Document:

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Exhibit 10.3                   PURCHASE AGREEMENT

                  THIS AGREEMENT made as of the 30th day of June, 2000.

BETWEEN:

                           VXM INVESTMENTS LIMITED, a corporation incorporated
                           under the laws of the Cayman Islands ("VXM")

                           - and -

                           BALANCED CARE CORPORATION, a corporation incorporated
                           under the laws of Delaware (the "Corporation")

                  WHEREAS VXM ("Investor") has agreed with the Corporation that
Investor will subscribe for certain securities of the Corporation on the terms
and conditions set out in this Agreement;

                  NOW THEREFORE, in consideration of the mutual covenants herein
contained and other good and valuable consideration (the receipt and sufficiency
of which is hereby acknowledged by each of the parties), the parties, intending
to be legally bound hereby, agree as follows:

                                   ARTICLE I
                                 INTERPRETATION

1.1               Definitions

                  Unless otherwise defined herein, the terms used herein shall
have the meanings ascribed to such terms in the Convertible Debentures (as
defined below):

         "Agreement" means this agreement and all Schedules attached hereto;

         "Approvals" means all licenses, approvals, authorizations, permits,
         sanctions, rulings, orders, declarations, filings, registrations,
         certificates of need or consents from any Authority, self-regulatory
         organization, accrediting body or agency or any other Person necessary
         for the execution of this Agreement, the Closing or the performance of
         any terms hereof or any document delivered pursuant thereto or
<PAGE>   2
                                      -2-

         the completion of any of the transactions contemplated in this
         Agreement (including to avoid the breach of or default under any
         agreement, contract, instrument, lease, license or other document to
         which any of the Corporation and its subsidiaries are a party or by
         which any of them or their respective assets are bound);

         "Authority" means any governmental or regulatory authority, body,
         agency or department, whether federal, state, county, regional,
         municipal or local, including any stock exchange, having or asserting
         jurisdiction (including, but not limited to, by the imposition of any
         taxes) over the Corporation or any of its subsidiaries or over any part
         of their respective assets or business;

         "Convertible Debentures" means the unsecured convertible grid
         debentures of the Corporation, in the form attached as Schedule "A";

         "Closing" means the closing of the transactions contemplated hereby to
         occur on the Closing Date, in accordance with the terms hereof (as
         modified or waived by the parties hereto in accordance herewith);

         "Closing Date" means July 31, 2000, or such earlier date as may be
         designated by Investor, in its sole discretion, upon 2 Business Days'
         notice to the Corporation (provided that such earlier date may be again
         extended by Investor, from time to time, to no later than July 31,
         2000), or such other date as may be mutually agreed upon in writing by
         the parties;

         "NHP Lease" means, collectively, all leases among NHP and the
         Corporation and/or any of its affiliates;

         "Person" includes any individual, partnership, limited partnership,
         joint venture, syndicate, sole proprietorship, body corporate with or
         without share capital, unincorporated association, trust, trustee,
         executor, administrator, or other legal Personal representative and any
         Authority and all other legal and business entities or organizations of
         any kind;

         "Time of Closing" means the time that the Closing occurs;
<PAGE>   3
                                      -3-

1.2               Interpretation and Construction

                  Throughout this Agreement:

         (a)      nouns, pronouns and verbs shall be construed as masculine,
                  feminine, neuter, singular or plural, whichever shall be
                  applicable, and all adverbs shall be construed, where
                  applicable, consistently with the corresponding adjectives
                  which are defined in this Agreement;

         (b)      whenever the words "include", "includes" or "including" are
                  used in this Agreement, they are deemed to be followed by the
                  words "without limitation";

         (c)      any reference a statute shall mean the statute in force, as
                  amended from time to time, and any regulation in force
                  thereunder, unless otherwise expressly provided;

         (d)      any tender of documents or money under this Agreement may be
                  made upon the parties or their respective counsel and money
                  shall be tendered by wire transfer of immediately available
                  federal funds; and

         (e)      each agreement and obligation of any of the parties hereto in
                  this Agreement even though not expressed as a covenant, is
                  considered for all purposes to be a covenant.

1.3               Descriptive Headings

                  The descriptive headings herein are inserted for convenience
of reference only and shall in no way be construed to define, limit, describe,
explain, modify, amplify, or add to the interpretation, construction or meaning
of any provision of, or scope or intent of, this Agreement nor in any way affect
this Agreement.

1.4               No Third-Party Beneficiaries

                  This Agreement shall not benefit or create any right or cause
of action in or on behalf of any Person other than the parties hereto; provided,
however, that this Agreement will be binding upon, inure to the benefit of, and
be enforceable by, the parties and their respective successors and permitted
assigns.
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                                      -4-

1.5               References to Sections and Schedules

                  Unless otherwise specified, any reference in this Agreement to
a Section or Schedule refers to the specified Section of, or Schedule to, this
Agreement.

1.6               Ambiguity Not to be Interpreted Against Drafting Party

                  The parties acknowledge that their respective legal counsel
have reviewed and participated in settling the terms of this Agreement. In the
event an ambiguity or question of intent or interpretation arises, this
Agreement shall be construed as if drafted jointly by the parties and no
presumption or burden of proof shall arise favoring or disfavoring any party by
virtue of the authorship of any provisions of this Agreement.

1.7               Business Day

                  Unless this Agreement specifically provides otherwise, any act
to be done, any notice to be given or any period of time that is to expire on
any day that is not a Business Day shall be done, given or expire on the next
succeeding Business Day and, in the case of any payment of any monetary amount,
the extension of time shall be included for the purpose of computation of
interest.

1.8               Currency

                  All monetary amounts in this Agreement are deemed to be in
United States dollars.

                                   ARTICLE II
                                    PURCHASE

2.1               Subscription for Debentures

                  Subject to the terms and conditions of this Agreement,
Investor hereby agrees to purchase, on the Closing Date from the Corporation
Convertible Debentures in an aggregate face amount of $4,666,667 million at a
price equal to such face amount.

2.2               Description of Securities

                  The Convertible Debentures will have the terms, conditions and
provisions described in Schedule "A".
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                                      -5-

2.3               Acceptance of Investor' Subscription

                  The Corporation will accept in whole the subscription by
Investor described in this Agreement upon receipt of the purchase price paid by
Investor.

2.4               Closing

                  Delivery and payment for the Convertible Debentures will be
completed at 1215 Manor Drive, Mechanicsburg, Pennsylvania 17055 on the Closing
Date. The aggregate purchase price payable by Investor in respect of the
Convertible Debentures subscribed for by Investor shall be paid by wire transfer
of immediately available funds. Certificates representing the Convertible
Debentures subscribed for by Investor will be issued in the name(s) designated
by Investor to the Corporation and will be available for delivery to them on the
Closing Date upon payment of the purchase price therefor. Notwithstanding the
foregoing, Investor may elect to require that delivery of any portion of the
Convertible Debentures be completed in escrow for a period of up to 5 Business
Days, at the expiry of which escrow period Investor shall make payment for such
escrowed Convertible Debentures, and the escrow shall thereupon terminate and
all documents and payments shall be released.

2.5               Use of Proceeds

                  The Corporation and Investor agree that the use of the
proceeds (the "Proceeds") of the purchase of Convertible Debentures by Investor
will be as set out in the Convertible Debentures.

                                  ARTICLE III
                         REPRESENTATIONS AND WARRANTIES
                                  AND COVENANTS

3.1               Representations and Warranties of the Corporation

                  The Corporation hereby makes the representations and
warranties in the Convertible Debentures as of the date hereof (and acknowledges
that Investor is relying on such representations and warranties in entering into
this Agreement and the transactions contemplated hereby).

3.2               Pre-Closing Covenants of the Corporation

                  The Corporation agrees that, prior to the Closing, it will do
or will cause to be done the following:
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                                      -6-

         (a)      The Corporation shall cause its business as presently
                  conducted to be carried on in the ordinary and normal course
                  of business and in compliance with all Laws.

         (b)      Prior to the Closing Date, the Corporation shall obtain all
                  Approvals necessary for the Corporation to obtain in
                  connection with the completion of the transactions
                  contemplated by this Agreement.

         (c)      The Corporation shall consult with Investor and its
                  representatives during negotiation of the consent to be
                  obtained from NHP prior to Closing.

         (d)      The Corporation shall use all reasonable efforts to ensure
                  that the conditions of closing for the benefit of Investor set
                  forth in this Agreement have been fulfilled, performed and
                  satisfied on or prior to the Closing Date.

                                   ARTICLE IV
                                   CONDITIONS

4.1               Conditions to the Obligations of Investor

                  The obligations of Investor to complete the transactions
contemplated by this Agreement are subject to the satisfaction, prior to the
Closing Date, of the following conditions. The parties acknowledge and agree
that each of the following conditions is included for the exclusive benefit of
Investor and may be waived by Investor in whole or in part without prejudice to
its right to rely on any other conditions:

         (a)      the representations and warranties of the Corporation set out
                  in the Convertible Debentures shall be true and correct in all
                  material respects on the Closing Date and the Corporation
                  shall have delivered to Investor at the Time of Closing
                  certificates dated the Closing Date, duly executed by the
                  senior officers of the Corporation reasonably acceptable to
                  Investor, to such effect. The receipt of such certificates and
                  the closing of the transactions contemplated by this Agreement
                  shall not be nor be deemed to be a waiver of the
                  representations and warranties contained in the Convertible
                  Debentures, which representations and warranties shall
                  continue in full force and effect for the benefit of Investor
                  as provided in the Convertible Debentures;
<PAGE>   7
                                      -7-

         (b)      all of the terms, covenants, obligations and conditions of
                  this Agreement and the Convertible Debentures to be complied
                  with or performed by the Corporation on or before the Closing
                  Date shall have been complied with or performed in all
                  material respects, and the Corporation shall have delivered to
                  Investor at the Closing certificates dated the Closing Date,
                  duly executed by the senior officers of the Corporation
                  reasonably acceptable to Investor, to such effect;

         (c)      no action, suit or proceeding shall be pending or threatened
                  by any Authority or any other Person to restrain or prohibit
                  the completion of the transactions contemplated by this
                  Agreement or to prevent or restrain the Corporation, in any
                  material respect, from carrying on its business as presently
                  carried on;

         (d)      all actions, proceedings, instruments, documents and all other
                  legal matters relating to the subscriptions contemplated by
                  this Agreement shall have been approved as to form and
                  legality to the satisfaction of Investor's outside counsel,
                  acting reasonably, and all instruments and documents to be
                  delivered by the Corporation pursuant to this Agreement prior
                  to or on the Closing Date shall have been delivered prior to
                  or on the Closing Date; without limiting the generality of the
                  foregoing, the Corporation shall duly authorize the execution
                  and delivery of the Convertible Debentures and the performance
                  of its obligations thereunder and provide documentation
                  evidencing same to Investor, and, without notice or any action
                  by Investor, the Corporation shall prepare and file, as
                  required, any amendments to its constating documents and
                  by-laws necessitated by the execution and delivery of the
                  Convertible Debentures and the performance of the
                  Corporation's obligations thereunder;

         (e)      there shall have been no change, which has had or could
                  reasonably be expected to have, a Material Adverse Effect (as
                  defined in the Convertible Debentures) since the date of the
                  Audited Financial Statements (as defined in the Convertible
                  Debentures);

         (f)      the Board of Directors of the Corporation shall have approved
                  the terms of this Agreement and the consummation of the
                  transactions contemplated hereby,
<PAGE>   8
                                      -8-

                  including to an extent and in a manner sufficient to render
                  inapplicable to the transactions contemplated by this
                  Agreement the provisions of Section 203 of the General
                  Corporation Law of the State of Delaware;

         (g)      the Corporation shall have delivered to Investor at the
                  Closing Date an opinion of the Corporation's outside counsel
                  as to such matters as are reasonably requested by Investor's
                  outside counsel, all reasonably satisfactory in form,
                  substance and scope to Investor's outside counsel;

         (h)      the Corporation and Investor shall have executed and delivered
                  the Amended Registration Rights Agreement (as defined in the
                  Convertible Debentures) on the terms contemplated by the
                  Convertible Debentures and in a form reasonably satisfactory
                  to Investor's outside counsel, and when delivered hereunder
                  such Registration Rights Agreement will be a legal, valid,
                  binding and enforceable obligation of the Corporation, except
                  as the same may be limited by creditors rights laws and
                  general principles of equity;

         (i)      the Corporation shall have filed and delivered to the American
                  Stock Exchange ("AMEX") an additional listing application
                  (with respect to all common shares into which any of the
                  Convertible Debentures may be converted) in a form and on
                  terms reasonably satisfactory in form, substance and scope to
                  Investor's outside counsel, and shall use its best efforts to
                  ensure that such common shares become listed on AMEX;

         (j)      the Corporation shall have obtained all waivers, consents and
                  other Approvals of all Authorities and other third Persons
                  (including consent by NHP (such consent and all documentation
                  executed in connection therewith to be in form and substance
                  reasonably satisfactory to Investor and its outside counsel)
                  to the "change in control" (as defined in the NHP Lease)
                  caused by execution of the Convertible Debentures and the
                  completion of the transactions contemplated thereby) required
                  to complete the transactions contemplated by this Agreement
                  (and shall have provided evidence in form and substance
                  satisfactory to Investor, acting reasonably, that all such
                  waivers, consents and other Approvals have been obtained).
<PAGE>   9
                                      -9-

4.2               Non-Fulfillment of Conditions by the Corporation

                  If any of the conditions in Section 4.1 have not been
fulfilled or performed by the Corporation on or prior to the Closing Date,
Investor may terminate this Agreement by written notice to the Corporation
specifying that such termination is effected pursuant to this Section 4.2.
Investor shall then be released from all obligations hereunder. Any of the
foregoing conditions, however, may be waived in whole or in part by Investor,
without prejudice to its rights of termination in the event of the
non-fulfillment of any other condition or conditions any such waiver to be
binding on Investor only if given in writing.

4.3               Conditions to the Obligations of the Corporation

                  The obligations of the Corporation to complete the
transactions contemplated by this Agreement are subject to the satisfaction,
prior to the Closing Date, of the following conditions. The parties acknowledge
and agree that each of the following conditions is included for the exclusive
benefit of the Corporation and may be waived by the Corporation in whole or in
part without prejudice to its right to rely on any other conditions:

         (a)      all of the terms, covenants and conditions of this Agreement
                  to be complied with or performed by Investor on or before the
                  Closing Date shall have been complied with or performed;

         (b)      no action, suit or proceeding shall be pending or threatened
                  by any Authority or any other Person (including a party
                  hereto) to restrain or prohibit the completion of the
                  transactions contemplated by this Agreement or to prevent or
                  restrain the Corporation, in any material respect, from
                  carrying on its business as presently carried on;

         (c)      the closing (whether in escrow or otherwise) of the purchase
                  of additional Convertible Debentures, in an aggregate face
                  amount of U.S.$9,333,333 million on terms substantially
                  similar to the terms hereof, shall have occurred; and

         (d)      all actions, proceedings, instruments, documents and all other
                  legal matters relating to the subscriptions contemplated by
                  this Agreement shall have been approved as to form and
                  legality to the satisfaction of the Corporation's counsel,
                  acting reasonably, and
<PAGE>   10
                                      -10-

                  all instruments and documents to be delivered by Investor
                  pursuant to this Agreement prior to or on the Closing Date
                  shall have been delivered prior to or on the Closing Date.

4.4               Non-Fulfillment of Conditions by Investor

                  If any of the conditions in Section 4.3 have not been
fulfilled or performed by Investor on or prior to the Closing Date, the
Corporation may terminate this Agreement by written notice to Investor
specifying that such termination is effected pursuant to this Section 4.4. The
Corporation shall then be released from all obligations hereunder. Any of the
foregoing conditions may, however, be waived in whole or in part by the
Corporation without prejudice to its rights of termination in the event of the
non-fulfillment of any other condition or conditions, any such waiver to be
binding on the Corporation only if given in writing.

                                    ARTICLE V
                                     GENERAL

5.1               Invalidity of Provisions

                  Each of the provisions contained in this Agreement is distinct
and severable and a declaration of invalidity or unenforceability of any such
provision or part thereof by a court of competent jurisdiction shall not affect
the validity or enforceability of any other provision hereof.

5.2               Schedule 13D

                  The Investor shall file and deliver to the Securities and
Exchange Commission in accordance with applicable law such statements and
filings containing the information required under Regulation 13D-G and Section
16 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"),
which statements and filings will comply in all material respects as to form
with the requirements of the Exchange Act, and such statements and filings shall
not contain any untrue statement of material fact or omit to state any material
fact required to be stated therein or necessary to make statements therein, in
light of the circumstances under which they were made, not misleading and such
statements and filings shall not contain any untrue statement of material fact
or omit to state any material fact.
<PAGE>   11
                                      -11-

5.3               Amendment or Waiver

                  No amendment or waiver of this Agreement shall be binding
unless executed in writing by the party to be bound thereby. No waiver of any
provision of this Agreement shall constitute a waiver of any other provision nor
shall any waiver of any provision of this Agreement constitute a continuing
waiver unless otherwise expressly provided.

5.4               Time of Essence

                  Time shall be of the essence in this Agreement.

5.5               Entire Agreement

                  This Agreement constitutes the entire agreement among the
parties hereto relating to the subject matter hereof and supersedes all oral
statements and prior writings with respect hereto.

5.6               No Inconsistent Agreements

                  The Corporation will not hereafter enter into any agreement
which is inconsistent with, or would otherwise restrict the performance by the
Corporation of its obligations hereunder.

5.7               Successors and Assigns

                  This Agreement shall be binding on the Corporation and its
successors and shall enure to the benefit of Investor and its successors and
assigns. This Agreement may be assigned, in whole or in part, by Investor
without the consent of the Corporation. This Agreement may not be assigned by
the Corporation without the prior written consent of Investor, such consent not
to be unreasonably withheld.

5.8               Notice

                  Any notice or other communication required or permitted to be
given hereunder shall be in writing and shall be given by prepaid first-class
mail, by facsimile or other means of electronic communication or by
hand-delivery as hereinafter provided. Any such notice or other communication,
if mailed by prepaid first-class mail at any time other than during a general
discontinuance of postal service due to strike, lock-out or otherwise shall be
deemed to have been received on the fourth (4th) Business Day after the
post-marked date thereof, or if sent by facsimile or other means of electronic
communication,
<PAGE>   12
                                      -12-

shall be deemed to have been received on the Business Day following the sending,
or if delivery by hand shall be deemed to have been received at the time it is
delivered to the applicable address noted below either to the individual
designated below or to an individual at such address having apparent authority
to accept deliveries on behalf of the addressee. Notice of change of address
shall also be governed by this section. In the event of a general discontinuance
of postal service due to strike, lockout or otherwise, notices or other
communications shall be delivered by hand or sent by facsimile or other means of
electronic communication and shall be deemed to have been received in accordance
with this section. Notices and other communications shall be addressed as
follows:

         (a)      if to the Corporation

                      Balanced Care Corporation
                      1215 Manor Drive
                      Mechanicsburg, PA  17055
                      U.S.A.

                      Attention:      Robin L. Barber
                      Telecopier:     (717) 796-6294

                  with a copy to:

                      Kirkpatrick & Lockhart LLP
                      Henry W. Oliver Building
                      535 Smithfield Street
                      Pittsburgh, PA  15222
                      U.S.A.

                      Attention:      Kristen Larkin Stewart, Esq.
                      Telecopier:     (412) 355-6507

         (b)      if to Investor:

                      VXM Investments Limited
                      c/o Unsworth & Associates
                      Herengracht 483, 1017BT
                      Amsterdam, Netherlands
<PAGE>   13
                                      -13-

                      Attention:      J. B. Unsworth
                      Telecopier:     011-31-20-623-2285

                  with a copy to:

                      Manfred J. Walt
                      c/o Central Park Lodges
                      175 Bloor Street East
                      South Tower
                      Toronto, Ontario
                      M4W 3R8

                      Attention:      Manfred J. Walt
                      Telecopier:     (416) 323-3818

                  with a further copy to:

                      Goodman Phillips & Vineberg
                      250 Yonge Street, Suite 2400
                      Toronto, Ontario
                      M5B 2M6

                      Attention:      Stephen Pincus
                      Telecopier:     (416) 979-1234

5.9               Execution and Counterparts

                  For the convenience of the parties, this Agreement may be
executed by facsimile or otherwise in several counterparts, each of which when
so executed shall be, and be deemed to be, an original instrument and such
counterparts together shall constitute one in the same instrument.

5.10              Governing Law

                  THIS AGREEMENT SHALL BE GOVERNED AND CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE COMMONWEALTH OF PENNSYLVANIA (WITHOUT REGARD TO THE
CONFLICTS OF LAW PRINCIPLES THEREOF).

                  IN WITNESS WHEREOF the parties hereto have duly executed this
Agreement as of the date first above written.

                                        VXM INVESTMENTS LIMITED

                                        Per: /s/J.B. Unsworth
                                        J. B. Unsworth,
                                        Manager
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                                      -14-

                                        BALANCED CARE CORPORATION

                                        Per: /s/Brad E. Hollinger
                                        Name: Brad E. Hollinger
                                        Title: Chairman and CEO<PAGE>

                                                                   EXHIBIT 10.31

                        CONVERTIBLE PROMISSORY NOTE AND
                          WARRANT PURCHASE AGREEMENT

     This Convertible Promissory Note and Warrant Purchase Agreement (the
"Agreement") is made as of July 20, 1999 (the "Effective Date"), by and among
Applied Voice Recognition, Inc., a Delaware corporation doing business as e-
DOCS.net (the "Company"), and Greenwich, AG, a German company (the "Investor").

                                   RECITALS

     WHEREAS, the Investor desires to purchase from the Company, and the Company
desires to issue to the Investor, a Convertible Promissory Note in the form of
Exhibit A attached hereto (the "Note") in the aggregate principal amount of Five
Hundred Thousand and No/100 Dollars ($500,000.00); and

     WHEREAS, the Investor desires to purchase from the Company, and the Company
desires to issue to the Investor, a Warrant in the form of Exhibit B attached
hereto on the terms and conditions set forth herein (the "Warrant"), such
Warrant to purchase that number of shares of "Next Stock" (defined below) of the
Company as determined pursuant to the terms and conditions of this Agreement and
the Warrant.

                                   AGREEMENT

     NOW, THEREFORE, in consideration of the mutual covenants and agreements set
forth herein and for good and valuable consideration, the receipt and adequacy
of which are hereby acknowledged, the parties hereby agree as follows:

     1.   Purchase and Sale of Note and Warrant.
          -------------------------------------

          1.1  Sale and Issuance of Note and Warrant.  Subject to the terms and
               -------------------------------------
conditions of this Agreement, the Investor agrees to purchase at the Closing (as
defined below) and the Company agrees to sell and issue to the Investor at the
Closing (a) a Note in the form attached hereto as Exhibit A, in the principal
amount of Five Hundred Thousand and No/100 Dollars ($500,000.00), at a price
equal to 100% of the principal amount thereof, and (b) a Warrant to purchase
such variable number of shares of the Company's Next Stock in the form attached
hereto as Exhibit B.

          1.2  Closing.  The purchase and sale of the Note and the Warrant shall
               -------
take place at the offices of Gardere Wynne Sewell & Riggs, LLP, 333 Clay Avenue,
Suite 800, Houston, Texas 77002 at 2:00 p.m. on July 20, 1999, or at such other
time and place as the Company and the Investor shall mutually agree in writing
(which time and place are designated as the "Closing").

                                      -1-
<PAGE>

          1.3  Deliveries.  At the Closing, the Company shall deliver to the
               ----------
Investor the Note and the Warrant that the Investor is purchasing against
payment of Five Hundred Thousand and No/100 Dollars ($500,000.00) by wire
transfer of same day funds.

          1.4  Conversion of the Note.  Upon the Next Qualified Equity Financing
               ----------------------
(as defined below), the principal amount of the Note plus any accrued but unpaid
interest will be automatically converted into that number of shares of the
Company's Next Stock issued in the Next Qualified Equity Financing as is equal
to the then principal balance of the Note plus any accrued but unpaid interest
divided by the price per share of the Company's Next Stock; provided, however,
                                                            --------  -------
the amounts outstanding under the Note shall not be subject to conversion
without the written consent of the Investor unless, as of the closing of such
Next Qualified Equity Financing, the Chief Executive Officer candidate
previously identified to Greenwich, has entered into an employment contract with
the Company and commenced employment with the Company.

          1.5  Next Qualified Equity Financing.  The term Next Qualified Equity
               -------------------------------
Financing shall mean the next equity financing involving the receipt by the
Company of at least Four Million Five Hundred Thousand Dollars ($4,500,000)
(excluding amounts received on conversion of the Note, but including amounts
received on conversion of notes from other investors) which is completed on or
before November 24, 1999. If no such Next Qualified Equity Financing shall have
occurred by November 24, 1999, then the Note shall become due and payable upon
the election of the Holder.

          1.6  Next Stock.  The term "Next Stock" shall mean the stock into
               ----------
which the attached Note is convertible, and for which the attached Warrant is
exercisable. Next Stock shall be the same class and series and have the same
rights and limitations including, but not limited to, anti-dilution protection
and registration rights as the Company's stock, which is the subject of the Next
Qualified Equity Financing. The Investor shall not have any right to modify or
negotiate the terms upon which such stock is issued.

          1.7  Allocation of Purchase Price to the Warrant.  The Company hereby
               -------------------------------------------
allocates to the Warrant a purchase price of $0.01 for each share of Next Stock
that the Warrant is exercisable into and such purchase price shall be retained
by the Company from the principal of the Investor's Note by the Company and this
amount will not accrue interest or convert into any other security. Receipt of
such consideration is hereby acknowledged by the Company.

     2.   Representations and Warranties of the Company.  The Company hereby
          ---------------------------------------------
represents and warrants to and for the benefit of the Investor, with knowledge
that the Investor is relying thereon in entering into this Agreement and
purchasing the Note and the Warrant from the Company, that the following are
true and correct:

          2.1  Organization, Good Standing and Qualification.  The Company is a
               ---------------------------------------------
corporation duly organized, validly existing and in good standing under the laws
of the State of Delaware, and has all requisite corporate power and authority to
carry on its business as now conducted and as proposed to be conducted.  The
Company is duly qualified to transact

                                      -2-
<PAGE>

business and is in good standing in each jurisdiction in which the failure to so
qualify would have a material adverse effect on the operation of its business or
properties.

          2.2  Authorization.  All corporate action on the part of the Company,
               -------------
its officers, directors and stockholders necessary for the authorization,
execution and delivery of this Agreement, the Note and the Warrant, and the
performance of all obligations of the Company thereunder has been taken or will
be taken prior to the Closing, and this Agreement, the Note and the Warrant
constitute valid and legally binding obligations of the Company, enforceable
against the Company in accordance with their respective terms, except (a) as
limited by applicable bankruptcy, insolvency, reorganization, moratorium and
other laws of general application affecting enforcement of creditors' rights
generally, (b) as limited by laws relating to the availability of specific
performance, injunctive relief or other equitable remedies, and (c) to the
extent the indemnification provisions, if any, contained in any of such
documents may be limited by applicable federal or state securities laws.

          2.3  Valid Issuance of Next Stock.  The shares of Next Stock of the
               ----------------------------
Company issuable upon the exercise of the Warrant which may be purchased by the
Investor pursuant to this Agreement have been or will be duly and validly
reserved for issuance and, upon issuance in accordance with the terms of the
Warrant shall be duly and validly issued, fully paid and nonassessable, and
issued in compliance with all applicable securities laws, as presently in
effect, of the United States and each of the states whose securities laws govern
the issuance of any of the Warrant pursuant to this Agreement.

          2.4  Governmental Consents.  No consent, approval, order or
               ---------------------
authorization of, or registration, qualification, designation, declaration or
filing with, any federal, state, local or provincial governmental authority on
the part of the Company is required in connection with the consummation of the
transactions contemplated by this Agreement and such other filings as may be
required by applicable state securities laws.

          2.5  Compliance with Other Instruments.  The Company is not in
               ---------------------------------
material violation or default of any provisions of its Certificate of
Incorporation or Bylaws or of any instrument, judgment, order, writ, decree or
contract to which it is a party or by which it is bound or, to its knowledge, of
any provision of federal or state statute, rule or regulation applicable to the
Company or otherwise in breach of any of the terms or conditions of any contract
or agreement which breach, either individually or in the aggregate, could
reasonably be expected to have a materially adverse effect on the business,
properties, financial condition or results of operations of the Company. To the
Company's knowledge, no other party to any of its material contracts or
agreements is in material default under any such contract or agreement. The
execution, delivery and performance of this Agreement, the Note and the Warrant,
and the consummation of the transactions contemplated hereby and thereby shall
not result in any such material violation or be in conflict with or constitute,
with or without the passage of time and giving of notice, either a default under
any such provision, instrument, judgment, order, writ, decree or contract or an
event that results in the creation of any lien, charge or encumbrance upon any
assets of the Company or the suspension, revocation,

                                      -3-
<PAGE>

impairment, forfeiture or nonrenewal of any material permit, license,
authorization or approval applicable to the Company, its business or operations
or any of its assets or properties.

          2.6  Disclosure.  The Company has fully provided the Investor with all
               ----------
the material information which the Investor has requested for deciding whether
to purchase the Note and the Warrant and all material information which the
Company believes is reasonably necessary to enable the Investor to make such
decision. Neither this Agreement nor any other written statements or
certificates made or delivered in connection herewith or therewith contains any
untrue statement of material fact or omits to state a material fact necessary to
make the statements in this Agreement or therein not misleading.

     3.   Representations and Warranties of the Investor.  The Investor hereby
          ----------------------------------------------
represents and warrants to and for the benefit of the Company, with knowledge
that the Company is relying thereon in entering into this Agreement and issuing
the Note and the Warrant to the Investor, as follows:

          3.1  Purchase Entirely for Own Account.  By the Investor's execution
               ---------------------------------
of this Agreement, the Investor hereby confirms that the Note and Warrant to be
received by the Investor, the Next Stock issuable upon conversion of the Note,
and the Next Stock issuable upon exercise of the Warrant (collectively, the
"Securities") shall be acquired for investment for the Investor's own account,
not as a nominee or agent, and not with a view to the resale or distribution of
any part thereof, and that the Investor has no present intention of selling,
granting any participation in, or otherwise distributing the same. By executing
this Agreement, the Investor further represents that the Investor does not have
any contract, undertaking, agreement or arrangement with any person to sell,
transfer or grant participation to such person or to any third person, with
respect to any of the Securities.  The Investor represents that it has full
power and authority to enter into this Agreement.

          3.2  Investment Experience.  The Investor is an investor in securities
               ---------------------
of companies in the development stage and acknowledges that it is able to fend
for itself, can bear the economic risk of its investment and has such knowledge
and experience in financial or business matters that it is capable of evaluating
the merits and risks of the investment in the Securities.

          3.3  Accredited Investor.  The Investor is an "accredited investor"
               -------------------
within the meaning of Securities and Exchange Commission Rule 501 of Regulation
D, as now in effect.

          3.4  Restricted Securities.  The Investor understands that the
               ---------------------
Securities it is and shall be purchasing are characterized as "restricted
securities" under the federal securities laws inasmuch as they are being
acquired from the Company in a transaction not involving a public offering and
that under such laws and applicable regulations such securities may be resold
without registration under the Securities Act of 1933, as amended (the "Act"),
only in certain limited circumstances. In this connection, the Investor
represents that it is familiar with Rule 144 promulgated under the Act, as now
in effect, and understands the resale limitations imposed thereby and by the
Act.

                                      -4-
<PAGE>

          3.5  Legends.  The Investor understands that the certificates
               -------
evidencing the Securities may bear one or all of the following legends:

               (a)  The securities evidenced by this certificate have not been
registered under the Securities Act of 1933, as amended (the "Act") or the
securities laws of any state of the United States. The securities evidenced by
this certificate may not be offered, sold or transferred for value directly or
indirectly, in the absence of such registration under the Act and qualification
under applicable state laws, or pursuant to an exemption from registration under
the Act and qualification under applicable state laws, the availability of which
is to be established to the reasonable satisfaction of the Company.

               (b)  Any legend required by the laws of the states of Delaware.

               (c)  Any legend required to be placed on the Securities purchased
by Investor in any future sale or offering of any Securities.

               (d)  A legend memorializing Section 5 below.

     4.   Restrictions on Disposition.  Without in any way limiting the
          ---------------------------
representations set forth in Section 3 above, the Investor further agrees not to
make any disposition of all or any portion of the Securities unless and until
the transferee has agreed in writing for the benefit of the Company to be bound
by this Section 4, and in addition thereto, one of the following conditions is
satisfied:

          4.1  Securities Registered.  There is then in effect a registration
               ---------------------
statement under the Act covering such proposed disposition and such disposition
is made in accordance with such registration statement.

          4.2  Registration Not Required.  The Investor shall have (i) notified
               -------------------------
the Company of the proposed disposition and shall have furnished the Company
with a detailed statement of the circumstances surrounding the proposed
disposition and (ii) if reasonably requested by the Company, furnished the
Company with an opinion of counsel, reasonably satisfactory to the Company, that
such disposition will not require registration of such securities under the Act;
provided, however, that the Company will not require opinions of counsel for
transactions made pursuant to Rule 144, except in unusual circumstances.

     5.   Market Stand-Off Agreement.  During the period of duration (not to
          --------------------------
exceed 180 days) specified by the Company and an underwriter of Common Stock or
other securities of the Company, following the effective date of a registration
statement of the Company filed under the Act, the Investor shall not, to the
extent requested by the Company and such underwriter, directly or indirectly
sell, offer to sell, contract to sell (including, without limitation, any short
sale), grant any option to purchase or otherwise transfer or dispose of (other
than to transferees or donees who agree to be similarly bound) any securities of
the Company constituting Next Stock; provided, however, that this Section 5
shall be applicable (a) only to the first two such registration statements of
the Company pursuant to which Common Stock (or other securities) of the Company
are to be sold on its behalf to the public in

                                      -5-
<PAGE>

an underwritten offering, and (b) only if all officers and directors of the
Company and all persons with registration rights enter into similar agreements.
In order to enforce the foregoing covenant, the Company may impose stop-transfer
instructions with respect to the Common Stock of the Investor (and the shares or
securities of every other person subject to the foregoing restriction) until the
end of such period.

     6.   General Provisions.
          ------------------

          6.1  Construction.  This Agreement shall be governed, construed and
               ------------
enforced in accordance with the internal laws of the State of Texas, without
giving effect to its conflicts of laws or principles.

          6.2  Entire Agreement.  This Agreement, together with the agreements
               ----------------
and documents referred to herein, constitute the entire agreement among the
parties hereto with respect to the subject matter hereof and supersede all prior
and contemporaneous negotiations, agreements and understandings.

          6.3  Notices.  All payments, notices, requests, demands and other
               -------
communications hereunder shall be in writing and shall be deemed to have been
duly given at the earlier of (i) the time of actual delivery or (ii) on the
third business day following the date deposited with the United States Postal
Service, postage prepaid, certified with return receipt requested, to the
parties at the following addresses or at such other address as shall be given in
writing by a party to the other parties as set forth on the signature page.

          6.4  Successors and Assigns.  This Agreement, and the rights and
               ----------------------
obligations of each of the parties hereunder, may not be assigned by the
Investor without the prior written consent of the Company. Subject to the
foregoing sentence, this Agreement shall inure to the benefit of, and shall be
binding upon, the parties and their successors and assigns.

          6.5  Severability.  If any term, covenant or condition of this
               ------------
Agreement is held to be invalid, void or otherwise unenforceable by any court of
competent jurisdiction, the remainder of this Agreement shall not be affected
thereby and the term, covenant and condition of this Agreement shall be valid
and enforceable to the fullest extent permitted by law.

          6.6  Modification.  Any term of this Agreement may be amended and the
               ------------
observance of any term of this Agreement may be waived (either generally or in a
particular instance and either retroactively or prospectively), with the written
consent of the Company and the Investor. Any amendment or waiver effected in
accordance with this Section shall be binding upon all parties to this
Agreement, including, without limitation, any holder who may not have executed
such amendment or waiver, and each future holder of any equity security into
which the Note is convertible and/or any holder of Next Stock that is received
upon the exercise of the Warrant.

          6.7  Attorney's Fees.  If any action of law or in equity is necessary
               ---------------
to enforce or interpret the terms of this Agreement, the prevailing party shall
be entitled to an award of its

                                      -6-
<PAGE>

reasonable attorneys' fees, costs and disbursements in addition to any other
relief to which such party may be entitled.

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

               [REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

                                      -7-
<PAGE>

     IN WITNESS WHEREOF, the undersigned have executed this Agreement to be
effective as of the Effective Date.

COMPANY:

APPLIED VOICE RECOGNITION, INC.,
a Delaware corporation, d/b/a e-DOCS.net

By: /s/ Richard A. Cabrera
   -------------------------------------------
   Richard A. Cabrera, Chief Financial Officer

Address:
4615 Post Oak Place
Suite 111
Houston, TX 77027

INVESTOR:

Greenwich, AG,
a German company

By: /s/ Daniel Dornier
    ------------------------------------------
   Name: Daniel Dornier
        --------------------------------------
   Title: Chief Executive Officer
         -------------------------------------
Address:
Neuer Wall 32
20354 Hamburg, Germany

                              [SIGNATURE PAGE TO
                          CONVERTIBLE PROMISSORY NOTE
                        AND WARRANT PURCHASE AGREEMENT]

                                      -8-
<PAGE>

                                   EXHIBIT A

                                  FORM OF NOTE
<PAGE>

                                   EXHIBIT B

                                FORM OF WARRANT

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