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                                                                     EXHIBIT 4.1

             THE AMENDED AND RESTATED 1998 EQUITY PARTICIPATION PLAN
                                       OF
                            NEXTERA ENTERPRISES, INC.
                (AS AMENDED AND RESTATED EFFECTIVE MAY 30, 2001)

               Nextera Enterprises, Inc., a Delaware corporation, has adopted
The Amended and Restated 1998 Equity Participation Plan of Nextera Enterprises,
Inc. (the "Plan"), effective May 30, 2001, which amends and restates The Amended
and Restated 1998 Equity Participation Plan of Nextera Enterprises, Inc., which
was adopted effective April 29, 2000, which amends and restates The 1998 Equity
Participation Plan of Nextera Enterprises, Inc., which was adopted effective
December 30, 1998, for the benefit of its eligible employees, consultants and
directors.

               The purposes of the Plan are as follows:

               (1) To provide an additional incentive for directors, key
Employees and Consultants (as such terms are defined below) to further the
growth, development and financial success of the Company by personally
benefiting through the ownership of Company stock and/or rights which recognize
such growth, development and financial success.

               (2) To enable the Company to obtain and retain the services of
directors, key Employees and Consultants considered essential to the long range
success of the Company by offering them an opportunity to own stock in the
Company and/or rights which will reflect the growth, development and financial
success of the Company.

                                   ARTICLE I.

                                   DEFINITIONS

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

               1.2. Administrator. "Administrator" shall mean the entity that
conducts the general administration of the Plan as provided herein. With
reference to the administration of the Plan with respect to Options granted to
Independent Directors, the term "Administrator" shall refer to the Board. With
reference to the administration of the Plan with respect to any other Award, the
term "Administrator" shall refer to the Committee (or a delegate of the
Committee under Section 10.5) unless the Board has assumed the authority for
administration of the Plan generally as provided in Section 10.1.

               1.3. Award. "Award" shall mean an Option, a Restricted Stock
award, a Performance Award, a Dividend Equivalents award, a Deferred Stock
award, a Stock Payment award or a Stock Appreciation Right which may be awarded
or granted under the Plan (collectively, "Awards").

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               1.4. Award Agreement. "Award Agreement" shall mean a written
agreement executed by an authorized officer of the Company and the Holder which
shall contain such terms and conditions with respect to an Award as the
Administrator shall determine, consistent with the Plan.

               1.5. Award Limit. "Award Limit" shall mean 3,000,000 shares of
Class A Common Stock, as adjusted pursuant to Section 11.3 of the Plan.

               1.6. Board. "Board" shall mean the Board of Directors of the
Company.

               1.7. Change in Control. "Change in Control" shall mean a change
in ownership or control of the Company effected through any of the following
transactions:

                      (a) any person or related group of persons (other than the
        Company or a person that, prior to such transaction, directly or
        indirectly controls, is controlled by, or is under common control with,
        the Company) directly or indirectly acquires beneficial ownership
        (within the meaning of Rule 13d-3 under the Exchange Act) of securities
        possessing more than fifty percent (50%) of the total combined voting
        power of the Company's outstanding securities pursuant to a tender or
        exchange offer made directly to the Company's stockholders which the
        Board does not recommend such stockholders to accept;

                      (b) there is a change in the composition of the Board over
        a period of thirty-six (36) consecutive months (or less) such that a
        majority of the Board members (rounded up to the nearest whole number)
        ceases, by reason of one or more proxy contests for the election of
        Board members, to be comprised of individuals who either (i) have been
        Board members continuously since the beginning of such period or (ii)
        have been elected or nominated for election as Board members during such
        period by at least a majority of the Board members described in clause
        (i) who were still in office at the time such election or nomination was
        approved by the Board;

                      (c) the consummation of a merger or consolidation of the
        Company with any other corporation (or other entity), other than a
        merger or consolidation which would result in the voting securities of
        the Company outstanding immediately prior thereto continuing to
        represent (either by remaining outstanding or by being converted into
        voting securities of the surviving entity) more than 66-2/3% of the
        combined voting power of the voting securities of the Company or such
        surviving entity outstanding immediately after such merger or
        consolidation; provided, however, that a merger or consolidation
        effected to implement a recapitalization of the Company (or similar
        transaction) in which no person acquires more than 25% of the combined
        voting power of the Company's then outstanding securities shall not
        constitute a Change in Control; or

                      (d) the stockholders of the Company approve a plan of
        complete liquidation of the Company or an agreement for the sale or
        disposition by the Company of all or substantially all of the Company's
        assets.

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               1.8. Code. "Code" shall mean the Internal Revenue Code of 1986,
as amended.

               1.9. Committee. "Committee" shall mean the Compensation Committee
of the Board, or another committee or subcommittee of the Board, appointed as
provided in Section 10.1.

               1.10. Class A Common Stock. "Class A Common Stock" shall mean the
Class A Common Stock of the Company, par value $0.001 per share, and any equity
security of the Company issued or authorized to be issued in the future, but
excluding any preferred stock and any warrants, options or other rights to
purchase Class A Common Stock.

               1.11. Common Stock. "Common Stock" shall mean the Class A Common
Stock of the Company, par value $0.001 per share, and the Class B Common Stock
of the Company, par value $0.001 per share, and any equity security of the
Company issued or authorized to be issued in the future, but excluding any
preferred stock and any warrants, options or other rights to purchase Common
Stock.

               1.12. Company. "Company" shall mean Nextera Enterprises, Inc., a
Delaware corporation.

               1.13. Consultant. "Consultant" shall mean any consultant or
adviser if:

                      (a) the consultant or adviser renders bona fide services
        to the Company;

                      (b) the services rendered by the consultant or adviser are
        not in connection with the offer or sale of securities in a
        capital-raising transaction and do not directly or indirectly promote or
        maintain a market for the Company's securities; and

                      (c) the consultant or adviser is a natural person who has
        contracted directly with the Company to render such services.

               1.14. Deferred Stock. "Deferred Stock" shall mean Class A Common
Stock awarded under Article VIII of the Plan.

               1.15. Director. "Director" shall mean a member of the Board.

               1.16. Dividend Equivalent. "Dividend Equivalent" shall mean a
right to receive the equivalent value (in cash or Class A Common Stock) of
dividends paid on Class A Common Stock, awarded under Article VIII of the Plan.

               1.17. Disability. "Disability" shall mean, with respect to any
Holder, (i) the suffering of any mental or physical illness, disability or
incapacity that shall in all material aspects preclude such Holder from
performing his or her employment or consultant duties, or (ii) the absence of
such Holder from his or her employment or consultant duties by reason of any
mental or physical illness, disability or incapacity for a period of ninety (90)
days during any one

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hundred twenty (120) day period; provided, however, in either case, that such
illness, disability or incapacity shall be reasonably determined to be of a
permanent nature by a licensed, board certified physician.

               1.18. DRO. "DRO" shall mean a domestic relations order as defined
by the Code or Title I of the Employee Retirement Income Security Act of 1974,
as amended, or the rules thereunder.

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

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

               1.21. Fair Market Value. "Fair Market Value" of a share of Class
A Common Stock as of a given date shall be (a) the average closing price of a
share of Class A Common Stock on the principal exchange on which shares of Class
A Common Stock are then trading, if any (or as reported on any composite index
which includes such principal exchange), on the ten most current trading days
immediately prior to such date, or (b) if Class A Common Stock is not traded on
an exchange but is quoted on NASDAQ or a successor quotation system, the average
mean between the closing representative bid and asked prices for the Class A
Common Stock on the ten (10) most recent trading days immediately prior to such
date as reported by NASDAQ or such successor quotation system; or (c) if Class A
Common Stock is not publicly traded on an exchange and not quoted on NASDAQ or a
successor quotation system, the Fair Market Value of a share of Class A Common
Stock as established by the Administrator acting in good faith. The
Administrator shall determine the Fair Market Value at least once each calendar
quarter and such determination shall apply until the Administrator has made
another determination of Fair Market Value.

               1.22. Holder. "Holder" shall mean a person who has been granted
or awarded an Award.

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

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

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

               1.26. Option. "Option" shall mean a stock option granted under
Article IV of the Plan. An Option granted under the Plan shall, as determined by
the Administrator, be either a Non-Qualified Stock Option or an Incentive Stock
Option; provided, however, that Options granted to Independent Directors and
Consultants shall be Non-Qualified Stock Options.

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               1.27. Performance Award. "Performance Award" shall mean a cash
bonus, stock bonus or other performance or incentive award that is paid in cash,
Class A Common Stock or a combination of both, awarded under Article VIII of the
Plan.

               1.28. Performance Criteria. "Performance Criteria" shall mean the
following business criteria with respect to the Company, any Subsidiary or any
division or operating unit: (a) net income, (b) pre-tax income, (c) operating
income, (d) cash flow, (e) earnings per share, (f) return on equity, (g) return
on invested capital or assets, (h) cost reductions or savings, (i) funds from
operations, (j) appreciation in the fair market value of Class A Common Stock
and (k) earnings before any one or more of the following items: interest, taxes,
depreciation or amortization.

               1.29. Plan. "Plan" shall mean The 1998 Equity Participation Plan
of Nextera Enterprises, Inc.

               1.30. Restricted Stock. "Restricted Stock" shall mean Class A
Common Stock awarded under Article VII of the Plan.

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

               1.32. Section 162(m) Participant. "Section 162(m) Participant"
shall mean any key Employee designated by the Administrator as a key Employee
whose compensation for the fiscal year in which the key Employee is so
designated or a future fiscal year may be subject to the limit on deductible
compensation imposed by Section 162(m) of the Code.

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

               1.34. Stock Appreciation Right. "Stock Appreciation Right" shall
mean a stock appreciation right granted under Article IX of the Plan.

               1.35. Stock Payment. "Stock Payment" shall mean (a) a payment in
the form of shares of Class A Common Stock, or (b) an option or other right to
purchase shares of Class A Common Stock, as part of a deferred compensation
arrangement, made in lieu of all or any portion of the compensation, including
without limitation, salary, bonuses and commissions, that would otherwise become
payable to a key Employee or Consultant in cash, awarded under Article VIII of
the Plan.

               1.36. Subsidiary. "Subsidiary" shall mean (a) any corporation in
an unbroken chain of corporations beginning with the Company if each of the
corporations other than the last corporation in the unbroken chain then owns
stock possessing 50% or more of the total combined voting power of all classes
of stock in one of the other corporations in such chain, (b) any partnership in
which the Company is a general partner, (c) any limited liability company in
which the Company is a managing member, or (d) any partnership or limited
liability company in which the Company possesses a 50% or greater interest in
the total capital or total income of such partnership.

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               1.37. Substitute Award. "Substitute Award" shall mean an Option
granted under this Plan upon the assumption of, or in substitution for,
outstanding equity awards previously granted by a company or other entity in
connection with a corporate transaction, such as a merger, combination,
consolidation or acquisition of property or stock; provided, however, that in no
event shall the term "Substitute Award" be construed to refer to an award made
in connection with the cancellation and repricing of an Option.

               1.38. Termination for Cause. "Termination for Cause" shall mean
the time when the employee-employer or Consultant-employer relationship between
a Holder and the Company or any Subsidiary is terminated for cause, as
termination for cause is defined in the Holder's employment or consultancy
agreement; provided however, that if termination for cause is not therein
defined, the following shall constitute "Cause" for the termination of the
Holder's employee-employer or Consultant-client relationship:

                      (a) material dishonest statements or acts of the Holder
        with respect to the Company or any affiliate of the Company;

                      (b) indictment of the Holder for (i) a felony or (ii) any
        misdemeanor involving moral turpitude, deceit, dishonesty or fraud
        ("indictment," for these purposes, meaning an indictment, probable cause
        hearing or any other procedure pursuant to which an initial
        determination of probable or reasonable cause with respect to such
        offense is made);

                      (c) willful misconduct by the Holder after three (3) days
        written notice and an opportunity to cure;

                      (d) gross negligence, or willful failure or refusal of the
        Holder to comply with explicit directions of the Board after fifteen
        (15) days written notice and an opportunity to cure.

               In making any determination under this Section 1.38 the Board
shall act fairly and in good faith and shall give the Holder an opportunity to
appear and be heard at a meeting of the Board or any committee thereof and
present evidence on his behalf.

               1.39. Termination of Consultancy. "Termination of Consultancy"
shall mean the time when the engagement of a Holder as a Consultant to the
Company or a Subsidiary is terminated for any reason, with or without cause,
including, but not by way of limitation, by resignation, discharge, death or
retirement; but excluding terminations where there is a simultaneous
commencement of employment with the Company or any Subsidiary. The
Administrator, in its absolute discretion, shall determine the effect of all
matters and questions relating to Termination of Consultancy, including, but not
by way of limitation, the question of whether a Termination of Consultancy
resulted from a discharge for good cause, and all questions of whether a
particular leave of absence constitutes a Termination of Consultancy.
Notwithstanding any other provision of the Plan, the Company or any Subsidiary
has an absolute and unrestricted right to terminate a Consultant's service at
any time for any reason whatsoever, with or without cause, except to the extent
expressly provided otherwise in writing.

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

               1.41. Termination of Employment. "Termination of Employment"
shall mean the time when the employee-employer relationship between a Holder and
the Company or any Subsidiary is terminated for any reason, with or without
cause, including, but not by way of limitation, a termination by resignation,
discharge, death, Disability or retirement; but excluding (a) terminations where
there is a simultaneous reemployment or continuing employment of a Holder by the
Company or any Subsidiary, (b) at the discretion of the Administrator,
terminations which result in a temporary severance of the employee-employer
relationship, and (c) at the discretion of the Administrator, terminations which
are followed by the simultaneous establishment of a consulting relationship by
the Company or a Subsidiary with the former employee. The Administrator, in its
absolute discretion, shall determine the effect of all matters and questions
relating to Termination of Employment, including, but not by way of limitation,
the question of whether a Termination of Employment resulted from a discharge
for good cause, and all questions of whether a particular leave of absence
constitutes a Termination of Employment; provided, however, that, with respect
to Incentive Stock Options, unless otherwise determined by the Administrator in
its discretion, a leave of absence, change in status from an employee to an
independent contractor or other change in the employee-employer relationship
shall constitute a Termination of Employment if, and to the extent that, such
leave of absence, change in status or other change interrupts employment for the
purposes of Section 422(a)(2) of the Code and the then applicable regulations
and revenue rulings under said Section.

                                   ARTICLE II.

                             SHARES SUBJECT TO PLAN

               2.1. Shares Subject to Plan.

                      (a) The shares of stock subject to Awards shall be Class A
        Common Stock, initially shares of the Company's Class A Common Stock,
        par value $0.001 per share. The aggregate number of such shares which
        may be issued upon exercise of such Options or rights or upon any such
        awards under the Plan shall not exceed Nineteen Million (19,000,000).
        The shares of Class A Common Stock issuable upon exercise of such
        Options or rights or upon any such awards may be either previously
        authorized but unissued shares or treasury shares.

                      (b) The maximum number of shares which may be subject to
        Awards, granted under the Plan to any individual in any calendar year
        shall not exceed the Award Limit. To the extent required by Section
        162(m) of the Code, shares subject to Options which are canceled
        continue to be counted against the Award Limit.

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               2.2. Add-back of Options and Other Rights. If any Option, or
other right to acquire shares of Class A Common Stock under any other Award
under the Plan, expires or is canceled without having been fully exercised, or
is exercised in whole or in part for cash as permitted by the Plan, the number
of shares subject to such Option or other right but as to which such Option or
other right was not exercised prior to its expiration, cancellation or exercise
may again be optioned, granted or awarded hereunder, subject to the limitations
of Section 2.1. Furthermore, any shares subject to Awards which are adjusted
pursuant to Section 11.3 and become exercisable with respect to shares of stock
of another corporation shall be considered canceled and may again be optioned,
granted or awarded hereunder, subject to the limitations of Section 2.1. Shares
of Class A Common Stock which are delivered by the Holder or withheld by the
Company upon the exercise of any Award under the Plan, in payment of the
exercise price thereof or tax withholding thereon, may again be optioned,
granted or awarded hereunder, subject to the limitations of Section 2.1. If any
shares of Restricted Stock are surrendered by the Holder or repurchased by the
Company pursuant to Section 7.4 or 7.5 hereof, such shares may again be
optioned, granted or awarded hereunder, subject to the limitations of Section
2.1. Notwithstanding the provisions of this Section 2.2, no shares of Class A
Common Stock may again be optioned, granted or awarded if such action would
cause an Incentive Stock Option to fail to qualify as an incentive stock option
under Section 422 of the Code.

                                  ARTICLE III.

                               GRANTING OF AWARDS

               3.1. Award Agreement. Each Award shall be evidenced by an Award
Agreement. Award Agreements evidencing Awards intended to qualify as
performance-based compensation as described in Section 162(m)(4)(C) of the Code
shall contain such terms and conditions as may be necessary to meet the
applicable provisions of Section 162(m) of the Code. Award Agreements evidencing
Incentive Stock Options shall contain such terms and conditions as may be
necessary to meet the applicable provisions of Section 422 of the Code.

               3.2. Provisions Applicable to Section 162(m) Participants.

                      (a) The Committee, in its discretion, may determine
        whether an Award is to qualify as performance-based compensation as
        described in Section 162(m)(4)(C) of the Code.

                      (b) Notwithstanding anything in the Plan to the contrary,
        the Committee may grant any Award to a Section 162(m) Participant,
        including Restricted Stock the restrictions with respect to which lapse
        upon the attainment of performance goals which are related to one or
        more of the Performance Criteria and any performance or incentive award
        described in Article VIII that vests or becomes exercisable or payable
        upon the attainment of performance goals which are related to one or
        more of the Performance Criteria.

                      (c) To the extent necessary to comply with the
        performance-based compensation requirements of Section 162(m)(4)(C) of
        the Code, with respect to any

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        Award granted under Articles VII and VIII which may be granted to one or
        more Section 162(m) Participants, no later than ninety (90) days
        following the commencement of any fiscal year in question or any other
        designated fiscal period or period of service (or such other time as may
        be required or permitted by Section 162(m) of the Code), the Committee
        shall, in writing, (i) designate one or more Section 162(m)
        Participants, (ii) select the Performance Criteria applicable to the
        fiscal year or other designated fiscal period or period of service,
        (iii) establish the various performance targets, in terms of an
        objective formula or standard, and amounts of such Awards, as
        applicable, which may be earned for such fiscal year or other designated
        fiscal period or period of service and (iv) specify the relationship
        between Performance Criteria and the performance targets and the amounts
        of such Awards, as applicable, to be earned by each Section 162(m)
        Participant for such fiscal year or other designated fiscal period or
        period of service. Following the completion of each fiscal year or other
        designated fiscal period or period of service, the Committee shall
        certify in writing whether the applicable performance targets have been
        achieved for such fiscal year or other designated fiscal period or
        period of service. In determining the amount earned by a Section 162(m)
        Participant, the Committee shall have the right to reduce (but not to
        increase) the amount payable at a given level of performance to take
        into account additional factors that the Committee may deem relevant to
        the assessment of individual or corporate performance for the fiscal
        year or other designated fiscal period or period of service.

                      (d) Furthermore, notwithstanding any other provision of
        the Plan or any Award which is granted to a Section 162(m) Participant
        and is intended to qualify as performance-based compensation as
        described in Section 162(m)(4)(C) of the Code shall be subject to any
        additional limitations set forth in Section 162(m) of the Code
        (including any amendment to Section 162(m) of the Code) or any
        regulations or rulings issued thereunder that are requirements for
        qualification as performance-based compensation as described in Section
        162(m)(4)(C) of the Code, and the Plan shall be deemed amended to the
        extent necessary to conform to such requirements.

               3.3. Limitations Applicable to Section 16 Persons.
Notwithstanding any other provision of the Plan, the Plan, and any Award granted
or awarded to any individual who is then subject to Section 16 of the Exchange
Act, shall be subject to any additional limitations set forth in any applicable
exemptive rule under Section 16 of the Exchange Act (including any amendment to
Rule 16b-3 of the Exchange Act) that are requirements for the application of
such exemptive rule. To the extent permitted by applicable law, the Plan and
Awards granted or awarded hereunder shall be deemed amended to the extent
necessary to conform to such applicable exemptive rule.

               3.4. Consideration. In consideration of the granting of an Award
under the Plan, the Holder shall agree, in the Award Agreement, to render
faithful and efficient services to the Company or a Subsidiary.

               3.5. At-Will Employment. Nothing in the Plan or in any Award
Agreement hereunder shall confer upon any Holder any right to continue in the
employ of, or as a Consultant for, the Company or any Subsidiary, or as a
director of the Company, or shall interfere with or

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restrict in any way the rights of the Company and any Subsidiary, which are
hereby expressly reserved, to discharge any Holder at any time for any reason
whatsoever, with or without cause, except to the extent expressly provided
otherwise in a written employment agreement between the Holder and the Company
and any Subsidiary.

                                   ARTICLE IV.

                        GRANTING OF OPTIONS TO EMPLOYEES,
                      CONSULTANTS AND INDEPENDENT DIRECTORS

               4.1. Eligibility. Any Employee or Consultant selected by the
Committee pursuant to Section 4.4(a)(i) shall be eligible to be granted an
Option. Each Independent Director of the Company shall be eligible to be granted
Options at the times and in the manner set forth in Section 4.5.

               4.2. Disqualification for Stock Ownership. No person may be
granted an Incentive Stock Option under the Plan if such person, at the time the
Incentive Stock Option is granted, owns stock possessing more than ten percent
(10%) of the total combined voting power of all classes of stock of the Company
or any then existing Subsidiary or parent corporation (within the meaning of
Section 422 of the Code) unless such Incentive Stock Option conforms to the
applicable provisions of Section 422 of the Code.

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

               4.4. Granting of Options to Employees and Consultants.

                      (a) The Committee shall from time to time, in its absolute
        discretion, and subject to applicable limitations of the Plan:

                             (i) Determine which Employees are key Employees and
               select from among the key Employees or Consultants (including
               Employees or Consultants who have previously received Awards
               under the Plan) such of them as in its opinion should be granted
               Options;

                             (ii) Subject to the Award Limit, determine the
               number of shares to be subject to such Options granted to the
               selected key Employees or Consultants;

                             (iii) Subject to Section 4.3, determine whether
               such Options are to be Incentive Stock Options or Non-Qualified
               Stock Options and whether such Options are to qualify as
               performance-based compensation as described in Section
               162(m)(4)(C) of the Code; and

                             (iv) Determine the terms and conditions of such
               Options, consistent with the Plan; provided, however, that the
               terms and conditions of Options intended to qualify as
               performance-based

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               compensation as described in Section 162(m)(4)(C) of the Code
               shall include, but not be limited to, such terms and conditions
               as may be necessary to satisfy the applicable provisions of
               Section 162(m) of the Code.

                      (b) Upon the selection of a key Employee or Consultant to
        be granted an Option, the Committee shall instruct the Secretary of the
        Company to issue the Option and may impose such conditions on the grant
        of the Option as it deems appropriate.

                      (c) Any Incentive Stock Option granted under the Plan may
        be modified by the Committee, with the consent of the Holder, to
        disqualify such Option from treatment as an "incentive stock option"
        under Section 422 of the Code.

               4.5. Granting of Options to Independent Directors.

                      The Board shall from time to time, in its absolute
discretion, and subject to applicable limitations of the Plan:

                      (a) Select from among the Independent Directors (including
        Independent Directors who have previously received Options under the
        Plan) such of them as in its opinion should be granted Options;

                      (b) Subject to the Award Limit, determine the number of
        shares to be subject to such Options granted to the selected Independent
        Directors;

                      (c) Subject to the provisions of Article 5, determine the
        terms and conditions of such Options, consistent with the Plan.

               All the foregoing Option grants authorized by this Section 4.5
are subject to stockholder approval of the Plan.

                                   ARTICLE V.

                                TERMS OF OPTIONS

               5.1. Option Price. The price per share of the shares subject to
each Option granted to Employees and Consultants shall be set by the Committee;
provided, however, that such price shall be no less than the par value of a
share of Class A Common Stock, unless otherwise permitted by applicable state
law and:

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

                      (b) in the case of Incentive Stock Options such price
        shall not be less than 100% of the Fair Market Value of a share of Class
        A Common Stock on the date the

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        Option is granted (or the date the Option is modified, extended or
        renewed for purposes of Section 424(h) of the Code);

                      (c) in the case of Incentive Stock Options granted to an
        individual then owning (within the meaning of Section 424(d) of the
        Code) more than 10% of the total combined voting power of all classes of
        stock of the Company or any Subsidiary or parent corporation thereof
        (within the meaning of Section 422 of the Code), such price shall not be
        less than 110% of the Fair Market Value of a share of Class A Common
        Stock on the date the Option is granted (or the date the Option is
        modified, extended or renewed for purposes of Section 424(h) of the
        Code).

               5.2. Option Term. The term of an Option granted to an Employee or
Consultant shall be set by the Committee in its discretion; provided, however,
that:

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

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

                      (c) Except as limited by requirements of Section 422 of
        the Code and regulations and rulings thereunder applicable to Incentive
        Stock Options, the Committee (or the Board in the case of Options
        granted to Independent Directors) may extend the term of any outstanding
        Option in connection with any Termination of Directorship, Termination
        of Employment or Termination of Consultancy of the Holder, or amend any
        other term or condition of such Option relating to such a termination;
        and

                      (d) Unless otherwise permitted by applicable securities
        laws, in the event of a Holder's Termination of Directorship,
        Termination of Employment or Termination of Consultancy for any reason
        except death, Disability or Termination for Cause, the Holder shall have
        at least ninety (90) days from the date of such Termination of
        Directorship, Termination of Employment or Termination of Consultancy to
        exercise the Option, and in the event of a Holder's Termination of
        Directorship, Termination of Employment or Termination of Consultancy
        due to the Holder's death or Disability, the Holder shall have at least
        one hundred eighty (180) days from the date of such Termination of
        Directorship, Termination of Employment or Termination of Consultancy to
        exercise the Option. Notwithstanding the forgoing, if a Holder's
        Termination of Directorship, Termination of Employment or Termination of
        Consultancy also qualifies as a Termination for Cause, the Company, in
        its discretion, may terminate the Holder's right to exercise his or her
        Options on the date of such termination or such other time as the
        Committee (or the Board in the case of Options granted to Independent
        Directors), in its discretion, shall deem appropriate.

               5.3. Option Vesting

                                       12
<PAGE>   13

                      (a) The period during which the right to exercise, in
        whole or in part, an Option granted to an Employee or a Consultant vests
        in the Holder shall be set by the Committee and the Committee may
        determine that an Option may not be exercised in whole or in part for a
        specified period after it is granted; provided, however, that, unless
        the Committee otherwise provides in the terms of the Award Agreement or
        otherwise, no Option shall be exercisable by any Holder who is then
        subject to Section 16 of the Exchange Act within the period ending six
        months and one day after the date the Option is granted. At any time
        after grant of an Option, the Committee may, in its sole and absolute
        discretion and subject to whatever terms and conditions it selects,
        accelerate the period during which an Option granted to an Employee or
        Consultant vests.

                      (b) No portion of an Option granted to an Employee or
        Consultant which is unexercisable at Termination of Employment or
        Termination of Consultancy, as applicable, shall thereafter become
        exercisable, except as may be otherwise provided by the Committee either
        in the Award Agreement or by action of the Committee following the grant
        of the Option; provided, however that if a Holder's employment, in the
        case of an Employee, or provision of services, in the case of a
        Consultant, terminated by reason of death or Disability, the Option
        shall become exercisable with respect to one-hundred percent (100%) of
        the Class A Common Stock subject to such Option.

                      (c) To the extent that the aggregate Fair Market Value of
        stock with respect to which "incentive stock options" (within the
        meaning of Section 422 of the Code, but without regard to Section 422(d)
        of the Code) are exercisable for the first time by a Holder during any
        calendar year (under the Plan and all other incentive stock option plans
        of the Company and any parent or subsidiary corporation, within the
        meaning of Section 422 of the Code) of the Company, exceeds $100,000,
        such Options shall be treated as Non-Qualified Options to the extent
        required by Section 422 of the Code. The rule set forth in the preceding
        sentence shall be applied by taking Options into account in the order in
        which they were granted. For purposes of this Section 5.3(c), the Fair
        Market Value of stock shall be determined as of the time the Option with
        respect to such stock is granted.

               5.4. Terms of Options Granted to Independent Directors. The price
per share of the shares subject to each Option granted to an Independent
Director shall equal 100% of the Fair Market Value of a share of Class A Common
Stock on the date the Option is granted. Options granted to Independent
Directors shall become exercisable in cumulative annual installments of 25% on
each of the first, second, third and fourth anniversaries of the date of Option
grant and, subject to Section 6.6, the term of each Option granted to an
Independent Director shall be ten (10) years from the date the Option is
granted. No portion of an Option which is unexercisable at Termination of
Directorship shall thereafter become exercisable.

               5.5. Substitute Awards. Notwithstanding the foregoing provisions
of this Article V to the contrary, in the case of an Option that is a Substitute
Award, the price per share of the shares subject to such Option may be less than
the Fair Market Value per share on the date of grant, provided, that the excess
of:

                                       13
<PAGE>   14

                      (a) the aggregate Fair Market Value (as of the date such
        Substitute Award is granted) of the shares subject to the Substitute
        Award; over

                      (b) the aggregate exercise price thereof; does not exceed
        the excess of;

                      (c) the aggregate fair market value (as of the time
        immediately preceding the transaction giving rise to the Substitute
        Award, such fair market value to be determined by the Committee) of the
        shares of the predecessor entity that were subject to the grant assumed
        or substituted for by the Company; over

                      (d) the aggregate exercise price of such shares.

                                   ARTICLE VI.

                               EXERCISE OF OPTIONS

               6.1. Partial Exercise. An exercisable Option may be exercised in
whole or in part. However, an Option shall not be exercisable with respect to
fractional shares and the Administrator may require that, by the terms of the
Option, a partial exercise be with respect to a minimum number of shares.

               6.2. Manner of Exercise. All or a portion of an exercisable
Option shall be deemed exercised upon delivery of all of the following to the
Secretary of the Company or his office:

                      (a) A written notice complying with the applicable rules
        established by the Administrator stating that the Option, or a portion
        thereof, is exercised. The notice shall be signed by the Holder or other
        person then entitled to exercise the Option or such portion of the
        Option;

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

                      (c) In the event that the Option shall be exercised
        pursuant to Section 11.1 by any person or persons other than the Holder,
        appropriate proof of the right of such person or persons to exercise the
        Option; and

                      (d) Full cash payment to the Secretary of the Company for
        the shares with respect to which the Option, or portion thereof, is
        exercised and for payment of any applicable withholding or other
        applicable employment taxes with respect to which the Option, or portion
        thereof, is exercised. However, the Administrator, may in its discretion
        (i) allow a delay in payment up to thirty (30) days from the date the
        Option, or

                                       14
<PAGE>   15

        portion thereof, is exercised; (ii) allow payment, in whole or in part,
        through the delivery of shares of the Company's Class A Common Stock
        which have been owned by the Optionee for a period of more than six
        months, duly endorsed for transfer to the Company, with a Fair Market
        Value on the date of delivery equal to the aggregate exercise price of
        the Option or exercised portion thereof; (iii) allow payment, in whole
        or in part, through the delivery of a full recourse promissory note
        bearing interest (at no less than such rate as shall then preclude the
        imputation of interest under the Code) and payable upon such terms as
        may be prescribed by the Administrator; or (iv) allow payment through
        any combination of cash and the consideration provided in the foregoing
        subparagraphs (ii) and/or (iii). In the case of a promissory note, the
        Administrator may also prescribe the form of such note and the security
        to be given for such note. The Option may not be exercised, however, by
        delivery of a promissory note or by a loan from the Company when or
        where such loan or other extension of credit is prohibited by law.

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

                      (a) The admission of such shares to listing on all stock
        exchanges on which such class of stock is then listed;

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

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

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

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

               6.4. Rights as Stockholders. Holders shall not be, nor have any
of the rights or privileges of, stockholders of the Company in respect of any
shares purchasable upon the exercise of any part of an Option unless and until
certificates representing such shares have been issued by the Company to such
Holders.

               6.5. Ownership and Transfer Restrictions. The Administrator, in
its absolute discretion, may impose such restrictions on the ownership and
transferability of the shares purchasable upon the exercise of an Option as it
deems appropriate. Any such restriction shall be set forth in the respective
Award Agreement and may be referred to on the certificates evidencing

                                       15
<PAGE>   16

such shares. The Holder shall give the Company prompt notice of any disposition
of shares of Class A Common Stock acquired by exercise of an Incentive Stock
Option within (a) two years from the date of granting (including the date the
Option is modified, extended or renewed for purposes of Section 424(h) of the
Code) such Option to such Holder or (b) one year after the transfer of such
shares to such Holder.

               6.6. Limitations on Exercise of Options Granted to Independent
Directors. No Option granted to an Independent Director may be exercised to any
extent by anyone after the first to occur of the following events:

                      (a) the expiration of twelve (12) months from the date of
        the Holder's death;

                      (b) the expiration of twelve (12) months from the date of
        the Holder's Termination of Directorship by reason of his Disability;

                      (c) the expiration of three (3) months from the date of
        the Holder's Termination of Directorship for any reason other than such
        Holder's death or his Disability, unless the Holder dies within said
        three-month period; or

                      (d) the expiration of ten (10) years from the date the
        Option was granted.

               6.7. Additional Limitations on Exercise of Options. Holders may
be required to comply with any timing or other restrictions with respect to the
settlement or exercise of an Option, including a window-period limitation, as
may be imposed in the discretion of the Administrator.

                                  ARTICLE VII.

                            AWARD OF RESTRICTED STOCK

               7.1. Eligibility. Subject to the Award Limit, Restricted Stock
may be awarded to any Employee who the Committee determines is a key Employee or
any Consultant who the Committee determines should receive such an Award.

               7.2. Award of Restricted Stock

                      (a) The Committee may from time to time, in its absolute
        discretion:

                             (i) Determine which Employees are key Employees and
               select from among the key Employees or Consultants (including
               Employees or Consultants who have previously received other
               awards under the Plan) such of them as in its opinion should be
               awarded Restricted Stock; and

                                       16
<PAGE>   17

                             (ii) Determine the purchase price, if any, and
               other terms and conditions applicable to such Restricted Stock,
               consistent with the Plan.

                      (b) The Committee shall establish the purchase price, if
        any, and form of payment for Restricted Stock; provided, however, that
        such purchase price shall be no less than the par value of the Class A
        Common Stock to be purchased, unless otherwise permitted by applicable
        state law. In all cases, legal consideration shall be required for each
        issuance of Restricted Stock.

                      (c) Upon the selection of a key Employee or Consultant to
        be awarded Restricted Stock, the Committee shall instruct the Secretary
        of the Company to issue such Restricted Stock and may impose such
        conditions on the issuance of such Restricted Stock as it deems
        appropriate.

               7.3. Rights as Stockholders. Subject to Section 7.4, upon
delivery of the shares of Restricted Stock to the escrow holder pursuant to
Section 7.6, the Holder shall have, unless otherwise provided by the Committee,
all the rights of a stockholder with respect to said shares, subject to the
restrictions in his Award Agreement, including the right to receive all
dividends and other distributions paid or made with respect to the shares;
provided, however, that in the discretion of the Committee, any extraordinary
distributions with respect to the Class A Common Stock shall be subject to the
restrictions set forth in Section 7.4.

               7.4. Restriction. All shares of Restricted Stock issued under the
Plan (including any shares received by holders thereof with respect to shares of
Restricted Stock as a result of stock dividends, stock splits or any other form
of recapitalization) shall, in the terms of each individual Award Agreement, be
subject to such restrictions as the Committee shall provide, which restrictions
may include, without limitation, restrictions concerning voting rights and
transferability and restrictions based on duration of employment with the
Company, Company performance and individual performance; provided, however,
that, unless the Committee otherwise provides in the terms of the Award
Agreement or otherwise, no share of Restricted Stock granted to a person subject
to Section 16 of the Exchange Act shall be sold, assigned or otherwise
transferred until at least six months and one day have elapsed from the date on
which the Restricted Stock was issued, and provided, further, that, except with
respect to shares of Restricted Stock granted to Section 162(m) Participants, by
action taken after the Restricted Stock is issued, the Committee may, on such
terms and conditions as it may determine to be appropriate, remove any or all of
the restrictions imposed by the terms of the Award Agreement. Restricted Stock
may not be sold or encumbered until all restrictions are terminated or expire.
If no consideration was paid by the Holder upon issuance, a Holder's rights in
unvested Restricted Stock shall lapse, and such Restricted Stock shall be
surrendered to the Company without consideration, upon Termination of Employment
or, if applicable, upon Termination of Consultancy with the Company; provided,
however, that the Committee in its sole and absolute discretion may provide that
such rights shall not lapse in the event of a Termination of Employment
following a "change of ownership or control" (within the meaning of Treasury
Regulation Section 1.162-27(e)(2)(v) or any successor regulation thereto) of the
Company or because of the Holder's death or Disability; provided, further,
except with respect to

                                       17
<PAGE>   18

shares of Restricted Stock granted to Section 162(m) Participants, the Committee
in its sole and absolute discretion may provide that no such lapse or surrender
shall occur in the event of a Termination of Employment, or a Termination of
Consultancy, without cause or following any Change in Control of the Company or
because of the Holder's retirement, or otherwise.

               7.5. Repurchase of Restricted Stock. The Committee shall provide
in the terms of each individual Award Agreement that the Company shall have the
right to repurchase from the Holder the Restricted Stock then subject to
restrictions under the Award Agreement immediately upon a Termination of
Employment or, if applicable, upon a Termination of Consultancy between the
Holder and the Company, at a cash price per share equal to the price paid by the
Holder for such Restricted Stock; provided, however, that the Committee in its
sole and absolute discretion may provide that no such right of repurchase shall
exist in the event of a Termination of Employment following a "change of
ownership or control" (within the meaning of Treasury Regulation Section
1.162-27(e)(2)(v) or any successor regulation thereto) of the Company or because
of the Holder's death or Disability; provided, further, that, except with
respect to shares of Restricted Stock granted to Section 162(m) Participants,
the Committee in its sole and absolute discretion may provide that no such right
of repurchase shall exist in the event of a Termination of Employment or a
Termination of Consultancy without cause or following any Change in Control of
the Company or because of the Holder's retirement, or otherwise.

               7.6. Escrow. The Secretary of the Company or such other escrow
holder as the Committee may appoint shall retain physical custody of each
certificate representing Restricted Stock until all of the restrictions imposed
under the Award Agreement with respect to the shares evidenced by such
certificate expire or shall have been removed.

               7.7. Legend. In order to enforce the restrictions imposed upon
shares of Restricted Stock hereunder, the Committee shall cause a legend or
legends to be placed on certificates representing all shares of Restricted Stock
that are still subject to restrictions under Award Agreements, which legend or
legends shall make appropriate reference to the conditions imposed thereby.

               7.8. Section 83(b) Election. If a Holder makes an election under
Section 83(b) of the Code, or any successor section thereto, to be taxed with
respect to the Restricted Stock as of the date of transfer of the Restricted
Stock rather than as of the date or dates upon which the Holder would otherwise
be taxable under Section 83(a) of the Code, the Holder shall deliver a copy of
such election to the Company immediately after filing such election with the
Internal Revenue Service.

                                 ARTICLE VIII.

            PERFORMANCE AWARDS, DIVIDEND EQUIVALENTS, DEFERRED STOCK,
                                 STOCK PAYMENTS

               8.1. Eligibility. Subject to the Award Limit, one or more
Performance Awards, Dividend Equivalents, awards of Deferred Stock, and/or Stock
Payments may be granted to any Employee whom the Committee determines is a key
Employee or any Consultant

                                       18
<PAGE>   19

whom the Committee determines should receive such an Award. Each Independent
Director of the Company shall be eligible to be granted one or more Dividend
Equivalents at the times and in the manner set forth in Section 8.3(c).

               8.2. Performance Awards. Any key Employee or Consultant selected
by the Committee may be granted one or more Performance Awards. The value of
such Performance Awards may be linked to any one or more of the Performance
Criteria or other specific performance criteria determined appropriate by the
Committee, in each case on a specified date or dates or over any period or
periods determined by the Committee. In making such determinations, the
Committee shall consider (among such other factors as it deems relevant in light
of the specific type of award) the contributions, responsibilities and other
compensation of the particular key Employee or Consultant.

               8.3. Dividend Equivalents.

                      (a) Any key Employee or Consultant selected by the
        Committee may be granted Dividend Equivalents based on the dividends
        declared on Class A Common Stock, to be credited as of dividend payment
        dates, during the period between the date a Stock Appreciation Right,
        Deferred Stock or Performance Award is granted, and the date such Stock
        Appreciation Right, Deferred Stock or Performance Award is exercised,
        vests or expires, as determined by the Committee. Such Dividend
        Equivalents shall be converted to cash or additional shares of Class A
        Common Stock by such formula and at such time and subject to such
        limitations as may be determined by the Committee.

                      (b) Any Holder of an Option who is an Employee or
        Consultant selected by the Committee may be granted Dividend Equivalents
        based on the dividends declared on Class A Common Stock, to be credited
        as of dividend payment dates, during the period between the date an
        Option is granted, and the date such Option is exercised, vests or
        expires, as determined by the Committee. Such Dividend Equivalents shall
        be converted to cash or additional shares of Class A Common Stock by
        such formula and at such time and subject to such limitations as may be
        determined by the Committee.

                      (c) Any Holder of an Option who is an Independent Director
        selected by the Board may be granted Dividend Equivalents based on the
        dividends declared on Class A Common Stock, to be credited as of
        dividend payment dates, during the period between the date an Option is
        granted, and the date such Option is exercised, vests or expires, as
        determined by the Board. Such Dividend Equivalents shall be converted to
        cash or additional shares of Class A Common Stock by such formula and at
        such time and subject to such limitations as may be determined by the
        Board.

                      (d) Dividend Equivalents granted with respect to Options
        intended to be qualified performance-based compensation for purposes of
        Section 162(m) of the Code shall be payable, with respect to
        pre-exercise periods, regardless of whether such Option is subsequently
        exercised.

               8.4. Stock Payments. Any key Employee or Consultant selected by
the Committee may receive Stock Payments in the manner determined from time to
time by the

                                       19
<PAGE>   20

Committee. The number of shares shall be determined by the Committee and may be
based upon the Performance Criteria or other specific performance criteria
determined appropriate by the Committee, determined on the date such Stock
Payment is made or on any date thereafter.

               8.5. Deferred Stock. Any key Employee or Consultant selected by
the Committee may be granted an award of Deferred Stock in the manner determined
from time to time by the Committee. The number of shares of Deferred Stock shall
be determined by the Committee and may be linked to the Performance Criteria or
other specific performance criteria determined to be appropriate by the
Committee, in each case on a specified date or dates or over any period or
periods determined by the Committee. Class A Common Stock underlying a Deferred
Stock award will not be issued until the Deferred Stock award has vested,
pursuant to a vesting schedule or performance criteria set by the Committee.
Unless otherwise provided by the Committee, a Holder of Deferred Stock shall
have no rights as a Company stockholder with respect to such Deferred Stock
until such time as the Award has vested and the Class A Common Stock underlying
the Award has been issued.

               8.6. Term. The term of a Performance Award, Dividend Equivalent,
award of Deferred Stock and/or Stock Payment granted to any Employee or
Consultant shall be set by the Committee in its discretion. The term of a
Dividend Equivalent granted to any Independent Director shall be set by the
Board in its discretion.

               8.7. Exercise or Purchase Price. The Committee may establish the
exercise or purchase price of a Performance Award, shares of Deferred Stock, or
shares received as a Stock Payment; provided, however, that such price shall not
be less than the par value for a share of Class A Common Stock, unless otherwise
permitted by applicable state law.

               8.8. Exercise Upon Termination of Employment, Termination of
Consultancy or Termination of Directorship. A Performance Award, Dividend
Equivalent, award of Deferred Stock and/or Stock Payment is exercisable or
payable only while the Holder is an Employee, Consultant or Independent
Director, as applicable; provided, however, that the Administrator in its sole
and absolute discretion may provide that the Performance Award, Dividend
Equivalent, award of Deferred Stock and/or Stock Payment may be exercised or
paid subsequent to a Termination of Employment following a "change of control or
ownership" (within the meaning of Section 1.162-27(e)(2)(v) or any successor
regulation thereto) of the Company; provided, further, that except with respect
to Performance Awards granted to Section 162(m) Participants, the Administrator
in its sole and absolute discretion may provide that Performance Awards may be
exercised or paid following a Termination of Employment or a Termination of
Consultancy without cause, or following a Change in Control of the Company, or
because of the Holder's retirement, death or Disability, or otherwise.

               8.9. Form of Payment. Payment of the amount determined under
Section 8.2 or 8.3 above shall be in cash, in Class A Common Stock or a
combination of both, as determined by the Committee. To the extent any payment
under this Article VIII is effected in Class A Common Stock, it shall be made
subject to satisfaction of all provisions of Section 6.3.

                                       20
<PAGE>   21

                                   ARTICLE IX.

                            STOCK APPRECIATION RIGHTS

               9.1. Grant of Stock Appreciation Rights. A Stock Appreciation
Right may be granted to any key Employee or Consultant selected by the
Committee. A Stock Appreciation Right may be granted (a) in connection and
simultaneously with the grant of an Option, (b) with respect to a previously
granted Option, or (c) independent of an Option. A Stock Appreciation Right
shall be subject to such terms and conditions not inconsistent with the Plan as
the Committee shall impose and shall be evidenced by an Award Agreement.

               9.2. Coupled Stock Appreciation Rights.

                      (a) A Coupled Stock Appreciation Right ("CSAR") shall be
        related to a particular Option and shall be exercisable only when and to
        the extent the related Option is exercisable.

                      (b) A CSAR may be granted to the Holder for no more than
        the number of shares subject to the simultaneously or previously granted
        Option to which it is coupled.

                      (c) A CSAR shall entitle the Holder (or other person
        entitled to exercise the Option pursuant to the Plan) to surrender to
        the Company unexercised a portion of the Option to which the CSAR
        relates (to the extent then exercisable pursuant to its terms) and to
        receive from the Company in exchange therefor an amount determined by
        multiplying the difference obtained by subtracting the Option exercise
        price from the Fair Market Value of a share of Class A Common Stock on
        the date of exercise of the CSAR by the number of shares of Class A
        Common Stock with respect to which the CSAR shall have been exercised,
        subject to any limitations the Committee may impose.

               9.3. Independent Stock Appreciation Rights.

                      (a) An Independent Stock Appreciation Right ("ISAR") shall
        be unrelated to any Option and shall have a term set by the Committee.
        An ISAR shall be exercisable in such installments as the Committee may
        determine. An ISAR shall cover such number of shares of Class A Common
        Stock as the Committee may determine; provided, however, that unless the
        Committee otherwise provides in the terms of the ISAR or otherwise, no
        ISAR granted to a person subject to Section 16 of the Exchange Act shall
        be exercisable until at least six months have elapsed from (but
        excluding) the date on which the Option was granted. The exercise price
        per share of Class A Common Stock subject to each ISAR shall be set by
        the Committee. An ISAR is exercisable only while the Holder is an
        Employee or Consultant; provided that the Committee may determine that
        the ISAR may be exercised subsequent to Termination of Employment or
        Termination of Consultancy without cause, or following a Change in
        Control of the Company, or because of the Holder's retirement, death or
        Disability, or otherwise.

                                       21
<PAGE>   22

                      (b) An ISAR shall entitle the Holder (or other person
        entitled to exercise the ISAR pursuant to the Plan) to exercise all or a
        specified portion of the ISAR (to the extent then exercisable pursuant
        to its terms) and to receive from the Company an amount determined by
        multiplying the difference obtained by subtracting the exercise price
        per share of the ISAR from the Fair Market Value of a share of Class A
        Common Stock on the date of exercise of the ISAR by the number of shares
        of Class A Common Stock with respect to which the ISAR shall have been
        exercised, subject to any limitations the Committee may impose.

               9.4. Payment and Limitations on Exercise.

                      (a) Payment of the amounts determined under Section 9.2(c)
        and 9.3(b) above shall be in cash, in Class A Common Stock (based on its
        Fair Market Value as of the date the Stock Appreciation Right is
        exercised) or a combination of both, as determined by the Committee. To
        the extent such payment is effected in Class A Common Stock it shall be
        made subject to satisfaction of all provisions of Section 6.3 above
        pertaining to Options.

                      (b) Holders of Stock Appreciation Rights may be required
        to comply with any timing or other restrictions with respect to the
        settlement or exercise of a Stock Appreciation Right, including a
        window-period limitation, as may be imposed in the discretion of the
        Committee.
                                   ARTICLE X.

                                 ADMINISTRATION

               10.1. Compensation Committee. Prior to the Company's initial
registration of Class A Common Stock under Section 12 of the Exchange Act, the
Compensation Committee shall consist of the entire Board. Following such
registration, the Compensation Committee (or another committee or a subcommittee
of the Board assuming the functions of the Committee under the Plan) shall
consist solely of two or more Independent Directors appointed by and holding
office at the pleasure of the Board, each of whom is both a "non-employee
director" as defined by Rule 16b-3 and an "outside director" for purposes of
Section 162(m) of the Code. Appointment of Committee members shall be effective
upon acceptance of appointment. Committee members may resign at any time by
delivering written notice to the Board. Vacancies in the Committee may be filled
by the Board.

               10.2. Duties and Powers of the Committee. It shall be the duty of
the Committee to conduct the general administration of the Plan in accordance
with its provisions. The Committee shall have the power to interpret the Plan
and the Award Agreements, and to adopt such rules for the administration,
interpretation, and application of the Plan as are consistent therewith, to
interpret, amend or revoke any such rules and to amend any Award Agreement
provided that the rights or obligations of the Holder of the Award that is the
subject of any such Award Agreement are not affected adversely. Any such grant
or award under the Plan need not be the same with respect to each Holder. Any
such interpretations and rules with respect to Incentive Stock Options shall be
consistent with the provisions of Section 422 of the

                                       22
<PAGE>   23

Code. In its absolute discretion, the Board may at any time and from time to
time exercise any and all rights and duties of the Committee under the Plan
except with respect to matters which under Rule 16b-3 or Section 162(m) of the
Code, or any regulations or rules issued thereunder, are required to be
determined in the sole discretion of the Committee. Notwithstanding the
foregoing, the full Board, acting by a majority of its members in office, shall
conduct the general administration of the Plan with respect to Options and
Dividend Equivalents granted to Independent Directors.

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

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

               10.5. Delegation of Authority to Grant Awards. The Committee may,
but need not, delegate from time to time some or all of its authority to grant
Awards under the Plan to a committee consisting of one or more members of the
Committee or of one or more officers of the Company; provided, however, that the
Committee may not delegate its authority to grant Awards to individuals (i) who
are subject on the date of the grant to the reporting rules under Section 16(a)
of the Exchange Act, (ii) who are Section 162(m) Participants or (iii) who are
officers of the Company who are delegated authority by the Committee hereunder.
Any delegation hereunder shall be subject to the restrictions and limits that
the Committee specifies at the time of such delegation of authority and may be
rescinded at any time by the Committee. At all times, any committee appointed
under this Section 10.5 shall serve in such capacity at the pleasure of the
Committee.

                                   ARTICLE XI.

                            MISCELLANEOUS PROVISIONS

               11.1. Not Transferable. No Award under the Plan may be sold,
pledged, assigned or transferred in any manner other than by will or the laws of
descent and distribution or, subject to the consent of the Administrator,
pursuant to a DRO, unless and until such Award has been exercised, or the shares
underlying such Award have been issued, and all restrictions

                                       23
<PAGE>   24

applicable to such shares have lapsed. No Award or interest or right therein
shall be liable for the debts, contracts or engagements of the Holder or his
successors in interest or shall be subject to disposition by transfer,
alienation, anticipation, pledge, encumbrance, assignment or any other means
whether such disposition be voluntary or involuntary or by operation of law by
judgment, levy, attachment, garnishment or any other legal or equitable
proceedings (including bankruptcy), and any attempted disposition thereof shall
be null and void and of no effect, except to the extent that such disposition is
permitted by the preceding sentence.

               During the lifetime of the Holder, only he may exercise an Option
or other Award (or any portion thereof) granted to him under the Plan, unless it
has been disposed of with the consent of the Administrator pursuant to a DRO.
After the death of the Holder, any exercisable portion of an Option or other
Award may, prior to the time when such portion becomes unexercisable under the
Plan or the applicable Award Agreement, be exercised by his personal
representative or by any person empowered to do so under the deceased Holder's
will or under the then applicable laws of descent and distribution.

               11.2. Amendment, Suspension or Termination of the Plan. Except as
otherwise provided in this Section 11.2, the Plan may be wholly or partially
amended or otherwise modified, suspended or terminated at any time or from time
to time by the Administrator. However, without approval of the Company's
stockholders given within twelve months before or after the action by the
Administrator, no action of the Administrator may, except as provided in Section
11.3, increase the limits imposed in Section 2.1 on the maximum number of shares
which may be issued under the Plan. No amendment, suspension or termination of
the Plan shall, without the consent of the Holder alter or impair any rights or
obligations under any Award theretofore granted or awarded, unless the Award
itself otherwise expressly so provides. No Awards may be granted or awarded
during any period of suspension or after termination of the Plan, and in no
event may any Incentive Stock Option be granted under the Plan after the first
to occur of the following events:

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

                      (b) The expiration of ten (10) years from the date the
        Plan is approved by the Company's stockholders under Section 11.4.

               11.3. Changes in Class A Common Stock or Assets of the Company,
Acquisition or Liquidation of the Company and Other Corporate Events.

                      (a) Subject to Section 11.3 (d), in the event that the
        Administrator determines that any dividend or other distribution
        (whether in the form of cash, Class A Common Stock, other securities, or
        other property), recapitalization, reclassification, stock split,
        reverse stock split, reorganization, merger, consolidation, split-up,
        spin-off, combination, repurchase, liquidation, dissolution, or sale,
        transfer, exchange or other disposition of all or substantially all of
        the assets of the Company, or exchange of Class A Common Stock or other
        securities of the Company, issuance of warrants or other rights to
        purchase Class A Common Stock or other securities of the Company, or
        other similar

                                       24
<PAGE>   25

        corporate transaction or event, in the Administrator's sole discretion,
        affects the Class A Common Stock such that an adjustment is determined
        by the Administrator to be appropriate in order to prevent dilution or
        enlargement of the benefits or potential benefits intended to be made
        available under the Plan or with respect to an Award, then the
        Administrator shall, in such manner as it may deem equitable, adjust any
        or all of

                             (i) the number and kind of shares of Class A Common
               Stock (or other securities or property) with respect to which
               Awards may be granted or awarded (including, but not limited to,
               adjustments of the limitations in Section 2.1 on the maximum
               number and kind of shares which may be issued and adjustments of
               the Award Limit),

                             (ii) the number and kind of shares of Class A
               Common Stock (or other securities or property) subject to
               outstanding Awards, and

                             (iii) the grant or exercise price with respect to
               any Award.

                      (b) Subject to Sections 11.3(d) and (e), in the event of
        any transaction or event described in Section 11.3(a) or any unusual or
        nonrecurring transactions or events affecting the Company, any affiliate
        of the Company, or the financial statements of the Company or any
        affiliate, or of changes in applicable laws, regulations, or accounting
        principles, the Administrator, in its sole and absolute discretion, and
        on such terms and conditions as it deems appropriate, either by the
        terms of the Award or by action taken prior to the occurrence of such
        transaction or event and either automatically or upon the Holder's
        request, is hereby authorized to take any one or more of the following
        actions whenever the Administrator determines that such action is
        appropriate in order to prevent dilution or enlargement of the benefits
        or potential benefits intended to be made available under the Plan or
        with respect to any Award under the Plan, to facilitate such
        transactions or events or to give effect to such changes in laws,
        regulations or principles:

                             (i) To provide for either the purchase of any such
               Award for an amount of cash equal to the amount that could have
               been attained upon the exercise of such Award or realization of
               the Holder's rights had such Award been currently exercisable or
               payable or fully vested or the replacement of such Award with
               other rights or property selected by the Administrator in its
               sole discretion;

                             (ii)   To provide that the Award cannot vest, be
               exercised or become payable after such event;

                             (iii) To provide that such Award shall be
               exercisable as to all shares covered thereby, notwithstanding
               anything to the contrary in Section 5.3 or 5.4 or the provisions
               of such Award;

                                       25
<PAGE>   26

                             (iv) To provide that such Award be assumed by the
               successor or survivor corporation, or a parent or subsidiary
               thereof, or shall be substituted for by similar options, rights
               or awards covering the stock of the successor or survivor
               corporation, or a parent or subsidiary thereof, with appropriate
               adjustments as to the number and kind of shares and prices; and

                             (v) To make adjustments in the number and type of
               shares of Class A Common Stock (or other securities or property)
               subject to outstanding Awards, and in the number and kind of
               outstanding Restricted Stock or Deferred Stock and/or in the
               terms and conditions of, and the criteria included in,
               outstanding options, rights and awards and options, rights and
               awards which may be granted in the future.

                             (vi) To provide that, for a specified period of
               time prior to such event, the restrictions imposed under an Award
               Agreement upon some or all shares of Restricted Stock or Deferred
               Stock may be terminated, and, in the case of Restricted Stock,
               some or all shares of such Restricted Stock may cease to be
               subject to repurchase under Section 7.5 or forfeiture under
               Section 7.4 after such event.

                      (c) Subject to Sections 11.3(d), 3.2 and 3.3, the
        Administrator may, in its discretion, include such further provisions
        and limitations in any Award, agreement or certificate, as it may deem
        equitable and in the best interests of the Company.

                      (d) With respect to Awards which are granted to Section
        162(m) Participants and are intended to qualify as performance-based
        compensation under Section 162(m)(4)(C), no adjustment or action
        described in this Section 11.3 or in any other provision of the Plan
        shall be authorized to the extent that such adjustment or action would
        cause such Award to fail to so qualify under Section 162(m)(4)(C), or
        any successor provisions thereto. No adjustment or action described in
        this Section 11.3 or in any other provision of the Plan shall be
        authorized to the extent that such adjustment or action would cause the
        Plan to violate Section 422(b)(1) of the Code. Furthermore, no such
        adjustment or action shall be authorized to the extent such adjustment
        or action would result in short-swing profits liability under Section 16
        or violate the exemptive conditions of Rule 16b-3 unless the
        Administrator determines that the Award is not to comply with such
        exemptive conditions. The number of shares of Class A Common Stock
        subject to any Award shall always be rounded to the next whole number.

                      (e) Notwithstanding the foregoing, in the event that the
        Company becomes a party to a transaction that is intended to qualify for
        "pooling of interests" accounting treatment and, but for one or more of
        the provisions of this Plan or any Award Agreement would so qualify,
        then this Plan and any Award Agreement shall be interpreted so as to
        preserve such accounting treatment, and to the extent that any provision
        of the Plan or any Award Agreement would disqualify the transaction from
        pooling of interests accounting treatment (including, if applicable, an
        entire Award

                                       26
<PAGE>   27

        Agreement), then such provision shall be null and void. All
        determinations to be made in connection with the preceding sentence
        shall be made by the independent accounting firm whose opinion with
        respect to "pooling of interests" treatment is required as a condition
        to the Company's consummation of such transaction.

                      (f) The existence of the Plan, the Award Agreement and the
        Awards granted hereunder shall not affect or restrict in any way the
        right or power of the Company or the shareholders of the Company to make
        or authorize any adjustment, recapitalization, reorganization or other
        change in the Company's capital structure or its business, any merger or
        consolidation of the Company, any issue of stock or of options, warrants
        or rights to purchase stock or of bonds, debentures, preferred or prior
        preference stocks whose rights are superior to or affect the Class A
        Common Stock or the rights thereof or which are convertible into or
        exchangeable for Class A Common Stock, or the dissolution or liquidation
        of the company, or any sale or transfer of all or any part of its assets
        or business, or any other corporate act or proceeding, whether of a
        similar character or otherwise.

               11.4. Approval of Plan by Stockholders. The Plan will be
submitted for the approval of the Company's stockholders (by a majority of the
outstanding common stock entitled to vote thereon with the voting rights set
forth in the Company's Amended and Restated Certificate of Incorporation) within
twelve months after the date of the Board's initial adoption of the Plan. Awards
may be granted or awarded prior to such stockholder approval, provided that such
Awards shall not be exercisable nor shall such Awards vest prior to the time
when the Plan is approved by the stockholders, and provided further that if such
approval has not been obtained at the end of said twelve-month period, all
Awards previously granted or awarded under the Plan shall thereupon be canceled
and become null and void. In addition, if the Board determines that Awards other
than Options or Stock Appreciation Rights which may be granted to Section 162(m)
Participants should continue to be eligible to qualify as performance-based
compensation under Section 162(m)(4)(C) of the Code, the Performance Criteria
must be disclosed to and approved by the Company's stockholders no later than
the first stockholder meeting that occurs in the fifth year following the year
in which the Company's stockholders previously approved the Performance
Criteria.

               11.5. Tax Withholding. The Company shall be entitled to require
payment in cash or deduction from other compensation payable to each Holder of
any sums required by federal, state or local tax law to be withheld with respect
to the issuance, vesting, exercise or payment of any Award. The Administrator
may in its discretion and in satisfaction of the foregoing requirement allow
such Holder to elect to have the Company withhold shares of Class A Common Stock
otherwise issuable under such Award (or allow the return of shares of Class A
Common Stock) having a Fair Market Value equal to the sums required to be
withheld.

               11.6. Loans. The Committee may, in its discretion, extend one or
more loans to key Employees in connection with the exercise or receipt of an
Award granted or awarded under the Plan, or the issuance of Restricted Stock or
Deferred Stock awarded under the Plan. The terms and conditions of any such loan
shall be set by the Committee.

                                       27
<PAGE>   28

               11.7. Forfeiture Provisions. Pursuant to its general authority to
determine the terms and conditions applicable to Awards under the Plan, the
Administrator shall have the right to provide, in the terms of Awards made under
the Plan, or to require a Holder to agree by separate written instrument, that
(a) (i) any proceeds, gains or other economic benefit actually or constructively
received by the Holder upon any receipt or exercise of the Award, or upon the
receipt or resale of any Class A Common Stock underlying the Award, must be paid
to the Company, and (ii) the Award shall terminate and any unexercised portion
of the Award (whether or not vested) shall be forfeited, if (b)(i) a Termination
of Employment, Termination of Consultancy or Termination of Directorship occurs
prior to a specified date, or within a specified time period following receipt
or exercise of the Award, or (ii) the Holder at any time, or during a specified
time period, engages in any activity in competition with the Company, or which
is inimical, contrary or harmful to the interests of the Company, as further
defined by the Administrator.

               11.8. Effect of Plan Upon Options and Compensation Plans.

                      (a) The adoption of the Plan shall not affect any other
        compensation or incentive plans in effect for the Company or any
        Subsidiary, other than superseding the Amended and Restated Employee
        Equity Participation Plan of Nextera Enterprises, L.L.C., a Delaware
        limited liability company ("Nextera LLC"). Nothing in the Plan shall be
        construed to limit the right of the Company (i) to establish any other
        forms of incentives or compensation for Employees, Directors or
        Consultants of the Company or any Subsidiary or (ii) to grant or assume
        options or other rights or awards otherwise than under the Plan in
        connection with any proper corporate purpose including but not by way of
        limitation, the grant or assumption of options in connection with the
        acquisition by purchase, lease, merger, consolidation or otherwise, of
        the business, stock or assets of any corporation, partnership, limited
        liability company, firm or association.

                      (b) Options granted under this Plan to replace options
        granted to the employees of Nextera LLC, shall have the aggregate option
        exercise price, the vesting schedule and term as set forth in the Equity
        Participation Agreements granted by Nextera LLC to the optionees
        thereunder.

               11.9. Lock-Up in Connection with Initial Public Offering. Each
Award Agreement issued pursuant to this Plan prior to the initial public
offering of the Company's Common Stock shall include provisions substantially
similar to the following:

               "To induce the underwriters that may participate in an initial
        public offering (the "Initial Public Offering") of the Company's Common
        Stock to continue their efforts in connection with the Initial Public
        Offering, the undersigned, during the period commencing on the date
        hereof and ending 180 days after the date of the final prospectus
        relating to the Initial Public Offering:

                      (i) agrees not to (x) offer, pledge, sell, contract to
               sell, sell any option or contract to purchase, purchase any
               option or contract to sell, grant any option, right or warrant to
               purchase, or otherwise transfer or dispose of, directly or

                                       28
<PAGE>   29

               indirectly, any shares of Common Stock or any securities
               convertible into or exercisable or exchangeable for Common Stock
               (including, without limitation, shares of Common Stock or
               securities convertible into or exercisable or exchangeable for
               Common Stock which may be deemed to be beneficially owned by the
               undersigned in accordance with the rules and regulations of the
               Securities and Exchange Commission) or (y) enter into any swap or
               other arrangement that transfers all or a portion of the economic
               consequences associated with the ownership of any Common Stock
               (regardless of whether any of the transactions described in
               clause (x) or (y) is to be settled by the delivery of Common
               Stock, or such other securities, in cash or otherwise), without
               prior written consent of the lead managing underwriter of such
               Initial Public Offering;

                      (ii) agrees not to make any demand for, or exercise any
               right with respect to, the registration of any shares of Common
               Stock or any securities convertible into or exercisable or
               exchangeable for Common Stock, without the prior written consent
               of the lead underwriter; and

                      (iii) authorizes the Company to cause the transfer agent
               to decline to transfer and/or to note stop transfer restrictions
               on the transfer books and records of the Company with respect to
               any shares of Common Stock and any securities convertible into or
               exercisable or exchangeable for Common Stock for which the
               undersigned is the record holder and, in the case of any such
               shares or securities for which the undersigned is the beneficial
               but not the record holder, agrees to cause the record holder to
               cause the transfer agent to decline to transfer and/or to note
               stop transfer restrictions on such books and records with respect
               to such shares or securities.

        Notwithstanding the foregoing, the restrictions set forth in clauses
        (i), (ii) and (iii) above shall not apply to any transfer of Common
        Stock to a "Controlled Affiliate" or pursuant to a "Qualified Transfer"
        (as each such term is defined in the Company's Amended and Restated
        Certificate of Incorporation); provided that prior to any such transfer
        the transferee agrees in writing to be bound by the provisions of this
        Section 11.9.

        The undersigned hereby represents and warrants that the undersigned has
        full power and authority to enter into the agreements set forth in this
        Section, and that, upon request, the undersigned will execute any
        additional documents necessary or desirable in connection with the
        enforcement hereof. All authority herein conferred or agreed to be
        conferred shall survive the death or incapacity of the undersigned and
        any obligations of the undersigned shall be binding upon the heirs,
        personal representatives, successors, and assigns of the undersigned."

               11.10. Compliance with Laws. The Plan, the granting and vesting
of Awards under the Plan and the issuance and delivery of shares of Class A
Common Stock and the payment of money under the Plan or under Awards granted or
awarded hereunder are subject to compliance with all applicable federal and
state laws, rules and regulations (including but not limited to state and
federal securities law and federal margin requirements) and to such approvals

                                       29
<PAGE>   30

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

               11.11. Titles. Titles are provided herein for convenience only
and are not to serve as a basis for interpretation or construction of the Plan.

               11.12. Governing Law. The Plan and any agreements hereunder shall
be administered, interpreted and enforced under the internal laws of the State
of Delaware without regard to conflicts of laws thereof.

                                      * * *

               I hereby certify that the foregoing Plan was duly adopted by the
Board of Directors of Nextera Enterprises, Inc. as of December 30, 1998, amended
and restated as of April 30, 1999, May 5, 1999, April 29, 2000, and October 20,
2001 and further amended and restated effective May 30, 2001.

                                                  /s/ Stanley E. Maron
                                        ----------------------------------------
                                                    Stanley E. Maron
                                                        Secretary

                                       30AMENDED AND RESTATED

                              INVESTMENT AGREEMENT

                                     between

                               ACCESS POWER, INC.

                                       and

                              GRANDVIEW COURT, LLC

         INVESTMENT AGREEMENT (this "AGREEMENT"), dated as of June 12, 2001 by
and among ACCESS POWER, INC., a Florida corporation with offices located at
10033 Sawgrass Drive West, Suite 100, Ponte Vedra Beach, FL 32082 (the
"COMPANY"), and GRANDVIEW COURT, LLC a Cayman limited liability company with
offices located at Harbour House, 2nd Floor, Waterfront Drive, Road Town,
Tortola, BVI (the "INVESTOR").

         WHEREAS, the parties desire that, upon the terms and subject to the
conditions contained herein, the Investor shall invest up to $30,000,000 to
purchase the Company's common stock, $.001 par value per share (the "COMMON
STOCK");

         WHEREAS, such investments will be made in reliance upon the provisions
of Section 4(2) under the Securities Act of 1933, as amended (the "1933 ACT"),
Regulation D, and the rules and regulations promulgated thereunder, and/or upon
such other exemption from the registration requirements of the 1933 Act as may
be available with respect to any or all of the investments in Common Stock to be
made hereunder.

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

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

         1.       PURCHASE AND SALE OF COMMON STOCK

         a. Purchase and Sale of Common Stock. Upon the terms and conditions set
forth herein, the Company shall issue and sell to the Investor, and the Investor
shall purchase from the Company, up to that number of shares of Common Stock
(the "SHARES") having an aggregate Purchase Price (as defined in Section 1(g))
of $30,000,000.

                                      -1-
<PAGE>

         b. Delivery of Put Notices. Subject to the satisfaction of the
conditions set forth in this Section 1, at any time and from time to time during
the period beginning on and including the Trading Day (as defined below)
immediately following the date on which the initial Registration Statement (as
defined in the Registration Rights Agreement) filed pursuant to the Registration
Rights Agreement is declared effective (the "EFFECTIVE DATE") by the Securities
and Exchange Commission (the "SEC") and ending on the earlier of (i) the date
which is eighteen (18) months from the Effective Date, and (ii) termination of
this Agreement in accordance with Section 8 (the time period between the
Effective Date and the earlier of (i) and (ii) being known as the "OPEN
PERIOD"), the Company may, in its sole discretion, deliver a written notice to
the Investor (the "PUT NOTICE"). The Put Notice shall state the dollar amount
(the "DOLLAR AMOUNT") of Shares that the Company intends to sell to the Investor
during the period beginning on the trading day immediately following the date
which the Investor receives the Put Notice (the "PUT NOTICE DATE") and ending on
and including the date which is ten (10) Trading Days after such Put Notice Date
(the "PURCHASE PERIOD"). A Put Notice shall be deemed delivered on (x) the
Trading Day it is received by facsimile or otherwise by the Investor if such
notice is received prior to 12:00 noon Eastern Time (receipt being deemed to
occur if the Company possess a facsimile confirmation showing completed
transmission by such time), or (y) the immediately succeeding Trading Day if it
is received by facsimile or otherwise after 12:00 noon Eastern Time on a Trading
Day (receipt being documented as described in (x) above). No Put Notice may be
deemed delivered, on a day that is not a Trading Day. For purposes of this
Agreement, "TRADING DAY" shall mean any day on which the Principal Market (as
defined in Section 1(f)) for the Common Stock is open for trading.

                  In addition, the Dollar Amount designated by the Company in a
Put Notice shall be in increments of not less than $100,000 and not more
$5,000,000 subject to the requirements set forth in this Agreement. Once the Put
Notice is received by the Investor the Put Notice shall not be terminated,
withdrawn or otherwise revoked by the Company. During the Open Period, Put
Notices may be delivered no more frequently than once in each period of eleven
(11) consecutive Trading Days, such that a Put Notice may not be given during a
Purchase Period. The Dollar Amount that the Company is permitted to request with
respect to each Put Notice depends on the product of the daily trading volume
and the average trade price of the Company's Common Stock on the Principal
Market (as defined in Section 1(f)), (the "VOLUME WEIGHTED AVERAGE PRICE"). The
Volume Weighted Average Price shall be as reported by Bloomberg Financial
Markets ("BLOOMBERG") through its "Volume at Price" function or if not available
through Bloomberg because of delisting, then the average of the bid prices of
any market makers for the Company's Common Stock as reported in the "pink
sheets" by the National Quotation Bureau, Inc. The maximum Dollar Amount of the
Put Notice will be calculated by multiplying the average of the Volume Weighted
Average Price for the thirty (30) Trading Days immediately preceding the Put
Notice Date, by (1.5) (the "MAXIMUM PUT AMOUNT"). The amount that the Company is
able to draw down can be increased or decreased if mutually agreed upon by both
parties in writing. For the ten (10) Trading Days immediately preceding both the
Put Notice Date and the applicable

                                      -2-
<PAGE>

Closing Date, as defined in Section 1(h), the Volume Weighted Average Price must
be at least $75,000. The price at which the Investor will purchase the Common
Stock ("PURCHASE PRICE") will be as follows:

                  (i) If the Average Closing Bid Price on the date the Put
                  Notice is issued is the same as on the date of execution of
                  this Agreement ("Execution Price") by both parties, the Common
                  Stock will be purchased at 88% of the average of the lowest
                  three closing bid prices during the ten days immediately
                  preceding the "Closing Date", as that term is defined in
                  subsection 1(h);

                  (ii) for every $1 increase of the Execution Price the shares
                  will be purchased by 1% more, to a maximum of 91%; and

                  (iii) for every $1 decrease of the Execution Price the shares
                  will be purchased for 1% less, to a minimum of 85%.

         Within ten (10) calendar days after the commencement of each calendar
quarter occurring subsequent to the commencement of the Open Period, the Company
undertakes to notify Investor as to its reasonable expectations as to the Dollar
Amount it intends to raise during such calendar quarter, if any, through the
issuance of Put Notices. Such notification shall constitute only the Company's
good faith estimate with respect to such calendar quarter and shall in no way
obligate the Company to raise such amount during such calendar quarter or
otherwise limit its ability to deliver Put Notices during such calendar quarter.
The failure by the Company to comply with this provision can be cured by the
Company's notifying Investor at any time as to its reasonable expectations with
respect to the current calendar quarter.

         c. Maximum Rate. Nothing contained in this Agreement shall be deemed to
establish or require the payment of interest to the Purchaser at a rate in
excess of the maximum rate permitted by governing law. In the event that the
rate of interest required to be paid exceeds the maximum rate permitted by
governing law, the rate of interest required to be paid thereunder shall be
automatically reduced to the maximum rate permitted under the governing law and
such excess shall be returned with reasonable promptness by the Purchaser to the
Company.

         d. Investor Obligation to Purchase Shares. Subject to the conditions
set forth in this Agreement, following the Investor's receipt of a validly
delivered Put Notice, the Investor shall be required to purchase from the
Company during the related Purchase Period that number of Shares having an
aggregate Purchase Price equal to the lesser of (i) the Dollar Amount set forth
in the Put Notice (subject to reduction during the Purchase Period as may be
provided pursuant to the terms of this Agreement), and (ii) 15% of the total
Volume Weighted Average Price during the applicable Purchase Period, but only if
said number of shares are received in escrow pursuant to the terms of the Escrow
Agreement attached hereto as Exhibit F.

                                      -3-
<PAGE>

         e. Limitation on Investor's Obligation to Purchase Shares.
Notwithstanding anything to the contrary in this Agreement, in no event shall
the Investor be required to purchase, and the Company shall in no event sell to
the Investor, that number of Shares, which when added to the sum of the number
of Shares beneficially owned, (as such term is defined under Section 13(d) and
Rule 13d-3 of the Securities Exchange Act of 1934 (the "1934 ACT")), by the
Investor, would exceed 4.99% of the number of Shares outstanding on the Put
Notice Date for such Purchase Period, as determined in accordance with Rule
13d-1(j) of the 1934 Act. In no event shall the Investor purchase Shares of the
Common Stock other than pursuant to this Agreement until such date as this
Agreement is terminated. Each Put Notice shall include a representation of the
Company as to the number of Shares of Common Stock outstanding on the related
Put Notice Date as determined in accordance with Section 13(d) of the 1934 Act.
In the event that the number of Shares of Common Stock outstanding as determined
in accordance with Section 13(d) of the 1934 Act is different on any date during
a Purchase Period than on the Put Notice Date associated with such Purchase
Period, then the number of Shares of Common Stock outstanding on such date
during such Purchase Period shall govern for purposes of determining whether the
Investor would be acquiring beneficial ownership of more than 4.99% of the
number of Shares of Common Stock outstanding during such period.

         f. Conditions to Investor's Obligation to Purchase Shares.
Notwithstanding anything to the contrary in this Agreement, the Company shall
not be entitled to deliver a Put Notice and require the Investor to purchase any
Shares at a Closing (as defined in Section 1(h)) unless each of the following
conditions are satisfied:

                  (i) a Registration Statement shall have been declared
                  effective and shall remain effective and available for the
                  resale of all the Registrable Securities (as defined in the
                  Registration Rights Agreement) during the Purchase Period;

                  (ii) at all times during the period beginning on the related
                  Put Notice Date and ending on and including the related
                  Closing Date, the Common Stock shall have been listed on The
                  American Stock Exchange, Inc. or The New York Stock Exchange,
                  Inc. or designated on the Nasdaq National Market, The Nasdaq
                  SmallCap Market, or the National Association of Securities
                  Dealer's, Inc. OTC electronic bulletin board (the "PRINCIPAL
                  MARKET") and shall not have been suspended from trading
                  thereon for a period of five (5) consecutive Trading Days
                  during the Open Period and the Company shall not have been
                  notified of any pending or threatened proceeding or other
                  action to delist or suspend the Common Stock;

                  (iii) the Company has complied with its obligations and is
                  otherwise not in breach of a material provision, or in default
                  under, this Agreement, the Registration Rights Agreement or
                  any other agreement executed in connection herewith which has
                  not been corrected prior to delivery of the Put Notice Date;

                                      -4-
<PAGE>

                  (iv) no Material Adverse Effect (as defined in Section 3(a))
                  has occurred since the Execution Date;(v) no injunction shall
                  have been issued, or action commenced by a governmental
                  authority, prohibiting the purchase or the issuance of the
                  Common Stock; and

                  (vi) the issuance of the Common Stock will not violate the
                  shareholder approval requirements of Nasdaq, if applicable.

                  If any of the conditions described in clauses (i) through (vi)
                  above are not satisfied before or during a Purchase Period,
                  then the Investor shall have no obligation to purchase the
                  Dollar Amount of Common Stock set forth in the applicable Put
                  Notice, but once the event(s) are cured, the Company may again
                  submit Put Notices and Investor shall be obligated to purchase
                  the Common Stock in accordance with those Put Notices and this
                  Agreement.

         g. For purposes of this Agreement, a "MAJOR TRANSACTION" shall be
deemed to have occurred at the closing of any of the following events: (i) the
consolidation, merger or other business combination of the Company with or into
another person (other than pursuant to a migratory merger effected solely for
the purposes of changing the jurisdiction of incorporation of the Company); (ii)
the sale or transfer of all or substantially all of the Company's assets; or
(iii) the consummation of a purchase, tender or exchange offer made to, and
accepted by, the holders of more than 30% of the economic interest in, or the
combined voting power of all classes of voting stock of, the Company.

         h. Mechanics of Purchase of Shares by Investor. Subject to the
satisfaction of the conditions set forth in Sections 1(f), 6 and 7, the closing
of the purchase by the Investor of Shares (a "CLOSING") shall occur on the date
which is eleven (11) Trading Days following the applicable Put Notice Date (or
such other time or later date as is mutually agreed to by the Company and the
Investor) (a "CLOSING DATE"). The Company shall deliver to Joseph B. LaRocco
("ESCROW AGENT") pursuant to the Escrow Agreement, annexed hereto as Exhibit F,
certificates representing the Shares to be issued to the Investor and registered
in the name of the Investor, or in street name as may be requested by Investor,
or deposit such Shares into the account(s) (with the Investor receiving
confirmation that the Shares are in such account(s)) designated by the Investor
for the benefit of the Investor and the Investor shall deliver to the Escrow
Agent the Purchase Price to be paid for such Shares (prior to or upon receipt of
confirmation that the Shares have been delivered to the Escrow Agent),
determined as aforesaid, by wire transfer. In addition, each of the Company and
the Investor shall deliver all documents, instruments and writings required to
be delivered by either of them to the Escrow Agent pursuant to this Agreement at
or prior to each Closing. In the alternative to physical delivery of
certificates for Common Stock to the Escrow Agent, if delivery of the Shares may
be effectuated by electronic book-entry through The Depository Trust Company
("DTC"), then delivery of the Shares pursuant to such purchase shall, unless

                                      -5-
<PAGE>

requested otherwise by such Investor (or holder of such Shares), settle by
book-entry transfer through DTC by the Closing Date. The parties agree to
coordinate with DTC to accomplish this objective.

         i. Delisting; Suspension. If at any time during the Open Period or
within thirty (30) calendar days after the end of the Open Period, (i) the
Registration Statement, after it has been declared effective, shall not remain
effective and available for sale of all the Registrable Securities, (ii) the
Common Stock shall not be listed on the Principal Market or shall have been
suspended from trading thereon (excluding suspensions of not more than one
trading day resulting from business announcements by the Company) or the Company
shall have been notified of any pending or threatened proceeding or other action
to delist or suspend the Common Stock, (iii) there shall have occurred a Major
Transaction (as defined in Section 1(g)) or the public announcement of a pending
Major Transaction which has not been abandoned or terminated, or (iv) the
Registration Statement is no longer effective or is stale for a period of more
than fifteen (15) Trading Days as a result of the Company to timely file its
financials, the Investor shall have the right (the "REPURCHASE OPTION"), as
partial relief for the damages to the Investor by reason of the occurrence of
the events listed in clauses (i), (ii), (iii) or (iv) above (which remedy shall
not be exclusive of any other remedies available at law or equity), in its sole
discretion, which right shall be exercised within thirty (30) calendar days of
such event or occurrence (a "REPURCHASE EVENT"), to sell to the Company, and the
Company agrees to buy, promptly upon the exercise of such right by the Investor,
but in any event within ten (10) calendar days of the exercise of such right,
and subject to the limitations imposed by applicable federal and state law, all
or any part of the Shares issued to the Investor within the sixty (60) Trading
Days preceding the Investor's exercise of the Repurchase Option and then held by
the Investor at a price per Share equal to the highest Volume Weighted Average
Price during the period beginning on the date of the Repurchase Event and ending
on and including the date on which the Investor exercises its Repurchase Option
(the "PAYMENT AMOUNT"). If the Company fails to pay to the Investor the full
aggregate Payment Amount within ten (10) calendar days of the Investor's
exercise of the Repurchase Option hereunder, the Company shall pay to the
Investor, on the first Trading Day following such tenth (10th) calendar day, in
addition to and not in lieu of the Payment Amount payable by the Company to the
Investor upon exercise of the Repurchase Option, an amount equal to 2% of the
aggregate Payment Amount then due and payable to the Investor, in cash by wire
transfer, plus compounded annual interest of 18% on such Payment Amount during
the period, beginning on the day following such tenth calendar day, during which
such Payment Amount, or any portion thereof, is outstanding.

         j. Overall Limit on Common Stock Issuable. Notwithstanding anything
contained herein to the contrary, if the Company is no longer listed on the OTC
electronic bulletin board, the number of Shares issuable by the Company and
purchasable by the Investor, including the shares of Common Stock issuable in
connection with any warrants the Investor may own, shall not exceed 19.99% of
the shares of Common Stock outstanding as of the date hereof, subject to
appropriate adjustment for stock splits, stock dividends, combinations or other
similar recapitalization affecting the Common Stock

                                      -6-
<PAGE>

(the "MAXIMUM COMMON STOCK ISSUANCE"), unless the issuance of Shares, in excess
of the Maximum Common Stock Issuance shall first be approved by the Company's
shareholders in accordance with applicable law and the By-laws and Articles of
Incorporation of the Company, if such issuance of shares of Common Stock could
cause a delisting on the Principal Market. Without limiting the generality of
the foregoing, such shareholders' approval must duly authorize the issuance by
the Company of shares of Common Stock totaling 19.99% or more of the shares of
Common Stock outstanding on the date hereof. The parties understand and agree
that the Company's failure to seek or obtain such shareholder approval shall in
no way adversely affect the validity and due authorization of the issuance and
sale of Shares hereunder or the Investor's obligation in accordance with the
terms and conditions hereof to purchase a number of Shares in the aggregate up
to the Maximum Common Stock Issuance limitation, and that such approval pertains
only to the applicability of the Maximum Common Stock Issuance limitation
provided in this Section 1(j).

         k. "VALUATION EVENT" shall mean an event in which the Company at any
time during a Purchase Period (as defined in Section 1(b)) takes any of the
following actions:

                  (i)      subdivides or combines its Common Stock;

                  (ii)     pays a dividend in Common Stock or makes any other
                           distribution of its Common Stock, except for
                           dividends paid with respect to the Preferred Stock;

                  (iii)    issues any options or other rights to subscribe for
                           or purchase Common Stock and the price per share for
                           which Common Stock may at any time thereafter be
                           issuable pursuant to such options or other rights
                           shall be less than the Bid Price in effect
                           immediately prior to such issuance;

                  (iv)     issues any securities convertible into or
                           exchangeable for Common Stock and the consideration
                           per share for which shares of Common Stock may at any
                           time thereafter be issuable pursuant to the terms of
                           such convertible or exchangeable securities shall be
                           less than the Bid Price in effect immediately prior
                           to such issuance;

                  (v)      issues shares of Common Stock otherwise than as
                           provided in the foregoing subsections (i) through
                           (iv), at a price per share less, or for other
                           consideration lower, than the Bid Price in effect
                           immediately prior to such issuance, or without
                           consideration;

                  (vi)     makes a distribution of its assets or evidences of
                           indebtedness to the holders of Common Stock as a
                           dividend in liquidation or by way of return of
                           capital or other than as a dividend payable out of
                           earnings or surplus legally available for dividends
                           under applicable law or any distribution to such
                           holders made in respect of the sale of all or
                           substantially all of the Company's assets (other than
                           under the circumstances provided for in the foregoing
                           subsections (i) through (v); or

                                      -7-
<PAGE>

                  (vii)    takes any action affecting the number of shares of
                           Common Stock outstanding, other than an action
                           described in any of the foregoing subsections (i)
                           through (vi) hereof, inclusive, which in the opinion
                           of the Company's Board of Directors, determined in
                           good faith, would have a materially adverse effect
                           upon the rights of Investor at the time of a Put
                           Notice is delivered to Investor.

         l. The Company agrees that it shall not take any action that would
result in a Valuation Event occurring during a Purchase Period.

         2. INVESTOR'S REPRESENTATIONS AND WARRANTIES.
            -----------------------------------------

         The Investor represents and warrants to the Company that:

         a. Investment Purpose. The Investor is acquiring the Shares and
warrants issuable pursuant to the Agreement ("SECURITIES") for its own account
for investment only and not with a view towards, or for resale in connection
with, the public sale or distribution thereof, except pursuant to sales
registered or exempted under the 1933 Act; provided, however, that by making the
representations herein, the Investor does not agree to hold any of the
Securities for any minimum or other specific term and reserves the right to
dispose of the Securities at any time in accordance with or pursuant to a
registration statement or an exemption under the 1933 Act.

         b. Accredited Investor Status; Sophisticated Investor. The Investor is
an "accredited investor" as that term is defined in Rule 501(a) of Regulation D
under the 1933 Act. The Investor has such knowledge, sophistication and
experience in business and financial matters so as to be capable of evaluating
the merits and risks of the prospective investment in the Securities.

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

         d. Information. The Investor and its advisors, if any, have been
furnished with or have had access to all materials relating to the business,
finances and operations of the Company and materials relating to the offer and
sale of the Securities which have been requested by the Investor. The Investor
and its advisors, if any, have been afforded the opportunity to ask questions of
the Company. Neither such inquiries nor any other due diligence investigations
conducted by the Investor or its advisors, if any, or its representatives shall
modify, amend or affect the Investor's right to rely on the Company's
representations and warranties contained in Section 3 below. The Investor
understands that its investment in the Securities involves a high degree of
risk.

                                      -8-
<PAGE>

The Investor has sought such accounting, legal and tax advice as it has
considered necessary to make an informed investment decision with respect to its
acquisition of the Securities.

         e. No Governmental Review. The Investor understands that no United
States federal or state agency or any other government or governmental agency
has passed on or made any recommendation or endorsement of the Securities or the
fairness or suitability of the investment in the Securities nor have such
authorities passed upon or endorsed the merits of the offering of the
Securities.

         f. Transfer or Resale. The Investor understands that except as provided
in the Registration Rights Agreement: (i) the Securities have not been and are
not being registered under the 1933 Act or any state securities laws, and may
not be offered for sale, sold or transferred unless (A) subsequently registered
for resale thereunder and sold or transferred in accordance with an effective
registration statement, (B) the Investor shall have delivered to the Company an
opinion of counsel, in a generally acceptable form, to the effect that such
Securities to be sold or transferred may be sold or transferred pursuant to an
exemption from such registration, or (C) the Investor provides the Company with
assurance reasonably acceptable to the Company that such Securities can be sold
or transferred pursuant to Rule 144 promulgated under the 1933 Act (or a
successor rule thereto) ("RULE 144"); (ii) any sale of the Securities made in
reliance on Rule 144 may be made only in accordance with the terms of Rule 144
and further, if Rule 144 is not applicable, any resale of the Securities under
circumstances in which the seller (or the person through whom the sale is made)
may be deemed to be an underwriter (as that term is defined in the 1933 Act) may
require compliance with some other exemption under the 1933 Act or the rules and
regulations of the SEC thereunder; and (iii) neither the Company nor any other
person is under any obligation to register such Securities under the 1933 Act or
any state securities laws or to comply with the terms and conditions of any
exemption thereunder. The Investor agrees that the sale of the Securities will
be in compliance with all applicable state and federal securities laws, rules
and regulations and the rules and regulations of the Principal Market, if
applicable.

         g. Legends. The Investor understands that, until such time as the
Securities have been transferred to a person who may trade the Shares without
restriction under the 1933 Act as contemplated by the Registration Rights
Agreement, the certificates representing the Securities, except as set forth
below and in Section 7(r), shall bear a restrictive legend in substantially the
following form (and a stop-transfer order may be placed against transfer of such
stock certificates):

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

                                      -9-
<PAGE>

         The legend set forth above shall be removed and the Company shall issue
a certificate without such legend to the holder of the Securities upon which it
is stamped, if, unless otherwise required by state securities laws, (i) such a
resale of Securities is registered under the 1933 Act, (ii) in connection with a
sale transaction, such holder provides the Company with an opinion of counsel,
in a generally acceptable form, to the effect that a public sale or transfer of
such Securities may be made without registration under the 1933 Act, or (iii)
such holder provides the Company with assurances reasonably acceptable to the
Company that such Securities can be sold pursuant to Rule 144 without any
restriction as to (A) the number of securities acquired as of a particular date
that can then be immediately sold or (B) manner of sale. The Investor covenants
that, in connection with any transfer of Securities by it pursuant to an
effective registration statement under the 1933 Act, it will (i) comply with the
applicable prospectus delivery requirements of the 1933 Act, provided that
copies of a current prospectus relating to such effective registration statement
are or have been supplied to the Investor, and (ii) comply with the "Plan of
Distribution" section of the current prospectus relating to such effective
registration statement.

         h. Authorization; Enforcement. This Agreement has been duly and validly
authorized, executed and delivered on behalf of the Investor and is a valid and
binding agreement of the Investor enforceable against the Investor in accordance
with its terms, subject as to enforceability to general principles of equity and
to applicable bankruptcy, insolvency, reorganization, moratorium, liquidation
and other similar laws relating to, or affecting generally, the enforcement of
applicable creditors' rights and remedies..

         j. Section 9 of the 1934 Act. During the Open Period, the Investor will
comply with the provisions of Section 9 of the 1934 Act, and the rules
promulgated thereunder, with respect to transactions involving the Common Stock.

         k. No Conflicts. The execution, delivery and performance of the
Transaction Documents by the Investor and the consummation by the Investor of
the transactions contemplated hereby and thereby will not (i) result in a
violation of the Articles of Incorporation or the By-laws or (ii) conflict with,
or constitute a material default (or an event which with notice or lapse of time
or both would become a material default) under, or give to others any rights of
termination, amendment, acceleration or cancellation of, any material agreement,
contract, indenture mortgage, indebtedness or instrument to which the Investor
or any of its Subsidiaries is a party, or result in a violation of any law,
rule, regulation, order, judgment or decree applicable to the Investor or any of
its Subsidiaries or by which any property or asset of the Investor or any of its
Subsidiaries is bound or affected. The business of the Investor and its
Subsidiaries is not being conducted, and shall not be conducted, in violation of
any law, statute, ordinance, rule,

                                      -10-
<PAGE>

order or regulation of any governmental authority or agency, regulatory or
self-regulatory agency, or court, except for possible violations the sanctions
for which either individually or in the aggregate would not have a Material
Adverse Effect.

         l. The Investor is an entity duly organized, existing and in good
standing under the laws of the Cayman Islands, and has the requisite power and
authority to enter into the transactions contemplated by the Transaction
Documents, as that term is defined in Section 3(b) below.

         3.       REPRESENTATIONS AND WARRANTIES OF THE COMPANY.
                  ----------------------------------------------

         Except as set forth in the Schedules attached hereto, the Company
represents and warrants to the Investor that:

         a. Organization and Qualification. The Company and its "SUBSIDIARIES"
(which for purposes of this Agreement means any entity in which the Company,
directly or indirectly, owns capital stock or holds an equity or similar
interest) (a complete list of which is set forth in Schedule 3(a)) are
corporations duly organized and validly existing in good standing under the laws
of the State of Florida, and have the requisite corporate power and
authorization to own their properties and to carry on their business as now
being conducted. Each of the Company and its Subsidiaries is duly qualified as a
foreign corporation to do business and is in good standing in every jurisdiction
in which its ownership of property or the nature of the business conducted by it
makes such qualification necessary, except to the extent that the failure to be
so qualified or be in good standing would not have a Material Adverse Effect. As
used in this Agreement, "MATERIAL ADVERSE EFFECT" means any material adverse
effect on the business, properties, assets, operations, results of operations,
financial condition or prospects of the Company and its Subsidiaries, if any,
taken as a whole, or on the transactions contemplated hereby or by the
agreements and instruments to be entered into in connection herewith, or on the
authority or ability of the Company to perform its obligations under the
Transaction Documents (as defined in Section 3(b)).

         b. Authorization; Enforcement; Compliance with Other Instruments. (i)
The Company has the requisite corporate power and authority to enter into and
perform this Agreement, the Registration Rights Agreement, the Escrow Agreement
and each of the other agreements entered into by the parties hereto in
connection with the transactions contemplated by this Agreement (collectively,
the "TRANSACTION DOCUMENTS"), and to issue the Shares in accordance

                                      -11-
<PAGE>

with the terms hereof and thereof, (ii) the execution and delivery of the
Transaction Documents by the Company and the consummation by it of the
transactions contemplated hereby and thereby, including without limitation the
reservation for issuance and the issuance of the Shares pursuant to this
Agreement, have been duly and validly authorized by the Company's Board of
Directors and no further consent or authorization is required by the Company,
its Board of Directors, or its shareholders, (iii) the Transaction Documents
have been duly and validly executed and delivered by the Company, and (iv) the
Transaction Documents constitute the valid and binding obligations of the
Company enforceable against the Company in accordance with their terms, except
as such enforceability may be limited by general principles of equity or
applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or
similar laws relating to, or affecting generally, the enforcement of creditors'
rights and remedies.

         c. Capitalization. As of the date hereof, the authorized capital stock
of the Company consists of (i) 500,000,000 shares of Common Stock, of which as
of the date hereof, 91,712,146 shares are issued and outstanding, 10,000,000
shares of Preferred Stock, of which as of the date hereof -0- shares are issued
and outstanding, and 13,113,000 shares of Common Stock are issuable upon the
exercise of options, warrants and conversion rights. All of such outstanding
shares have been, or upon issuance will be, validly issued and are fully paid
and nonassessable. Except as disclosed in Schedule 3(c), (i) no shares of the
Company's capital stock are subject to preemptive rights or any other similar
rights or any liens or encumbrances suffered or permitted by the Company, (ii)
there are no outstanding debt securities, (iii) there are no outstanding shares
of capital stock, options, warrants, scrip, rights to subscribe to, calls or
commitments of any character whatsoever relating to, or securities or rights
convertible into, any shares of capital stock of the Company or any of its
Subsidiaries, or contracts, commitments, understandings or arrangements by which
the Company or any of its Subsidiaries is or may become bound to issue
additional shares of capital stock of the Company or any of its Subsidiaries or
options, warrants, scrip, rights to subscribe to, calls or commitments of any
character whatsoever relating to, or securities or rights convertible into, any
shares of capital stock of the Company or any of its Subsidiaries, (iv) there
are no agreements or arrangements under which the Company or any of its
Subsidiaries is obligated to register the sale of any of their securities under
the 1933 Act (except the Registration Rights Agreement), (v) there are no
outstanding securities of the Company or any of its Subsidiaries which contain
any redemption or similar provisions, and there are no contracts, commitments,
understandings or arrangements by which the Company or any of its Subsidiaries
is or may become bound to redeem a security of the Company or any of its
Subsidiaries, (vi) there are no securities or instruments containing
anti-dilution or similar provisions that will be triggered by the issuance of
the Securities as described in this Agreement, and (vii) the Company does not
have any stock appreciation rights or "phantom stock" plans or agreements or any
similar plan or agreement. The Company has furnished to the Investor, or the
Investor has had access through EDGAR to, true and correct copies of the
Company's Articles of Incorporation, as in effect on the date hereof (the
"ARTICLES OF INCORPORATION"), and the Company's By-laws, as in effect on the
date hereof (the "BY-LAWS `), and the terms of all securities convertible into
or exercisable for Common Stock and the material rights of the holders thereof
in respect thereto.

         d. Issuance of Shares. A number of shares of Common Stock equal to at
least 200% of the aggregate number of Shares issuable pursuant to this Agreement
but not more than 19.99% of the shares of Common Stock outstanding as of the
date hereof, to the extent that the provisions of Section 1(j) are applicable
hereunder, based on the Purchase Price per Share as of the date hereof and an
aggregate Purchase Price of $30,000,000 (regardless of any limitation on the
timing or amount of such purchases) initially has been duly authorized and
reserved for issuance (subject to adjustment

                                      -12-
<PAGE>

pursuant to the Company's covenant set forth in Section 4(f) below) pursuant to
this Agreement. Upon issuance in accordance with this Agreement, the Securities
will be validly issued, fully paid and nonassessable and free from all taxes,
liens and charges with respect to the issue thereof. The issuance by the Company
of the Securities is exempt from registration under the 1933 Act. In the event
the Company cannot register the 200% required, due to the remaining number of
authorized shares of Common Stock being insufficient, the Company will use its
best efforts to register the maximum number of shares it can based on the
remaining balance of authorized shares and will use its best efforts to place
before shareholder vote a proposal to increase the number of its authorized
shares as soon as reasonably practicable.

         e. No Conflicts. The execution, delivery and performance of the
Transaction Documents by the Company and the consummation by the Company of the
transactions contemplated hereby and thereby will not (i) result in a violation
of the Articles of Incorporation, any Certificate of Designations, Preferences
and Rights of any outstanding series of preferred stock of the Company or the
By-laws or (ii) conflict with, or constitute a material default (or an event
which with notice or lapse of time or both would become a material default)
under, or give to others any rights of termination, amendment, acceleration or
cancellation of, any material agreement, contract, indenture mortgage,
indebtedness or instrument to which the Company or any of its Subsidiaries is a
party, or result in a violation of any law, rule, regulation, order, judgment or
decree (including United States federal and state securities laws and
regulations and the rules and regulations of the Principal Market or principal
securities exchange or trading market on which the Common Stock is traded or
listed) applicable to the Company or any of its Subsidiaries or by which any
property or asset of the Company or any of its Subsidiaries is bound or
affected. Except as disclosed in Schedule 3(e), neither the Company nor its
Subsidiaries is in violation of any term of, or in default under, the Articles
of Incorporation, any Certificate of Designations, Preferences and Rights of any
outstanding series of preferred stock of the Company or the By-laws or their
organizational charter or by-laws, respectively, or any contract, agreement,
mortgage, indebtedness, indenture, instrument, judgment, decree or order or any
statute, rule or regulation applicable to the Company or its Subsidiaries,
except for possible conflicts, defaults, terminations, amendments,
accelerations, cancellations and violations that would not individually or in
the aggregate have a Material Adverse Effect. The business of the Company and
its Subsidiaries is not being conducted, and shall not be conducted, in
violation of any law, statute, ordinance, rule, order or regulation of any
governmental authority or agency, regulatory or self-regulatory agency, or
court, except for possible violations the sanctions for which either
individually or in the aggregate would not have a Material Adverse Effect.
Except as specifically contemplated by this Agreement and as required under the
1933 Act, the Company is not required to obtain any consent, authorization,
permit or order of, or make any filing or registration (except the filing of a
registration statement) with, any court, governmental authority or agency,
regulatory or self-regulatory agency or other third party in order for it to
execute, deliver or perform any of its obligations under, or contemplated by,
the Transaction Documents in accordance with the terms hereof or thereof. All
consents, authorizations, permits, orders, filings and registrations which the
Company is required to obtain pursuant to the preceding sentence have been

                                      -13-
<PAGE>

obtained or effected on or prior to the date hereof and are in full force and
effect as of the date hereof. Except as disclosed in Schedule 3(e), the Company
and its Subsidiaries are unaware of any facts or circumstances which might give
rise to any of the foregoing. The Company is not, and will not be, in violation
of the listing requirements of the Principal Market as in effect on the date
hereof and on each of the Closing Dates and is not aware of any facts which
would reasonably lead to delisting of the Common Stock by the Principal Market
in the foreseeable future.

         f. SEC Documents; Financial Statements. Since February 1999, the
Company has filed all reports, schedules, forms, statements and other documents
required to be filed by it with the SEC pursuant to the reporting requirements
of the 1933 Act (all of the foregoing filed prior to the date hereof and all
exhibits included therein and financial statements and schedules thereto and
documents incorporated by reference therein being hereinafter referred to as the
"SEC DOCUMENTS"). The Company has delivered to the Investor or its
representatives, or they have had access through EDGAR, true and complete copies
of the SEC Documents. As of their respective dates, the SEC Documents complied
in all material respects with the requirements of the 1933 Act and the rules and
regulations of the SEC promulgated thereunder applicable to the SEC Documents,
and none of the SEC Documents, at the time they were filed with the SEC,
contained any untrue statement of a material fact or omitted to state a material
fact required to be stated therein or necessary to make the statements therein,
in light of the circumstances under which they were made, not misleading. As of
their respective dates, the financial statements of the Company included in the
SEC Documents complied as to form in all material respects with applicable
accounting requirements and the published rules and regulations of the SEC with
respect thereto. Such financial statements have been prepared in accordance with
generally accepted accounting principles, consistently applied, during the
periods involved (except (i) as may be otherwise indicated in such financial
statements or the notes thereto, or (ii) in the case of unaudited interim
statements, to the extent they may exclude footnotes or may be condensed or
summary statements) and fairly present in all material respects the financial
position of the Company as of the dates thereof and the results of its
operations and cash flows for the periods then ended (subject, in the case of
unaudited statements, to normal year-end audit adjustments). No other written
information provided by or on behalf of the Company to the Investor which is not
included in the SEC Documents, including, without limitation, information
referred to in Section 2(d) of this Agreement, contains any untrue statement of
a material fact or omits to state any material fact necessary to make the
statements therein, in the light of the circumstance under which they are or
were made, not misleading. Neither the Company nor any of its Subsidiaries or
any of their officers, directors, employees or agents have provided the Investor
with any material, nonpublic information which was not publicly disclosed prior
to the date hereof and any material, nonpublic information provided to the
Investor by the Company or its Subsidiaries or any of their officers, directors,
employees or agents prior to any Closing Date shall be publicly disclosed by the
Company prior to such Closing Date.

         g. Absence of Certain Changes. Except as disclosed in Schedule 3(g) or
the SEC Documents filed at least five (5) days prior to the date hereof, since
October 19,

                                      -14-
<PAGE>

2000, there has been no change or development in the business, properties,
assets, operations, financial condition, results of operations or prospects of
the Company or its Subsidiaries which has had or reasonably could have a
Material Adverse Effect. The Company has not taken any steps, and does not
currently expect to take any steps, to seek protection pursuant to any
bankruptcy law nor does the Company or its Subsidiaries have any knowledge or
reason to believe that its creditors intend to initiate involuntary bankruptcy
proceedings. h. Absence of Litigation. Except as set forth in Schedule 3(h),
there is no action, suit, proceeding, inquiry or investigation before or by any
court, public board, government agency, self-regulatory organization or body
pending or, to the knowledge of the executive officers of Company or any of its
Subsidiaries, threatened against or affecting the Company, the Common Stock or
any of the Company's Subsidiaries or any of the Company's or the Company's
Subsidiaries' officers or directors in their capacities as such, in which an
adverse decision could have a Material Adverse Effect.

         i. Acknowledgment Regarding Investor's Purchase of Shares. The Company
acknowledges and agrees that the Investor is acting solely in the capacity of
arm's length purchaser with respect to the Transaction Documents and the
transactions contemplated hereby and thereby. The Company further acknowledges
that the Investor is not acting as a financial advisor or fiduciary of the
Company (or in any similar capacity) with respect to the Transaction Documents
and the transactions contemplated hereby and thereby and any advice given by the
Investor or any of its respective representatives or agents in connection with
the Transaction Documents and the transactions contemplated hereby and thereby
is merely incidental to the Investor's purchase of the Securities. The Company
further represents to the Investor that the Company's decision to enter into the
Transaction Documents has been based solely on the independent evaluation by the
Company and its representatives.

         j. No Undisclosed Events, Liabilities, Developments or Circumstances.
No event, liability, development or circumstance has occurred or exists, or to
its knowledge is contemplated to occur, with respect to the Company or its
Subsidiaries or their respective business, properties, assets, prospects,
operations or financial condition, that would be required to be disclosed by the
Company under applicable securities laws on a registration statement filed with
the SEC relating to an issuance and sale by the Company of its Common Stock and
which has not been publicly announced.

         k. No General Solicitation. Neither the Company, nor any of its
affiliates, nor any person acting on its or their behalf, has engaged in any
form of general solicitation or general advertising (within the meaning of
Regulation D under the 1933 Act) in connection with the offer or sale of the
Securities.

         l. No Integrated Offering. To its knowledge, neither the Company, nor
any of its affiliates, nor any person acting on its or their behalf has,
directly or indirectly, made any offers or sales of any security or solicited
any offers to buy any security, under circumstances that would require
registration under the 1933 Act of the Company's sale and issuance of the
Securities to the Investor or cause this offering of Shares to the

                                      -15-
<PAGE>

Investor to be integrated with prior offerings by the Company for purposes of
the 1933 Act or any applicable shareholder approval provisions, including,
without limitation, under the rules and regulations of the Principal Market, nor
will the Company or any of its Subsidiaries take any action or steps that would
require registration under the 1933 Act of the Company's sale and issuance of
the Securities to the Investor or cause the offering of the Securities to be
integrated with other offerings.

         m. Employee Relations. Neither the Company nor any of its Subsidiaries
is involved in any union labor dispute nor, to the knowledge of the Company or
any of its Subsidiaries, is any such dispute threatened. Neither the Company nor
any of its Subsidiaries is a party to a collective bargaining agreement, and the
Company and its Subsidiaries believe that relations with their employees are
good. No executive officer (as defined in Rule 501(f) of the 1933 Act) has
notified the Company that such officer intends to leave the Company's employ or
otherwise terminate such officer's employment with the Company.

         n. Intellectual Property Rights. The Company and its Subsidiaries own
or possess adequate rights or licenses to use all trademarks, trade names,
service marks, service mark registrations, service names, patents, patent
rights, copyrights, inventions, licenses, approvals, governmental
authorizations, trade secrets and rights necessary to conduct their respective
businesses as now conducted. Except as set forth on Schedule 3(n), none of the
Company's trademarks, trade names, service marks, service mark registrations,
service names, patents, patent rights, copyrights, inventions, licenses,
approvals, government authorizations, trade secrets or other intellectual
property rights necessary to conduct its business as now or as proposed to be
conducted have expired or terminated, or are expected to expire or terminate
within two years from the date of this Agreement. The Company and its
Subsidiaries do not have any knowledge of any infringement by the Company or its
Subsidiaries of trademark, trade name rights, patents, patent rights,
copyrights, inventions, licenses, service names, service marks, service mark
registrations, trade secret or other similar rights of others, or of any such
development of similar or identical trade secrets or technical information by
others and, except as set forth on Schedule 3(n), there is no claim, action or
proceeding being made or brought against, or to the Company's knowledge, being
threatened against, the Company or its Subsidiaries regarding trademark, trade
name, patents, patent rights, invention, copyright, license, service names,
service marks, service mark registrations, trade secret or other infringement;
and the Company and its Subsidiaries are unaware of any facts or circumstances
which might give rise to any of the foregoing. The Company and its Subsidiaries
have taken reasonable security measures to protect the secrecy, confidentiality
and value of all of their intellectual properties.

         o. Environmental Laws. The Company and its Subsidiaries (i) are in
compliance with any and all applicable foreign, federal, state and local laws
and regulations relating to the protection of human health and safety, the
environment or hazardous or toxic substances or wastes, pollutants or
contaminants ("ENVIRONMENTAL LAWS"), (ii) have received all permits, licenses or
other approvals required of them under applicable Environmental Laws to conduct
their

                                      -16-
<PAGE>

respective businesses and (iii) are in compliance with all terms and conditions
of any such permit, license or approval where, in each of the three foregoing
cases, the failure to so comply would have, individually or in the aggregate, a
Material Adverse Effect.

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

         q Insurance. The Company and each of its Subsidiaries are insured by
insurers of recognized financial responsibility against such losses and risks
and in such amounts as management of the Company believes to be prudent and
customary in the businesses in which the Company and its Subsidiaries are
engaged. Neither the Company nor any such Subsidiary has been refused any
insurance coverage sought or applied for and neither the Company nor any such
Subsidiary has any reason to believe that it will not be able to renew its
existing insurance coverage as and when such coverage expires or to obtain
similar coverage from similar insurers as may be necessary to continue its
business at a cost that would not have a Material Adverse Effect.

         r. Regulatory Permits. The Company and its Subsidiaries have in full
force and effect all certificates, approvals, authorizations and permits from
the appropriate federal, state, local or foreign regulatory authorities and
comparable foreign regulatory agencies, necessary to own, lease or operate their
respective properties and assets and conduct their respective businesses, and
neither the Company nor any such Subsidiary has received any notice of
proceedings relating to the revocation or modification of any such certificate,
approval, authorization or permit, except for such certificates, approvals,
authorizations or permits which if not obtained, or such revocations or
modifications which, would not have a Material Adverse Effect.

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

                                      -17-
<PAGE>

         t. No Materially Adverse Contracts, Etc. Neither the Company nor any of
its Subsidiaries is subject to any charter, corporate or other legal
restriction, or any judgment, decree, order, rule or regulation which in the
judgment of the Company's officers has or is expected in the future to have a
Material Adverse Effect. Neither the Company nor any of its Subsidiaries is a
party to any contract or agreement which in the judgment of the Company's
officers has or is expected to have a Material Adverse Effect.

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

         v. Certain Transactions. Except as set forth on Schedule 3(v) or in the
SEC Documents filed at least ten days prior to the date hereof and except for
arm's length transactions pursuant to which the Company makes payments in the
ordinary course of business upon terms no less favorable than the Company could
obtain from third parties and other than the grant of stock options disclosed on
Schedule 3(c), none of the officers, directors, or employees of the Company is
presently a party to any transaction with the Company or any of its Subsidiaries
(other than for services as employees, officers and directors), including any
contract, agreement or other arrangement providing for the furnishing of
services to or by, providing for rental of real or personal property to or from,
or otherwise requiring payments to or from any officer, director or such
employee or, to the knowledge of the Company, any corporation, partnership,
trust or other entity in which any officer, director, or any such employee has a
substantial interest or is an officer, director, trustee or partner.

         w. Dilutive Effect. The Company understands and acknowledges that the
number of shares of Common Stock issuable upon purchases pursuant to this
Agreement will increase in certain circumstances. The Company's executive
officers and directors have studied and fully understand the nature of the
transactions contemplated by this Agreement and recognize that they have a
potential dilutive effect. The board of directors of the Company has concluded,
in its good faith business judgment, that such issuance is in the best interests
of the Company. The Company specifically acknowledges that, subject to such
limitations as are expressly set forth in the Transaction Documents, its
obligation to issue shares of Common Stock upon purchases pursuant to this
Agreement is absolute and unconditional regardless of the dilutive effect that
such issuance may have on the ownership interests of other shareholders of the
Company.

                                      -18-
<PAGE>

         x. Right of First Refusal. The Company shall not, directly or
indirectly, without the prior written consent of Meridian Equities, Inc., or its
designee,, offer, sell, grant any option to purchase, or otherwise dispose of
(or announce any offer, sale, grant or any option to purchase or other
disposition) any of its Common Stock or securities convertible into Common Stock
at a price that is less than the market price of the Common Stock at the time of
issuance of such security or investment (a "SUBSEQUENT FINANCING") for a period
of one year after the Effective Date, except (i) the granting of options or
warrants to employees, officers, directors and consultants, and the issuance of
shares upon exercise of options granted, under any stock option plan heretofore
or hereinafter duly adopted by the Company, (ii) shares issued upon exercise of
any currently outstanding warrants or options and upon conversion of any
currently outstanding convertible debenture, in each case disclosed Pursuant to
Section 3(c), (iii) securities issued in connection with the capitalization or
creation of a joint venture with a strategic partner, (iv) shares issued to pay
part or all of the purchase price for the acquisition by the Company of a person
(which, for purposes of this clause (iv), shall not include an individual or
group of individuals), and (v) shares issued in a bona fide public offering by
the Company of its securities, unless (A) the Company delivers to Meridian
Equities, Inc., or its designee, a written notice (the "SUBSEQUENT FINANCING
NOTICE") of its intention to effect such Subsequent Financing, which Subsequent
Financing Notice shall describe in reasonable detail the proposed terms of such
Subsequent Financing, the amount of proceeds intended to be raised thereunder,
the person with whom such Subsequent Financing shall be effected, and attached
to which shall be a term sheet or similar document relating thereto and (B)
Meridian Equities, Inc., or its designee, shall not have notified the Company by
5:00 p.m. (New York time) on the fifteenth (15th) Trading Day after its receipt
of the Subsequent Financing Notice of its willingness to provide, subject to
completion of mutually acceptable documentation, financing to the Company on
substantially the terms set forth in the Subsequent Financing Notice. If
Meridian Equities, Inc., or its designee, shall fail to notify the Company of
its intention to enter into such negotiations within such time period, then the
Company may effect the Subsequent Financing substantially upon the terms and to
the persons (or affiliates of such persons) set forth in the Subsequent
Financing Notice; PROVIDED THAT the Company shall provide Meridian Equities,
Inc., or its designee, with a second Subsequent Financing Notice, and Meridian
Equities, Inc., or its designee, shall again have the right of first refusal set
forth above in this Section, if the Subsequent Financing subject to the initial
Subsequent Financing Notice shall not have been consummated for any reason on
the terms set forth in such Subsequent Financing Notice within thirty (30)
Trading Days after the date of the initial Subsequent Financing Notice with the
person (or an affiliate of such person) identified in the Subsequent Financing
Notice. The rights granted to Meridian Equities, Inc., or its designee, in this
Section are not subject to any prior right of first refusal given to any other
person except as disclosed on Schedule 3(c).

         y. The Company shall not be under any obligation to make any securities
filings under the laws of the Cayman Islands or British Virgin Islands.

         4.       COVENANTS OF THE COMPANY

                                      -19-
<PAGE>

         a. Best Efforts. The Company shall use its best efforts timely to
satisfy each of the conditions to be satisfied by it as provided in Sections 7
of this Agreement.

         b. Blue Sky. The Company shall, at its sole cost and expense, on or
before each of the Closing Dates, take such action as the Company shall
reasonably determine is necessary to qualify the Securities for, or obtain
exemption for the Securities for, sale by the Investor pursuant to this
Agreement under applicable securities or "Blue Sky" laws of an aggregate of five
(5) states of the United States, as specified by Investor, as well as those
states covered by what is known as the "manual exemption" through listing in
Standard Corporation Records, the terms of which are otherwise applicable to a
resale of the Securities by the Investor, and shall provide evidence of any such
action so taken to the Investor on or prior to the Closing Date and maintain
those exemptions through the Open Period. The Company shall, at its sole cost
and expense, make all filings and reports relating to the offer and sale of the
Securities required under the applicable securities or "Blue Sky" laws of such
states of the United States following each of the Closing Dates.

         c. Reporting Status. Until the earlier of (i) the first date which is
after the date this Agreement is terminated pursuant to Section 8 and on which
the Holders (as that term is defined in the Registration Rights Agreement) may
sell all of the Securities acquired pursuant to this Agreement without
restriction pursuant to Rule 144(k) promulgated under the 1933 Act (or successor
thereto), or (ii) the date on which (A) the Holders shall have sold all the
Securities issuable hereunder and (B) this Agreement has been terminated
pursuant to Section 8 (the "REGISTRATION PERIOD"), the Company shall file all
reports required to be filed with the SEC pursuant to the 1934 Act, and the
Company shall not terminate its status as a reporting company under the 1933
Act.

         d. Use of Proceeds. The Company will use the proceeds from the sale of
the Shares (excluding amounts paid by the Company for legal fees, finder's fees
and escrow fees) for general corporate and working capital purposes.

         e. Financial Information. The Company agrees to make available to the
Investor via EDGAR or other electronic means the following to the Investor
during the Registration Period: (i) within five (5) Trading Days after the
filing thereof with the SEC, a copy of its Annual Reports on Form 10-K, its
Quarterly Reports on Form 10-Q, any Current Reports on Form 8-K and any
Registration Statements or amendments filed pursuant to the 1933 Act; (ii) on
the same day as the release thereof, facsimile copies of all press releases
issued by the Company or any of its Subsidiaries, (iii) copies of any notices
and other information made available or given to the shareholders of the Company
generally, contemporaneously with the making available or giving thereof to the
shareholders and (iv) within two (2) calendar days of filing or delivery
thereof, copies of all documents filed with, and all correspondence sent to, the
Principal Market, any securities exchange or market, or the National Association
of Securities Dealers, Inc.

                                      -20-
<PAGE>

         f. Reservation of Shares. Subject to the following sentence, the
Company shall take all action necessary to at all times have authorized, and
reserved for the purpose of issuance, no less than 200% of the number of shares
of Common Stock needed to provide for the issuance of all the Securities
hereunder at the then current Purchase Price. In the event that the Company
determines that it does not have a sufficient number of authorized shares of
Common Stock to reserve and keep available for issuance as described in this
Section 4(f), the Company shall use its best efforts to increase the number of
authorized shares of Common Stock by seeking shareholder approval for the
authorization of such additional shares.

         g. Listing. The Company shall promptly secure the listing of all of the
Registrable Securities (as defined in the Registration Rights Agreement) upon
the Principal Market and each other national securities exchange and automated
quotation system, if any, upon which shares of Common Stock are then listed
(subject to official notice of issuance) and shall maintain, so long as any
other shares of Common Stock shall be so listed, such listing of all Registrable
Securities from time to time issuable under the terms of the Transaction
Documents. The Company shall maintain the Common Stock's authorization for
quotation on the Principal Market, unless the Investor and the Company agree
otherwise. Neither the Company nor any of its Subsidiaries shall take any action
which would be reasonably expected to result in the delisting or suspension of
the Common Stock on the Principal Market (excluding suspensions of not more than
one trading day resulting from business announcements by the Company). The
Company shall promptly provide to the Investor copies of any notices it receives
from the Principal Market regarding the continued eligibility of the Common
Stock for listing on such automated quotation system or securities exchange. The
Company shall pay all fees and expenses in connection with satisfying its
obligations under this Section 4(g).

         h. Transactions With Affiliates. The Company shall not, and shall cause
each of its Subsidiaries not to, enter into, amend, modify or supplement, or
permit any Subsidiary to enter into, amend, modify or supplement, any agreement,
transaction, commitment or arrangement with any of its or any Subsidiary's
officers, directors, persons who were officers or directors at any time during
the previous two years, shareholders who beneficially own 5% or more of the
Common Stock, or affiliates or with any individual related by blood, marriage or
adoption to any such individual or with any entity in which any such entity or
individual owns a 5% or more beneficial interest (each a "RELATED PARTY"),
except for (i) customary employment arrangements and benefit programs on
reasonable terms, (ii) any agreement, transaction, commitment or arrangement on
an arms-length basis on terms no less favorable than terms which would have been
obtainable from a person other than such Related Party, or (iii) any agreement,
transaction, commitment or arrangement which is approved by a majority of the
disinterested directors of the Company. For purposes hereof, any director who is
also an officer of the Company or any Subsidiary of the Company shall not be a
disinterested director with respect to any such agreement, transaction,
commitment or arrangement. "AFFILIATE" for purposes hereof means, with respect
to any person or entity, another person or entity that, directly or indirectly,
(i) has a 5% or more equity interest in that person or entity, (ii) has 5% or
more common ownership with that person or entity, (iii)

                                      -21-
<PAGE>

controls that person or entity, or (iv) shares common control with that person
or entity. "CONTROL" or "CONTROLS" for purposes hereof means that a person or
entity has the power, direct or indirect, to conduct or govern the policies of
another person or entity.

         i. Filing of Form 8-K. On or before the date which is three (3) Trading
Days after the Execution Date, the Company shall file a Current Report on Form
8-K with the SEC describing the terms of the transaction contemplated by the
Transaction Documents in the form required by the 1934 Act, if such filing is
required.

         j. Corporate Existence. The Company shall use its best efforts to
preserve and continue the corporate existence of the Company.

         k. Notice of Certain Events Affecting Registration; Suspension of Right
to Make a Put. The Company shall promptly notify Investor upon the occurrence of
any of the following events in respect of a Registration Statement or related
prospectus in respect of an offering of the Shares: (i) receipt of any request
for additional information by the SEC or any other federal or state governmental
authority during the period of effectiveness of the Registration Statement for
amendments or supplements to the Registration Statement or related prospectus;
(ii) the issuance by the SEC or any other federal or state governmental
authority of any stop order suspending the effectiveness of any 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 such 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 a 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
shall promptly make available to Investor any such supplement or amendment to
the related prospectus. The Company shall not deliver to Investor any Put Notice
during the continuation of any of the foregoing events.

         l. Reimbursement. If (i) Investor, other than by reason of its gross
negligence or willful misconduct, becomes involved in any capacity in any
action, proceeding or investigation brought by any shareholder of the Company,
in connection with or as a result of the consummation of the transactions
contemplated by the Transaction Documents, or if Investor is impleaded in any
such action, proceeding or investigation by any person, or (ii) Investor, other
than by reason of its gross negligence or willful misconduct or by reason of its
trading of the Common Stock in a manner that is illegal

                                      -22-
<PAGE>

under the federal securities laws, becomes involved in any capacity in any
action, proceeding or investigation brought by the SEC against or involving the
Company or in connection with or as a result of the consummation of the
transactions contemplated by the Transaction Documents, or if Investor is
impleaded in any such action, proceeding or investigation by any person, then in
any such case, the Company will reimburse Investor for its reasonable legal and
other expenses (including the cost of any investigation and preparation)
incurred in connection therewith, as such expenses are incurred. In addition,
other than with respect to any matter in which Investor is a named party, the
Company will pay to Investor the charges, as reasonably determined by Investor,
for the time of any officers or employees of Investor devoted to appearing and
preparing to appear as witnesses, assisting in preparation for hearings, trials
or pretrial matters, or otherwise with respect to inquiries, hearing, trials,
and other proceedings relating to the subject matter of this Agreement. The
reimbursement obligations of the Company under this section shall be in addition
to any liability which the Company may otherwise have, shall extend upon the
same terms and conditions to any affiliates of Investor that are actually named
in such action, proceeding or investigation, and partners, directors, agents,
employees, attorneys, accountants, auditors and controlling persons (if any), as
the case may be, of Investor and any such affiliate, and shall be binding upon
and inure to the benefit of any successors, heirs and personal representatives
of the Company, Investor and any such affiliate and any such person.

         m. Dilution. The number of Shares issuable pursuant to a Put Notice may
increase substantially in certain circumstances, including, but not necessarily
limited to, the circumstance wherein the trading price of the Common Stock
declines during the period between the Effective Date and the end of the Open
Period. The Company's executive officers and directors have studied and fully
understand the nature of the transactions contemplated by this Agreement and
recognize that they have a potential dilutive effect. The board of directors of
the Company has concluded, in its good faith business judgment, that such
issuance is in the best interests of the Company. The Company specifically
acknowledges that its obligation to issue the Shares upon issuance of a Put
Notice is binding upon the Company and enforceable regardless of the dilution
such issuance may have on the ownership interests of other shareholders of the
Company.

         5.       Intentionally left blank.

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

         The obligation hereunder of the Company to issue and sell the Shares to
the Investor is further subject to the satisfaction, at or before each Closing
Date, of each of the following 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. The Investor shall have executed each of this Agreement and the
Registration Rights Agreement and delivered the same to the Company.

                                      -23-
<PAGE>

         b. The Investor shall have delivered to the Company the Purchase Price
for the Shares being purchased by the Investor at the Closing (after receipt of
confirmation of delivery of such Shares) by wire transfer of immediately
available funds pursuant to the wire instructions provided by the Company.

         c. The representations and warranties of the Investor shall be true and
correct as of the date when made and as of the applicable Closing Date as though
made at that time (except for representations and warranties that speak as of a
specific date), and the Investor shall have performed, satisfied and complied
with the covenants, agreements and conditions required by the Transaction
Documents to be performed, satisfied or complied with by the Investor at or
prior to such Closing Date.

         d. 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.

         e. No Valuation Event shall have occurred since the applicable Put
Notice Date.

         7.       FURTHER CONDITIONS OF THE INVESTOR'S OBLIGATION TO PURCHASE.
                  ------------------------------------------------------------

         The obligation of the Investor hereunder to purchase Shares is subject
to the satisfaction, on or before each Closing Date, of each of the following
conditions set forth below. These conditions are for the Investor's sole benefit
and may be waived by the Investor at any time in its sole discretion.

         a. The Company shall have executed each of the Transaction Documents
and delivered the same to the Investor.

         b. The Common Stock shall be authorized for quotation on the Principal
Market and trading in the Common Stock shall not have been suspended by the
Principal Market or the SEC, at any time beginning on the date hereof and
through and including the respective Closing Date (excluding suspensions of not
more than one Trading Day resulting from business announcements by the Company,
provided that such suspensions occur prior to the Company's delivery of the Put
Notice related to such Closing).

         c. The representations and warranties of the Company shall be true and
correct as of the date when made and as of the applicable Closing Date as though
made at that time (except for (i) representations and warranties that speak as
of a specific date and (ii) with respect to the representations made in Sections
3(g), (h) and (j) and the third sentence of Section 3(m) hereof, events which
occur on or after the date of this Agreement and are disclosed in SEC filings
made by the Company at least ten (10) Trading Days prior to the applicable Put
Notice Date) and the Company shall have performed, satisfied and complied with
the covenants, agreements and conditions required by the Transaction Documents
to be performed, satisfied or complied with by

                                      -24-
<PAGE>

the Company on or before such Closing Date. The Investor shall have received a
certificate, executed by the Chief Executive Officer and Chief Financial Officer
of the Company, dated as of the applicable Closing Date, in the form of Exhibit
C attached hereto, to the foregoing effect and as to such other matters as may
be reasonably requested by the Investor including, without limitation, an update
as of such Closing Date regarding the representation contained in Section 3(c)
above.

         d. Investor shall have received an opinion letter of the Company's
counsel on or before the Execution Date, in the form of Exhibit D attached
hereto, and if required by the Company's transfer agent any additional opinion
letters after the Effective Date so as to allow for the issuance of Securities
to Investor as may be required pursuant to the Transaction Documents.

         e. The Company shall have executed and delivered to the Escrow Agent or
Investor the certificates representing, or have executed electronic book-entry
transfer of, the Shares, if applicable, (in such denominations as such Investor
shall request) being purchased by the Investor at such Closing.

         f. The Board of Directors of the Company shall have adopted resolutions
consistent with Section 3(b)(ii) above and in a form reasonably acceptable to
the Investor (the "RESOLUTIONS") and such Resolutions shall not have been
amended or rescinded prior to such Closing Date.

         g. If requested by the Investor, the Investor shall receive a letter of
the type, in the form and with the substance of the letter described in Section
3(s) of the Registration Rights Agreement from the Company's auditors.

         h. The Company shall have delivered to the Investor a copy of its
Articles of Incorporation, as amended and in effect on such Closing Date,
certified by the Secretary of State of the Company's state of incorporation
within ten (10) days of such Closing Date.

         i. The Company shall have delivered to the Investor a secretary's
certificate, dated as of such Closing Date, in the form of Exhibit E attached
hereto, as to (i) the Resolutions described in Section 7(f), (ii) the Articles
of Incorporation and (iii) the Bylaws, each as in effect on such Closing Date.

         j. 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.

         k. The Registration Statement shall be effective on each Closing Date
and no stop order suspending the effectiveness of the Registration statement
shall be in effect or shall be pending or threatened. Furthermore, on each
Closing Date (i) neither the Company nor Investor shall have received notice
that the SEC has issued or intends to

                                      -25-
<PAGE>

issue a stop order with respect to such Registration Statement or that the SEC
otherwise has suspended or withdrawn the effectiveness of such Registration
Statement, either temporarily or permanently, or intends or has threatened to do
so (unless the SEC's concerns have been addressed and Investor is reasonably
satisfied that the SEC no longer is considering or intends to take such
action),and (ii) no other suspension of the use or withdrawal of the
effectiveness of such Registration Statement or related prospectus shall exist.

         l. At the time of each Closing, the Registration Statement (including
information or documents incorporated by reference therein) and any amendments
or supplements thereto shall 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.

         m. There shall have been no filing of a petition in bankruptcy, either
voluntarily or involuntarily, with respect to the Company and there shall not
have been commenced any proceedings under any bankruptcy or insolvency laws, or
any laws relating to the relief of debtors, readjustment of indebtedness or
reorganization of debtors, and there shall have been no calling of a meeting of
creditors of the Company or appointment of a committee of creditors or
liquidating agents or offering of a composition or extension to creditors by,
for, with or without the consent or acquiescence of the Company.

         n. If applicable, the shareholders of the Company shall have approved
the issuance of any Shares in excess of the Maximum Common Stock Issuance in
accordance with Section 1(j).

         o. The conditions to such Closing set forth in Section 1(f) shall have
been satisfied on or before such Closing Date.

         p. The Company shall have certified to the Investor the number of
shares of Common Stock outstanding as of a date within five (5) Trading Days
prior to such Closing Date.

         q. The Company shall have delivered to such Investor such other
documents relating to the transactions contemplated by this Agreement as such
Investor or its counsel may reasonably request upon reasonable advance notice.

         r. The Company represents that its transfer agent has agreed to accept
a representation letter (See copy of form of representation letter attached
hereto as Exhibit G) from the Investor's broker after the Effective Date and
after the sale of Shares pursuant to a Put Notice, which representation letter
shall state that the Shares were sold in compliance with the prospectus delivery
requirements of the Registration Statement. The Company represents that on or
before the receipt by the transfer agent of the representation letter, it will
instruct its counsel to issue an opinion letter to the transfer agent for the
issuance of the Shares being sold and the Company will instruct its transfer
agent to issue the appropriate number of Shares in the name of the Investor, or
in the

                                      -26-
<PAGE>

broker's street name if so requested by Investor, so that the Shares being
purchased from the Company after a Put Notice will bear no legend and not be
subject to stop transfer instructions.

         8.       TERMINATION.

         a. Optional Termination. This Agreement may be terminated at any time
by the mutual written consent of the Company and the Investor. The
representations, warranties and covenants contained in or incorporated into this
Agreement, insofar as applicable to the transactions consummated hereunder prior
to such termination, shall survive its termination for the period of any
applicable statute of limitations.

         b. Automatic Termination. This Agreement shall automatically terminate
without any further action of either party hereto upon the earliest of:

                  (i) when the Investor has purchased an aggregate of
                  $30,000,000 in the Common Stock of the Company pursuant to
                  this Agreement; provided that the representations, warranties
                  and covenants contained in this Agreement insofar as
                  applicable to the transactions consummated hereunder prior to
                  such termination, shall survive the termination of this
                  Agreement for the period of any applicable statute of
                  limitations,

                  (ii) on the date which is 18 months after the Effective Date;

                  (iii) if the Company shall file or consent by answer or
                  otherwise to the entry of an order for relief or approving a
                  petition for relief, reorganization or arrangement or any
                  other petition in bankruptcy for liquidation or to take
                  advantage of any bankruptcy or insolvency law of any
                  jurisdiction, or shall make an assignment for the benefit of
                  its creditors, or shall consent to the appointment of a
                  custodian, receiver, trustee or other officer with similar
                  powers of itself or of any substantial part of its property,
                  or shall be adjudicated a bankrupt or insolvent, or shall take
                  corporate action for the purpose of any of the foregoing, or
                  if a court or governmental authority of competent jurisdiction
                  shall enter an order appointing a custodian, receiver, trustee
                  or other officer with similar powers with respect to the
                  Company or any substantial part of its property or an order
                  for relief or approving a petition for relief or
                  reorganization or any other petition in bankruptcy or for
                  liquidation or to take advantage of any bankruptcy or
                  insolvency law, or an order for the dissolution, winding up or
                  liquidation of the Company, or if any such petition shall be
                  filed against the Company;

                  (iv) if the Company shall issue or sell any equity securities
                  or securities convertible into, or exchangeable for, equity
                  securities without the prior written consent of the Investor
                  if the primary purpose of such issuance or sale is the raising
                  of capital, except that the Company may issue

                                      -27-
<PAGE>

                  convertible debentures pursuant to a special warrant
                  outstanding as of the Execution Date;

                  (v) the trading of the Common Stock is suspended by the SEC,
                  the Principal Market or the NASD for a period of five (5)
                  consecutive Trading Days;

                  (vi) the Company shall not have filed with the SEC the initial
                  Registration Statement with respect to the resale of the
                  Registrable Securities in accordance with the terms of the
                  initial Registration Rights Agreement within sixty (60)
                  calendar days of the date hereof or the Registration Statement
                  has not been declared effective within one hundred eighty
                  (180) calendar days of the date hereof; or

                  (vii) The occurrence of a Material Adverse Effect; (viii) If
                  the Company issues convertible instruments or enters into an
                  equity financing facility without the Investor's prior written
                  consent, such consent will not be unreasonably withheld;

                  (ix) The resale of the Securities cease to be registered under
                  the 1933 Act or listed or traded on the Nasdaq National
                  Market, American Stock Exchanged or Nasdaq Small Cap Market
                  (or the OTC Bulletin Board, if mutually agreed upon by the
                  Company and the Investor); or

                  (x) The Company requires shareholder approval under Nasdaq
                  rules to issue additional shares and such approval is not
                  obtained within 60 days from the date when the Company has
                  issued its 19.9% maximum allowable shares.

         9.       INDEMNIFICATION.

         a. In consideration of the Investor's execution and delivery of the
this Agreement and the Registration Rights Agreement and acquiring the Shares
hereunder and in addition to all of the Company's other obligations under the
Transaction Documents, the Company shall defend, protect, indemnify and hold
harmless the Investor and all of their shareholders, officers, directors,
employees and direct or indirect investors and any of the foregoing person's
agents or other representatives (including, without limitation, those retained
in connection with the transactions contemplated by this Agreement)
(collectively, the "INDEMNITEES") from and against any and all actions, causes
of action, suits, claims, losses, costs, penalties, fees, liabilities and
damages, and expenses in connection therewith (irrespective of whether any such
Indemnitee is a party to the action for which indemnification hereunder is
sought), and including reasonable attorneys' fees and disbursements (the
"INDEMNIFIED LIABILITIES'), incurred by any Indemnitee as a result of, or
arising out of, or relating to (i) any misrepresentation or breach of any
representation or warranty made by the Company in the Transaction Documents or
any other certificate, instrument or document contemplated hereby or thereby,
(ii) any breach

                                      -28-
<PAGE>

                  of any covenant, agreement or obligation of the Company
                  contained in the Transaction Documents or any other
                  certificate, instrument or document contemplated hereby or
                  thereby, (iii) any cause of action, suit or claim brought or
                  made against such Indemnitee by a third party and arising out
                  of or resulting from the execution, delivery, performance or
                  enforcement of the Transaction Documents or any other
                  certificate, instrument or document contemplated hereby or
                  thereby, (iv) any transaction financed or to be financed in
                  whole or in part, directly or indirectly, with the proceeds of
                  the issuance of the Shares or (v) the status of the Investor
                  or holder of the Shares as an investor in the Company, except
                  insofar as any such untrue statement, alleged untrue
                  statement, omission or alleged omission is made in reliance
                  upon and in conformity with written information furnished to
                  the Company by the Investor which is specifically intended by
                  the Investor for use in the preparation of any such
                  Registration Statement, preliminary prospectus or prospectus.
                  To the extent that the foregoing undertaking by the Company
                  may be unenforceable for any reason, the Company shall make
                  the maximum contribution to the payment and satisfaction of
                  each of the Indemnified Liabilities which is permissible under
                  applicable law. The indemnity provisions contained herein
                  shall be in addition to any cause of action or similar rights
                  the Investor may have, and any liabilities the Investor may be
                  subject to.

         b. In consideration of the Company's execution and delivery of the this
Agreement and the Registration Rights Agreement and selling the Shares hereunder
and in addition to all of the Investor's other obligations under the Transaction
Documents, the Investor shall defend, protect, indemnify and hold harmless the
Company and all of their shareholders, officers, directors, employees and direct
or indirect investors and any of the foregoing person's agents or other
representatives (including, without limitation, those retained in connection
with the transactions contemplated by this Agreement) (collectively, the
"INDEMNITEES") from and against any and all actions, causes of action, suits,
claims, losses, costs, penalties, fees, liabilities and damages, and expenses in
connection therewith (irrespective of whether any such Indemnitee is a party to
the action for which indemnification hereunder is sought), and including
reasonable attorneys' fees and disbursements (the "INDEMNIFIED LIABILITIES'),
incurred by any Indemnitee as a result of, or arising out of, or relating to (i)
any misrepresentation or breach of any representation or warranty made by the
Investor in the Transaction Documents. To the extent that the foregoing
undertaking by the Investor may be unenforceable for any reason, the Investor
shall make the maximum contribution to the payment and satisfaction of each of
the Indemnified Liabilities which is permissible under applicable law.

         10.      GOVERNING LAW; MISCELLANEOUS.

         a. Governing Law. This Agreement shall be governed by and interpreted
in accordance with the laws of the State of New York without regard to the
principles of conflict of laws. Each party hereby irrevocably submits to the
non-exclusive jurisdiction of the state and federal courts sitting in the City
of New York, borough of Manhattan, for the adjudication of any dispute hereunder
or in connection herewith or with any transaction contemplated hereby or
discussed herein, and hereby irrevocably waives, and agrees not to assert in any
suit, action or proceeding, any claim that it is not personally

                                      -29-
<PAGE>

subject to the jurisdiction of any such court, that such suit, action or
proceeding is brought in an inconvenient forum or that the venue of such suit,
action or proceeding is improper. Each party hereby irrevocably waives personal
service of process and consents to process being served in any such suit, action
or proceeding by mailing a copy thereof to such party at the address for such
notices to it under this Agreement and agrees that such service shall constitute
good and sufficient service of process and notice thereof. Nothing contained
herein shall be deemed to limit in any way any right to serve process in any
manner permitted by law. If any provision of this Agreement shall be invalid or
unenforceable in any jurisdiction, such invalidity or unenforceability shall not
affect the validity or enforceability of the remainder of this Agreement in that
jurisdiction or the validity or enforceability of any provision of this
Agreement in any other jurisdiction.

         b.       Fees and Expenses.
                  -----------------

                  (i) As a further inducement to the Investor to enter into this
                  Agreement and in addition to the fees and expenses set forth
                  elsewhere herein, the Company agrees to reimburse the Investor
                  or its designees, for due diligence and reasonable expenses
                  (including legal expenses) relating to the negotiation and
                  execution of the Transaction Documents and any Closings
                  hereunder the amount of $20,000, as well as an additional
                  $5,000 to be paid upon the first Closing Date.

                  (ii) As a further inducement to the Investor to enter into
                  this Agreement, on each Closing Date the Company shall pay to
                  the Investor or its designee, an amount equal to 5% of the
                  amount paid to purchase the Shares ("PURCHASE AMOUNT") being
                  purchased on such Closing Date, which amount the Investor may,
                  at its sole option, deduct against the Purchase Amount.

                  (iii) The Company shall pay Joseph B. LaRocco, Esq. the sum of
                  $15,000 upon the First Closing Date for the legal expenses of
                  Investor, which amount may deducted from the proceeds received
                  in escrow on the first Closing Date. On each Closing Date, the
                  Company shall pay the Escrow Agent the sum of $500 for each
                  Put Notice up to $25,000; $1,000 for each Put Notice up to
                  $50,000; $1,500 for each Put Notice up to $75,000 and $2,000
                  for each Put Notice in excess of $75,000; which amount the
                  Escrow Agent may deduct from the proceeds received in escrow
                  from the Investor.

                  (iv) Except as otherwise set forth herein, each party shall
                  pay the fees and expenses of its advisers, counsel,
                  accountants and other experts, if any, and all other expenses
                  incurred by such party incident to the negotiation,
                  preparation, execution, delivery and performance of this
                  Agreement. Any attorneys' fees and expenses incurred by either
                  the Company or by the Investor in connection with the
                  preparation, negotiation, execution and delivery of any
                  amendments to this Agreement

                                      -30-
<PAGE>

                  or relating to the enforcement of the rights of any party,
                  after the occurrence of any breach of the terms of this
                  Agreement by another party or any default by another party in
                  respect of the transactions contemplated hereunder, shall be
                  paid on demand by the party which breached the Agreement
                  and/or defaulted, as the case may be. The Company shall pay
                  all stamp and other taxes and duties levied in connection with
                  the issuance of any Shares issued pursuant hereto.

         c. Counterparts. This Agreement may be executed in two or more
identical counterparts, all of which shall be considered one and the same
agreement and shall become effective when counterparts have been signed by each
party and delivered to the other party; provided that a facsimile signature
shall be considered due execution and shall be binding upon the signatory
thereto with the same force and effect as if the signature were an original, not
a facsimile signature.

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

         e. Severability. If any provision of this Agreement shall be invalid or
unenforceable in any jurisdiction, such invalidity or unenforceability shall not
affect the validity or enforceability of the remainder of this Agreement in that
jurisdiction or the validity or enforceability of any provision of this
Agreement in any other jurisdiction.

         f. Entire Agreement; Amendments. This Agreement supersedes all other
prior oral or written agreements between the Investor, the Company, their
affiliates and persons acting on their behalf with respect to the matters
discussed herein, and this Agreement and the instruments referenced herein
(including the other Transaction Documents) contain the entire understanding of
the parties with respect to the matters covered herein and therein and, except
as specifically set forth herein or therein, neither the Company nor the
Investor makes any representation, warranty, covenant or undertaking with
respect to such matters. No provision of this Agreement may be amended other
than by an instrument in writing signed by the Company and the Investor, and no
provision hereof may be waived other than by an instrument in writing signed by
the party against whom enforcement is sought.

                                      -31-
<PAGE>

         g. Notices. Any notices, consents, waivers or other communications
required or permitted to be given under the terms of this Agreement must be in
writing and will be deemed to have been delivered (i) upon receipt, when
delivered personally; (ii) upon receipt, when sent by facsimile (provided
confirmation of transmission is mechanically or electronically generated and
kept on file by the sending party); or (iii) one (1) day after deposit with a
nationally recognized overnight delivery service, in each case properly
addressed to the party to receive the same. The addresses and facsimile numbers
for such communications shall be:

         If to the Company:
         Access Power, Inc.
         10033 Sawgrass Drive West, Suite 100
         Ponte Vedra Beach, FL 33082
         Attention:  Glenn A. Smith, CEO
         Telephone:        904-273-2980
         Facsimile:

         With a copy to:
         Jan Meadows Davidson
         Kilpatrick Stockton LLP
         1100 Peachtree Street, Suite 2800
         Atlanta, GA 30309-4530
         Telephone:        404-815-6500
         Facsimile:        404-815-6555

         If to the Investor:
         Grandview Court, LLC
         c/o Beacon Capital Management, Ltd.
         Harbour House, 2nd Floor
         Waterfront Drive
         P.O. Box 972
         Road Town, Tortola, BVI
         Attention:  David Sims
         Telephone:        284-494-4770
         Facsimile:        284-494-4771

         With a copy to:
         Meridian Equities, Inc.
         126 East 56th Street
         New York, New York 10022
         Attention:  Dave Karson
         Telephone:        212-755-7720
         Facsimile:        212-755-7721

         Each party shall provide five (5) days' prior written notice to the
other party of any change in address or facsimile number.

                                      -32-
<PAGE>

         h. Successors and Assigns. This Agreement shall not be assigned.
Notwithstanding anything to the contrary contained in the Transaction Documents,
the Investor shall be entitled to pledge the Shares in connection with a bona
fide margin account.

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

         j. Survival. The representations and warranties of the Company and the
Investor contained in Sections 2 and 3, the agreements and covenants set forth
in Sections 4, 5 and 10, and the indemnification provisions set forth in Section
9, shall survive each of the Closings. The Investor shall be responsible only
for its own representations, warranties, agreements and covenants hereunder.

         k. Publicity. The Company and Investor shall consult with each other in
issuing any press releases or otherwise making public statements with respect to
the transactions contemplated hereby and no party shall issue any such press
release or otherwise make any such public statement without the prior written
consent of the other parties, which consent shall not be unreasonably withheld
or delayed, except that no prior consent shall be required if such disclosure is
required by law, in which such case the disclosing party shall provide the other
parties with prior notice of such public statement. Notwithstanding the
foregoing, the Company shall not publicly disclose the name of Investor without
the prior written consent of such Investor, except to the extent required by
law. Investor acknowledges that this Agreement and all or part of the
Transaction Documents may be deemed to be "material contracts" as that term is
defined by Item 601(b)(10) of Regulation S-K, and that the Company may therefore
be required to file such documents as exhibits to reports or registration
statements filed under the Securities 1933 Act or the 1934 Act. Investor further
agrees that the status of such documents and materials as material contracts
shall be determined solely by the Company, in consultation with its counsel.

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

         m. Placement Agent. The Company acknowledges and warrants that it has
not engaged a placement agent in connection with the sale of the Shares. The
Company shall be responsible for the payment of any fees or commissions of
placement agents or brokers engaged by the Company in connection with the
purchase of the Shares by the Investor. The Company shall pay, and hold the
Investor harmless against, any liability, loss or expense (including, without
limitation, attorneys' fees and out-of-pocket expenses) arising in connection
with any such claim.

                                      -33-
<PAGE>

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

         o. Remedies. The Investor and each holder of the Shares shall have all
rights and remedies set forth in this Agreement and the Registration Rights
Agreement and all rights and remedies which such holders have been granted at
any time under any other agreement or contract and all of the rights which such
holders have under any law. Any person having any rights under any provision of
this Agreement shall be entitled to enforce such rights specifically (without
posting a bond or other security), to recover damages by reason of any breach of
any provision of this Agreement, including the recovery of reasonable attorneys
fees and costs, and to exercise all other rights granted by law.

         p. Payment Set Aside. To the extent that the Company makes a payment or
payments to the Investor hereunder or the Registration Rights Agreement or the
Investor enforces or exercises its rights hereunder or thereunder, and such
payment or payments or the proceeds of such enforcement or exercise or any part
thereof are subsequently invalidated, declared to be fraudulent or preferential,
set aside, recovered from, disgorged by or are required to be refunded, repaid
or otherwise restored to the Company, a trustee, receiver or any other person
under any law (including, without limitation, any bankruptcy law, state or
federal law, common law or equitable cause of action), then to the extent of any
such restoration the obligation or part thereof originally intended to be
satisfied shall be revived and continued in full force and effect as if such
payment had not been made or such enforcement or setoff had not occurred.

            [THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

                                      -34-
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Common Stock
Investment Agreement to be duly executed as of the date and year first above
written.

COMPANY: ACCESS POWER, INC.

              /s/ Glenn A. Smith
By:      ____________________________________
         Name:  Glenn A. Smith
         Title:   CEO

INVESTOR:  GRANDVIEW COURT, LLC

                [unreadable]
By:      ____________________________________
         Name:
         Title:

                                      -35-
<PAGE>

                                LIST OF SCHEDULES
                                -----------------

Schedule 3(a)                 Subsidiaries
Schedule 3(c)                 Capitalization
Schedule 3(e)                 Conflicts
Schedule 3(g)                 Material Changes
Schedule 3(h)                 Litigation
Schedule 3(n)                 Intellectual Property
Schedule 3(p)                 Liens
Schedule 3(v)                 Certain Transactions

                                      -36-
<PAGE>
                                LIST OF EXHIBITS
                                -----------------

EXHIBIT A                           Registration Rights Agreement
EXHIBIT B                           [Intentionally deleted]
EXHIBIT C                           Officers' Certificate
EXHIBIT D                           Opinion of Company's Counsel
EXHIBIT E                           Secretary's Certificate
EXHIBIT F                           Escrow Agreement
EXHIBIT G                           Form of Broker's Representation Letter

                                      -37-
<PAGE>

                              [BROKER'S LETTERHEAD]

Date
Via Facsimile   801-262-0907

Attention: Pam Gray (p) 801-266-7151
Atlas Stock Transfer & Trust Company,
5899 South State Street
Salt Lake City, Utah 84107

Re:  Access Power, Inc.

Dear Ms. Gray:

It is our understanding that the Form______ Registration Statement bearing SEC
File Number ( ___-______) filed by Access Power, Inc. on Form _____ on
__________, 200__was declared effective on _________, 200__.

This letter shall confirm that ______________ shares of the common stock of
Access Power, Inc. were sold on behalf of Grandview Court, LLC and that we have
complied with the prospectus delivery requirements set forth in that
Registration Statement by filing the same with the purchaser.

If you have any questions please do not hesitate to call.

Sincerely,

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

cc:  Joseph B. LaRocco, Esq.

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