Document:

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                                                                   EXHIBIT 10.26

                         COMMON STOCK PURCHASE AGREEMENT

     This COMMON STOCK PURCHASE AGREEMENT (this "Agreement') is dated as of
April 9, 2000 by and between Aquis Communications Group, Inc., a Delaware
corporation (the "Company"), and Coxton, Limited (the "Purchaser").

     The parties hereto agree as follows:

                                    ARTICLE I

                                   DEFINITIONS

     Section 1.1 CERTAIN DEFINITIONS.

     (a) "AVERAGE DAILY PRICE" shall be the price based on the VWAP of the
Company on the Nasdaq SmallCap Market or, if the Nasdaq SmallCap Market is not
the Principal Market, on the Principal Market.

     (b) "DRAW DOWN" shall have the meaning assigned to such term in Section
6.1(a) hereof.

     (c) "DRAW DOWN EXERCISE DATE" shall have the meaning assigned to such term
in Section 6.1(b) hereof.

     (d) "DRAW DOWN PRICING PERIOD" shall mean a period of twenty-two (22)
consecutive Trading Days preceding a Draw Down Exercise Date.

     (e) "EFFECTIVE DATE" shall mean the date the Registration Statement of the
Company covering the Shares being subscribed for hereby is declared effective.

     (f) "MATERIAL ADVERSE EFFECT" shall mean any adverse effect on the
business, operations, properties or financial condition of the Company that
materially impairs the ability of the Company and its subsidiaries and
affiliates, taken as a whole, and/or any condition, circumstance, or situation
that would prohibit or otherwise materially interfere with the ability of the
Company to perform any of its material obligations under this Agreement or the
Registration Rights Agreement or to perform its obligations under any other
material agreement.

     (g) "PRINCIPAL MARKET" shall mean initially the Nasdaq SmallCap Market, and
shall include the Nasdaq National Market, the American Stock Exchange or the New
York Stock Exchange if the Company is listed and trades on such market or
exchange, but shall not include the OTC Bulletin Board without the express
consent of the Purchaser.

     (h) "REGISTRATION STATEMENT" shall mean the registration statement under
the Securities Act of 1933, as amended, to be filed with the Securities and
Exchange Commission for

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the registration of the Shares pursuant to the Registration Rights Agreement
attached hereto as EXHIBIT A.

     (i) "SEC DOCUMENTS" shall mean a draft Annual Report on Form 10-K for
fiscal year ended December 31, 1999 in the form provided to the Purchaser, the
Company's latest Form 10-K for the fiscal year ended December 31, 1998 and as of
the time in question, all Forms 10-Q or 10-QSB and 8-K filed thereafter, and the
Proxy Statement for its latest fiscal year as of the time in question until such
time as the Company no longer has an obligation to maintain the effectiveness of
a Registration Statement as set forth in the Registration Rights Agreement.

     (j) "SHARES" shall mean, collectively, the shares of Common Stock of the
Company being subscribed for hereunder.

     (k) "THRESHOLD PRICE" is the lowest Average Daily Price at which the
Company will sell its Common Stock with respect to this Agreement.

     (l) "TRADING DAY" shall mean any day on which the Principal Market is open
for business.

     (m) "VWAP" shall mean the daily volume weighted average price of the
Company' Common Stock on the Nasdaq SmallCap Market or on any Principal Market
as reported by Bloomberg Financial using the AQR function.

                                   ARTICLE II

                        PURCHASE AND SALE OF COMMON STOCK

     Section 2.1 PURCHASE AND SALE OF STOCK. Subject to the terms and conditions
of this Agreement, the Company may issue and sell to the Purchaser and the
Purchaser shall purchase from the Company up to Twenty Million Dollars
($20,000,000) of the Company's Common Stock, $0.01 par value per share (the
"Common Stock"), based on up to twelve (12) Draw Downs of up to Seven Million
Dollars ($7,000,000) per Draw Down.

     Section 2.2 THE SHARES. The Company has authorized and has reserved and
covenants to continue to reserve, free of preemptive rights and other similar
contractual rights of stockholders, 500,000 of its authorized but unissued
shares of its Common Stock to cover the Shares to be issued in connection with
all Draw Downs requested under this Agreement. Anything in this Agreement to the
contrary notwithstanding, (i) at no time will the Company request a Draw Down
which would result in the issuance of a number of shares of Common Stock
pursuant to this Agreement which exceeds 19.9% of the number of shares of Common
Stock issued and outstanding on the Closing Date without obtaining stockholder
approval of such excess issuance, and (ii) the Company may not make a Draw Down
to the extent that, after such purchase by the Purchaser, the sum of the number
of shares of Common Stock beneficially owned by the Purchaser and its affiliates
would result in beneficial ownership by the Purchaser and its affiliates of more
than 9.9% of the then outstanding shares of Common Stock. For

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purposes of the immediately preceding sentence, beneficial ownership shall be
determined in accordance with Section 13(d) of the Securities and Exchange Act
of 1934, as amended.

     Section 2.3 PURCHASE PRICE AND CLOSING. The Company agrees to issue and
sell to the Purchaser and, in consideration of and in express reliance upon the
representation, warranties, covenants, terms and conditions of this Agreement,
the Purchaser agrees to purchase that number of the Shares to be issued in
connection with each Draw Down. The closing under this Agreement shall take
place at the offices of Epstein Becker & Green, P.C., 250 Park Avenue, New York,
New York 10177 (the "Closing") at 10:00 a.m. E.S.T. on (i) April 9, 2000, or
(ii) such other time and place or on such date as the Purchaser and the Company
may agree upon (the "Closing Date"). Each party shall deliver all documents,
instruments and writings required to be delivered by such party pursuant to this
Agreement at or prior to the Closing.

                                   ARTICLE III

                         REPRESENTATIONS AND WARRANTIES

     Section 3.1 REPRESENTATION AND WARRANTIES OF THE COMPANY. The Company
hereby makes the following representations and warranties to the Purchaser:

     (a) ORGANIZATION, GOOD STANDING AND POWER. The Company is a corporation
duly incorporated, validly existing and in good standing under the laws of the
State of Delaware and has all requisite corporate authority to own, lease and
operate its properties and assets and to carry on its business as now being
conducted. The Company does not have any subsidiaries and does not own more that
fifty percent (50%) of or control any other business entity except as set forth
in the SEC Documents or in Schedule 3.1(g). The Company is duly qualified and is
in good standing as a foreign corporation to do business in every jurisdiction
in which the nature of the business conducted or property owned by it makes such
qualification necessary, other than those in which the failure so to qualify
would not have a Material Adverse Effect on the Company's financial condition.

     (b) AUTHORIZATION, ENFORCEMENT.(i) The Company has the requisite corporate
power and corporate authority to enter into and perform its obligations under
this Agreement, the Registration Rights Agreement, the Escrow Agreement and to
issue the Draw Down Shares pursuant to their respective terms, (ii) the
execution, issuance and delivery of this Agreement, the Registration Rights
Agreement and the Escrow Agreement by the Company and the consummation by it of
the transactions contemplated hereby have been duly authorized by all necessary
corporate action and no further consent or authorization of the Company or its
Board of Directors or stockholders is required, and (iii) this Agreement, the
Registration Rights Agreement and the Escrow Agreement have been duly executed
and delivered by the Company and at the initial Closing shall constitute valid
and binding obligations of the Company enforceable against the Company in
accordance with their terms, except as such enforceability may be limited by
applicable bankruptcy, insolvency, reorganization, moratorium, liquidation,
conservatorship, receivership or similar laws relating to, or affecting
generally the enforcement

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of, creditors' rights and remedies or by other equitable principles of general
application. The Company has duly and validly authorized and reserved for
issuance 500,000 shares of Common Stock for the issuance of the Draw Down Shares
and at the time of each Draw Down shall have reserved shares of Common Stock
sufficient in number for the issuance of the Draw Down Shares at each Draw Down.

     (c) CAPITALIZATION. The authorized capital stock of the company consists of
75,000,000 shares of Common Stock, $0.01 par value per share, of which
16,531,000 shares are issued and outstanding as of March 31, 2000 and 1,000,000
shares of preferred stock, $0.01 par value per share, of which 100,000 are
issued and outstanding. All of the outstanding shares of the Company's Common
Stock have been duly and validly authorized and are fully-paid and
non-assessable. Except as set forth in this Agreement and the Registration
Rights Agreement and as set forth in the SEC Documents, or on Schedule 3.1(c)
hereto, no shares of Common Stock are entitled to preemptive rights or
registration rights and 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. Furthermore, except as set forth in this Agreement and as
set forth in the SEC Documents or on SCHEDULE 3.1(C), there are no contracts,
commitments, understandings, or arrangements by which the Company is or may
become bound to issue additional shares of the capital stock of the Company or
options, securities or rights convertible into shares of capital stock of the
Company. The Company is not a party to any agreement granting registration
rights to any person with respect to any of its equity or debt securities.
Except as set forth on Schedule 3.1(c), the Company is not a party to, and it
has no knowledge of, any agreement restricting the voting or transfer of any
shares of the capital stock of the Company. Except as set forth in the SEC
Documents or on SCHEDULE 3.1(C) hereto, the offer and sale of all capital stock,
convertible securities, rights, warrants, or options of the Company issued prior
to the Closing complied with all applicable federal and state securities laws,
and no stockholder has a right of rescission or damages with respect thereto
which would have a Material Adverse Effect on the Company's financial condition
or operating results. The Company has made available to the Purchaser true and
correct copies of the Company's Certificate of Incorporation as in effect on the
date hereof (the "Certificate"), and the Company's Bylaws as in effect on the
date hereof (the "Bylaws"). The Principal Market for the Common Stock in the
United States is the Nasdaq SmallCap Market, and the Company has not received
any notice from such market questioning or threatening the continued inclusion
of the Common Stock on such market.

     (d) ISSUANCE OF SHARES. The Shares to be issued under this Agreement have
been duly authorized by all necessary corporate action and, when paid for or
issued in accordance with the terms hereof, the Shares shall be validly issued
and outstanding, fully paid and non-assessable, and the Purchaser shall be
entitled to all rights accorded to a holder of Common Stock.

     (e) NO CONFLICTS. The execution, delivery and performance of this Agreement
by the Company and the consummation by the Company of the transactions
contemplated herein do not and will not (i) violate any provision of the
Company's Certificate or Bylaws, (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

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cancellation of, any agreement, mortgage, deed of trust, indenture, note, bond,
license, lease agreement, instrument or obligation to which the Company is a
party, (iii) create or impose a lien, charge or encumbrance on any property of
the Company under any agreement or any commitment to which the Company is a
party or by which the Company is bound or by which any of its respective
properties or assets are bound, or (iv) result in a violation of any federal,
state, local or other foreign statute, rule, regulation, order, judgment or
decree (including any federal and state or securities laws and regulations)
applicable to the Company or any of its subsidiaries or by which any property or
asset of the Company or any of its subsidiaries are bound or affected, except,
in all cases, for such conflicts, defaults, termination, amendments,
accelerations, cancellations and violations as would not, individually or in the
aggregate, have a Material Adverse Effect. The business of the Company and its
subsidiaries is not being conducted in violation of any laws, ordinances or
regulations of any governmental entity, except for possible violations which
singularly or in the aggregate do not and will not have a Material Adverse
Effect. The Company is not required under any federal, state or local law, rule
or regulation to obtain any consent, authorization or order of, or make any
filing or registration with, any court or governmental agency in order for it to
execute, deliver or perform any of its obligations under this Agreement, or
issue and sell the Shares in accordance with the terms hereof (other than any
filings which may be required to be made by the Company with the Securities and
Exchange Commission (the "Commission") or state securities administrators
subsequent to the Closing and any registration statement which may be filed
pursuant hereto); provided that, for purpose of the representation made in this
sentence, the Company is assuming and relying upon the accuracy of the relevant
representations and agreements of the Purchaser herein.

     (f) COMMISSION DOCUMENTS, FINANCIAL STATEMENTS. The Common Stock of the
Company is registered pursuant to Section 12(b) of the Securities Exchange Act
of 1934, as amended (the "Exchange Act"), and, except as disclosed in the SEC
Documents or on SCHEDULE 3.1(F) hereto, the Company has timely filed all
reports, schedules, forms, statements and other documents required to be filed
by it with the Commission pursuant to the reporting requirements of the Exchange
Act, including material filed pursuant to Section 13(a) or 15(d) of the Exchange
Act (all of the foregoing including filings incorporated by reference therein
being referred to herein as the "Commission Documents"). The Company has
delivered or made available to the Purchaser true and complete copies of the
Commission Documents filed with the Commission since December 31, 1998. The
Company has not provided to the Purchaser any information which, according to
applicable law, rule or regulation, should have been disclosed publicly by the
Company but which has not been so disclosed, other than with respect to the
transactions contemplated by this Agreement. As of their respective dates, the
SEC Documents complied in all material respects with the requirements of the
Exchange Act and the rules and regulations of the Commission promulgated
thereunder applicable to such documents, and, as of their respective dates, none
of the SEC Documents contained any untrue statement of a material fact or
omitted to state a material fact required to be stated therein or necessary in
order to make the statements therein, in light of the circumstances under which
they were made, not misleading. The financial statements of the Company included
in the Commission Documents comply as to form in all material respects with
applicable accounting requirements and the published rules and regulations of
the Commission or other applicable rules and regulations with respect thereto.

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Such financial statements have been prepared in accordance with generally
accepted accounting principles ("GAAP") applied on a consistent basis during the
periods involved (except (i) as may be otherwise indicated in such financial
statements or the notes thereto or (ii) in the case of unaudited interim
statements, to the extent they may not include footnotes or may be condensed or
summary statements), and fairly present in all material respects the financial
position of the Company and its subsidiaries as of the dates thereof and the
results of operations and cash flows for the periods then ended (subject, in the
case of unaudited statements, to normal year-end audit adjustments).

     (g) SUBSIDIARIES. The SEC Documents or Schedule 3.1(g) hereto sets forth
each subsidiary of the Company, showing the jurisdiction of its incorporation or
organization and showing the percentage of each person's ownership of the
outstanding stock or other interests of such subsidiary. For the purposes of
this Agreement, "subsidiary" shall mean any corporation or other entity of which
at least a majority of the securities or other ownership interests having
ordinary voting power (absolutely or contingently) for the election of directors
or other persons performing similar functions are at the time owned directly or
indirectly by the Company and/or any of its other subsidiaries. All of the
outstanding shares of capital stock of each subsidiary have been duly authorized
and validly issued, and are fully paid and non-assessable. Except as et forth on
Schedule 3.1(g), there are no outstanding preemptive, conversion or other
rights, options, warrants or agreements granted or issued by or binding upon any
subsidiary for the purchase or acquisition of any shares of capital stock of any
subsidiary or any other securities convertible into, exchangeable for or
evidencing the rights to subscribe for any shares of such capital stock. Neither
the Company nor any subsidiary is subject to any obligation (contingent or
otherwise) to repurchase or otherwise acquire or retire any shares of the
capital stock of any subsidiary or any convertible securities, rights, warrants
or options of the type described in the preceding sentence. Except as set forth
on Schedule 3.1(g), neither the Company nor any subsidiary is a party to, nor
has any knowledge of, any agreement restricting the voting or transfer of any
shares of the capital stock of any subsidiary.

     (h) NO MATERIAL ADVERSE EFFECT. Since December 31, 1999, no Material
Adverse Effect has occurred or exists with respect to the Company, except as
disclosed in the SEC Documents or on SCHEDULE 3.1(H) hereof.

     (i) NO UNDISCLOSED LIABILITIES. Except as disclosed in the SEC Documents or
on SCHEDULE 3.1(I) hereto, neither the Company nor any of its subsidiaries has
any liabilities, obligations, claims or losses (whether liquidated or
unliquidated, secured or unsecured, absolute, accrued, contingent or otherwise)
that would be required to be disclosed on a balance sheet of the Company or any
subsidiary (including the notes thereto) in conformity with GAAP which are not
disclosed in the Commission Documents, other than those incurred in the ordinary
course of the Company's or its subsidiaries respective businesses since such
date and which, individually or in the aggregate, do not or would not have a
Material Adverse Effect on the Company or its subsidiaries.

     (j) NO UNDISCLOSED EVENTS OR CIRCUMSTANCES. Since December 31, 1999, no
event or circumstance has occurred or exists with respect to the Company or its
businesses, properties, prospects, operations or financial condition, that,
under applicable law, rule or

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regulation, requires public disclosure or announcement prior to the date hereof
by the Company but which has not been so publicly announced or disclosed in the
SEC Documents.

     (k) INDEBTEDNESS. The SEC Documents or SCHEDULE 3.1(K) hereto sets forth as
of the date hereof all outstanding secured and unsecured Indebtedness of the
Company or any subsidiary, or for which the Company or any subsidiary has
commitments. For the purposes of this Agreement, "Indebtedness" shall mean (a)
any liabilities for borrowed money or amounts owed in excess of $250,000 (other
than trade accounts payable incurred in the ordinary course of business), (b)
all guaranties, endorsements and contingent obligations in respect of
Indebtedness of others, whether or not the same are or should be reflected in
the Company's balance sheet (or the notes thereto), except guaranties by
endorsement of negotiable instruments for deposit or collection or similar
transactions in the ordinary course of business; and (c) the present value of
any lease payments in excess of $250,000 due under leases required to be
capitalized in accordance with GAAP. Neither the Company nor any subsidiary is
in default with respect to any Indebtedness.

     (l) TITLE TO ASSETS. Each of the Company and the subsidiaries has good and
marketable title to all of its real and personal property reflected in the
Commission Documents, free of any mortgages, pledges, charges, liens, security
interests or other encumbrances, except for those indicated in the SEC Documents
or on SCHEDULE 3.1(1) hereto or such that do not cause a Material Adverse Effect
on the Company's financial condition or operating results. All said leases of
the Company and each of its subsidiaries are valid and subsisting and in full
force and effect.

     (m) ACTIONS PENDING. There is no action, suit, claim, investigation or
proceeding pending or, to the knowledge of the Company, threatened against the
Company or any subsidiary which questions the validity of this Agreement or the
transactions contemplated hereby or any action taken or to be taken pursuant
hereto or thereto. Except as set forth in the SEC Documents or on SCHEDULE
3.1(M) hereto, there is no action, suit, claim, investigation or proceeding
pending or, to the knowledge of the Company, threatened, against or involving
the Company, any subsidiary or any of their respective properties or assets.
There are no outstanding orders, judgments, injunctions, awards or decrees of
any court, arbitrator or governmental or regulatory body against the Company or
any subsidiary.

     (n) COMPLIANCE WITH LAW. The business of the Company and the subsidiaries
has been and is presently being conducted in accordance with all applicable
federal, state and local governmental laws, rules, regulations and ordinances,
except as set forth in the SEC Documents or on SCHEDULE 3.1(N) hereto or such
that do not cause a Material Adverse Effect. The Company and each of its
subsidiaries have all franchises, permits, licenses, consents and other
governmental or regulatory authorizations and approvals necessary for the
conduct of their respective businesses as now being conducted by them unless the
failure to possess such franchises, permits, licenses, consents and other
governmental or regulatory authorizations and approvals, individually or in the
aggregate, could not reasonably be expected to have a Material Adverse Effect.

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     (o) TAXES. The Company and each subsidiary has filed all Tax Returns which
it is required to file under applicable laws; all such Tax Returns are true and
accurate and has been prepared in compliance with all applicable laws; the
Company has paid all Taxes due and owing by it or any subsidiary (whether or not
such Taxes are required to be shown on a Tax Return) and have withheld and paid
over to the appropriate taxing authorities all Taxes which it is required to
withhold from amounts paid or owing to any employee, stockholder, creditor or
other third parties; and since December 31, 1998, the charges, accruals and
reserves for Taxes with respect to the Company (including any provisions for
deferred income taxes) reflected on the books of the Company are adequate to
cover any Tax liabilities of the Company if its current tax year were treated as
ending on the date hereof.

          No claim has been made by a taxing authority in a jurisdiction where
the Company does not file tax returns that the Company or any subsidiary is or
may be subject to taxation by that jurisdiction. There are no foreign, federal,
state or local tax audits or administrative or judicial proceedings pending or
being conducted with respect to the Company or any subsidiary; no information
related to Tax matters has been requested by any foreign, federal, state or
local taxing authority; and, except as disclosed above, no written notice
indicating an intent to open an audit or other review has been received by the
Company or any subsidiary from any foreign, federal, state or local taxing
authority. There are no material unresolved questions or claims concerning the
Company's Tax liability. The Company (A) has not executed or entered into a
closing agreement pursuant to Section 7121 of the Internal Revenue Code or any
predecessor provision thereof or any similar provision of state, local or
foreign law; and (B) has not agreed to or is required to make any adjustments
pursuant to Section 481 (a) of the Internal Revenue Code or any similar
provision of state, local or foreign law by reason of a change in accounting
method initiated by the Company or any of its subsidiaries or has any knowledge
that the IRS has proposed any such adjustment or change in accounting method, or
has any application pending with any taxing authority requesting permission for
any changes in accounting methods that relate to the business or operations of
the Company. The Company has not been a United States real property holding
corporation within the meaning of Section 897(c)(2) of the Internal Revenue Code
during the applicable period specified in Section 897(c)(1)(A)(ii) of the
Internal Revenue Code.

          The Company has not made an election under Section 341(f) of the
Internal Revenue Code. The Company is not liable for the Taxes of another person
that is not a subsidiary of the Company under (A) Treas. Reg. Section 1.1502-6
(or comparable provisions of state, local or foreign law), (B) as a transferee
or successor, (C) by contract or indemnity or (D) otherwise. The Company is not
a party to any tax sharing agreement. The Company has not made any payments, is
obligated to make payments or is a party to an agreement that could obligate it
to make any payments that would not be deductible under Section 280G of the
Internal Revenue Code.

          For purposes of this Section 3.1(o):

          "IRS" means the United States Internal Revenue Service.

          "TAX" or "TAXES" means federal, state, county, local, foreign, or
     other income, gross receipts, ad valorem, franchise, profits, sales or use,
     transfer, registration, excise, utility, environmental, communications,
     real or personal property, capital stock, license, payroll, wage or

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     other withholding, employment, social security, severance, stamp,
     occupation, alternative or add-on minimum, estimated and other taxes of any
     kind whatsoever (including, without limitation, deficiencies, penalties,
     additions to tax, and interest attributable thereto) whether disputed or
     not.

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

     (p) CERTAIN FEES. Except as set forth on SCHEDULE 3.1(P) hereto, no
brokers, finders or financial advisory fees or commissions will be payable by
the Company or any subsidiary with respect to the transactions contemplated by
this Agreement.

     (q) DISCLOSURE. To the best of the Company's knowledge, neither this
Agreement or the Schedules hereto nor any other documents, certificates or
instruments furnished to the Purchaser by or on behalf of the Company or any
subsidiary in connection with the transactions contemplated by this Agreement
contain any untrue statement of a material fact or omits to state a material
fact necessary in order to make the statements made herein or therein, in the
light of the circumstances under which they were made herein or therein, not
misleading.

     (r) OPERATION OF BUSINESS. The Company and each of the subsidiaries owns or
possesses all patents, trademarks, service marks, trade names, copyrights,
licenses and authorizations as set forth in the SEC Documents and on SCHEDULE
3.1(R) hereto, and all rights with respect to the foregoing, which are necessary
for the conduct of its business as now conducted without any conflict with the
rights of others.

     (s) Regulatory Compliance. The Company has all necessary licenses,
registrations and permits to conduct its business as now being conducted in all
states where the Company conducts its business, other than those in which the
failure so to obtain such licenses, registrations and permits would not have a
Material Adverse Effect on the Company's financial condition.

     (t) BOOKS AND RECORDS. The records and documents of the Company and its
subsidiaries accurately reflect in all material respects the information
relating to the business of the Company and the subsidiaries, the location and
collection of their assets, and the nature of all transactions giving rise to
the obligations or accounts receivable of the Company or any subsidiary.

     (u) MATERIAL AGREEMENTS. Except as set forth in the SEC Documents, or on
SCHEDULE 3.1(U) hereto, neither the Company nor any subsidiary is a party to any
written or oral contract, instrument, agreement, commitment, obligation, plan or
arrangement, a copy of which would be required to be filed with the Commission
as an exhibit to a registration statement on Form S-1 or other applicable form
(collectively, "Material Agreements") if the Company or any subsidiary were
registering securities under the Securities Act of 1933, as amended (the
"Securities Act"). The Company and each of its subsidiaries has in all material
respects performed all the obligations required to be performed by them to date
under the foregoing agreements, have received no notice of default and, to the
best of the Company's knowledge are not in default under any Material Agreement
now in effect, the result of which could cause a Material Adverse Effect. Except
as set forth on Schedule 3.1(u), no written or oral contract,

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instruments, agreement, commitment, obligation, plan or arrangement of the
Company or of any subsidiary limits or shall limit the payment of dividends on
the Company's Common Stock.

     (v) TRANSACTIONS WITH AFFILIATES. Except as set forth in the SEC Documents
or on SCHEDULE 3.1(V) hereto, there are no loans, leases, agreements, contracts,
royalty agreements, management contracts or arrangements or other continuing
transactions exceeding $100,000 between (a) the Company, any subsidiary or any
of their respective customers or suppliers on the one hand, and (b) on the other
hand, any officer, employee, consultant or director of the Company, or any of
its subsidiaries, or any person owning any capital stock of the Company or any
subsidiary or any member of the immediately family of such officer, employee,
consultant, director or stockholder or any corporation or other entity
controlled by such officer, employee, consultant, director or stockholder, or a
member of the immediate family of such officer, employee, consultant, director
or stockholder.

     (w) SECURITIES ACT OF 1933. The Company has complied and will comply with
all applicable federal and state securities laws in connection with the offer,
issuance and sale of the Shares hereunder. Neither the Company nor anyone acting
on its behalf, directly or indirectly, has or will sell, offer to sell or
solicit offers to buy the Shares or similar securities to, or solicit offers
with respect thereto from, or enter into any preliminary conversations or
negotiations relating thereto with, any person (other than the Purchaser), so as
to bring the issuance and sale of the Shares under the registration provisions
of the Securities Act and applicable state securities laws. 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 Securities Act) in connection with the offer
or sale of the Shares.

     (x) GOVERNMENTAL APPROVALS. Except as set forth in the SEC Documents or on
SCHEDULE 3.1(x) hereto, and except for the filing of any notice prior or
subsequent to the Closing that may be required under applicable federal or state
securities laws (which if required, shall be filed on a timely basis), including
the filing of a registration statement or statements pursuant to this Agreement,
no authorization, consent, approval, license, exemption of, filing or
registration with any court or governmental department, commission, board,
bureau, agency or instrumentality, domestic or foreign, is or will be necessary
for, or in connection with, the execution or delivery of the Shares, or for the
performance by the Company of its obligations under this Agreement.

     (y) EMPLOYEES. Neither the Company nor any subsidiary has any collective
bargaining arrangements or agreements covering any of its employees, except as
set forth in the SEC Documents or on SCHEDULE 3(Y) hereto. Except as set forth
in the SEC Documents or on SCHEDULE 3(Y) hereto, neither the Company nor any
subsidiary is in breach of any employment contract, agreement regarding
proprietary information, noncompetition agreement, nonsolicitation agreement,
confidentiality agreement, or any other similar contract or restrictive
covenant, relating to the right of any officer, employee or consultant to be
employed or engaged by the Company or such subsidiary. Since December 31, 1999,
no officer, consultant or key employee of the Company or any subsidiary whose
termination, either individually or in the aggregate, could have a Material
Adverse Effect, has terminated or, to the knowledge of the

                                       10
<PAGE>

Company, has any present intention of terminating his or her employment or
engagement with the Company or any subsidiary.

     (z) ABSENCE OF CERTAIN DEVELOPMENTS. Except as provided in SEC Documents or
in SCHEDULE 3.1(z) hereto, since December 31, 1999 neither the Company nor any
subsidiary has:

          (i) issued any stock, bonds or other corporate securities or any
     rights, options or warrants with respect thereto;

          (ii) borrowed any amount or incurred or become subject to any
     liabilities (absolute or contingent) except current liabilities incurred in
     the ordinary course of business which are comparable in nature and amount
     to the current liabilities incurred in the ordinary course of business
     during the comparable portion of its prior fiscal year, as adjusted to
     reflect the current nature and volume of the Company's or such subsidiary's
     business;

          (iii) discharged or satisfied any lien or encumbrance or paid any
     obligation or liability (absolute or contingent), other than current
     liabilities paid in the ordinary course of business;

          (iv) declared or made any payment or distribution of cash or other
     property to stockholders with respect to its stock, or purchased or
     redeemed, or made any agreements so to purchase or redeem, any shares of
     its capital stock;

          (v) sold, assigned or transferred any other tangible assets, or
     canceled any debts or claims, except in the ordinary course of business;

          (vi) sold, assigned or transferred any patent rights, trademarks,
     trade names, copyrights, trade secrets or other intangible assets or
     intellectual property rights, or disclosed any proprietary confidential
     information to any person except to customers in the ordinary course of
     business or to the Purchaser or its representatives;

          (vii) suffered any substantial losses or waived any rights of material
     value, whether or not in the ordinary course of business, or suffered the
     loss of any material amount of prospective business;

          (viii) made any changes in employee compensation except in the
     ordinary course of business and consistent with past practices;

          (ix) made capital expenditures or commitments therefor that aggregate
     in excess of $ 500,000;

          (x) entered into any other material transaction, whether or not in the
     ordinary course of business;

          (xi) suffered any material damage, destruction or casualty loss,
     whether or not covered by insurance;

                                       11
<PAGE>

          (xii) experienced any material problems with labor or management in
     connection with the terms and conditions of their employment; or

          (xiii) effected any two or more events of the foregoing kind which in
     the aggregate would be material to the Company or its subsidiaries.

     (aa) USE OF PROCEEDS. The proceeds from the sale of the Shares will be used
by the Company and its subsidiaries for general corporate purposes.

     (bb) ACKNOWLEDGMENT REGARDING PURCHASER'S PURCHASE OF SHARES. Company
acknowledges and agrees that Purchaser is acting solely in the capacity of arm's
length purchaser with respect to this Agreement and the transactions
contemplated hereunder. The Company further acknowledges that the Purchaser is
not acting as a financial advisor or fiduciary of the Company (or in any similar
capacity) with respect to this Agreement and the transactions contemplated
hereunder and any advice given by the Purchaser or any of its representatives or
agents in connection with this Agreement and the transactions contemplated
hereunder is merely incidental to the Purchaser's purchase of the Shares. The
Company further represents to the Purchaser that the Company's decision to enter
into this Agreement has been based solely on the independent evaluation by the
Company and its own representatives and counsel.

     Section 3.2 REPRESENTATIONS AND WARRANTIES OF THE PURCHASER. The Purchaser
hereby makes the following representations and warranties to the Company:

     (a) ORGANIZATION AND STANDING OF THE PURCHASER. The Purchaser is a
corporation duly incorporated, validly existing and in good standing under the
laws of the British Virgin Islands.

     (b) AUTHORIZATION AND POWER. The Purchaser has the requisite power and
authority to enter into and perform this Agreement and to purchase the Shares
being sold to it hereunder. The execution, delivery and performance of this
Agreement by Purchaser and the consummation by it of the transactions
contemplated hereby have been duly authorized by all necessary corporate action.
This Agreement, the Registration Rights Agreement and the Escrow Agreement have
been duly executed and delivered by the Purchaser and at the initial Closing,
shall constitute valid and binding obligations of the Purchaser enforceable
against the Purchaser in accordance with their terms, except as such
enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium, liquidation, conservatorship, receivership or
similar laws relating to, or affecting generally the enforcement of creditors'
rights and remedies or by other equitable principles of general application.

     (c) NO CONFLICTS. The execution, delivery and performance of this Agreement
and the consummation by the Purchaser of the transactions contemplated hereby or
relating hereto do not and will not (i) result in a violation of such
Purchaser's charter documents or bylaws 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 agreement, indenture or instrument to which
the Purchaser is a party, or result in a violation of any law, rule, or
regulation, or any order, judgment or decree of any court or governmental agency
applicable to the Purchaser or its properties (except for such

                                       12
<PAGE>

conflicts, defaults and violations as would not, individually or in the
aggregate, have a Material Adverse Effect on Purchaser). The Purchaser 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 this Agreement or to purchase
the Shares in accordance with the terms hereof, provided that for purposes of
the representation made in this sentence, the Purchaser is assuming and relying
upon the accuracy of the relevant representations and agreements of the Company
herein.

     (d) FINANCIAL RISKS. The Purchaser acknowledges that it is able to bear the
financial risks associated with an investment in the Shares and that it has been
given full access to such records of the Company and the subsidiaries and to the
officers of the Company and the subsidiaries as it has deemed necessary or
appropriate to conduct its due diligence investigation. The Purchaser is capable
of evaluating the risks and merits of an investment in the Shares by virtue of
its experience as an investor and its knowledge, experience, and sophistication
in financial and business matters and the Purchaser is capable of bearing the
entire loss of its investment in the Shares.

     (e) ACCREDITED INVESTOR The Purchaser is an "accredited investor" as
defined in Regulation D promulgated under the Securities Act.

     (f) COMPLIANCE WITH LAW. The Purchaser's trading and distribution
activities with respect to the Shares will be in compliance with all applicable
state and federal securities laws, rules and regulations and the rules and
regulations of the Principal Market.

     (g) GENERAL. The Purchaser understands that the Company is relying upon the
truth and accuracy of the representations, warranties, agreements,
acknowledgments and understandings of the Purchaser set forth herein in order to
determine the suitability of the Purchaser to acquire the Shares.

                                   ARTICLE IV

                                    COVENANTS

     The Company covenants with the Purchaser as follows:

     Section 4.1 SECURITIES COMPLIANCE.

     The Company shall notify The Nasdaq Stock Market, Inc., in accordance with
their rules and regulations, of the transactions contemplated by this Agreement,
and shall take all other necessary action and proceedings as may be required and
permitted by applicable law, rule and regulation, for the legal and valid
issuance of the Shares to the Purchaser or subsequent holders.

     Section 4.2 REGISTRATION AND LISTING. The Company will cause its Common
Stock to continue to be registered under Sections 12(b) or 12(g) of the Exchange
Act, will comply in all respects with its reporting and filing obligations under
the Exchange Act, will comply with all requirements related to any registration
statement filed pursuant to this Agreement, and will not

                                       13
<PAGE>

take any action or file any document (whether or not permitted by the Securities
Act or the rules promulgated thereunder) to terminate or suspend such
registration or to terminate or suspend its reporting and filing obligations
under the Exchange Act or Securities Act, except as permitted herein. The
Company will take all action necessary to continue the listing or trading of its
Common Stock on the Nasdaq SmallCap Market or another Principal Market and will
comply in all respects with the Company's reporting, filing and other
obligations under the bylaws or rules of the NASD and The Nasdaq Stock Market.

     Section 4.3 REGISTRATION STATEMENT. The Company shall cause to be filed the
Registration Statement, which Registration Statement shall provide for the sale
of the Shares to the Purchaser and resale by the Purchaser to the public in
accordance with this Agreement. The Company shall cause such Registration
Statement to be declared effective by the Commission as expeditiously as
practicable. Before the Purchaser shall be obligated to accept a Draw Down
request from the Company, the Company shall have caused a sufficient number of
shares of Common Stock to be registered to cover the Shares to be issued in
connection with such Draw Down.

     Section 4.4 ESCROW ARRANGEMENT. The Company and the Purchaser shall enter
into an escrow arrangement with Epstein Becker & Green, P.C. (the "Escrow
Agent") in the Form of EXHIBIT B hereto respecting payment against delivery of
the Shares.

     Section 4.5 COMPLIANCE WITH LAWS. The Company shall comply, and cause each
subsidiary to comply, with all applicable laws, rules, regulations and orders,
noncompliance with which could have a Material Adverse Effect.

     Section 4.6 KEEPING OF RECORDS AND BOOKS OF ACCOUNT. The Company shall keep
and cause each subsidiary to keep adequate records and books of account, in
which complete entries will be made in accordance with GAAP consistently
applied, reflecting all financial transactions of the Company and its
subsidiaries, and in which, for each fiscal year, all proper reserves for
depreciation, depletion, obsolescence, amortization, taxes, bad debts and other
purposes in connection with its business shall be made.

     Section 4.7 AMENDMENTS. The Company shall not amend or waive any provision
the Certificate of Incorporation, Bylaws of the Company in any way that would
adversely affect the dividend rights or voting rights of the holders of the
Shares.

     Section 4.8 OTHER AGREEMENTS. The Company shall not enter into any
agreement the terms of which such agreement would restrict or impair the right
to perform of the Company or any subsidiary under this Agreement or the
Certificate of Incorporation of the Company.

     Section 4.9 NOTICE OF CERTAIN EVENTS AFFECTING REGISTRATION; SUSPENSION OF
RIGHT TO REQUEST A DRAW DOWN. The Company will immediately notify the Purchaser
upon the occurrence of any of the following events in respect of the
Registration Statement or related prospectus in respect of the Shares: (i)
receipt of any request for additional information from the Commission or any
other federal or state governmental authority during the period of effectiveness
of the Registration Statement the response to which would require any amendments
or supplements to the Registration Statement or related prospectus; (ii) the
issuance by the

                                       14
<PAGE>

Commission or any other federal or state governmental authority of any stop
order suspending the effectiveness of the Registration Statement or the
initiation of any proceedings for that purpose; (iii) receipt of any
notification with respect to the suspension of the qualification or exemption
from qualification of any of the Shares for sale in any jurisdiction or the
initiation or threatening of any proceeding for such purpose; (iv) the happening
of any event that makes any statement made in the Registration Statement or
related prospectus or any document incorporated or deemed to be incorporated
therein by reference untrue in any material respect or that requires the making
of any changes in the Registration Statement, related prospectus or documents so
that, in the case of the Registration Statement, it will not contain any untrue
statement of a material fact or omit to state any material fact required to be
stated therein or necessary to make the statements therein not misleading, and
that in the case of the related prospectus, it will not contain any untrue
statement of a material fact or omit to state any material fact required to be
stated therein or necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading; and (v) the Company's
reasonable determination that a post-effective amendment to the Registration
Statement would be appropriate; and the Company will promptly make available to
the Purchaser any such supplement or amendment to the related prospectus. The
Company shall not deliver to the Purchaser any Draw Down Notice during the
continuation of any of the foregoing events.

     Section 4.10 CONSOLIDATION; MERGER. The Company shall not, at any time
after the date hereof, effect any merger or consolidation of the Company with or
into, or a transfer of all or substantially all of the assets of the Company to,
another entity (a "Consolidation Event") unless the resulting successor or
acquiring entity (if not the Company) assumes by written instrument or by
operation of law the obligation to deliver to the Purchaser such shares of stock
and/or securities as the Purchaser is entitled to receive pursuant to this
Agreement.

     Section 4.11 LIMITATION ON FUTURE FINANCING. The Company agrees that,
except as set forth below, it will not enter into any sale of its securities for
cash at a discount to the current market price until the earlier of (i) twelve
(12) months from the effective date of the Registration Statement, or (ii) sixty
(60) days after the entire $20,000,000 of Shares has been purchased by
Purchaser. The foregoing shall not prevent or limit the Company from engaging in
any sale of securities (i) in a registered public offering by the Company which
is underwritten by one or more established investment banks, (ii) in one or more
private placements where the purchasers do not have registration rights, (iii)
pursuant to any presently existing or future employee benefit plan which plan
has been or is approved by the Company's stockholders, (iv) pursuant to any
compensatory plan for a full-time employee or key consultant, (v) in connection
with an acquisition or strategic partnership or other business transaction, the
principal purpose of which is not simply to raise money, (vi) where the
Purchaser is unable to purchase Shares due to the limitation set forth in
Section 2.2(ii), or (vii) to which Purchaser gives its written approval.

                                    ARTICLE V

                      CONDITIONS TO CLOSING AND DRAW DOWNS

                                       15
<PAGE>

     Section 5.1 CONDITIONS PRECEDENT TO THE OBLIGATION OF THE COMPANY TO SELL
THE SHARES. The obligation hereunder of the Company to issue and sell the Shares
to the Purchaser is subject to the satisfaction or waiver, at or before the
Closing, of each of the conditions set forth below. These conditions are for the
Company's sole benefit and may be waived by the Company at any time in its sole
discretion.

     (a) ACCURACY OF THE PURCHASER'S REPRESENTATIONS AND WARRANTIES. The
representations and warranties of the Purchaser shall be true and correct in all
material respects as of the date when made and as of the Closing and as of each
Draw Down Exercise Date as though made at that time, except for representations
and warranties that speak as of a particular date.

     (b) PERFORMANCE BY THE PURCHASER. The Purchaser shall have performed,
satisfied and complied in all material respects with all material covenants,
agreements and conditions required by this Agreement to be performed, satisfied
or complied with by the Purchaser at or prior to the Closing and as of each Draw
Down Exercise Date.

     (c) NO INJUNCTION. No statute, rule, regulation, executive order, decree,
ruling or injunction shall have been enacted, entered, promulgated or endorsed
by any court or governmental authority of competent jurisdiction which prohibits
the consummation of any of the transactions contemplated by this Agreement.

     Section 5.2 CONDITIONS PRECEDENT TO THE OBLIGATION OF THE PURCHASER TO
CLOSE. The obligation hereunder of the Purchaser to enter this Agreement is
subject to the satisfaction or waiver, at or before the Closing, of each of the
conditions set forth below. These conditions are for the Purchaser's sole
benefit and may be waived by the Purchaser at any time in its sole discretion.

     (a) ACCURACY OF THE COMPANY'S REPRESENTATIONS AND WARRANTIES. Each of the
representations and warranties of the Company shall be true and correct in all
material respects as of the date when made and as of the Closing as though made
at that time (except for representations and warranties that speak as of a
particular date).

     (b) PERFORMANCE BY THE COMPANY. The Company shall have performed, satisfied
and complied in all respects with all covenants, agreements and conditions
required by this Agreement to be performed, satisfied or complied with by the
Company at or prior to the Closing.

     (c) NO INJUNCTION. No statute, rule, regulation, executive order, decree,
ruling or injunction shall have been enacted, entered, promulgated or endorsed
by any court or governmental authority of competent jurisdiction which prohibits
the consummation of any of the transactions contemplated by this Agreement.

     (d) NO PROCEEDINGS OR LITIGATION. No action, suit or proceeding before any
arbitrator or any governmental authority shall have been commenced, and no
investigation by any governmental authority shall have been threatened, against
the Purchaser or the Company or any subsidiary, or any of the officers,
directors or affiliates of the Company or any subsidiary seeking

                                       16
<PAGE>

to restrain, prevent or change the transactions contemplated by this Agreement,
or seeking damages in connection with such transactions.

     (e) OPINION OF COUNSEL, ETC. At the Closing, the Purchaser shall have
received an opinion of counsel to the Company, dated the date of Closing, in the
form of EXHIBIT C hereto, and such other certificates and documents as the
Purchaser or its counsel shall reasonably require incident to the Closing.

     (f) WARRANTS. In lieu of a minimum Draw Down commitment by the Company, the
Purchaser shall receive a warrant certificate to purchase a number of shares of
Common Stock as shall equal $1,200,000 (6% of the commitment amount) divided by
the closing bid price on the Trading Day immediately prior to the Closing Date
(the "Warrants"). The Warrants will have a three (3) year term from their date
of issuance. The Warrant strike price shall be 115% of the closing bid price of
the Common Stock on the Trading Day immediately prior to the Closing Date. The
Common Stock underlying the Warrants will be registered in the Registration
Statement referred to in Section 4.3 hereof. The Warrants shall be identical in
the form to the Warrants issued to the placement agent, Ladenburg Thalmann & Co.
Inc.

     Section 5.3 CONDITIONS PRECEDENT TO THE OBLIGATION OF THE PURCHASER TO
ACCEPT A DRAW DOWN AND PURCHASE THE SHARES. The obligation hereunder of the
Purchaser to accept a Draw Down request and to acquire and pay for the Shares is
subject to the satisfaction or waiver, at or before each Draw Down Exercise
Date, of each of the conditions set forth below. The conditions are for the
Purchaser's sole benefit and may be waived by the Purchaser at any time in its
sole discretion.

     (a) SATISFACTION OF CONDITIONS TO CLOSING. The Company shall have
satisfied, or the Purchaser shall have waived, the conditions set forth in
Section 5.2 hereof

     (b) EFFECTIVE REGISTRATION STATEMENT. The Registration Statement
registering the Shares shall have been declared effective by the Commission and
shall remain effective on each Draw Down Exercise Date.

     (c) NO SUSPENSION. Trading in the Company's Common Stock shall not have
been suspended by the Commission or The Nasdaq Stock Market, Inc. (except for
any suspension of trading of limited duration agreed to by the Company, which
suspension shall be terminated prior to each Draw Down request), and, at any
time prior to such request, trading in securities generally as reported by
Nasdaq shall not have been suspended or limited, or minimum prices shall not
have been established on securities whose trades are reported by Nasdaq.

     (d) MATERIAL ADVERSE EFFECT. No Material Adverse Effect and no
Consolidation Event shall have occurred.

     (e) OPINION OF COUNSEL The Purchaser shall have received a "down-to-date"
letter from the Company's counsel, confirming that there is no change from the
counsel's previously delivered opinion, or else specifying with particularity
the reason for any change.

                                       17
<PAGE>

                                   ARTICLE VI

                                 DRAW DOWN TERMS

     Section 6.1 DRAW DOWN TERMS. Subject to the satisfaction of the conditions
set forth in this Agreement, the parties agree as follows:

     (a) The Company, may, in its sole discretion, issue and exercise a draw
down (a "Draw Down") during each Draw Down Pricing Period, which Draw Down the
Purchaser will be obligated to accept.

     (b) Only one Draw Down shall be allowed in each Draw Down Pricing Period.
The price per share paid by the Purchaser shall be based on the Average Daily
Price on each separate Trading Day during the Draw Down Pricing Period. The
number of shares of Common Stock purchased by the Purchaser with respect to each
Draw Down shall be determined on a daily basis during each Draw Down Pricing
Period and settled at the election of the Purchaser on a weekly basis or on the
Draw Down Exercise Date, which shall be the first Trading Day following the end
of the Draw Down Pricing Period. In connection with each Draw Down Pricing
Period, the Company may set an Average Daily Price below which the Company will
not sell any Shares (the "Threshold Price"). If the Average Daily Price on any
day within the Draw Down Pricing Period is less than the Threshold Price, the
Company shall not sell and the Purchaser shall not be obligated to purchase the
Shares otherwise to be purchased for such day.

     (c) There shall be a maximum of twelve (12) Draw Downs during the terms of
this Agreement. The Company shall have the right to issue and exercise a Draw
Down of up to $7,000,000 of the Company's Common Stock per Draw Down, subject to
the limitations set forth immediately below. The minimum Draw Down shall be
$250,000 unless otherwise agreed by Purchaser.

     (d) The maximum dollar amount of each Draw Down during any Draw Down
Pricing Period shall be limited pursuant to the following formula: Average Stock
Price: Average of the Average Daily Prices for the 22 Trading Days prior to the
Draw Down Notice date. Average Trading Volume: Average daily trading volume for
the 45 Trading Days prior to the Draw Down Notice date. Maximum dollar amount of
each Draw Down: 20% of (Average Stock Price x (Average Trading Volume x 22)) the
number of Shares of Common Stock to be issued in connection with each Draw Down
shall be equal to the sum of the quotients (for each trading day within the Draw
Down Pricing Period) of (x) 1/22nd of the Draw Down amount and (y) 93% of the
Average Daily Price of the Common Stock on each Trading Day within the Draw Down
Pricing Period. If the Average Daily Price on a given Trading Day is less than
the Threshold Price, then the Purchaser's Draw Down payment will be reduced by
1/22nd and that day shall be withdrawn from the Draw Down Pricing Period.

     (e) The Company must inform the Purchaser by delivering a Draw Down Notice,
in the form of EXHIBIT D hereto, via facsimile transmission as to the amount of
the Draw Down the Company wishes to exercise before the first day of the Draw
Down Pricing Period (the "Draw Down Notice"). The Company may set the Threshold
Price, if any, prior to each Draw Down request. At no time shall the Purchaser
be required to purchase more than the scheduled

                                       18
<PAGE>

Draw Down amount for a given Draw Down Pricing Period so that if the Company
chooses not to exercise the maximum permitted Draw Down in a given Draw Down
Pricing Period the Purchaser is not obligated to purchase more than the
scheduled maximum amount in a subsequent Draw Down Pricing Period.

     (f) On or before three Trading Days after each Draw Down Exercise Date, the
Shares purchased by the Purchaser shall be delivered to The Depository Trust
Company ("DTC") on the Purchaser's behalf. The Shares shall be credited by the
Company to the DTC account designated by the Purchaser upon receipt by the
Escrow Agent of payment for the Draw Down into the Escrow Agent's trust account
as provided in the Escrow Agreement. The Escrow Agent shall be directed to pay
94% of the purchase price to the Company, net of One Thousand Five Hundred
Dollars ($1,500) as escrow expenses to the Escrow Agent, and 6% to the placement
agent. The delivery of the Shares into the Purchaser's DTC account in exchange
for payment therefor shall be referred to herein as "Settlement".

                                   ARTICLE VII

                                   TERMINATION

     Section 7.1 TERMINATION BY MUTUAL CONSENT. The term of this Agreement shall
be twelve (12) months from the Effective Date. This Agreement may be terminated
at any time by mutual consent of the parties.

     Section 7.2 OTHER TERMINATION. (a) The Purchaser may terminate this
Agreement upon one (1) Trading Day's notice if (i) an event resulting in a
Material Adverse Effect has occurred, (ii) the Common Stock is de-listed from
the Nasdaq SmallCap Market unless such de-listing is in connection with the
listing of the Common Stock on the Nasdaq National Market, the New York or
American Stock Exchanges, (iii) the Company files for protection from creditors
under any applicable law, (iv) the Company completes any financing prohibited by
Section 4.11, (v) the Registration Statement is not effective by August 31, 2000
or (vi) in the event that the officers and directors of the Company shall own
less than twenty-five percent (25%) of the outstanding Common Stock of the
Company.

     (b) The Company may terminate this Agreement upon one (1) Trading Day's
notice if the Purchaser shall fail to fund more than one properly noticed Draw
Down within three (3) Trading Days of the date payment for such Draw Down is
due.

     Section 7.3 EFFECT OF TERMINATION. In the event of termination by the
company or the Purchaser, written notice thereof shall forthwith be given to the
other party and the transactions contemplated by this Agreement shall be
terminated without further action by either party. If this Agreement is
terminated as provided in Section 7.1 or 7.2 herein, this Agreement shall become
void and of no further force and effect, except for Sections 9.1 and 9.2, and
Article VIII herein. Nothing in this Section 7.3 shall be deemed to release the
Company or the Purchaser from any liability for any breach under this Agreement,
or to impair the rights to the Company and the Purchaser to compel specific
performance by the other party of its obligations under this Agreement.

                                       19
<PAGE>

                                  ARTICLE VIII

                                 INDEMNIFICATION

     Section 8.1 GENERAL INDEMNITY. The Company agrees to indemnify and hold
harmless the Purchaser (and its directors, officers, affiliates, agents,
successors and assigns) from and against any and all losses, liabilities,
deficiencies, costs, damages and expenses (including, without limitation,
reasonable attorney's fees, charges and disbursements) incurred by the Purchaser
as a result of any inaccuracy in or breach of the representations, warranties or
covenants made by the Company herein. The Purchaser agrees to indemnify and hold
harmless the Company and its directors, officers, affiliates, agents, successors
and assigns from and against any and all losses, liabilities, deficiencies,
costs, damages and expenses (including, without limitation, reasonable attorneys
fees, charges and disbursements) incurred by the Company as result of any
inaccuracy in or breach of the representations, warranties or covenants made by
the Purchaser herein. Notwithstanding anything to the contrary herein, the
Purchaser shall be liable under this Section 8.1 for only that amount as does
not exceed the net proceeds to such Purchaser as a result of the sale of Shares
pursuant to the Registration Statement.

     Section 8.2 INDEMNIFICATION PROCEDURE. Any party entitled to
indemnification under this Article VIII (an "indemnified party") will give
written notice to the indemnifying party of any matters giving rise to a claim
for indemnification; provided, that the failure of any party entitled to
indemnification hereunder to give notice as provided herein shall not relieve
the indemnifying party of its obligations under this Article VIII except to the
extent that the indemnifying party is actually prejudiced by such failure to
give notice. In case any action, proceeding or claim is brought against an
indemnified party in respect of which indemnification is sought hereunder, the
indemnifying party shall be entitled to participate in and, unless in the
reasonable judgment of counsel to the indemnified party a conflict of interest
between it and the indemnifying party may exist with respect of such action,
proceeding or claim, to assume the defense thereof with counsel reasonably
satisfactory to the indemnified party. In the event that the indemnifying party
advises an indemnified party that it will contest such a claim for
indemnification hereunder, or fails, within thirty (30) days of receipt of any
indemnification notice to notify, in writing, such person of its election to
defend, settle or compromise, at its sole cost and expense, any action,
proceeding or claim (or discontinues its defense at any time after it commences
such defense), then the indemnified party may, at its option, defend, settle or
otherwise compromise or pay such action or claim. In any event, unless and until
the indemnifying party elects in writing to assume and does so assume the
defense of any such claim, proceeding or action, the indemnified party's costs
and expenses arising out of the defense, settlement or compromise of any such
action, claim or proceeding shall be losses subject to indemnification
hereunder. The indemnified party shall cooperate fully with the indemnifying
party in connection with any settlement negotiations or defense of any such
action or claim by the indemnifying party and shall furnish to the indemnifying
party all information reasonably available to the indemnified party which
relates to such action or claim. The indemnifying party shall keep the
indemnified party fully apprised at all times as to the status of the defense or
any settlement negotiations with respect thereto. If the indemnifying party
elects to defend any such action or claim, then the indemnified party shall be
entitled to participate in such defense with

                                       20
<PAGE>

counsel of its choice at its sole cost and expense. The indemnifying party shall
not be liable for any settlement of any action, claim or proceeding effected
without its prior written consent. Notwithstanding anything in this Article VIII
to the contrary, the indemnifying party shall not, without the indemnified
party's prior written consent, settle or compromise any claim or consent to
entry of any judgment in respect thereof which imposes any future obligation on
the indemnified party or which does not include, as an unconditional term
thereof, the giving by the claimant or the plaintiff to the indemnified party of
a release from all liability in respect of such claim. The indemnification
required by this Article VIII shall be made by periodic payments of the amount
thereof during the course of investigation or defense, as and when bills are
received or expense, loss, damage or liability is incurred, within ten (10)
Trading Days of written notice thereof to the indemnifying party so long as the
indemnified party irrevocably agrees to refund such moneys if it is ultimately
determined by a court of competent jurisdiction that such party was not entitled
to indemnification. The indemnity agreements contained herein shall be in
addition to (a) any cause of action or similar rights of the indemnified party
against the indemnifying party or others, and (b) any liabilities the
indemnifying party may be subject to.

                                   ARTICLE IX

                                  MISCELLANEOUS

     Section 9.1 FEES AND EXPENSES. The Company shall pay all fees and expenses
related to the transactions contemplated by this Agreement; provided, that the
Company shall pay, at the Closing, all attorneys and escrow fees and expenses
(exclusive of disbursements and out-of-pocket expenses) incurred by the
Purchaser of $20,000 in connection with the preparation, negotiation, execution
and delivery of this Agreement and the transactions contemplated hereunder. In
addition, the Company shall pay all reasonable fees and expenses incurred by the
Purchaser in connection with any amendments, modifications or waivers of this
Agreement or the Registration Rights Agreement or incurred in connection with
the enforcement of this Agreement and the Registration Rights Agreement,
including, without limitation, all reasonable attorneys fees and expenses. The
Company shall pay all stamp or other similar taxes and duties levied in
connection with issuance of the Shares pursuant hereto.

     Section 9.2 SPECIFIC ENFORCEMENT. The Company and the Purchaser acknowledge
and agree that irreparable damage would occur in the event that any of the
provisions of this Agreement were not performed in accordance with their
specific terms or were otherwise breached. It is accordingly agreed that the
parties shall be entitled to an injunction or injunctions to prevent or cure
breaches of the provisions of this Agreement and to enforce specifically the
terms and provisions hereof or thereof, this being in addition to any other
remedy to which any of them may be entitled by law or equity.

     Section 9.3 ENTIRE AGREEMENT; AMENDMENT. This Agreement, together with the
Registration Rights Agreement and the Escrow Agreement contains the entire
understanding of the parties with respect to the matters covered hereby and,
except as specifically set forth herein,

                                       21
<PAGE>

neither the Company nor the Purchaser makes any representations, warranty,
covenant or undertaking with respect to such matters. No provision of this
Agreement may be waived or amended other than by a written instrument signed by
the party against whom enforcement of any such amendment or waiver is sought.

     Section 9.4 NOTICES. Any notice, demand, request, waiver or other
communication required or permitted to be given hereunder shall be in writing
and shall be effective (a) upon hand delivery or facsimile at the address or
number designated below (if delivered on a business day during normal business
hours where such notice is to be received), or the first business day following
such delivery (if delivered other than on a business day during normal business
hours where such notice is to be received) or (b) on the second business day
following the date of mailing by express courier service, fully prepaid,
addressed to such address, or upon actual receipt of such mailing, whichever
shall first occur. The addresses for such communications shall be:

     If to the Company:         Aquis Communications Group, Inc.
                                1719A Route 10, Suite 300
                                Parsippany, New Jersey 07054
                                Telephone Number:  (973) 560-8000
                                Fax:  (973) 560-8053
                                Attention:  Nick Catania

     with copies to:            Buchanan Ingersoll, P.C.
                                Eleven Penn Center, 14th Floor
                                1835 Market Street
                                Philadelphia, Pennsylvania 19103
                                Telephone number: (215) 665-3879
                                Fax: (215) 665-8760
                                Attention: Joseph P. Galda

     If to Purchaser:           c/o Dr. Dr. Batliner & Partner
                                Aeulestrasse 74
                                FL-9490 Vaduz, Liechtenstein
                                Fax: 011-075-236-0405

     with copies to:            Epstein Becker & Green, P.C.
                                250 Park Avenue
                                New York, New York 10177
                                Telephone Number:  (212) 351-3771
                                Fax:  (212) 661-0989
                                Attention: Robert Charron

     Any party hereto may from time to time change its address for notices by
giving written notice of such changed address to the other party hereto in
accordance herewith.

                                       22
<PAGE>

     Section 9.5 WAIVERS. No waiver by either party of any default with respect
to any provision, condition or requirement of this Agreement shall be deemed to
be a continuing waiver in the future or a waiver of any other provisions,
condition or requirement hereof, nor shall any delay or omission of any party to
exercise any right hereunder in any manner impair the exercise of any such right
accruing to it thereafter.

     Section 9.6 HEADINGS. The article, section and subsection headings in this
Agreement are for convenience only and shall not constitute a part of this
Agreement for any other purpose and shall not be deemed to limit or affect any
of the provisions hereof.

     Section 9.7 SUCCESSORS AND ASSIGNS. This Agreement shall be binding upon
and inure to the benefit of the parties and their successors and assigns. The
parties hereto may not amend this Agreement or any rights or obligations
hereunder without the prior written consent of the Company and each Purchaser to
be affected by the amendment. After Closing, the assignment by a party to this
Agreement of any rights hereunder shall not affect the obligations of such party
under this Agreement.

     Section 9.8 NO THIRD PARTY BENEFICIARIES. This Agreement is intended for
the benefit of the parties hereto and their respective permitted successors and
assigns and is not for the benefit of, nor may any provision hereof be enforced
by, any other person.

     Section 9.9 GOVERNING LAW/ARBITRATION. This Agreement shall be governed by
and construed in accordance with the internal laws of the State of New York,
without giving effect to the choice of law provisions. Any dispute under this
Agreement or any Exhibit attached hereto shall be submitted to arbitration under
the American Arbitration Association (the "AAA") in New York City, New York, and
shall be finally and conclusively determined by the decision of a board of
arbitration consisting of three (3) members (hereinafter referred to as the
"Board of Arbitration") selected as according to the rules governing the AAA.
The Board of Arbitration shall meet on consecutive business days in New York
City, New York, and shall reach and render a decision in writing (concurred in
by a majority of the members of the Board of Arbitration) with respect to the
amount, if any, which the losing party is required to pay to the other party in
respect of a claim filed. In connection with rendering its decisions, the Board
of Arbitration shall adopt and follow the laws of the State of New York. To the
extent practical, decisions of the Board of Arbitration shall be rendered no
more than thirty (30) calendar days following commencement of proceedings with
respect thereto. The Board of Arbitration shall cause its written decision to be
delivered to all parties involved in the dispute. The Board of Arbitration shall
be authorized and is directed to enter a default judgment against any party
refusing to participate in the arbitration proceeding within thirty days of any
deadline for such participation. Any decision made by the Board of Arbitration
(either prior to or after the expiration of such thirty (30) calendar day
period) shall be final, binding and conclusive on the parties to the dispute,
and entitled to be enforced to the fullest extent permitted by law and entered
in any court of competent jurisdiction. The prevailing party shall be awarded
its costs, including attorneys' fees, from the non-prevailing party as part of
the arbitration award. Any party shall have the right to seek injunctive relief
from any court of competent jurisdiction in any case where such relief is
available. The prevailing party in such injunctive action shall be awarded its
costs, including attorney's fees, from the non-prevailing party.

                                       23
<PAGE>

     Section 9.10 COUNTERPARTS. This Agreement may be executed in any number of
counterparts, all of which taken together shall constitute one and the same
instrument and shall become effective when counterparts have been signed by each
party and delivered to the other parties hereto, it being understood that all
parties need not sign the same counterpart. Execution may be made by delivery by
facsimile.

     Section 9.11 PUBLICITY. Prior to the Closing, neither the Company nor the
Purchaser shall issue any press release or otherwise make any public statement
or announcement with respect to this Agreement or the transactions contemplated
hereby or the existence of this Agreement. After the Closing, the Company may
issue a press release or otherwise make a public statement or announcement with
respect to this Agreement or the transactions contemplated hereby or the
existence of this Agreement; provided, that prior to issuing any such press
release, making any such public statement or announcement, the Company obtains
the prior consent of the Purchaser, which consent shall not be unreasonably
withheld or delayed.

     Section 9.12 SEVERABILITY. The provisions of this Agreement are severable
and, in the event that any court of competent jurisdiction shall determine that
any one or more of the provisions or part of the provisions contained in this
Agreement shall, for any reason, be held to be invalid, illegal or unenforceable
in any respect, such invalidity, illegality or unenforceability shall not affect
any other provision or part of a provision of this Agreement and this Agreement
shall be reformed and construed as if such invalid or illegal or unenforceable
provision, or part of such provision, had never been contained herein, so that
such provisions would be valid, legal and enforceable to the maximum extent
possible.

     Section 9.13 FURTHER ASSURANCES. From and after the date of this Agreement,
upon the request of the Purchaser or the Company, each of the Company and the
Purchaser shall execute and deliver such instruments, documents and other
writings as may be reasonably necessary or desirable to confirm and carry out
and to effectuate fully the intent and purposes of this Agreement.

                                       24
<PAGE>

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed by their respective authorize officer as of the date first above
written.

                              AQUIS COMMUNICATIONS GROUP, INC.

                              By: /s/ D. Brian Plunkett
                                  ---------------------------------------------
                                  D. Brian Plunkett, Chief Financial Officer

                              COXTON, LIMITED

                              By: /s/ Hans Gassner
                                  ---------------------------------------------
                                  Hans Gassner, Authorized Signatory

                                       25<PAGE>

                                                                   EXHIBIT 10.53

         FORBEARANCE AGREEMENT AND THIRD AMENDMENT TO LOAN INSTRUMENTS

         This FORBEARANCE AGREEMENT AND THIRD AMENDMENT TO LOAN INSTRUMENTS
(this "AGREEMENT"), dated as of June 7, 2001, is between AQUIS WIRELESS
COMMUNICATIONS, INC., a Delaware corporation ("Borrower"), and FINOVA CAPITAL
CORPORATION, a Delaware corporation ("FINOVA"), in its individual capacity and
as agent for all Lenders (this and all other capitalized terms used but not
elsewhere defined herein are defined in Section 2 below).

                                    RECITALS

         A. Borrower and FINOVA entered into an Amended and Restated Loan
Agreement dated as of January 31, 2000 (the "Original Loan Agreement"), as
amended by a First Amendment to Loan Instruments dated as of April 12, 2000 (the
"First Amendment") between Borrower and FINOVA and as further amended by a
Second Amendment to Loan Instrument dated as of September 27, 2000 between
Borrower and FINOVA, pursuant and subject to the terms and conditions of which
Lenders agreed to make loans and other financial accommodations to Borrower. The
Original Loan Agreement, as amended by the First Amendment and the Second
Amendment, is referred to herein as the "Loan Agreement."

         B. Certain Events of Default, each as described on Exhibit A attached
hereto (the "Subject Defaults"), have occurred under the Loan Agreement. As a
result of the Subject Defaults, FINOVA is entitled to accelerate Borrower's
Obligations and to exercise all rights and remedies available to FINOVA to
collect Borrower's Obligations.

         C. Borrower has requested that FINOVA forbear from accelerating
Borrower's Obligations and exercising its rights and remedies to collect
Borrower's Obligations on account of the Subject Defaults.

         D. FINOVA is willing to forbear on the terms and conditions and for the
period of time set forth herein.

         NOW, THEREFORE, in consideration of the mutual agreements contained
herein, and for other good and valuable consideration, the receipt and
sufficiency of which hereby are acknowledged, Borrower and FINOVA agree as
follows:

         1. Incorporation of Recitals. The Recitals set forth above are
incorporated herein, are acknowledged by Borrower, Agent and Lenders to be true
and correct and by this reference are made a part hereof.

         2. Definitions. All capitalized terms used but not elsewhere defined
herein shall have the respective meanings ascribed to such terms in the Loan
Agreement, as amended by this Agreement.

         3. Statement of Account. Borrower and FINOVA acknowledge and agree that
as of June 1, 2001:

<PAGE>

         (a) The Principal Balance was $26,249,355.00;

         (b) the aggregate amount of all accrued and unpaid interest on the
Principal Balance then due and payable was $1,322,358.52;

         (c) the aggregate amount of all accrued and unpaid fees under Section
2.7 of the Loan Agreement was $1,000,000, consisting of (i) $250,000 then due
and payable and $750,000 due and payable on the Maturity Date (as defined in the
Loan Agreement);

         (d) the aggregate amount of all accrued and unpaid late charges then
due and payable pursuant to Section 2.6 of the Loan Agreement was $31,440.51;
and

         (e) the aggregate amount of all attorneys' fees and expenses incurred
by FINOVA in connection with the Loan Agreement and the other Loan
Instruments and not previously paid by Borrower to FINOVA pursuant to Section
11.1 of the Loan Agreement was $9,834.72.

Borrower and FINOVA agree that for all purposes under the Loan Agreement and the
other Loan Instruments that from and after June 1, 2001 the amounts set forth in
the preceding clauses (b), (c), (d) and (e) shall be deemed to have been added
to the Principal Balance as of June 7, 2001.

         4. Amendments to Loan Instruments. The Loan Instruments are amended as
set forth below:

            (a)  Section 1.1 - Amended Definitions. Section 1.1 of the Loan
      Agreement is amended by deleting the current versions of the following
      definitions and substituting the following versions of such definitions in
      appropriate alphabetical order:

                 Default Rate: the Base Rate from time to time in effect plus
            8.0% per annum.

                 Default Rate Period: a period of time commencing on the date
            that a Forbearance Default has occurred and ending on the date that
            such Forbearance Default is cured or waived.

                 Maturity Date: the earliest to occur of (i) December 31, 2001,
            (ii) the expiration of the Forbearance Period and (iii) the date on
            which Borrower's Obligations are accelerated pursuant to this Loan
            Agreement.

            (b)  Section 1.1 - Additional Definitions. Section 1.1 of the Loan
      Agreement is amended by inserting the following definitions in appropriate
      alphabetical order:

                 Forbearance Agreement: the Forbearance Agreement and Third
            Amendment to Loan Instruments dated as of June 7, 2001 between
            Borrower and FINOVA.

                 Forbearance Default: any Event of Default other than the
            Subject Defaults.

                                      -2-

<PAGE>

                 Forbearance Period: the period of time (i) commencing on June
         7, 2001 and (ii) ending on the earlier of (A) December 31, 2001 or (B)
         the date Agent notifies Borrower of the occurrence of a Forbearance
         Default and of Agent election to terminate the Forbearance Period as a
         result of such Forbearance Default.

              Operating Revenue: the gross cash revenues of Borrower derived
         from the operation of its business in the ordinary course and not from
         any other source (such as payments on account of notes receivable,
         Equity Contribution Proceeds or asset sales outside the ordinary course
         of business).

              Non-Operating Revenue: the gross cash revenues of Borrower derived
         from sources outside the operation of its business in the ordinary
         course (such as payments on account of notes receivable, Equity
         Contribution Proceeds or asset sales outside the ordinary course of
         business).

              Subject Defaults: the Events of Default described on Exhibit A
         attached to the Forbearance Agreement.

         (c)  Subsection 2.2.1. Subsection 2.2.1 of the Loan Agreement is
   deleted in its entirety and the following is substituted therefor:

              "2.2.1 Interest Rate. Except as provided in Section 2.5, the
         Principal Balance shall bear interest at the Base Rate from time to
         time in effect plus 6.0% per annum."

         (d) Subsection 2.2.2. Subsection 2.2.2 of the Loan Agreement is deleted
   in its entirety and the following is substituted therefor.

              "2.2.2 Intentionally Omitted."

              (e) Subsection 2.2.3. Subsection 2.2.3 of the Loan Agreement is
   deleted in its entirety and the following is substituted therefor:

              "2.2.3 Interest Computation. Interest shall be computed on the
        basis of a year consisting of 360 days and charged for the actual
        number of days during the period for which interest is being charged. In
        computing interest, the Closing Date shall be included and the date of
        payment shall be excluded."

         (f) Subsection 2.2.5. Subsection 2.2.5 of the Loan Agreement is deleted
   in its entirety and the following is substituted therefor:

              "2.2.5 Intentionally Omitted."

         (g) Section 2.3. Section 2.3 of the Loan Agreement and each subsection
   contained therein are deleted in their entirety and the following is
   substituted therefor:

              "2.3 Intentionally Omitted."

                                      -3-
<PAGE>

         (h)      Subsection 2.4. Subsection 2.4 of the Loan Agreement and each
subsection contained therein are deleted in their entirety and the following is
substituted therefor:

         "2.4 Principal and Interest Payments.

                  2.4.1 Interest. Except as otherwise provided in subsection
         2.8.1(c) and 2.8.2(e), interest which accrues during the Forbearance
         Period shall be added to the Principal Balance monthly in arrears on
         the first Business Day of each month during the Forbearance Period. All
         accrued and unpaid interest shall be due and payable in full on the
         Maturity Date.

                  2.4.2 Principal. The Principal Balance, together with all
         accrued and unpaid interest thereon an all other sums which then are
         due and payable pursuant to the terms of the Loan Instruments, shall be
         due and payable in full on the Maturity Date."

         (i)      Section 2.7. Section 2.7 of the Loan Agreement and each
subsection contained therein are deleted in their entirety and the following is
substituted therefor:

                  "2.7 Fees. All fees previously paid by Borrower to Lenders or
         added to the Principal Balance were fully earned by Lenders and are
         non-refundable."

         (j)      Subsection 2.8.2. Subsection 2.8.2 of the Loan Agreement and
is deleted in its entirety and the following is substituted therefor:

                  "2.8.2 Intentionally Omitted."

        (k)       Subsection 6.3.2. Subsection 6.3.2 of the Loan Agreement and
is deleted in its entirety and the following is substituted therefor:

                  "6.3.2 Interim Reports. On the fifteenth and thirtieth day of
         each month:

                           (a) projections of the financial performance of
                  Borrower for the succeeding thirteen weeks, reflecting
                  variances in the projections attached to the Forbearance
                  Agreement as Exhibit B and including a management discussion
                  of actions being taken by Borrower to overcome any negative
                  variances,

                           (b) a statement as to the Cash Equivalents as of such
                  fifteenth or thirtieth day, as applicable; and

                           (c) a statement as to the month to date total revenue
                  of Borrower,

                                 -4-
<PAGE>
         all in reasonable detail, containing such information as Lenders
         reasonably require, and certified as complete and correct, subject to
         normal year-end adjustments, by the Chief Financial Officer of
         Borrower."

         (l)      Section 6.17. Section 6.17 of the Loan Agreement and is
deleted in its entirety and the following is substituted therefor:

                  "6.17 Intentionally Omitted."

         (m)      Section 7.5. Section 7.5 of the Loan Agreement and is deleted
in its entirety and the following is substituted therefor:

                  "7.5 Distributions. Make any dividends, distributions or other
         shareholder expenditures with respect to the Borrower Capital Stock or
         apply any of its Property to the purchase, redemption or other
         retirement of, or set apart any sum for the payment of, or make any
         other distribution by reduction of capital or otherwise in respect of,
         any of the Borrower Capital Stock."

         (n)      Section 7.18. Section 7.18 of the Loan Agreement and is
deleted in its entirety and the following is substituted therefor:

                  "7.18 Minimum Cash Balance. Permit the Cash Equivalents to be
         less than $300,000 at any time."

         (o)      Section 7.19. Section 7.19 of the Loan Agreement and is
deleted in its entirety and the following is substituted therefor:

                  "7.19 Minimum Monthly Operating Revenue. Permit the Operating
         Revenue to be less than (i) $1,615,000 per month through September,
         2001 or (ii) $1,710,000 per month for any month after September, 2001."

         (p)      Section 7.20. Section 7.20 of the Loan Agreement and is
deleted in its entirety and the following is substituted therefor:

                  "7.20 Additional Capital. Fail to raise at least $750,000 of
         Non-Operating Revenue prior to September 30, 2001."

         (q)      Section 7.22. The following is added to the Loan Agreement as
Section 7.22 thereof:

                  "7.22 Trade Debt Settlements. Expend more than $500,000 of the
         Cash Equivalents as of June 1, 2001 plus $250,000 of Non-Operating
         Revenue raised after June 1, 2001 for the purpose of obtaining
         forbearances or compromises of accrued and unpaid accounts payable of
         Borrower."

         (r)      Subsection 8.1.2. Subsection 8.1.2 of the Loan Agreement is
deleted in its entirety and the following is substituted therefor:

                               -5-
<PAGE>
                           "8.1.2 Breach of Covenants.

                           (a) If Borrower shall fail to observe or perform any
                  covenant agreement made by Borrower contained in Section 6.1,
                  6.2, 6.5, 6.6, 6.9, 6.10, 6.11, 6.13, 6.14, or 6.16,
                  subsection 6.3.2 or in Article VII; or

                           (b) If any Obligor shall fail to observe or perform
                  any covenant agreement (other than those referred to in
                  subparagraph (a) or (b) above specifically addressed elsewhere
                  in this Section 8.1) made by such Person in any of the Loan
                  Instruments to which such Person is a party, and such failure
                  shall continue for a period of 30 days after written notice of
                  such failure is given by Lenders."

                  (s)      Subsection 8.1.13. The following is added to the Loan
         Agreement as subsection 8.1.13 thereof:

                           "8.1.13 Subordinated Indebtedness. If any payment is
                  made on or in respect of the Indebtedness for Borrowed Money
                  evidenced by the Aquis Group 11% Convertible Debenture, if the
                  payment of such Indebtedness for Borrowed Money is accelerated
                  or if any holder of such Indebtedness for Borrowed Money takes
                  any action to collect such Indebtedness for Borrowed Money."

         4.       Forbearance. FINOVA agrees that, during the Forbearance
Period, FINOVA will not accelarate Borrower's Obligations solely on account of
the Subject Defaults or exercise any of its rights or remedies under the Loan
Agreement or any of the other Loan Instruments arising solely on account of the
Subject Defaults. FINOVA's agreement to forbear from accelerating Borrower's
Obligations and exercising its rights with respect to the Subject Defaults as
set forth herein (i) shall not be deemed to extend to any Forebearance Default
which has arisen or may arise hereafter, whether or not known to FINOVA or
Borrower on the date hereof, (ii) is temporary and limited in nature, (iii)
shall not be deemed to effect any amendment of the Loan Agreement or any of the
other Loan Instruments, all of which shall remain in full force and effect in
accordance with their respective terms except as amended hereby, (iv) shall not
constitute a waiver of the Subject Defaults, (v) shall not be deemed to
establish a custom or course of dealing between Borrower and FINOVA and (vi)
shall not be deemed to require FINOVA to give notice of any Forbearance Default
or any other notice whatsoever.

        6.        References. From and after the date hereof, all terms used in
the Loan Instruments which are defined in the Loan Agreement shall be deemed to
refer to such terms as amended by this Agreement. This Agreement shall
constitute a "Loan Instrument."

         7.       Representations and Warranties. Borrower hereby confirms to
FINOVA that the representations and warranties set forth in the Loan Instruments
to which Borrower is a party are true and correct in all material respects as of
the date hereof, and shall be deemed to be remade as of the date hereof.
Borrower represents and warrants to FINOVA that (i) Borrower has full power and
authority to execute and deliver this Agreement and to perform its obligations
hereunder, (ii) upon the execution and delivery hereof, this Agreement will be
valid, binding and

                                       -6-
<PAGE>

enforceable upon Borrower in accordance with its terms, (iii) the execution and
delivery of the Agreement does not and will not contravene, conflict with,
violate or constitute a default under (A) its articles of incorporation or
by-laws or (B) any applicable law, rule, regulation, judgment decree or order or
any agreement, indenture or instrument to which Borrower is a party or bound or
which is binding upon or applicable to all or any portion of Borrower's Property
and (iv) as of the date hereof no Incipient Default or Event of Default exists
other than the Subject Defaults. Borrower further represents and warrants to
FINOVA attached hereto as Exhibit B projections of the future operations of
Borrower for the periods therein stated, and that such projections represent the
best estimates of future performance of Borrower believed by Borrower to be
reasonable as of the date hereof.

         8.       Cost and Expenses. Borrower agrees to reimburse FINOVA for all
fees and expenses incurred in the preparation, negotiation and execution of this
Agreement and the consummation of the transactions contemplated hereby,
including, without limitation, the fees and expenses of counsel for FINOVA.

         9.       No Further Amendments; Ratification of Liability. Except as
amended hereby, the Loan Agreement and each of the other Loan Instruments shall
remain in full force and effect in accordance with their respective terms.
Borrower hereby ratifies and confirms its liabilities, obligations and
agreements under the Loan Agreement and the other Loan Instruments, all as
amended by this Agreement, and the Liens created thereby, and acknowledges that
(i) it has no defenses, claims or set-offs to the enforcement by FINOVA of such
liabilities, obligations and agreements, (ii) FINOVA has fully performed all
obligations to Borrower which it may have had or has on and as of the date
hereof and (iii) other than as specifically set forth herein, FINOVA does not
waive, diminish or limit any term or condition contained in the Loan Agreement
or the other Loan Instruments. The Loan Instruments, as amended by this
Agreement, contain the entire agreement between FINOVA and Borrower with respect
to the transactions contemplated hereby.

         10.      Release of Claims. In consideration of FINOVA's agreement to
forbear contained in this Agreement, Borrower hereby irrevocably releases and
forever discharges FINOVA and its affiliates, subsidiaries, successors, assigns,
directors, officers, employees, agents and attorneys (each, a "Released Person")
of and from all damages, losses, claims, demands, liabilities, obligations,
actions and causes of action whatsoever which Borrower may now have or claim to
have against any Released Person on account of or in any way touching,
concerning, arising out of or founded upon the Loan Agreement and the other Loan
Instruments, whether presently known or unknown and of every nature and extent
whatsoever.

         11.      Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original, and all of which, when
taken together, shall constitute one and the same instrument.

         12.      Further Assurances. Borrower covenants and agrees that it will
at any time and from time to time do, execute, acknowledge and deliver, or will
cause to be done, executed, acknowledged and delivered, all such further acts,
documents and instruments as reasonably may be required by FINOVA in order to
effectuate fully the intent of this Agreement.

                                      -7-
<PAGE>
         13. Severability. If any term or provision of this Agreement or the
application thereof to any party or circumstance shall be held to be invalid,
illegal or unenforceable in respect by a court of competent jurisdiction, the
validity, legality and enforceability of remaining terms and provisions of this
Agreement shall not in any way be affected or impaired thereby, and the affected
term or provision shall be modified to the minimum extent permitted by law so as
most fully to achieve the intention of this Agreement.

         14. Captions. The captions in this Agreement are inserted for
convenience and reference only and in no way define, describe or limit the scope
or intent of this Agreement and any of the provisions hereof.

         15. APPLICABLE LAW. THIS AGREEMENT AND THE OTHER LOAN INSTRUMENTS SHALL
BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS AND DECISIONS OF THE
STATE OF ARIZONA. FOR PURPOSES OF THIS SECTION 15, THIS AGREEMENT SHALL BE
DEEMED TO BE PERFORMED AND MADE IN THE STATE OF ARIZONA.

         16. JURISDICTION AND VENUE. BORROWER HEREBY AGREES THAT ALL ACTIONS OR
PROCEEDINGS INITIATED BY BORROWER AND ARISING DIRECTLY OR INDIRECTLY OUT OF THIS
AGREEMENT OR ANY OTHER LOAN INSTRUMENT SHALL BE LITIGATED IN THE SUPERIOR COURT
OF MARICOPA COUNTY, OR THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF
ARIZONA OR, IF FINOVA INITIATES SUCH ACTION, IN ADDITION TO THE FOREGOING
COURTS, ANY COURT IN WHICH FINOVA SHALL INITIATE OR TO WHICH FINOVA SHALL REMOVE
SUCH ACTION, TO THE EXTENT SUCH COURT HAS JURISDICTION. BORROWER HEREBY
EXPRESSLY SUBMITS AND CONSENTS IN ADVANCE TO SUCH JURISDICTION IN ANY ACTION OR
PROCEEDING COMMENCED BY FINOVA IN OR REMOVED BY FINOVA TO ANY OF SUCH COURTS,
AND HEREBY AGREES THAT PERSONAL SERVICE OF THE SUMMONS AND COMPLAINT, OR OTHER
PROCESS OR PAPERS ISSUED THEREIN MAY BE SERVED IN THE MANNER PROVIDED FOR
NOTICES HEREIN, AND AGREES THAT SERVICE OF SUCH SUMMONS AND COMPLAINT OR OTHER
PROCESS OR PAPERS MAY BE MADE BY REGISTERED OR CERTIFIED MAIL ADDRESSED TO
BORROWER AT THE ADDRESS TO WHICH NOTICES ARE TO BE SENT PURSUANT TO SECTION 12.1
OF THE LOAN AGREEMENT. BORROWER WAIVES ANY CLAIM THAT MARICOPA COUNTY, ARIZONA
OR THE DISTRICT OF ARIZONA IS AN INCONVENIENT FORUM OR AN IMPROPER FORUM BASED
ON LACK OF VENUE. TO THE EXTENT PROVIDED BY LAW, SHOULD BORROWER, AFTER BEING SO
SERVED, FAIL TO APPEAR OR ANSWER TO ANY SUMMONS, COMPLAINT, PROCESS OR PAPERS SO
SERVED WITHIN THE NUMBER OF DAYS PRESCRIBED BY LAW AFTER THE MAILING THEREOF,
BORROWER SHALL BE DEEMED IN DEFAULT AND AN ORDER AND/OR JUDGMENT MAY BE ENTERED
BY THE COURT AGAINST BORROWER AS DEMANDED OR PRAYED FOR IN SUCH SUMMONS,
COMPLAINT, PROCESS OR PAPERS. THE EXCLUSIVE CHOICE OF FORUM FOR BORROWER SET
FORTH IN THIS SECTION 16 SHALL NOT BE DEEMED TO PRECLUDE THE ENFORCEMENT BY
FINOVA OF ANY JUDGMENT OBTAINED IN ANY OTHER FORUM OR THE

                                      -8-

<PAGE>

TAKING BY FINOVA OF ANY ACTION TO ENFORCE THE SAME IN ANY OTHER APPROPRIATE
JURISRICTION, AND BORROWER HEREBY WAIVES THE RIGHT TO COLLATERALLY ATTACK
ANY SUCH JUDGMENT OR ACTION.

         17. WAIVER OF RIGHT TO JURY TRIAL. FINOVA AND BORROWER ACKNOWLEDGE AND
AGREE THAT ANY CONTROVERSY WHICH MAY ARISE UNDER ANY OF THE LOAN INSTRUMENTS OR
WITH RESPECT TO THE TRANSACTIONS CONTEMPLATED THEREBY WOULD BE BASED UPON
DIFFICULT AND COMPLEX ISSUES AND, THEREFORE, THE PARTIES AGREE THAT ANY LAWSUIT
ARISING OUT OF ANY SUCH CONTROVERSY WILL BE TRIED IN A COURT OF COMPETENT
JURISDICTION BY A JUDGE SITTING WITHOUT A JURY.

   [remainder of this page intentionally left blank; signature page follows]

                                      -9-

<PAGE>

         IN WITNESS WHEREOF, this Agreement has been executed and delivered by
each of the parties hereto by a duly authorized officer of each such party on
the date first set forth above.

                                      AQUIS WIRELESS COMMUNICATIONS,
                                      INC., a Delaware corporation

                                      By:  /s/ John B. Frieling
                                           ------------------------------------
                                           John B. Frieling
                                           Chief Executive Officer

                                      FINOVA CAPITAL CORPORATION, a
                                      Delaware corporation

                                      By:  /s/ Lawrence J. Jadlocki
                                           ------------------------------------
                                           Lawerence J. Jadlocki
                                           Vice President and Director

                                      -10-

<PAGE>

                                   EXHIBIT A

                                SUBJECT DEFAULTS

1.   Failure of Borrower to make payments of interest on Borrower's Obligations
     as required under subsections 2.2.3 and 2.4.1 on the first Business Day of
     February, March, April, May and June, 2001.

2.   Failure of Borrower to pay to Lenders the fees required to be paid under
     subsections 2.7.4, 2.7.5 and 2.7.6.

3.   Failure of Borrower to comply with the financial covenants set forth in
     Sections 7.18, 7.19 and 7.20 of the Loan Agreement for the quarters ended
     September 30, 2000, December 31, 2000 and March 31, 2001.

4.   Failure of Borrower to deliver the financial statements and other
     information required under subsections 6.3.1, 6.3.2, 6.3.4 and 6.3.5 for
     the year 2000 and for January, February, March and April of 2001.

5.   Default by Aquis Group of its obligations under the Aquis Group 11%
     Convertible Debenture.

                                      -11-

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