Document:

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                                   EXHIBIT 4.1

                            CONSULTING AGREEMENT WITH

                                 M. BLAINE RILEY

                               DATED APRIL 6, 2000

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                     FINANCIAL CONSULTING SERVICES AGREEMENT

         This Financial Consulting Services Agreement (the "Agreement") is
entered this 6th day of April, 2000, by and between M. Blaine Riley
("Consultant"), an individual, and I/O Magic Corporation (OTC BB: IOMC)
("Client"), a Nevada corporation, with reference to the following:

                                    RECITALS

         A. The Client desires to be assured of the association and services of
the Consultant in order to avail itself of the Consultant's experience, skills,
abilities, knowledge, and background to facilitate long range strategic
planning, and to advise the Client in business and/or financial matters and is
therefore willing to engage the Consultant upon the terms and conditions set
forth herein.

         B. The Consultant agrees to be engaged and retained by the Client and
upon the terms and conditions set forth herein.

         NOW, THEREFORE, in consideration of the foregoing, of the mutual
promises hereinafter set forth and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:

         1. ENGAGEMENT. Client hereby engages Consultant on a non-exclusive
basis, and Consultant hereby accepts the engagement to become a financial
consultant to the Client and to render such advice, consultation, information,
and services to the Directors and/or Officers of the Client regarding general
financial and business matters including, but not limited to:

                  a.       Due diligence studies, reorganizations, divestitures;

                  b.       Capital structures, banking methods and systems;

                  c.       Periodic reporting as to developments concerning the
                           general financial markets and public securities
                           markets and industry which may be relevant or of
                           interest or concern to the Client or the Client's
                           business;

                  d.       Guidance and assistance in available alternatives for
                           accounts receivable financing and other asset
                           financing.

         It shall be expressly understood that Consultant shall have no power to
bind Client to any contract or obligation or to transact any business in
Client's name or on behalf of Client in any manner.

         2. TERM. The term ("Term") of this Agreement shall commence on the date
hereof and continue for twelve (12) months. The Agreement may be extended upon
agreement by both parties, unless or until the Agreement is terminated. Either
party may cancel this Agreement upon five days written notice in the event
either party violates any material provision of this Agreement and fails to cure
such violation within five (5) days of written notification of such violation
from the other party. Such cancellation shall not excuse the breach or
non-performance by the other party or relieve the breaching party of its
obligation incurred prior to the date of cancellation.

         3. COMPENSATION AND FEES. As consideration for Consultant entering into
this Agreement, Client and Consultant shall agree to the following:

                  a. Client shall issue certificates representing an aggregate
of two hundred fifty thousand (250,000) warrants for free trading common stock
(the "Shares"), priced at five ($5.00) dollars per share. The shares

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underlying the warrants shall be registered under Form S-8, if deemed available
by the Securities Exchange Commission upon exercise of some or all of the
warrant.

         The Shares, when issued to Consultant, will be duly authorized, validly
issued and outstanding, fully paid and nonassessable and will not be subject to
any liens or encumbrances.

         Securities shall be issued to Consultant in accordance with a mutually
acceptable plan of issuance as to relieve securities or Consultant from
restrictions upon transferability of shares in compliance with applicable
registration provisions or exemptions.

         4. EXCLUSIVITY; PERFORMANCE; CONFIDENTIALITY. The services of
Consultant hereunder shall not be exclusive, and Consultant and its agents may
perform similar or different services for other persons or entities whether or
not they are competitors of Client. Consultant shall be required to expend only
such time as is necessary to service Client in a commercially reasonable manner.
Consultant acknowledges and agrees that confidential and valuable information
proprietary to Client and obtained during its engagement by the Client, shall
not be, directly or indirectly, disclosed without the prior express written
consent of the Client, unless and until such information is otherwise known to
the public generally or is not otherwise secret and confidential.

         5. INDEPENDENT CONTRACTOR. In its performance hereunder, Consultant and
its agents shall be an independent contractor. Consultant shall complete the
services required hereunder according to his own means and methods of work,
shall be in the exclusive charge and control of Consultant and which shall not
be subject to the control or supervision of Client, except as to the results of
the work. Client acknowledges that nothing in this Agreement shall be construed
to require Consultant to provide services to Client at any specific time, or in
any specific place or manner. Payments to consultant hereunder shall not be
subject to withholding taxes or other employment taxes as required with respect
to compensation paid to an employee.

         6. MISCELLANEOUS. No waiver of any of the provisions of this Agreement
shall be deemed or shall constitute a waiver of any other provision and no
waiver shall constitute a continuing waiver. No waiver shall be binding unless
executed in writing by the party making the waiver. No supplement, modification,
or amendment of this Agreement shall be binding unless executed in writing by
all parties. This Agreement constitutes the entire agreement between the parties
and supersedes any prior agreements or negotiations. There are no third party
beneficiaries of this Agreement.

         IN WITNESS WHEREOF, the parties have entered into this Agreement on the
date first written above.

                                   "CLIENT"

                                   Signature:                 /s/  Tony Shahbaz
                                                     --------------------------
                                   Print with Title: Tony Shahbaz, President
                                                     --------------------------
                                   Company:  I/O Magic Corporation

                                   "CONSULTANT"

                                   Signature:               /s/ M. Blaine Riley
                                                     ---------------------------
                                   Print with Title: M. Blaine Riley, Consultant
                                                     ---------------------------
                                   Consultant:  M. Blaine Riley<PAGE>

                                                                  EXHIBIT 10.86

                          SECURITIES PURCHASE AGREEMENT

         SECURITIES PURCHASE AGREEMENT (the "AGREEMENT"), dated as of April 14,
2000, by and among HomeCom Communications, Inc., a Delaware corporation, with
headquarters located at Fourteen Piedmont Center, Suite 100, 3535 Piedmont Road,
Atlanta, Georgia 30305 (the "COMPANY"), and the investor listed on the Schedule
of Buyers (the "SCHEDULE OF BUYERS") attached hereto (individually, a "BUYER" or
collectively "BUYERS").

         WHEREAS:

         A. The Company and the Buyers are executing and delivering this
Agreement in reliance upon the exemption from securities registration pursuant
to Section 4(2) and/or Regulation D ("REGULATION D") at the sole election of
Buyer in the event that a registration statement filed by the Company pursuant
to Section 2(a) of the Registration Rights Agreement (described below) is not
declared effective by the Registration Deadline (as defined therein) as
promulgated by the U.S. Securities and Exchange Commission (the "SEC") under the
Securities Act of 1933, as amended (the "1933 ACT");

         B. The Company has authorized the following new series of its Preferred
Stock, $.0001 par value per share (the "PREFERRED STOCK"): the Company's Series
E Convertible Preferred Stock (the "SERIES E PREFERRED SHARES"), which shall be
convertible into shares of the Company's Common Stock, $.0001 par value per
share (the "COMMON STOCK") (as converted, the "CONVERSION SHARES"), in
accordance with the terms of the Company's Certificate of Designations,
Preferences, and Rights of the Series E Convertible Preferred Stock,
substantially in the form attached hereto as Exhibit "A" (the "CERTIFICATE OF
DESIGNATIONS");

         C. The Buyer wishes to purchase, upon the terms and conditions stated
in this Agreement, an aggregate of 100 shares of Series E Preferred Shares in
the respective amounts set forth opposite each Buyer's name on the Schedule of
Buyers;

         D. Contemporaneously with the execution and delivery of this Agreement,
the parties hereto are executing and delivering a Registration Rights Agreement
substantially in the form attached hereto as Exhibit "B" (the "REGISTRATION
RIGHTS AGREEMENT") pursuant to which the Company has agreed to provide certain
registration rights under the 1933 Act and the rules and regulations promulgated
thereunder, and applicable state securities laws; and

         E. As set forth in Section 4(i) hereof, the holders of Series E
Preferred Shares shall receive stock purchase warrants to acquire shares of
Common Stock substantially in the form attached as Exhibit "C (the "WARRANTS")."

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         NOW THEREFORE, the Company and the Buyer hereby agree as follows:

               1 . PURCHASE AND SALE OF SERIES E PREFERRED STOCK.

                  a. PURCHASE OF SERIES E PREFERRED STOCK. Subject to the
         satisfaction (or waiver) of the conditions set forth in Sections 6 and
         7 below, the Company shall issue and sell to the Buyers and the Buyers
         shall purchase from the Company an aggregate of 100 shares of Series E
         Preferred Stock, in the respective amounts set forth opposite each
         Buyer's name on the Schedule of Buyers (the "CLOSING").

                b. CLOSING DATE. The date and time of the Closing (the "CLOSING
         DATE") shall be 10:00 a.m. Eastern Standard Time, within five (5)
         business days following the date hereof, subject to notification of
         satisfaction (or waiver) of the conditions to the Closing set forth in
         Sections 6 and 7 below (or such later date as is mutually agreed to by
         the Company and the Buyer). The Closing shall occur on the Closing Date
         at the offices of Sims Moss Kline & Davis LLP, 400 Northpark Town
         Center, Suite 310, 1000 Abernathy Road, N.E., Atlanta, Georgia 30328.

                c. FORM OF PAYMENT. On the Closing Date, (i) each Buyer shall
         pay the purchase price to the Company for the Series E Preferred Shares
         to be issued and sold to such Buyer at the Closing, by wire transfer of
         immediately available funds in accordance with the Company's written
         wire instructions, and (ii) the Company shall deliver to each Buyer,
         certificates representing such Series E Preferred Shares which such
         Buyer is then purchasing (as indicated opposite such Buyer's name on
         the Schedule of Buyers), duly executed on behalf of the Company and
         registered in the name of such Buyer or its designee (the
         "CERTIFICATES").

         2.     BUYER'S REPRESENTATIONS AND WARRANTEES.

         Each Buyer represents and warrants with respect to only itself that:

         a. INVESTMENT PURPOSE. Such Buyer (i) is acquiring the Series E
Preferred Shares, (ii) upon conversion of the Series E Preferred Shares, will
acquire the Conversion Shares then issuable, (iii) will acquire any Warrants
issuable, and (iv) upon exercise of the Warrants, will acquire the shares of
Common Stock issuable upon exercise thereof (the "WARRANT SHARES") for its own
account for investment only and not with a view towards, or for resale in
connection with, the public sale or distribution thereof, except pursuant to
sales registered or exempted under the 1933 Act. The Buyer represents and
warrants that it has no prearranged agreement or other arrangement to sell or
otherwise dispose of, pledge or assign the Series A Preferred Shares, the
Conversion Shares, the Warrants, the Warrant Shares or the Company's Common
Stock.

                b. ACCREDITED INVESTOR STATUS. Such Buyer is an "accredited
         investor" as that term is defined in Rule 501(a)(3) of Regulation D.

                c. RELIANCE ON EXEMPTIONS. Such Buyer understands that the
         Series E Preferred Shares, the Conversion Shares, the Warrants, and the
         Warrant Shares are being

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         offered and sold to it in reliance on specific exemptions from the
         registration requirements of United States federal and state
         securities laws and that the Company is relying in part upon the
         truth and accuracy of, and such Buyer's compliance with, the
         representations, warranties, agreements, acknowledgments and
         understandings of such Buyer set forth herein in order to determine
         the availability of such exemptions and the eligibility of such
         Buyer to acquire such securities.

                d. INFORMATION. Such Buyer and its advisors, if any, have been
         furnished with all materials relating to the business, finances and
         operations of the Company and materials relating to the offer and sale
         of the Series E Preferred Shares, the Conversion Shares, the Warrants,
         and the Warrant Shares, which have been requested by such Buyer. Such
         Buyer and its advisors, if any, have been afforded the opportunity to
         ask questions of the Company. Neither such inquiries nor any other due
         diligence investigations conducted by such Buyer or its advisors, if
         any, or its representatives shall modify, amend or affect such Buyer's
         right to rely on the Company's representations and warranties contained
         in Section 3 below. Such Buyer understands that its investment in the
         Series E Preferred Shares, the Conversion Shares, the Warrants, and the
         Warrant Shares involves a high degree of risk. Such Buyer has sought
         such accounting, legal and tax advice as it has considered necessary to
         make an informed investment decision with respect to its acquisition of
         the Series E Preferred Shares, the Conversion Shares, the Warrants, and
         the Warrant Shares.

                e. NO GOVERNMENTAL REVIEW. Such Buyer understands that no United
         States federal or state agency or any other government or governmental
         agency has passed on or made any recommendation or endorsement of the
         Series E Preferred Shares, the Conversion Shares, the Warrants, and the
         Warrant Shares or the fairness or suitability of the investment in the
         Series E Preferred Shares, the Conversion Shares, the Warrants, or the
         Warrant Shares nor have such authorities passed upon or endorsed the
         merits of the offering of the Series E Preferred Shares, the Conversion
         Shares, the Warrants, or the Warrant Shares.

                f. TRANSFER OR RESALE. Such Buyer understands that except as
         provided in the Registration Rights Agreement: (i) the Series E
         Preferred Shares, the Conversion Shares, the Warrants, and the Warrant
         Shares have not been and are not being registered under the 1933 Act or
         any state securities laws, and may not be offered for sale, sold,
         assigned or transferred unless (a) subsequently registered thereunder,
         (b) such Buyer shall have delivered to the Company an opinion of
         counsel, in a generally acceptable form, to the effect that such
         securities to be sold, assigned or transferred may be sold, assigned or
         transferred pursuant to an exemption from such registration, or (c)
         such Buyer provides the Company with reasonable assurance that such
         securities can be sold, assigned or transferred pursuant to Rule 144
         promulgated under the 1933 Act, (ii) any sale of such securities made
         in reliance on Rule 144 (or a successor rule thereto) ("RULE 144") may
         be made only in accordance with the terms of Rule 144 and further, if
         Rule 144 is not applicable, any resale of such securities under
         circumstances in which the seller (or the person through whom the sale
         is made) may be deemed to be an underwriter (as that term is defined in
         the 1933 Act) may require compliance with some other exemption under
         the

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         1933 Act or the rules and regulations of the SEC thereunder; and
         (iii) neither the Company nor any other person is under any obligation
         to register such securities under the 1933 Act or any state securities
         laws or to comply with the terms and conditions of any exemption
         thereunder.

                g. LEGENDS. Such Buyer understands that the certificates or
         other instruments representing the Series E Preferred Shares, the
         Warrants and, until such time as the sale of the Conversion Shares have
         been registered under the 1933 Act as contemplated by the Registration
         Rights Agreement, the stock certificates representing the Conversion
         Shares, and the Warrant Shares shall bear a restrictive legend in
         substantially the following form (and a stop transfer order may be
         placed against transfer of such stock certificates):

                THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
                REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR
                APPLICABLE STATE SECURITIES LAWS. THE SECURITIES HAVE BEEN
                ACQUIRED FOR INVESTMENT AND MAY NOT BE OFFERED FOR SALE, SOLD,
                TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE
                REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES
                ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS, OR
                AN OPINION OF COUNSEL, IN A GENERALLY ACCEPTABLE FORM, THAT
                REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR APPLICABLE STATE
                SECURITIES LAWS OR UNLESS SOLD PURSUANT TO RULE 144 UNDER SAID
                ACT.

                The legend set forth above shall be removed and the Company
         shall issue a certificate without such legend to the holder of the
         Series E Preferred Shares, the Conversion Shares, the Warrants, or the
         Warrant Shares upon which it is stamped, if, unless otherwise required
         by state securities laws, (i) the sale of the Conversion Shares or the
         Warrant Shares is registered under the 1933 Act, (ii) in connection
         with a sale transaction, such holder provides the Company with an
         opinion of counsel, in a generally acceptable form, to the effect that
         a public sale, assignment or transfer of the Series E Preferred Shares,
         the Conversion Shares, the Warrants, or the Warrant Shares may be made
         without registration under the 1933 Act, or (iii) such holder provides
         the Company with reasonable assurances that the Series E Preferred
         Shares, the Conversion Shares, the Warrants, or the Warrant Shares can
         be sold pursuant to Rule 144 without any restriction as to the number
         of securities acquired as of a particular date that can then be
         immediately sold.

                h. AUTHORIZATION, ENFORCEMENT. This Agreement has been duly and
         validly authorized, executed and delivered on behalf of such Buyer and
         is a valid and binding agreement of such Buyer enforceable in
         accordance with its terms, subject as enforceability to general
         principles of equity and to applicable bankruptcy, insolvency,

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         reorganization, moratorium, liquidation and other similar laws relating
         to, or affecting generally, the enforcement of applicable creditors'
         rights and remedies.

                i. RESIDENCY. Such Buyer is a resident of that country specified
         in its address on the Schedule of Buyers.

                j. NO SCHEME TO EVADE REGISTRATION. Buyer represents and
         warrants to the Company that the acquisition of the Series E Preferred
         Stock and the Conversion Shares is not a transaction (or any element of
         a series of transactions) that is part of a plan or scheme by the Buyer
         to evade the registration provisions of the 1933 Act.

         3.     REPRESENTATIONS AND WARRANTIES OF THE COMPANY.

         The Company represents and warrants to each of the Buyers that:

                a. ORGANIZATION AND QUALIFICATION. The Company and its
         subsidiaries are corporations duly organized and validly existing in
         good standing under the laws of the jurisdiction in which they are
         incorporated, and have the requisite corporate power to own their
         properties and to carry on their business as now being conducted. Each
         of the Company and its subsidiaries is duly qualified as a foreign
         corporation to do business and is in good standing in every
         jurisdiction in which the nature of the business conducted by it makes
         such qualification necessary, except to the extent that the failure to
         be so qualified or be in good standing would not have a material
         adverse effect on the Company and its subsidiaries taken as a whole.

                b. AUTHORIZATION, ENFORCEMENT, COMPLIANCE WITH OTHER
         INSTRUMENTS. (i) The Company has the requisite corporate power and
         authority to enter into and perform this Agreement, the Registration
         Rights Agreement and any related agreements, and to issue the Series E
         Preferred Shares, the Conversion Shares, the Warrants, and the Warrant
         Shares in accordance with the terms hereof and thereof, (ii) the
         execution and delivery of this Agreement, the Registration Rights
         Agreement and any related agreements by the Company and the
         consummation by it of the transactions contemplated hereby and thereby,
         including without limitation the issuance of the Series E Preferred
         Shares and the Warrants and the reservation for issuance and the
         issuance of the Conversion Shares and the Warrant Shares issuable upon
         conversion or exercise thereof, have been duly authorized by the
         Company's Board of Directors and no further consent or authorization is
         required by the Company, its Board of Directors or its stockholders,
         (iii) this Agreement and the Registration Rights Agreement and any
         related agreements have been duly executed and delivered by the
         Company, (iv) this Agreement, the Registration Rights Agreement and any
         related agreements constitute the valid and binding obligations of the
         Company enforceable against the Company in accordance with their terms,
         except as such enforceability may be limited by general principles of
         equity or applicable bankruptcy, insolvency, reorganization,
         moratorium, liquidation or similar laws relating to, or affecting
         generally, the enforcement of creditors' rights and remedies, and (v)
         prior to the Closing Date, the Certificate of Designations has been
         filed with the

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         Secretary of State of the State of Delaware and will be in full
         force and effect, enforceable against the Company in accordance with
         its terms.

                c. CAPITALIZATION. On March 28, 2000, the authorized capital
         stock of the Company consists of 15,000,000 shares of Common Stock, of
         which as of the date hereof 8,131,250 shares were issued and
         outstanding, and 10,000,000 shares of Preferred Stock of which 50
         shares of Series B Convertible Preferred Stock, 126.35 shares of Series
         C Convertible Preferred Stock, 18.05 shares of Series D Convertible
         Preferred Stock were issued and outstanding. All of such outstanding
         shares have been validly issued and are fully paid and nonassessable.
         Except as disclosed in Schedule 3(c), no shares of Common Stock or
         preferred stock are subject to preemptive rights or any other similar
         rights or any liens or encumbrances suffered or permitted by the
         Company. Except as disclosed in Schedule 3(c), as of the effective date
         of this Agreement, (i) there are no outstanding options, warrants,
         scrip, rights to subscribe to, calls or commitments of any character
         whatsoever relating to, or securities or rights convertible into, any
         shares of capital stock of the Company or any of its subsidiaries, or
         contracts, commitments, understandings or arrangements by which the
         Company or any of its subsidiaries is or may become bound to issue
         additional shares of capital stock of the Company or any of its
         subsidiaries or options, warrants, scrip, rights to subscribe to, calls
         or commitments of any character whatsoever relating to, or securities
         or rights convertible into, any shares of capital stock of the Company
         or any of its subsidiaries, (ii) there are no outstanding debt
         securities and (iii) there are no agreements or arrangements under
         which the Company or any of its subsidiaries is obligated to register
         the sale of any of their securities under the 1933 Act (except the
         Registration Rights Agreement). There are no securities or instruments
         containing anti-dilution or similar provisions that will be triggered
         by the issuance of the Series E Preferred Shares, the Conversion
         Shares, the Warrants, or the Warrant Shares as described in this
         Agreement. The Company has furnished to the Buyer true and correct
         copies of the Company's Certificate of Incorporation, as amended and as
         in effect on the date hereof (the "CERTIFICATE OF INCORPORATION"), and
         the Company's By-laws, as in effect on the date hereof (the "BY-LAWS"),
         and the terms of all securities convertible into or exercisable for
         Common Stock and the material rights of the holders thereof in respect
         thereto.

                d. ISSUANCE OF SECURITIES. The Series E Preferred Shares are
         duly authorized and, upon issuance in accordance with the terms hereof,
         shall be (i) validly issued, fully paid and nonassessable, are free
         from all taxes, liens and charges with respect to the issue thereof and
         are entitled to the rights and preferences set forth in the Series E
         Preferred Shares. The Conversion Shares issuable upon conversion of the
         Series E Preferred Shares have been duly authorized and reserved for
         issuance. Upon conversion or exercise in accordance with the Series E
         Preferred Shares or the Warrants, the Conversion Shares and the Warrant
         Shares will be validly issued, fully paid and nonassessable and free
         from all taxes, liens and charges with respect to the issue thereof,
         with the holders being entitled to all rights accorded to a holder of
         Common Stock.

                e. NO CONFLICTS. Except as disclosed in Schedule 3(e), the
         execution, delivery and performance of this Agreement by the Company
         and the consummation by

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         the Company of the transactions contemplated hereby will not (i)
         result in a material violation of the Certificate of Incorporation,
         any Certificate of Designations, Preferences, and Rights of any
         outstanding series of preferred stock of the Company or By-laws or
         (ii) conflict with or constitute a default (or an event which with
         notice or lapse of time or both would become a default) under, or
         give to others any rights of termination, amendment, acceleration or
         cancellation of, any material agreement, indenture or instrument to
         which the Company or any of its subsidiaries is a party, or result
         in a violation of any law, rule, regulation, order, judgment or
         decree (including federal and state securities laws and regulations
         and the rules and regulations of the principal market or exchange on
         which the Common Stock is traded or listed) applicable to the
         Company or any of its subsidiaries or by which any property or asset
         of the Company or any of its subsidiaries is bound or affected.
         Except as disclosed in Schedule 3(e), neither the Company nor its
         subsidiaries is in violation of any term of or in default under its
         Certificate of Incorporation or Bylaws or their organizational
         charter or by-laws, respectively, or any material contract,
         agreement, mortgage, indebtedness, indenture, instrument, judgment,
         decree or order or any statute, rule or regulation applicable to the
         Company or its subsidiaries. The business of the Company and its
         subsidiaries is not being conducted, and shall not be conducted in
         violation of any law, ordinance, or regulation of any governmental
         entity. Except as specifically contemplated by this Agreement and as
         required under the 1933 Act and any applicable state securities
         laws, the Company is not required to obtain any consent,
         authorization or order of, or make any filing or registration with,
         any court or governmental agency in order for it to execute, deliver
         or perform any of its obligations under or contemplated by this
         Agreement or the Registration Rights Agreement in accordance with
         the terms hereof or thereof except as disclosed in Schedule 3(e).
         All consents, authorizations, orders, filings and registrations
         which the Company is required to obtain pursuant to the preceding
         sentence have been obtained or effected on or prior to the date
         hereof.

                f. SEC DOCUMENTS: FINANCIAL STATEMENTS. Since January 1, 1999,
         the Company has filed all reports, schedules, forms, statements and
         other documents required to be filed by it with the SEC pursuant to the
         reporting requirements of the Securities Exchange Act of 1934, as
         amended (the "1934 ACT") (all of the foregoing filed prior to the date
         hereof and all exhibits included therein and financial statements and
         schedules thereto and documents incorporated by reference therein,
         being hereinafter referred to as the "SEC DOCUMENTS"). The Company has
         delivered to the Buyer or its representative true and complete copies
         of the SEC Documents. As of their respective dates, the financial
         statements of the Company attached as Schedule 3(f) hereto (the
         "FINANCIAL STATEMENTS") complied as to form in all material respects
         with applicable accounting requirements and the published rules and
         regulations of the SEC with respect thereto. Such financial statements
         have been prepared in accordance with generally accepted accounting
         principles, consistently applied, during the periods involved (except
         (i) as may be otherwise indicated in such financial statements or the
         notes thereto, or (ii) in the case of unaudited interim statements, to
         the extent they may exclude footnotes or may be condensed or summary
         statements) and fairly present in all material respects the financial
         position of the Company as of the dates thereof and the results of its
         operations and cash

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         flows for the periods then ended (subject, in the case of unaudited
         statements, to normal year-end audit adjustments).

                g. ABSENCE OF CERTAIN CHANGES. Except as disclosed in Schedule
         3(g), since January 1, 1999, there has been no material adverse change
         and no material adverse development in the business, properties,
         operations, financial condition, results of operations or prospects of
         the Company or its subsidiaries. The Company has not taken any steps,
         and does not currently expect to take any steps, to seek protection
         pursuant to any bankruptcy law nor does the Company or its subsidiaries
         have any knowledge or reason to believe that its creditors intend to
         initiate involuntary bankruptcy proceedings.

                h. ABSENCE OF LITIGATION. There is no action, suit, proceeding,
         inquiry or investigation before or by any court, public board,
         government agency, self-regulatory organization or body pending or, to
         the knowledge of the Company or any of its subsidiaries, threatened
         against or affecting the Company, the Common Stock or any of the
         Company's subsidiaries, wherein an unfavorable decision, ruling or
         finding would (i) have a material adverse effect on the transactions
         contemplated hereby (ii) adversely affect the validity or
         enforceability of, or the authority or ability of the Company to
         perform its obligations under, this Agreement or any of the documents
         contemplated herein or (iii), except as expressly set forth in Schedule
         3(h), have a material adverse effect on the business, operations,
         properties, financial condition or results of operation of the Company
         and its subsidiaries taken as a whole.

                i. ACKNOWLEDGMENT REGARDING BUYER'S PURCHASE OF SERIES E
         PREFERRED SHARES. The Company acknowledges and agrees that the Buyer is
         acting solely in the capacity of an arm's length purchaser with respect
         to this Agreement and the transactions contemplated hereby.

                j. NO UNDISCLOSED EVENTS, LIABILITIES, DEVELOPMENTS OR
         CIRCUMSTANCES. No event, liability, development or circumstance has
         occurred or exists, or is contemplated to occur, with respect to the
         Company or its subsidiaries or their respective business, properties,
         prospects, operations or financial condition, which could be material
         but which has not been publicly announced or disclosed in writing to
         the Buyer.

                k. NO GENERAL SOLICITATION. Neither the Company, nor any of its
         affiliates, nor any person acting on its or their behalf, has engaged
         in any form of general solicitation or general advertising (within the
         meaning of Regulation D under the 1933 Act) in connection with the
         offer or sale of the Series E Preferred Shares, the Conversion Shares,
         the Warrants, or the Warrant Shares.

                1. NO INTEGRATED OFFERING. Neither the Company, nor any of its
         affiliates, nor any person acting on its or their behalf has, directly
         or indirectly, made any offers or sales of any security or solicited
         any offers to buy any security, under circumstances that would require
         registration of the Series E Preferred Shares, the Conversion Shares,
         the Warrants, and the Warrant Shares under the 1933 Act or cause this
         offering of Series E Preferred Shares, the Conversion Shares, the
         Warrants, or the Warrant Shares to be

                                      72

<PAGE>

         integrated with prior offerings by the Company for purposes of the
         1933 Act or any applicable stockholder approval provisions.

                                      73

<PAGE>

                m. EMPLOYEE RELATIONS. Neither the Company nor any of its
         subsidiaries is involved in any labor dispute nor, to the knowledge of
         the Company or any of its subsidiaries, is any such dispute threatened.
         None of the Company's or its subsidiaries' employees is a member of a
         union and the Company and its subsidiaries believe that their relations
         with their employees are good.

                n. TITLE. The Company and its subsidiaries have good and
         marketable title in fee simple to all real property and good and
         marketable title to all personal property owned by them which is
         material to the business of the Company and its subsidiaries, in each
         case free and clear of all liens, encumbrances and defects except such
         as are described in Schedule 3(p) or such as do not materially affect
         the value of such property and do not interfere with the use made and
         proposed to be made of such property by the Company and its
         subsidiaries. Any real property and facilities held under lease by the
         Company and its subsidiaries are held by them under valid, subsisting
         and enforceable leases with such exceptions as are not material and do
         not interfere with the use made and proposed to be made of such
         property and buildings by the Company and its subsidiaries.

                o. REGULATORY PERMITS. The Company and its subsidiaries possess
         all certificates, authorizations and permits issued by the appropriate
         federal, state or foreign regulatory authorities necessary to conduct
         their respective businesses, and neither the Company nor any such
         subsidiary has received any notice of proceedings relating to the
         revocation or modification of any such certificate, authorization or
         permit.

                p. TAX STATUS. Except as set forth on Schedule 3(u), the Company
         and each of its subsidiaries has made or filed all federal and state
         income and all other tax returns, reports and declarations required by
         any jurisdiction to which it is subject (unless and only to the extent
         that the Company and each of its subsidiaries has set aside on its
         books provisions reasonably adequate for the payment of all unpaid and
         unreported taxes) and has paid all taxes and other governmental
         assessments and charges that are material in amount, shown or
         determined to be due on such returns, reports and declarations, except
         those being contested in good faith and has set aside on its books
         provision reasonably adequate for the payment of all taxes for periods
         subsequent to the periods to which such returns, reports or
         declarations apply. There are no unpaid taxes in any material amount
         claimed to be due by the taxing authority of any jurisdiction, and the
         officers of the Company know of no basis for any such claim.

                q. FEES AND RIGHTS OF FIRST REFUSAL. The Company is not
         obligated to offer the securities offered hereunder on a right of first
         refusal basis or otherwise to any third parties including, but not
         limited to, current or former shareholders of the Company,
         underwriters, brokers, agents or other third parties.

                r. SHAREHOLDER APPROVAL The Company covenants to submit to its
         shareholders at its next shareholder meeting a proposal for
         ratification of the issuance of the Series C Preferred Stock and the
         Conversion Shares, if and as required by the rules of the National
         Association of Securities Dealers, Inc. (the "NASD") applicable to the
         transaction.

                                      74

<PAGE>

         4.     COVENANTS.

                a. BEST EFFORTS. Each party shall use its best efforts timely
         to satisfy each of the conditions to be satisfied by it as provided
         in Sections 6 and 7 of this Agreement.

                b. FORM D. The Company agrees to file a Form D with respect to
         the Series E Preferred Shares and the Conversion Shares as required
         under Regulation D and to provide a copy thereof to each Buyer promptly
         after such filing. The Company shall, on or before the Closing Date,
         take such action as the Company shall reasonably determine is necessary
         to qualify the Series E Preferred Shares and the Conversion Shares for,
         or obtain exemption for the Series E Preferred Shares and the
         Conversion Shares for, sale to the Buyers at the Closing pursuant to
         this Agreement under applicable securities or "Blue Sky" laws of the
         states of the United States, and shall provide evidence of any such
         action so taken to the Buyers on or prior to the Closing Date.

                c. REPORTING STATUS. Until the earlier of (i) the date as of
         which the Investors (as that term is defined in the Registration Rights
         Agreement) may sell all of the Conversion Shares without restriction
         pursuant to Rule 144(k) promulgated under the 1933 Act (or successor
         thereto), or (ii) the date on which (A) the Investors shall have sold
         all the Conversion Shares and (B) none of the Series E Preferred Shares
         is outstanding (the "REGISTRATION PERIOD"), the Company shall file all
         reports required to be filed with the SEC pursuant to the 1934 Act, and
         the Company shall not terminate its status as an issuer required to
         file reports under the 1934 Act even if the 1934 Act or the rules and
         regulations thereunder would otherwise permit such termination.

                d. USE OF PROCEEDS. The Company will use the proceeds from the
         sale of the Series E Preferred Shares for substantially the same
         purposes and in substantially the same amounts as indicated in Schedule
         4(d).

                e. FINANCIAL INFORMATION. The Company agrees to send the
         following to each Buyer during the Registration Period: (i) within five
         (5) days after the filing thereof with the SEC, a copy of its Annual
         Reports on Form 10-K, its Quarterly Reports on Form 10-Q, any Current
         Reports on Form 8-K and any registration statements or amendments filed
         pursuant to the 1933 Act; (ii) within one (1) day after release
         thereof, copies of all press releases issued by the Company or any of
         its subsidiaries and (ii) copies of the same notices and other
         information given to the stockholders of the Company generally,
         contemporaneously with the giving thereof to the stockholders.

                f. RESERVATION OF SHARES. The Company shall take all action
         necessary to at all times have authorized, and reserved for the purpose
         of issuance, no less than 100% of the number of shares of Common Stock
         needed to provide for the issuance of the Conversion Shares and Warrant
         Shares; provided that all shares of the Common Stock authorized and not
         otherwise reserved for other purposes as of the date hereof shall be
         reserved for the purpose of issuance of the Conversion Shares.

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<PAGE>

                g. LISTINGS. The Company shall promptly secure the listing of
         all Registrable Securities (as defined in the Registration Rights
         Agreement) upon each national securities exchange or automated
         quotation system, if any, upon which shares of Common Stock are then
         listed (subject to official notice of issuance) and shall maintain, so
         long as any other shares of Common Stock shall be so listed, such
         listing of all Conversion Shares from time to time issuable under the
         terms of this Agreement and the Registration Rights Agreement. The
         Company shall maintain the Common Stock's authorization for quotation
         in the over-the counter market. The Company shall promptly provide to
         each Buyer copies of any notices it receives regarding the continued
         eligibility of the Common Stock for trading on the Nasdaq SmallCap
         Market(TM).

                h. EXPENSES. Each of the Company and the Buyer shall pay all
         costs and expenses incurred by such party in connection with the
         negotiation, investigation, preparation, execution and delivery of this
         Agreement and the Registration Rights Agreement.

                i. WARRANT ISSUANCES. At Closing, the Company shall issue to
         each Buyer warrants to acquire 33,334 shares of Common Stock for each
         one million dollars ($1,000,000) invested in the form as attached as
         Exhibit "C" hereto. The Company shall, in addition to the Warrants
         otherwise issuable hereunder, issue to each Buyer such Warrants (the
         "LOCK-UP WARRANTS") as may be issuable to a Buyer pursuant to Section
         2(i) of the Certificate of Designations. Each Warrant issued hereunder
         (including pursuant to Section 2(i) of the Certificate of Designations)
         shall be immediately exercisable and shall expire (to the extent not
         exercised) on the fifth (5th) anniversary of its issuance date.

                j. NO SHORT SALES OF THE COMMON STOCK. So long as (i) a Buyer or
         any of its affiliates beneficially owns any of Series E Preferred
         Shares, (ii) the Company has not issued any publicly traded convertible
         securities and (iii) the Issuer is not in material default under the
         terms of the Series E Preferred Shares, each Buyer and its affiliates
         shall not directly or indirectly engage in any short sales or third
         party short sales of the Company's Common Stock or hold a "put
         equivalent position" with respect to the Common Stock (as defined in
         Rule 16a-1 under the 1934 Act).

         5.     TRANSFER AGENT INSTRUCTIONS.

         The Company shall issue irrevocable instructions to its transfer agent
to issue certificates, registered in the name of the Buyer or its respective
nominee(s), for the Conversion Shares and Warrant Shares in such amounts as
specified from time to time by the Buyer to the Company upon conversion of the
Series E Preferred Shares or exercise of the Warrants (the "IRREVOCABLE TRANSFER
AGENT INSTRUCTIONS"). Prior to registration of the Conversion Shares and Warrant
Shares under the 1933 Act, all such certificates shall bear the restrictive
legend specified in Section 2(g) of this Agreement. The Company warrants that no
instruction other than the Irrevocable Transfer Agent Instructions referred to
in this Section 5, and stop transfer instructions to give effect to Section 2(g)
hereof (in the case of the Conversion Shares and Warrant Shares, prior to
registration of such shares under the 1933 Act) will be given by the

                                      76

<PAGE>

Company to its transfer agent and that the Series E Preferred Shares, the
Conversion Shares, the Warrants, and the Warrant Shares shall otherwise be
freely transferable on the books and records of the Company as and to the
extent provided in this Agreement and the Registration Rights Agreement.
Nothing in this Section 5 shall affect in any way the Buyer's obligations and
agreement to comply with all applicable securities laws upon resale of the
Series E Preferred Shares, the Conversion Shares, the Warrants, and the
Warrant Shares. If the Buyer provides the Company with an opinion of counsel,
satisfactory in form and substance to the Company, that registration of a
resale by the Buyer of any of the Series E Preferred Shares, the Conversion
Shares, the Warrants, or the Warrant Shares is not required under the 1933
Act, the Company shall permit the transfer, and, in the case of the
Conversion Shares or the Warrant Shares, promptly instruct its transfer agent
to issue one or more certificates in such name and in such denominations as
specified by the Buyer.

         6.     CONDITIONS TO THE COMPANY'S OBLIGATION TO SELL.

         The obligation of the Company hereunder to issue and sell the Series E
Preferred Shares to the Buyer at the Closing is subject to the satisfaction, at
or before the Closing Date, of each of the following conditions, provided that
these conditions are for the Company's sole benefit and may be waived by the
Company at any time in its sole discretion:

                a. The Buyer shall have executed this Agreement and the
         Registration Rights Agreement and delivered the same to the Company.

                b. The Certificate of Designations shall have been filed with
         the Secretary of State of the State of Delaware.

                c. The Buyer shall have delivered to the Company the Purchase
         Price for the Series E Preferred Shares being purchased by the Buyer at
         the Closing by wire transfer of immediately available funds pursuant to
         the wire instructions provided by the Company.

                d. The representations and warranties of the Buyer shall be true
         and correct in all material respects as of the date when made and as of
         the Closing Date as though made at that time (except for
         representations and warranties that speak as of a specific date), and
         the Buyer shall have performed, satisfied and complied in all material
         respects with the covenants, agreements and conditions required by this
         Agreement to be performed, satisfied or complied with by the Buyer at
         or prior to the Closing Date.

         7.     CONDITIONS TO THE BUYER'S OBLIGATION TO PURCHASE.

         The obligation of the Buyer hereunder to purchase the Series E
Preferred Shares at the Closing is subject to the satisfaction, at or before the
Closing Date, of each of the following conditions, provided that these
conditions are for the Buyer's sole benefit and may be waived by the Buyer at
any time in its sole discretion:

                                      77

<PAGE>

                a. The Company shall have executed this Agreement and the
         Registration Rights Agreement, and delivered the same to the Buyer.

                b. The Common Stock shall be authorized for quotation on the
         Nasdaq SmallCap Market(TM) and trading in the Common Stock shall not
         have been suspended for any reason and all of the Conversion Shares
         issuable upon conversion of the Series E Preferred Shares shall be
         approved for listing.

                c. The representations and warranties of the Company shall be
         true and correct in all material respects (except to the extent that
         any of such representations and warranties is already qualified as to
         materiality in Section 3 above, in which case, such representations and
         warranties shall be true and correct without further qualification) as
         of the date when made and as of the Closing Date as though made at that
         time (except for representations and warranties that speak as of a
         specific date) and the Company shall have performed, satisfied and
         complied in all material respects with the covenants, agreements and
         conditions required by this Agreement to be performed, satisfied or
         complied with by the Company at or prior to the Closing Date. The Buyer
         shall have received a certificate, executed by the Chief Executive
         Officer of the Company, dated as of the Closing Date, to the foregoing
         effect and as to such other matters as may be reasonably requested by
         the Buyer including, without limitation an update as of the Closing
         Date regarding the representation contained in Section 3(c) above.

                d. The Buyer shall have received the opinion of the Company's
         counsel dated as of the Closing Date, in form, scope and substance
         reasonably satisfactory to the Buyer and in substantially the form of
         Exhibit "D" attached hereto.

                e. The Company shall have executed and delivered to the Buyer
         the Certificates (in such denominations as the Buyer shall request) for
         the Series E Preferred Shares being purchased by the Buyer at the
         Closing.

                f. The Board of Directors of the Company shall have adopted the
         resolutions in substantially the form of Exhibit "E" attached hereto.

                g. As of the Closing Date, the Company shall as of the Closing
         Date have reserved out of its authorized and unissued Common Stock,
         solely for the purpose of effecting the conversion of the Series E
         Preferred Shares, such number of shares of Common Stock equal to or
         greater than 100% of the number of shares of Common Stock for which are
         issuable upon conversion of all of the Series E Preferred Shares, and
         the Warrant Shares could be issued at any time under this Agreement.

                h. The Irrevocable Transfer Agent Instructions, in form and
         substance satisfactory to the Buyer, shall have been delivered to and
         acknowledged in writing by the Company's transfer agent.

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<PAGE>

         8.     INDEMNIFICATION.

         In consideration of the Buyer's execution and delivery of this
Agreement and acquiring the Series E Preferred Shares, the Conversion Shares,
and the Warrants, and the Warrant Shares hereunder and in addition to all of the
Company's other obligations under this Agreement, the Company shall defend,
protect, indemnify and hold harmless the Buyer and each other holder of the
Series E Preferred Shares, the Conversion Shares, and the Warrants, and the
Warrant Shares and all of their officers, directors, employees and agents
(including, without limitation, those retained in connection with the
transactions contemplated by this Agreement) (collectively, the "INDEMNITEES")
from and against any and all actions, causes of action, suits, claims, losses,
costs, penalties, fees, liabilities and damages, and expenses in connection
therewith (irrespective of whether any such Indemnitee is a party to the action
for which indemnification hereunder is sought), and including reasonable
attorneys' fees and disbursements (the "INDEMNIFIED LIABILITIES"), incurred by
the Indemnitees or any of them as a result of, or arising out of, or relating to
(a) any misrepresentation or breach of any representation or warranty made by
the Company in this Agreement, the Series E Preferred Shares, the Warrants, or
the Registration Rights Agreement or any other certificate, instrument or
document contemplated hereby or thereby, (b) any breach of any covenant,
agreement or obligation of the Company contained in this Agreement, the
Certificate of Designations, the Warrants, or the Registration Rights Agreement
or any other certificate, instrument or document contemplated hereby or thereby,
or (c) any cause of action, suit or claim brought or made against such
Indemnitee and arising out of or resulting from the execution, delivery,
performance or enforcement of this Agreement or any other instrument, document
or agreement executed pursuant hereto by any of the Indemnities, any transaction
financed or to be financed in whole or in part, directly or indirectly, with the
proceeds of the issuance of the Series E Preferred Shares or the status of the
Buyer or holder of the Series E Preferred Shares, the Warrants, or the
Conversion Shares or the Warrant Shares, as an investor in the Company, except
for any Indemnified Liability which directly or primarily results from the
particular Indemnitee's gross negligence or willful misconduct for which such
holder shall indemnify the Company in the same manner as provided in this
Section 8. 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.

         9.     GOVERNING LAW: MISCELLANEOUS.

                a. GOVERNING LAW. This Agreement shall be governed by and
         interpreted in accordance with the laws of the State of Delaware
         without regard to the principles of conflict of laws. Any dispute or
         controversy between the parties arising in connection with this
         agreement or the subject matter contemplated by this agreement shall be
         resolved by arbitration before a three-member panel of the American
         Arbitration Association in accordance with the commercial arbitration
         rules of said forum and the Federal Arbitration Act, 9 U.S.C. 1 ET
         SEQ., with the resulting award being final and conclusive. Said
         arbitrators shall be empowered to award all forms of relief and damages
         claimed, including, but not limited to, attorney's fees, expenses of
         litigation and arbitration, exemplary damages, and prejudgment
         interest. Notwithstanding the foregoing, Buyer may at any time and at
         its option, whether or not an arbitration action is

                                      79

<PAGE>

         then pending, initiate a civil action for temporary and permanent
         injunctive and other equitable relief against Company. Company
         acknowledges that upon any breach of Buyer's conversion rights
         hereunder, Buyer's resulting injury may not be adequately
         compensated by a remedy at law. Accordingly, upon such breach,
         Buyer, at its election and without limitation of its other remedies,
         shall be entitled to pursue a claim for specific performance of this
         Agreement, and Company hereby waives the right to assert any defense
         thereto that Purchaser has an adequate remedy at law. The parties
         further agree that any arbitration action between them shall be
         heard in Atlanta, Georgia, and expressly consent to the jurisdiction
         and venue of the Superior Court of Fulton County, Georgia, and the
         United States District Court for the Northern District of Georgia,
         Atlanta Division for the adjudication of any civil action asserted
         pursuant to this Paragraph.

                b. COUNTERPARTS. This Agreement may be executed in two or more
         identical counterparts, all of which shall be considered one and the
         same agreement and shall become effective when counterparts have been
         signed by each party and delivered to the other party. In the event any
         signature page is delivered by facsimile transmission, the party using
         such means of delivery shall cause four (4) additional original
         executed signature pages to be physically delivered to the other party
         within five (5) days of the execution and delivery hereof

                c. HEADINGS. The headings of this Agreement are for convenience
         of reference and shall not form part of, or affect the interpretation
         of, this Agreement.

                d. SEVERABILITY. 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 in that jurisdiction or the validity or
         enforceability of any provision of this Agreement in any other
         jurisdiction.

                e. ENTIRE AGREEMENT, AMENDMENTS. This Agreement supersedes all
         other prior oral or written agreements between the Buyer, the Company,
         their affiliates and persons acting on their behalf with respect to the
         matters discussed herein, and this Agreement and the instruments
         referenced herein contain the entire understanding of the parties with
         respect to the matters covered herein and therein and, except as
         specifically set forth herein or therein, neither the Company nor any
         Buyer makes any representation, warranty, covenant or undertaking with
         respect to such matters. No provision of this Agreement may be waived
         or amended other than by an instrument in writing signed by the party
         to be charged with enforcement.

                f. NOTICES. Any notices, consents, waivers, or other
         communications required or permitted to be given under the terms of
         this Agreement must be in writing and will be deemed to have been
         delivered (i) upon receipt, when delivered personally; (ii) upon
         receipt, when sent by facsimile, provided a copy is mailed by U.S.
         certified mail, return receipt requested; (iii) three (3) days after
         being sent by U.S. certified mail, return receipt requested, or (iv)
         one (1) day after deposit with a nationally recognized overnight
         delivery service, in each case properly addressed to the party to
         receive the same. The addresses and facsimile numbers for such
         communications shall be:

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<PAGE>

                If to the Company:

                     FOURTEEN PIEDMONT CENTER, SUITE 100
                            3535 PIEDMONT ROAD

                Atlanta, Georgia 30305
                Attn: President

                Telephone: (404) 237-4646
                Facsimile: (404) 273-3060

                With a copy to:

                Raymond L. Moss, Esq.
                SIMS MOSS KLINE & DAVIS LLP
                400 Northpark Town Center, Suite 310
                1000 Abernathy Road, N.E.
                Atlanta, Georgia 30328

                Telephone: (770) 481-7201
                Facsimile: (770) 481-7210

                If to the Transfer Agent:

                American Stock Transfer
                40 Wall Street
                New York, New York  10005
                Attn: Carlos Pinto

                Telephone: (718) 921-8206
                Facsimile: (718) 921-8336

         If to the Buyer, to its address and facsimile number on the Schedule of
         Buyers, with copies to the Buyer's counsel as set forth on the Schedule
         of Buyers. Each party shall provide five (5) days' prior written notice
         to the other party of any change in address or facsimile number.

                g. SUCCESSORS AND ASSIGNS. This Agreement shall be binding upon
         and inure to the benefit of the parties and their respective successors
         and assigns. The Company shall not assign this Agreement or any rights
         or obligations hereunder without the prior written consent of the
         Buyer. The Buyer may assign its rights hereunder without the consent of
         the Company, provided, however, that the Company is given written
         notice by such holder at the time of such transfer, stating the name
         and address of such transferee and any such assignment shall not
         release the Buyer from its obligations hereunder unless such
         obligations are assumed by such assignee and the Company has consented
         to such assignment and assumption.

                                      81

<PAGE>

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

                i. SURVIVAL. The representations and warranties of the Company
         and the Buyer contained in Sections 2 and 3, the agreements and
         covenants set forth in Sections 4, 5 and 9, and the indemnification
         provisions set forth in Section 8 shall survive for a period of one
         year following the Closing. The Buyer shall be responsible only for its
         own representations, warranties, agreements and covenants hereunder.

                j. PUBLICITY. The Company and the Buyer shall have the right to
         approve before issuance any press releases or any other public
         statements with respect to the transactions contemplated hereby;
         provided, however, that the Company shall be entitled, without the
         prior approval of the Buyer, to make any press release or other public
         disclosure with respect to such transactions as is required by
         applicable law and regulations (although the Buyer shall be consulted
         by the Company in connection with any such press release or other
         public disclosure prior to its release and shall be provided with a
         copy thereof).

                k. FURTHER ASSURANCES. Each party shall do and perform, or cause
         to be done and performed, all such further acts and things, and shall
         execute and deliver all such other agreements, certificates,
         instruments and documents, as the other party may reasonably request in
         order to carry out the intent and accomplish the purposes of this
         Agreement and the consummation of the transactions contemplated hereby.

                1. TERMINATION. In the event that the Closing shall not have
         occurred with respect to the Buyer on or before five (5) business days
         from the date hereof due to the Company's or the Buyer's failure to
         satisfy the conditions set forth in Sections 6 and 7 above (and the
         nonbreaching party's failure to waive such unsatisfied condition(s)),
         the nonbreaching party shall have the option to terminate this
         Agreement with respect to such breaching party at the close of business
         on such date without liability of any party to any other party.

                m. PLACEMENT AGENT. The Company acknowledges that it has engaged
         Greenfield Capital Partners LLC, as a placement agent in connection
         with the sale of the Series E Preferred Shares. The Company shall be
         responsible for the payment of any finder's fees (which includes cash
         and warrants to purchase Common Stock) relating to or arising out of
         the transactions contemplated hereby.

                n. NO STRICT CONSTRUCTION. The language used in this Agreement
         will be deemed to be the language chosen by the parties to express
         their mutual intent, and no rules of strict construction will be
         applied against any party.

                o. INDEPENDENT COUNSEL. The parties to this Agreement
         acknowledge that the Company has received independent counsel form the
         law firm of Sims Moss Kline & Davis LLP which is acting as its counsel.
         Buyers have been advised by Sims Moss Kline

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<PAGE>

         & Davis LLP to seek independent advice with respect to the terms and
         conditions of this Agreement and any related agreements before
         signing them.

         10.    CONFIDENTIALITY.

                (a) As much of the information and other material furnished
         under or in connection with this Agreement (whether furnished before,
         on or after the date hereof) as constitutes or contains confidential
         business, financial or other information of the Company or its
         subsidiaries, each Buyer covenants for itself, and, as applicable, for
         its directors, officers, affiliates and partners, that it will use due
         care to prevent its officers, directors, partners, employees, counsel,
         accountants and other representatives from disclosing such information
         to persons other than their respective authorized employees, counsel,
         accountants, shareholders, partners, limited partners and other
         authorized representatives. Notwithstanding the foregoing, if a Buyer
         is advised by such counsel that such disclosure or delivery is required
         by law, regulation or judicial or administrative order, then they may
         disclose or deliver such information or other after giving written
         notice to the Company of such requirements.

                For purposes of this Section 10(a), "due care" means at least
         the same level of care that a Buyer would use to protect the
         confidentiality of its own sensitive or proprietary information, and
         this obligation shall survive termination of this Agreement.

                (b) To the extent that any of the information furnished by the
         Company to the Buyers hereof would constitute material, nonpublic
         information for purposes of the Exchange Act, Buyers agree not to
         engage in any purchase or sale of securities while in possession of
         such information and prior to the time that such information is made
         generally known to the public and Buyers agree to use due care to
         prevent their officers, directors, partners, employees, counsel and
         other representatives, who have been given access to such material,
         nonpublic information, from engaging in any such purchase or sale
         during such period.

                  [REMAINDER OF PAGE LEFT INTENTIONALLY BLANK]

                                      83

<PAGE>

         IN WITNESS WHEREOF, the Buyer and the Company have caused this
Securities Purchase Agreement to be duly executed as of the date first written
above.

                                    "COMPANY"
                                     HOMECOM COMMUNICATIONS, INC.

                                     BY:
                                        ----------------------------------------
                                     Name: James Wm. Ellsworth
                                     Its:     Chief Financial Officer

                                     "BUYER"

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

                                     By:
                                        ----------------------------------------

                                     Name:
                                          --------------------------------------

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

<TABLE>
<CAPTION>
                                                 SCHEDULE OF BUYERS
------------------------------------------------------------------------------------------------------------------------
<S>                                          <C>                                                 <C>
                                                                                                 NUMBER OF SERIES E
                                                                                                 PREFERRED
  BUYER'S NAME                               ADDRESS/FACSIMILE NUMBER OF BUYER                   SHARES
----------------------------------------   -------------------------------------------------   -------------------------

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

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

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

</TABLE>

                                      84

<PAGE>

                                SCHEDULE 3(c)

                                CAPITALIZATION

HOMECOM COMMUNICATIONS
Securities outstanding
As of 3/28/2000

<TABLE>
<CAPTION>

                                                     APPROX.
                                                   CONVERSION       COMMON &                  PREFERRED
EQUITY                              FACE AMOUNT       PRICE       EQUIVALENTS                  SHARES
------                              -----------    ----------     -----------                 ---------
<S>                                 <C>              <C>          <C>                             <C>
Common Shares                                                     8,131,250

Series B Preferred                  1,000,000        $3.52          284,091 as if converted           50

Series C                            2,527,000        $2.91          868,385 as if converted       126.35

Series D                              361,000        $2.91          124,055 as if converted        18.05

Total                                                             9,407,781
                                                                  ---------
                                                                  ---------

</TABLE>

<TABLE>
<CAPTION>

                                                     AVG STRIKE      UNDERLYING
                                                       PRICE           SHARES
                                                     ----------      ----------
<S>                                                  <C>              <C>
          WARRANTS                                   $ 6.32425        1,244,699
                                                     ---------        ---------
                                                     ---------        ---------

          OPTIONS                                        $4.57        1,069,575
                                                     ----------      ----------
                                                     ----------      ----------

</TABLE>

                                      85

<PAGE>

                                  SCHEDULE 3(e)

                                   CONFLICTS

         None.

                                      86

<PAGE>

                                 SCHEDULE 3(f)

                              FINANCIAL STATEMENTS

     Reference is made to all public filings made by the Company with the SEC
available at http://www.sec.gov/.

                                      87

<PAGE>

                                  SCHEDULE 3(h)

                                   LITIGATION

         None.

                                      88

<PAGE>

                                  SCHEDULE 3(n)

                              INTELLECTUAL PROPERTY

         None.

                                      89

<PAGE>

                                 SCHEDULE 3(p)

                                    LIENS

         None.

                                      90

<PAGE>

                                SCHEDULE 3(u)

                                 TAX STATUS

         None.

                                      91

<PAGE>

                                 SCHEDULE 3(v)

                              CERTAIN TRANSACTIONS

         None.

                                      92

<PAGE>

                                SCHEDULE 4(d)

                                USE OF PROCEEDS

         Working capital.

                                      93

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