time to time, prior to its expiration, on any business day by
delivering a written notice (the "Conversion Notice") to the Company at the
offices of the Company, exercising the Conversion Right and specifying (i) the
total number of shares of Common Stock the Holder will purchase pursuant to the
conversion and (ii) a place and date not less than two (2) nor more than twenty
(20) Business Days from the date of the Subscription Notice for the closing of
such purchase.

                  At any closing under this Section 2.5, (i) the Holder will
surrender this Warrant and (ii) the Company will deliver to the Holder a
certificate or certificates for the number of shares of Common Stock issuable
upon such conversion. If this Warrant shall have been converted only in part,
the Company shall, at the time of delivery of said stock certificate or
certificates, deliver to the Holder a new Warrant evidencing the rights of the
Holder to purchase the remaining shares of Common Stock called for by this
Warrant, which new Warrant shall in all other respects be identical to this
Warrant, or, at the request of the Holder, appropriate notation may be made on
this Warrant and the same returned to the Holder. The Company shall pay all
expenses, taxes and other charges payable in connection with the preparation,
issue and delivery of such stock certificates and new Warrants, except that, in
case such stock certificates and/or new Warrants shall be registered in a name
or names other than the name of the Holder, funds sufficient to pay all stock
transfer taxes that are payable upon the issuance of such stock certificates or
new Warrants shall be paid by the Holder at the time of delivering the notice of

                                       5
<PAGE>

exercise mentioned above.

3.   TRANSFER, DIVISION AND COMBINATION

                  3.1. Transfer. Subject to compliance with Sections 9, transfer
of this Warrant and all rights hereunder, in whole or in part, shall be
registered on the books of the Company to be maintained for such purpose, upon
surrender of this Warrant at the principal office of the Company referred to in
Section 2.1 or the office or agency designated by the Company pursuant to
Section 12, together with a written assignment of this Warrant substantially in
the form of Exhibit B hereto duly executed by Holder or its agent or attorney.
Upon such surrender, the Company shall, subject to Section 9, execute and
deliver a new Warrant or Warrants in the name of the assignee or assignees and
in the denomination specified in such instrument of assignment, and shall issue
to the assignor a new Warrant evidencing the portion of this Warrant not so
assigned, and this Warrant shall promptly be cancelled. A Warrant, if properly
assigned in compliance with Section 9, may be exercised by a new Holder for the
purchase of shares of Common Stock without having a new Warrant issued.

                  3.2. Division and Combination. Subject to Section 9, this
Warrant may be divided or combined with other Warrants upon presentation hereof
at the aforesaid office or agency of the Company, together with a written notice
specifying the names and denominations in which new Warrants are to be issued,
signed by Holder or its agent or attorney. Subject to compliance with Section
3.1 and with Section 9, as to any transfer which may be involved in such
division or combination, the Company shall execute and deliver a new Warrant or
Warrants in exchange for the Warrant or Warrants to be divided or combined in
accordance with such notice.

                  3.3. Expenses. The Company shall prepare, issue and deliver at
its own expense the new Warrant or Warrants under this Section 3.

                  3.4. Maintenance of Books. The Company agrees to maintain, at
its aforesaid office or agency, books for the registration and the registration
of transfer of the Warrants.

4.   ADJUSTMENTS

                  The number of shares of Common Stock for which this Warrant is
exercisable, or the price at which such shares may be purchased upon exercise of
this Warrant, shall be subject to adjustment from time to time as set forth in
this Section 4. The Company shall give Holder notice of any event described
below which requires an adjustment pursuant to this Section 4 at the time of
such event.

                  4.1. Stock Dividends, Subdivisions and Combinations. If at any
time the Company shall:

                                       6
<PAGE>

                           (a) take a record of the holders of its Common Stock
for the purpose of entitling them to receive a dividend payable in, or other
distribution of, Additional Shares of Common Stock,

                           (b) subdivide its outstanding shares of Common Stock
into a larger number of shares of Common Stock, or

                           (c) combine its outstanding shares of Common Stock
into a smaller number of shares of Common Stock,

then (i) the number of shares of Common Stock for which this Warrant is
exercisable immediately after the occurrence of any such event shall be adjusted
to equal the number of shares of Common Stock which a record holder of the same
number of shares of Common Stock for which this Warrant is exercisable
immediately prior to the occurrence of such event would own or be entitled to
receive after the happening of such event, and (ii) the Current Warrant Price
shall be adjusted to equal (A) the Current Warrant Price multiplied by the
number of shares of Common Stock for which this Warrant is exercisable
immediately prior to the adjustment divided by (B) the number of shares for
which this Warrant is exercisable immediately after such adjustment.

                  4.2. Certain Other Distributions.

                           (a) A reclassification of the Common Stock (other
than a change in par value, or from par value to no par value or from no par
value to par value) into shares of Common Stock and shares of any other class of
stock shall be deemed a distribution by the Company to the holders of its Common
Stock of such shares of such other class of stock within the meaning of this
Section 4.2 and, if the outstanding shares of Common Stock shall be changed into
a larger or smaller number of shares of Common Stock as a part of such
reclassification, such change shall be deemed a subdivision or combination, as
the case may be, of the outstanding shares of Common Stock within the meaning of
Section 4.1.

                           (b) In case the Company shall issue any Common Stock
or any rights, options or warrants to all holders of record of its Common Stock
entitling all holders to subscribe for or purchase shares of Common Stock at a
price per share less than the Market Price per share of the Common Stock on the
date fixed for such issue, the Current Warrant Price in effect immediately prior
to the close of business on the date fixed for such determination shall be
reduced to the amount determined by multiplying such Current Warrant Price by a
fraction, the numerator of which shall be the number of shares of Common Stock
outstanding immediately prior to the close of business on the date fixed for
such determination plus the number of shares of Common Stock which the aggregate
of the offering price of the total number of shares of Common Stock so offered
for subscription or purchase would purchase at such Market Price and the
denominator of which shall be the number of shares of Common Stock outstanding
immediately prior to the close of business on the date fixed for such
determination plus the number of shares of Common Stock so offered for
subscription or purchase, such reduced amount to become effective immediately
after the close of business on the date fixed for such determination. For the
purposes of this clause (b), (i) the number of shares of Common Stock at

                                       7
<PAGE>

any time outstanding shall not include shares held in the treasury of the
Company and (ii) in the case of any rights, options or warrants which expire by
their terms not more than 60 days after the date of issue, sale, grant or
assumption thereof, no adjustment of the Current Warrant Price shall be made
until the expiration or exercise of all rights, options or warrants, whereupon
such adjustment shall be made in the manner provided in this clause (b), but
only with respect to the shares of Common Stock actually issued pursuant
thereto. Such adjustment shall be made successively whenever any event specified
above shall occur. In the event that any or all rights, options or warrants
covered by this clause (b) are not so issued or expire or terminate before being
exercised, the Current Warrant Price then in effect shall be appropriately
readjusted.

                  4.3. Other Provisions Applicable to Adjustments under this
Section. The following provisions shall be applicable to the making of
adjustments of the number of shares of Common Stock for which this Warrant is
exercisable and the Current Warrant Price provided for in this Section 4:

                           (f) When Adjustments to Be Made. The adjustments
required by this Section 4 shall be made whenever and as often as any specified
event requiring an adjustment shall occur. For the purpose of any adjustment,
any specified event shall be deemed to have occurred at the close of business on
the date of its occurrence.

                           (g) Fractional Interests. In computing adjustments
under this Section 4, fractional interests in Common Stock shall be taken into
account to the nearest 1/10th of a share.

                           (h) When Adjustment Not Required. If the Company
shall take a record of the holders of its Common Stock for the purpose of
entitling them to receive a dividend or distribution or subscription or purchase
rights and shall, thereafter and before the distribution to stockholders
thereof, legally abandon its plan to pay or deliver such dividend, distribution,
subscription or purchase rights, then thereafter no adjustment shall be required
by reason of the taking of such record and any such adjustment previously made
in respect thereof shall be rescinded and annulled.

                           (i) Challenge to Good Faith Determination. Whenever
the Board of Directors of the Company shall be required to make a determination
in good faith of the fair value of any item under this Section 4, such
determination may be challenged in good faith by the Holder, and any dispute
shall be resolved by an investment banking firm of recognized national standing
selected by the Holder and reasonably acceptable to the Company.

                  4.4. Reorganization, Reclassification, Merger, Consolidation
or Disposition of Assets. In case the Company shall reorganize its capital,
reclassify its capital stock, consolidate or merge with or into another
corporation (where the Company is not the surviving corporation or where there
is a change in or distribution with respect to the Common Stock of the Company),
or sell, transfer or otherwise dispose of all or substantially all its property,
assets or business to another corporation and, pursuant to the terms of such
reorganization, reclassification, merger, consolidation or disposition of
assets, shares of common stock of the successor or acquiring corporation, or any
cash, shares of stock or other securities or property of any nature whatsoever
(including warrants or other subscription or purchase rights) in addition to or
in lieu of common

                                       8
<PAGE>

stock of the successor or acquiring corporation ("Other Property"), are to be
received by or distributed to the holders of Common Stock of the Company, then
Holder shall have the right thereafter to receive, upon exercise of the Warrant,
the number of shares of common stock of the successor or acquiring corporation
or of the Company, if it is the surviving corporation, and Other Property
receivable upon or as a result of such reorganization, reclassification, merger,
consolidation or disposition of assets by a holder of the number of shares of
Common Stock for which this Warrant is exercisable immediately prior to such
event. In case of any such reorganization, reclassification, merger,
consolidation or disposition of assets, the successor or acquiring corporation
(if other than the Company) shall expressly assume the due and punctual
observance and performance of each and every covenant and condition of this
Warrant to be performed and observed by the Company and all the obligations and
liabilities hereunder, subject to such modifications as may be deemed
appropriate, subject to the Holder's consent, in order to provide for
adjustments of shares of Common Stock for which this Warrant is exercisable
which shall be as nearly equivalent as practicable to the adjustments provided
for in this Section 4. For purposes of this Section 4.4, "common stock of the
successor or acquiring corporation" shall include stock of such corporation of
any class which is not preferred as to dividends or assets over any other class
of stock of such corporation and which is not subject to redemption and shall
also include any evidences of indebtedness, shares of stock or other securities
which are convertible into or exchangeable for any such stock, either
immediately or upon the arrival of a specified date or the happening of a
specified event and any warrants or other rights to subscribe for or purchase
any such stock. The foregoing provisions of this Section 4.4 shall similarly
apply to successive reorganizations, reclassifications, mergers, consolidations
or disposition of assets.

                  4.5. Other Action Affecting Common Stock. In case at any time
or from time to time the Company shall take any action in respect of its Common
Stock, other than any action taken in the ordinary course of the Company's
business or any action described in this Section 4, which would have a material
adverse effect upon the rights of the Holder, the number of shares of Common
Stock and/or the purchase price thereof shall be adjusted in such manner as may
be equitable in the circumstances, as determined in good faith by an investment
bank selected by Holder.

                  4.6. Certain Limitations. Notwithstanding anything herein to
the contrary, the Company agrees not to enter into any transaction which, by
reason of any adjustment hereunder, would cause the Current Warrant Price to be
less than the par value per share of Common Stock.

                  4.7. No Voting Rights. This Warrant shall not entitle its
Holder to any voting rights or other rights as a shareholder of the Company.

5.   NOTICES TO HOLDER

                  5.1. Notice of Adjustments. Whenever the number of shares of
Common Stock for which this Warrant is exercisable, or whenever the price at
which a share of such Common Stock may be purchased upon exercise of the
Warrants, shall be adjusted pursuant to Section 4, the Company shall forthwith
prepare a certificate to be executed by an executive officer of the Company
setting forth, in reasonable detail, the event requiring the adjustment and the
method by which such adjustment was calculated, specifying the number of shares
of Common Stock for which this Warrant is exercisable and (if such adjustment
was made pursuant

                                       9
<PAGE>

to Section 4.4 or 4.5) describing the number and kind of any other shares of
stock or Other Property for which this Warrant is exercisable, and any change in
the purchase price or prices thereof, after giving effect to such adjustment or
change. The Company shall promptly cause a signed copy of such certificate to be
delivered to the Holder in accordance with Section 14.2. The Company shall keep
at its office or agency designated pursuant to Section 12 copies of all such
certificates and cause the same to be available for inspection at said office
during normal business hours by the Holder, its representatives, or any
prospective purchaser of a Warrant designated by the Holder.

                  5.2. Notice of Corporate Action.  If at any time

                           (a) the Company shall take a record of the holders of
its Common Stock for the purpose of entitling them to receive a dividend or
other distribution, or any right to subscribe for or purchase any evidences of
its indebtedness, any shares of stock of any class or any other securities or
property, or to receive any other right, or

                           (b) there shall be any capital reorganization of the
Company, any reclassification or recapitalization of the capital stock of the
Company or any consolidation or merger of the Company with, or any sale,
transfer or other disposition of all or substantially all the property, assets
or business of the Company to, another corporation, or

                           (c) there shall be a voluntary or involuntary
dissolution, liquidation or winding up of the Company;

then, in any one or more of such cases, the Company shall give to Holder (i) at
least thirty (30) Business Days' prior written notice of the date on which a
record date shall be selected for such dividend, distribution or right or for
determining rights to vote in respect of any such reorganization,
reclassification, merger, consolidation, sale, transfer, disposition,
dissolution, liquidation or winding up, and (ii) in the case of any such
reorganization, reclassification, merger, consolidation, sale, transfer,
disposition, dissolution, liquidation or winding up, at least thirty (30)
Business Days' prior written notice of the date when the same shall take place.
Such notice in accordance with the foregoing clause also shall specify (i) the
date on which any such record is to be taken for the purpose of such dividend,
distribution or right, the date on which the holders of Common Stock shall be
entitled to any such dividend, distribution or right, and the amount and
character thereof, and (ii) the date on which any such reorganization,
reclassification, merger, consolidation, sale, transfer, disposition,
dissolution, liquidation or winding up is to take place and the time, if any
such time is to be fixed, as of which the holders of Common Stock shall be
entitled to exchange their shares of Common Stock for securities or other
property deliverable upon such reorganization, reclassification, merger,
consolidation, sale, transfer, disposition, dissolution, liquidation or winding
up. Each such written notice shall be sufficiently given if addressed to Holder
at the last address of Holder appearing on the books of the Company and
delivered in accordance with Section 14.2.

                                       10
<PAGE>

6.   NO IMPAIRMENT

                  The Company shall not by any action, including, without
limitation, amending its certificate of incorporation or through any
reorganization, transfer of assets, consolidation, merger, dissolution, issue or
sale of securities or any other voluntary action, avoid or seek to avoid the
observance or performance of any of the terms of this Warrant, but will at all
times in good faith assist in the carrying out of all such terms and in the
taking of all such actions as may be necessary or appropriate to protect the
rights of Holder against impairment. Without limiting the generality of the
foregoing, the Company will (a) not increase the par value of any shares of
Common Stock receivable upon the exercise of this Warrant above the amount
payable therefor upon such exercise immediately prior to such increase in par
value, (b) take all such action as may be necessary or appropriate in order that
the Company may validly and legally issue fully paid and nonassessable shares of
Common Stock upon the exercise of this Warrant, and (c) use its best efforts to
obtain all such authorizations, exemptions or consents from any public
regulatory body having jurisdiction thereof as may be necessary to enable the
Company to perform its obligations under this Warrant.

                  Upon the request of Holder, the Company will at any time
during the period this Warrant is outstanding acknowledge in writing, in form
reasonably satisfactory to Holder, the continuing validity of this Warrant and
the obligations of the Company hereunder.

7.   RESERVATION AND AUTHORIZATION OF COMMON STOCK

                  From and after the Closing Date, the Company shall at all
times reserve and keep available for issue upon the exercise of Warrants such
number of its authorized but unissued shares of Common Stock as will be
sufficient to permit the exercise in full of all outstanding Warrants. All
shares of Common Stock which shall be so issuable, when issued upon exercise of
any Warrant and payment therefor in accordance with the terms of such Warrant,
shall be duly and validly issued and fully paid and nonassessable, and not
subject to preemptive rights.

                  Before taking any action which would cause an adjustment
reducing the Current Warrant Price below the then par value, if any, of the
shares of Common Stock issuable upon exercise of the Warrants, the Company shall
take any corporate action which may be necessary in order that the Company may
validly and legally issue fully paid and non-assessable shares of such Common
Stock at such adjusted Current Warrant Price.

                  Before taking any action which would result in an adjustment
in the number of shares of Common Stock for which this Warrant is exercisable or
in the Current Warrant Price, the Company shall obtain all such authorizations
or exemptions thereof, or consents thereto, as may be necessary from any public
regulatory body or bodies having jurisdiction thereof.

                                       11
<PAGE>

8.   TAKING OF RECORD; STOCK AND WARRANT TRANSFER BOOKS

                  In the case of all dividends or other distributions by the
Company to the holders of its Common Stock with respect to which any provision
of Section 4 refers to the taking of a record of such holders, the Company will
in each such case take such a record as of the close of business on a Business
Day. The Company will not at any time close its stock transfer books or Warrant
transfer books so as to result in preventing or delaying the exercise or
transfer of any Warrant.

9.   RESTRICTIONS ON TRANSFERABILITY

                  The Warrants and the Warrant Stock shall not be transferred,
hypothecated or assigned before satisfaction of the conditions specified in this
Section 9, which conditions are intended to ensure compliance with the
provisions of the Securities Act with respect to the Transfer of any Warrant or
any Warrant Stock. Holder, by acceptance of this Warrant, agrees to be bound by
the provisions of this Section 9.

                  9.1. Restrictive Legend. The Holder by accepting this Warrant
and any Warrant Stock agrees that this Warrant and the Warrant Stock issuable
upon exercise hereof may not be assigned or otherwise transferred unless and
until (i) the Company has received an opinion of counsel for the Holder that
such securities may be sold pursuant to an exemption from registration under the
Securities Act or (ii) a registration statement relating to such securities has
been filed by the Company and declared effective by the Commission.

                  (a) Each certificate for Warrant Stock issuable hereunder
shall bear a legend substantially worded as follows unless such securities have
been sold pursuant to an effective registration statement under the Securities
Act:

                                            "The securities represented by this
                           certificate have not been registered under the
                           Securities Act of 1933, as amended (the "Act") or any
                           state securities laws. The securities may not be
                           offered for sale, sold, assigned, offered,
                           transferred or otherwise distributed for value except
                           (i) pursuant to an effective registration statement
                           under the Act or any state securities laws or (ii)
                           pursuant to an exemption from registration or
                           prospectus delivery requirements under the Act or any
                           state securities laws in respect of which the Company
                           has received an opinion of counsel satisfactory to
                           the Company to such effect. Copies of the agreement
                           covering both the purchase of the securities and
                           restricting their transfer may be obtained at no cost
                           by written request made by the holder of record of
                           this certificate to the Secretary of the Company at
                           the principal executive offices of the Company."

                                       12
<PAGE>

                  (b) Except as otherwise provided in this Section 9, the
Warrant shall be stamped or otherwise imprinted with a legend in substantially
the following form:

                                            "This Warrant and the securities
                           represented hereby have not been registered under the
                           Securities Act of 1933, as amended, or any state
                           securities laws and may not be transferred in
                           violation of such Act, the rules and regulations
                           thereunder or any state securities laws or the
                           provisions of this Warrant."

                  9.2. Notice of Proposed Transfers. Prior to any Transfer or
attempted Transfer of any Warrants or any shares of Restricted Common Stock, the
Holder shall give five (5) days' prior written notice (a "Transfer Notice") to
the Company of Holder's intention to effect such Transfer, describing the manner
and circumstances of the proposed Transfer, and obtain from counsel to Holder an
opinion that the proposed Transfer of such Warrants or such Restricted Common
Stock may be effected without registration under the Securities Act or state
securities laws. After the Company's receipt of the Transfer Notice and opinion,
such Holder shall thereupon be entitled to Transfer such Warrants or such
Restricted Common Stock, in accordance with the terms of the Transfer Notice.
Each certificate, if any, evidencing such shares of Restricted Common Stock
issued upon such Transfer and the Warrant issued upon such Transfer shall bear
the restrictive legends set forth in Section 9.1, unless in the opinion of such
counsel such legend is not required in order to ensure compliance with the
Securities Act.

                  9.3. Required Registration. Pursuant to the terms and
conditions set forth in the Registration Rights Agreement, the Company shall
prepare and file with the Commission not later than the thirtieth (30th) day
after the Closing Date, a Registration Statement relating to the offer and sale
of the Common Stock issuable upon exercise of the Warrants and shall use its
best efforts to cause the Commission to declare such Registration Statement
effective in accordance with the terms set forth in Section 2(a) of the
Registration Rights Agreement.

                  9.4. Termination of Restrictions. Notwithstanding the
foregoing provisions of Section 9, the restrictions imposed by this Section upon
the transferability of the Warrants, the Warrant Stock and the Restricted Common
Stock (or Common Stock issuable upon the exercise of the Warrants) and the
legend requirements of Section 9.1 shall terminate as to any particular Warrant
or share of Warrant Stock or Restricted Common Stock (or Common Stock issuable
upon the exercise of the Warrants) (i) when and so long as such security shall
have been effectively registered under the Securities Act and applicable state
securities laws and disposed of pursuant thereto or (ii) when the Company shall
have received an opinion of counsel that such shares may be transferred without
registration thereof under the Securities Act and applicable state securities
laws. Whenever the restrictions imposed by Section 9 shall terminate as to this
Warrant, as hereinabove provided, the Holder hereof shall be entitled to receive
from the Company upon written request of the Holder, at the expense of the
Company, a new Warrant bearing the following legend in place of the restrictive
legend set forth hereon:

                                            "THE RESTRICTIONS ON TRANSFERABILITY
                           OF THE WITHIN WARRANT

                                       13
<PAGE>

                           CONTAINED IN SECTION 9 HEREOF TERMINATED ON ________,
                           19__, AND ARE OF NO FURTHER FORCE AND EFFECT."

All Warrants issued upon registration of transfer, division or combination of,
or in substitution for, any Warrant or Warrants entitled to bear such legend
shall have a similar legend endorsed thereon. Whenever the restrictions imposed
by this Section shall terminate as to any share of Restricted Common Stock, as
hereinabove provided, the holder thereof shall be entitled to receive from the
Company, at the Company's expense, a new certificate representing such Common
Stock not bearing the restrictive legends set forth in Section 9.1.

                  9.5. Listing on Securities Exchange. If the Company shall list
any shares of Common Stock on any securities exchange, it will, at its expense,
list thereon, maintain and, when necessary, increase such listing of, all shares
of Common Stock issued or, to the extent permissible under the applicable
securities exchange rules, issuable upon the exercise of this Warrant so long as
any shares of Common Stock shall be so listed during the Exercise Period.

10.  SUPPLYING INFORMATION

                  The Company shall cooperate with Holder in supplying such
information as may be reasonably necessary for Holder to complete and file any
information reporting forms presently or hereafter required by the Commission as
a condition to the availability of an exemption from the Securities Act for the
sale of any Warrant or Restricted Common Stock.

11.  LOSS OR MUTILATION

                  Upon receipt by the Company from Holder of evidence reasonably
satisfactory to it of the ownership of and the loss, theft, destruction or
mutilation of this Warrant and indemnity reasonably satisfactory to it (it being
understood that the written agreement of the Holder shall be sufficient
indemnity), and in case of mutilation upon surrender and cancellation hereof,
the Company will execute and deliver in lieu hereof a new Warrant of like tenor
to Holder; provided, in the case of mutilation, no indemnity shall be required
if this Warrant in identifiable form is surrendered to the Company for
cancellation.

12.  OFFICE OF THE COMPANY

                  As long as any of the Warrants remain outstanding, the Company
shall maintain an office or agency (which may be the principal executive offices
of the Company) where the Warrants may be presented for exercise, registration
of transfer, division or combination as provided in this Warrant, such office to
be initially located at 352 West 123rd South, Suite #300, Draper, Utah 84020,
fax: (801) 990-2612, provided, however, that the Company shall provide prior
written notice to Holder of a change in address no less than thirty (30) days
prior to such change.

                                       14
<PAGE>

13.  LIMITATION OF LIABILITY

                  No provision hereof, in the absence of affirmative action by
Holder to purchase shares of Common Stock, and no enumeration herein of the
rights or privileges of Holder hereof, shall give rise to any liability of
Holder for the purchase price of any Common Stock or as a stockholder of the
Company, whether such liability is asserted by the Company or by creditors of
the Company.

14.  MISCELLANEOUS

                  14.1. Nonwaiver and Expenses. No course of dealing or any
delay or failure to exercise any right hereunder on the part of Holder shall
operate as a waiver of such right or otherwise prejudice Holder's rights, powers
or remedies, notwithstanding all rights hereunder terminate on the Expiration
Date. If the Company fails to make, when due, any payments provided for
hereunder, or fails to comply with any other provision of this Warrant, the
Company shall pay to Holder such amounts as shall be sufficient to cover any
direct and indirect losses, damages, costs and expenses including, but not
limited to, reasonable attorneys' fees, including those of appellate
proceedings, incurred by Holder in collecting any amounts due pursuant hereto or
in otherwise enforcing any of its rights, powers or remedies hereunder.

                  14.2. Notice Generally. Except as may be otherwise provided
herein, any notice or other communication or delivery required or permitted
hereunder shall be in writing and shall be delivered personally or sent by
certified mail, postage prepaid, or by a nationally recognized overnight courier
service, and shall be deemed given when so delivered personally or by overnight
courier service, or, if mailed, three (3) days after the date of deposit in the
United States mails, as follows:

(a)      if to the Company, to:             Intelliquis International, Inc.
                                            352 West 123rd South, Suite #300
                                            Draper, Utah  84020
                                            Attention:  Bernard Yaw
                                            Tel:  (801) 990-2600
                                            Fax: (801) 990-2612

         with a copy to:                    Law Offices of Michael Eisner
                                            499 North Canon Drive
                                            Beverly Hills, California  90210
                                            Attention:  Michael Eisner, Esq.
                                            Tel:  (310) 887-7035
                                            Fax: (310) 887-7036

                                       15
<PAGE>

(b)      if to the Purchaser to:            ROBI Investors LLC
                                            WEC Asset Management LLC
                                            One World Trade Center, Suite 4563
                                            New York, New York  10048
                                            Attention:  Daniel J. Saks
                                            Tel:  (212) 775-9299
                                            Fax: (212) 775-9311

         with a copy to:                    Pryor Cashman Sherman & Flynn LLP
                                            410 Park Avenue
                                            New York, New York  10022
                                            Attention:  Mark Saks, Esq.
                                            Tel:  (212) 326-0140
                                            Fax:  (212) 326-0806

     The Company or the Holder may change the foregoing address by notice given
pursuant to this Section 14.2.

                  14.3. Indemnification. The Company agrees to indemnify and
hold harmless Holder from and against any liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, claims, costs, attorneys' fees,
expenses and disbursements of any kind which may be imposed upon, incurred by or
asserted against Holder in any manner relating to or arising out of any failure
by the Company to perform or observe in any respect any of its covenants,
agreements, undertakings or obligations set forth in this Warrant.

                  14.4. Remedies. Holder in addition to being entitled to
exercise all rights granted by law, including recovery of damages, will be
entitled to specific performance of its rights under this Warrant. The Company
agrees that monetary damages would not be adequate compensation for any loss
incurred by reason of a breach by it of the provisions of this Warrant and
hereby agrees to waive the defense in any action for specific performance that a
remedy at law would be adequate.

                  14.5. Successors and Assigns. Subject to the provisions of
Sections 3.1 and 9, this Warrant and the rights evidenced hereby shall inure to
the benefit of and be binding upon the successors of the Company and the
successors and assigns of Holder. The provisions of this Warrant are intended to
be for the benefit of all Holders from time to time of this Warrant and, with
respect to Section 9 hereof, holders of Warrant Stock, and shall be enforceable
by any such Holder or holder of Warrant Stock.

                  14.6. Amendment. This Warrant and all other Warrants may be
modified or amended or the provisions hereof waived only with the prior written
consent of the Company and the Holder.

                  14.7. Severability. Wherever possible, each provision of this
Warrant shall be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Warrant shall be prohibited by or
invalid under applicable law, such provision shall be

                                       16
<PAGE>

ineffective to the extent of such prohibition or invalidity, without
invalidating the remainder of such provision or the remaining provisions of this
Warrant.

                  14.8. Headings. The headings used in this Warrant are for the
convenience of reference only and shall not, for any purpose, be deemed a part
of this Warrant.

                  14.9. Governing Law. This Warrant shall be governed by the
laws of the State of New York, without regard to the provisions thereof relating
to conflict of laws. The Company consents to the jurisdiction of the federal
courts whose districts encompass any part of the City of New York or the state
courts of the State of New York sitting in the City of New York in connection
with any dispute arising under this Warrant or any of the transactions
contemplated hereby, and hereby waives, to the maximum extent permitted by law,
any objection, including any objections based on forum non conveniens, to the
bringing of any such proceeding in such jurisdictions.

                  14.10 Call Rights. Provided that the Common Stock of the
Company has been listed on the Nasdaq SmallCap Market or National Market or any
national securities exchange pursuant to Section 4d of the Securities Purchase
Agreement, during the first three years from the date of the Securities Purchase
Agreement upon ninety (90) days prior written notice (the "Call Notice") to the
holders of the Warrants issued pursuant to the Securities Purchase Agreement,
the Company shall have the right to call and require such holders to sell to the
Company all of such holder's Warrants then outstanding at the termination of
such ninety (90) day period if: the closing sale price of the Company's Common
Stock on the Nasdaq SmallCap or National Market or any national securities
exchange on which the Company's Common Stock is then listed or quoted, equals or
exceeds seven dollars ($7.00) for ten (10) consecutive trading days; and (ii)
the average daily trading volume of the Company's Common Stock for such ten
trading day period exceeds 100,000 shares per day; and (iii) the Common Stock
purchasable upon exercise of the Warrants have been registered for resale, in
accordance with the Registration Rights Agreement, pursuant to a registration
statement declared effective under the Securities Act of 1933, as amended, by
the United States Securities and Exchange Commission, and (iv) during the 90 day
period commencing on the date the holder of this Warrant receives the Call
Notice, the Company shall have complied with Section 2 herein. Any such Call
Notice shall comply with Section 14.2 above and shall specify the date for
purchase of such Warrants. The purchase price for each called Warrant shall be
the Exercise Price and shall be paid within two (2) Business Days of the receipt
by the Company of each Warrant. Notwithstanding anything else contained in this
Section 14.10, the holder of this Warrant shall be entitled to exercise the
Warrant and sell the underlying Warrant Stock during such ninety (90) day period
in accordance with the terms of this Warrant.

         [REMAINDER OF PAGE INTENTIONALLY BLANK, SIGNATURE PAGE FOLLOWS]

                                       17
<PAGE>

                  IN WITNESS WHEREOF, the Company has caused this Warrant to be
duly executed and its corporate seal to be impressed hereon and attested by its
Secretary or an Assistant Secretary.

Dated:  October 26, 1999

                                          INTELLIQUIS INTERNATIONAL, INC.

                                          By: /s/ Bernard Yaw
                                              -----------------------------
                                             Name: Bernard Yaw
                                             Title:President

Attest:

By: /s/ Mark Tippets
   -------------------------
    Name:  Mark Tippets
    Title: Vice President of Sales and Marketing

                                       18
<PAGE>

                                    EXHIBIT A

                                SUBSCRIPTION FORM

                 [To be executed only upon exercise of Warrant]

The undersigned registered owner of this Warrant irrevocably exercises this
Warrant for the purchase of ______ Shares of Common Stock of Intelliquis
International, Inc., and herewith makes payment therefor in cash or by check or
bank draft made payable to the Company, all at the price and on the terms and
conditions specified in this Warrant and requests that certificates for the
shares of Common Stock hereby purchased (and any securities or other property
issuable upon such exercise) be issued in the name of and delivered to
_____________ whose address is _________________ and, if such shares of Common
Stock shall not include all of the shares of Common Stock issuable as provided
in this Warrant, that a new Warrant of like tenor and date for the balance of
the shares of Common Stock issuable hereunder be delivered to the undersigned.

                                      -------------------------------
                                      (Name of Registered Owner)

                                      -------------------------------
                                      (Signature of Registered Owner)

                                      -------------------------------
                                      (Street Address)

                                      -------------------------------
                                      (City)     (State)   (Zip Code)

         NOTICE: The signature on this subscription must correspond with the
name as written upon the face of the within Warrant in every particular, without
alteration or enlargement or any change whatsoever.

                                       19
<PAGE>

                                    EXHIBIT B

                                 ASSIGNMENT FORM

                  FOR VALUE RECEIVED the undersigned registered owner of this
Warrant hereby sells, assigns and transfers unto the Assignee named below all of
the rights of the undersigned under this Warrant, with respect to the number of
shares of Common Stock set forth below:

         Name and Address of Assignee                No. of Shares of
                                                       Common Stock

  and does hereby irrevocably constitute and appoint _______ ________________
  attorney-in-fact to register such transfer on the books of Intelliquis
  International, Inc., maintained for the purpose, with full power of
  substitution in the premises.

         Dated:__________________             Print Name:___________________

                                              Signature:____________________

                                              Witness:______________________

         NOTICE: The signature on this assignment must correspond with the name
as written upon the face of the within Warrant in every particular, without
alteration or enlargement or any change whatsoever.

                                       20

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