Document:

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                                                                    EXHIBIT 10.1

                               PURCHASE AGREEMENT

         THIS PURCHASE AGREEMENT (the "Agreement") is dated as of February 6,
2004 by and between Indus International, Inc., a Delaware corporation located at
3301 Windy Ridge Parkway, Atlanta, Georgia 30339 (the "Company"), and each of
the various purchasers (each, a "Purchaser", and collectively, the "Purchasers")
identified on, and a party to, an executed copy of the Subscription Agreement to
which this Agreement is an Exhibit (the "Subscription Agreement").

                                    SECTION 1

                              SALE OF COMMON STOCK

         Subject to the terms and conditions hereof, the Company has offered,
and will issue and sell (the "Offering") to the Purchasers, and the Purchasers
will, severally and not jointly, buy from the Company a total of up to 5,000,000
shares of the common stock, $0.001 par value per share, of the Company (the
"Common Stock") for the purchase price of $3.10 per share, with each Purchaser,
severally and not jointly, purchasing the number of shares of Common Stock for
the aggregate cash purchase price indicated in such Purchaser's Subscription
Agreement. The shares of Common Stock to be issued and sold by the Company and
purchased by the Purchasers pursuant to this Agreement are herein referred to as
the "Shares." This Agreement and each Purchaser's obligation hereunder are not
conditioned on the sale of any minimum number of Shares.

         The Shares will be offered and sold without registration under the
Securities Act of 1933, as amended (the "Securities Act"), in reliance upon the
exemption from registration provided by Section 4(2) of the Securities Act and
Regulation D thereunder. The Company has prepared and delivered to each
Purchaser copies of a Confidential Private Placement Memorandum, dated as of the
date hereof (as it may be amended or supplemented, and including the exhibits
and/or schedules thereto and the information incorporated therein by reference,
the "Offering Document").

         The Purchasers of Shares (and any subsequent permitted transferees)
will be entitled to the benefits of a Registration Rights Agreement, to be dated
as of the date hereof (as attached to the Subscription Agreement as Exhibit B,
the "Registration Rights Agreement"), by and among the Company and the
Purchasers. Pursuant to the Registration Rights Agreement, the Company will file
with the Securities and Exchange Commission (the "SEC" or the "Commission") as
soon as practicable after the closing of the Purchasers' commitment (the
"Closing"), and in no event later than 30 days thereafter, a shelf registration
statement on Form S-3 pursuant to SEC Rule 415 (the "Registration Statement")
under the Securities Act relating to the resale of the Shares by the Purchasers.
The Company shall use its commercially reasonable efforts to cause such
Registration Statement to be declared effective as soon as practicable and
within 90 days after the Closing or, in the event of a review of the
Registration Statement by the Commission, within 120 days after the Closing and
shall use its commercially reasonable efforts to keep the Registration Statement
continuously effective from the date such Registration Statement becomes
effective until the earlier of (i) the date on which all of the Shares have been
resold under the Registration Statement and (ii) the date on which all of the
Shares may be traded by the Purchasers without restriction under the federal
securities laws (the "Effectiveness Period"). Should the Registration Statement
not be declared effective within 90 days after the Closing, or in the event of a
review by the Commission, within 120 days after the Closing, or should its
effectiveness lapse prior to the end of the Effectiveness Period, then the
Company shall pay to each Purchaser certain liquidated damages, as set forth in
the Registration Rights Agreement.

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                                    SECTION 2

                           FUNDING; CLOSING; DELIVERY

         2.1. FUNDING. The Closing and the Purchasers' delivery of funds (the
"Funding") to purchase the Shares for which they have subscribed in the
Subscription Agreement shall be held at the Atlanta, Georgia offices of Alston &
Bird LLP, counsel to the Company, or at such other place upon which the Company
and the Purchasers shall agree. At Funding, the Purchasers shall, severally and
not jointly, pay the purchase price (as to each Purchaser, the "Purchase Price")
for their Shares by wire transfer to an account designated by the Company. The
Funding shall occur simultaneously with or immediately after the execution and
delivery of this Agreement by the Purchasers and the Company, or on such later
date as the Company and the Purchasers may agree.

         2.2. CLOSING AND DELIVERY. At the Closing, or as soon as practicable
thereafter, the Company will deliver to each Purchaser, as applicable, a
certificate, registered in the name of such Purchaser as shown in the
appropriate Subscription Agreement, for the number of Shares to be purchased by
such Purchaser.

                                    SECTION 3

                  REPRESENTATIONS AND WARRANTIES OF THE COMPANY

         The Company represents, warrants and covenants to the Purchasers and
the Placement Agent as follows:

         3.1. ORGANIZATION AND STANDING; ARTICLES AND BY-LAWS. The Company is a
corporation duly organized, validly existing and in good standing under the laws
of the State of Delaware and has the corporate power and authority to carry on
it business as now conducted and to own, lease and operate its properties and
assets. The Company is duly qualified or licensed to transact business as a
foreign corporation in good standing in the states of the United States and
foreign jurisdictions where the character of its properties and assets or the
nature or conduct of its business requires it to be so qualified or licensed,
except for such jurisdictions in which the failure to be so qualified or
licensed is not reasonably likely to have, individually or in the aggregate, a
Material Adverse Effect. The term "Material Adverse Effect" shall mean an event,
change or occurrence that individually, or together with any other event, change
or occurrence, has a material adverse impact on the Company or the Company's
subsidiaries' financial position, business or results of operations, taken as a
whole, or on the ability of the Company to execute, deliver and perform its
obligations under this Agreement, the Subscription Agreement or the Registration
Rights Agreement (collectively, the "Agreements"); provided, however, that the
term "Material Adverse Effect" shall not include the impact of (a) changes in
laws of general applicability or interpretations thereof by courts or other
Governmental Authorities (as defined below); (b) changes in GAAP; (c) changes,
conditions or events that are generally applicable to the industry in which the
Company operates or the economy in general of the jurisdictions in which the
Company operates, including, without limitation, conditions arising from any
terrorist attacks or the outbreak of hostilities or war and the general
economic, business and political disruptions arising thereafter; (d) changes in
prevailing interest rates; (e) changes in the stock price of the Common Stock or
(f) seasonal fluctuations in the Company's performance.

         3.2. CORPORATE POWER. The Company has the corporate power and authority
necessary to execute, deliver and perform the Agreements, and at Funding to
sell, and at Closing to issue, the Shares as set forth in the Agreements, and to
carry out and perform its obligations under the Agreements.

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         3.3. SUBSIDIARIES. Each subsidiary of the Company is a corporation that
has been duly incorporated, is validly existing as a corporation in good
standing under the laws of the jurisdiction of its incorporation, has the
corporate power and authority to own its properties and to conduct its business
and is duly registered, qualified and authorized to transact business and is in
good standing in each jurisdiction in which the conduct of its business or the
nature of its properties requires such registration, qualification or
authorization, except where such failure to so qualify or register would not be
reasonably likely to have a Material Adverse Effect. All of the issued and
outstanding capital stock of each subsidiary of the Company has been duly
authorized and validly issued, is fully paid and non-assessable, and is owned by
the Company free and clear of all security interests, liens, pledges or negative
pledges, charges, encumbrances, mortgages, hypothecations, adverse claims or
equities (each, a "Lien").

         3.4. CAPITALIZATION. As of the date hereof, the authorized capital
stock of the Company consists of 100,000,000 shares of Common Stock and
10,000,000 shares of Preferred Stock (the "Preferred Stock"). As of February 2,
2004, there were 51,995,666 shares of Common Stock issued and outstanding, and
no shares of Preferred Stock issued and outstanding. No other shares of capital
stock are issued and outstanding. As of February 2, 2004, there were options and
warrants outstanding issued by the Company to purchase an aggregate of
11,080,074 and 357,469 shares of Common Stock, respectively. All of the
outstanding shares of Common Stock and Preferred Stock are, and all of the
Shares, when issued, will be, duly authorized, validly issued, fully paid and
nonassessable, and all such shares were, and the Shares, will be, issued in
material compliance with all applicable federal and state securities laws,
including available exemptions therefrom, and none of such issuances were, and
the issuance of the Shares will not be, made in violation of any pre-emptive or
other rights. Except as set forth above, there are no options, warrants or other
rights (including conversion, pre-emptive or other rights) or agreements
outstanding to purchase any of the Company's authorized and unissued capital
stock.

         3.5. AUTHORIZATION; VALID ISSUANCE. (a) All corporate action on the
part of the Company, its officers, directors and stockholders, if any, necessary
for the authorization, execution, delivery and performance of the Agreements by
the Company, and for the authorization, the sale, issuance and delivery of the
Shares has been taken or will be taken prior to the Funding or the Closing, as
appropriate. The Agreements have been duly executed and delivered by the
Company, and represent legal, valid and binding obligations of the Company,
enforceable against it in accordance with their respective terms (except in all
cases as such enforceability may be limited by applicable bankruptcy,
insolvency, reorganization, receivership, conservatorship, moratorium or similar
laws affecting the enforcement of creditors' rights generally, and except that
the availability of the equitable remedy of specific performance or injunctive
relief is subject to the discretion of the court before which any proceeding may
be brought (the "Bankruptcy and Equity Exception")). The Board of Directors of
the Company (the "Board of Directors") has taken all action necessary to render
inapplicable, as such provisions may relate to any Purchaser's purchase of
Shares, the provisions of Section 203 of the General Corporation Law of the
State of Delaware.

         (b) The Shares being purchased by the Purchasers hereunder will, upon
issuance pursuant to the terms hereof and upon payment therefor, be duly
authorized and validly issued, fully paid and non-assessable shares of Common
Stock, free of preemptive or similar rights.

         (c) Subject to the accuracy of the representations made by the
Purchasers in Section 5 hereof, the Shares will be issued to the Purchasers in
compliance with applicable exemptions from (i) the registration and prospectus
delivery requirements of the Securities Act, and (ii) the registration and
qualification requirements of all applicable securities laws of the states of
the United States.

         3.6. REPORTS AND FINANCIAL STATEMENTS. The Company has delivered, as
exhibits to the Offering Document, to the Purchasers prior to the execution of
this Agreement a copy of the Company's

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Transition Report on Form 10-K for the transition period from January 1, 2003 to
March 31, 2003, the Company's Quarterly Reports on Form 10-Q that have been
filed for all quarters ended since March 31, 2003, the Company's Current Reports
on Form 8-K that were filed on January 23, 2004 and January 28, 2004, the
definitive proxy statement for the Company's 2003 annual meeting of
stockholders, and will deliver upon request any other Current Reports on Form
8-K filed since March 31, 2003 (as such documents have since the time of their
filing been amended or supplemented, and together with all reports, documents
and information filed on or after the date first written above through the date
of Closing with the SEC, including all information incorporated therein by
reference, collectively, the "SEC Reports"). The SEC Reports (a) complied and
will comply as to form in all material respects with the requirements of the
Securities Act and the Securities Exchange Act of 1934, as amended (the
"Exchange Act"), and (b) did not, at the time of their filing, contain any
untrue statement of a material fact or omit to state a material fact required to
be stated therein or necessary in order to make the statements therein, in light
of the circumstances under which they were made, not misleading. The financial
statements of the Company included in the SEC Reports comply in all material
respects with applicable accounting requirements and the rules and regulations
of the SEC with respect thereto as in effect at the time of filing. Such
financial statements have been prepared in accordance with United States
generally accepted accounting principles ("GAAP") applied on a consistent basis
during the periods involved, except as may be otherwise specified in such
financial statements or the notes thereto, and fairly present in all material
respects the financial position of the Company and its consolidated subsidiaries
as of and for the dates thereof and the results of operations and cash flows for
the periods then ended, subject, in the case of unaudited statements, to normal,
year-end audit adjustments.

         3.7. DISCLOSURES. The Offering Document, including all exhibits
thereto, as amended or supplemented, did not and will not, as of the date
thereof through the Closing, contain an untrue statement of a material fact or
omit to state a material fact necessary in order to make the statements therein,
in the light of the circumstances under which they were made, not misleading.
The Company has provided to each prospective offeree of the Shares who has
requested further information concerning the Company and its subsidiaries such
information (to the extent that such information is available or can be acquired
and made available to prospective Purchasers without unreasonable effort or
expense and to the extent the provision thereof is not prohibited by applicable
law). The Company confirms that neither it nor any of its officers, directors or
affiliates (as defined in Rule 501(b) under the Securities Act) ("Affiliates")
has provided any of the Purchasers or their agents or counsel with any
information that constitutes material, nonpublic information (other than the
existence and terms of the issuance of the Shares as contemplated herein). The
Company understands and confirms that each of the Purchasers will rely on the
foregoing representations in effecting transactions in securities of the
Company.

         3.8. NO INTEGRATION. Neither the Company nor its Affiliates has,
directly or through any authorized agent, during the six month period ending on
the date of this Agreement, sold, offered for sale, solicited offers to buy or
otherwise negotiated in respect of, any security (as defined in the Securities
Act) in a manner that would cause the offer and sale of the Shares to fail to be
entitled to the exemption afforded by Rule 506 of Regulation D, or under Section
4(2) of the Securities Act.

         3.9. NO PUBLIC OFFERING. Neither the Company nor its Affiliates nor any
Person (as defined in Section 3.11 below) has engaged, in connection with the
offering of the Shares (i) in any form of general solicitation or general
advertising within the meaning of Rule 502(c) under the Securities Act, (ii) in
any manner involving a public offering within the meaning of Section 4(2) of the
Securities Act, (iii) in any action which would violate applicable state
securities, or "blue sky," laws, or (iv) in any directed selling efforts within
the meaning of SEC Regulation S.

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         3.10. CONFORMITY OF DESCRIPTIONS. The Shares, when issued, will conform
in all material respects to the description of the Company's Common Stock
contained in the Company's SEC Reports and other filings with the SEC.

         3.11. NO CONFLICTS. The execution, delivery and performance of the
Agreements, the issuance and delivery of the Shares, when issued, by the Company
and the consummation by the Company of the transactions contemplated in the
Agreements do not and will not (i) conflict with or violate any provision of the
Certificate of Incorporation, Bylaws or other organizational documents of the
Company or any of its subsidiaries, (ii) conflict with, or constitute a default
(or an event which, with notice or lapse of time or both, would become a
default) under, or give to any other individual, partnership, joint stock
company, corporation, trust, unincorporated organization, government agency or
political subdivision (each of the foregoing, a "Person") any rights of
termination, amendment, acceleration or cancellation of, any material agreement,
indenture, patent, license or instrument (whether evidencing a Company debt or
otherwise) to which the Company or any of its subsidiaries is a party or by
which any property or asset of the Company or any of its subsidiaries is bound
or affected, except for such defaults that would not, individually or in the
aggregate, result in a Material Adverse Effect, or (iii) result in a violation
of any law, rule, regulation, order, judgment, injunction, decree or other
restriction of any court or governmental authority to which the Company or any
of its subsidiaries is subject (including federal and state securities laws and
regulations and the rules and regulations of the principal market, system or
exchange on which the Common Stock is traded, quoted or listed), or by which any
material assets of the Company or any of its subsidiaries is bound or affected.

         3.12. CONSENTS AND APPROVALS. No notice to, filing with, or consent of
any federal, state, county, local, foreign or other governmental, public or
regulatory agencies, authorities (including self-regulatory authorities),
courts, instrumentalities, commissions, boards or bodies having jurisdiction
over the Company and its subsidiaries ("Governmental Authorities") or any third
party is necessary for the consummation by the Company or any of its
subsidiaries of the transactions contemplated by the Agreements, other than (i)
the filing of the Registration Statement with the Commission in accordance with
the Registration Rights Agreement, (ii) the application(s) or any letter(s)
acceptable to Nasdaq for the listing or quoting of the Shares on Nasdaq (and
with any other national securities exchange or automated quotation system or
market on which the Common Stock is then traded, listed or quoted), and the
notice, if any, required by Nasdaq, (iii) any filings, notices or registrations
under applicable state securities laws, (iv) the disclosure requirements of the
Exchange Act and the disclosure requirements of Item 701 of SEC Regulation S-K,
and (v) the filing of a Form D and a Form 8-K in respect of the sale and
issuance of the Shares with the Commission (collectively, the "Required
Approvals").

         3.13. PROCEEDINGS. Except as disclosed in the Company's SEC Reports,
there is no action, suit, hearing, claim, notice of violation, arbitration or
other proceeding, hearing or investigation (each, a "Proceeding") pending or, to
the knowledge of the Company, threatened against or affecting the Company or any
of its subsidiaries or any of their respective assets before or by any
Governmental Authority or any arbitrator, which (i) adversely affects or
challenges the legality, validity or enforceability of any of the Agreements,
(ii) could reasonably be expected to, individually or in the aggregate, have or
result in a Material Adverse Effect, or (iii) if adversely decided, could
reasonably be expected to have a material adverse effect on, or delay the
issuance of, the Shares or the consummation of the transactions contemplated by
the Agreement. The foregoing includes, without limitation, any such action,
suit, proceeding or investigation that questions this Agreement or seeks to
delay or prevent the consummation of the transactions contemplated hereunder or
the right of the Company to execute, deliver and perform under same. The Company
is not a party to or subject to the provisions of any order, writ, injunction,
judgment or decree of any Governmental Authority that is reasonably likely to
have a Material Adverse Effect. Except as disclosed in the Company's SEC
Reports, no action, suit, proceeding, claim, investigation or inquiry by the
Company or any subsidiary is currently pending nor does the Company

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intend to initiate any action, suit, proceeding, claim, investigation or
inquiry, in each case, that if resolved in a manner adverse to the Company, is
reasonably likely to have a Material Adverse Effect.

         3.14. NO DEFAULT OR VIOLATION. Except for those that would not,
individually or in the aggregate, result in a Material Adverse Effect, none of
the Company or any of its subsidiaries is in (i) default under or in violation
of any indenture, loan or other credit agreement or any other agreement or
instrument to which any of them is a party or by which any of them or their
respective assets or properties is bound, or (ii) violation of any law, rule,
regulation, order, judgment, injunction, decree or other restriction of any
arbitrator or Governmental Authority applicable to it. None of the Company or
any of its subsidiaries is in default under, or in violation of, its certificate
of incorporation, bylaws or other organizational documents or in default under
or in violation of any of the listing or quotation requirements of Nasdaq (or of
any other national securities exchange or automated quotation system or market
on which the Common Stock is then traded, listed or quoted) as in effect on the
date hereof, and the Company is not aware of any facts which could reasonably
lead to de-listing or suspension of trading in the Common Stock by Nasdaq (or
any other national securities exchange or automated quotation system or market
on which the Common Stock is then traded, listed or quoted) in the foreseeable
future. The business of the Company and its subsidiaries is not being conducted
in violation of any law, statute, ordinance, rule or regulation of any
Governmental Authority, except where such violations have not resulted or are
not reasonably likely to result, individually or in the aggregate, in a Material
Adverse Effect. None of the Company or any of its subsidiaries is in breach of
any agreement where such breach, individually or in the aggregate, is reasonably
likely to have a Material Adverse Effect.

         3.15. BROKER'S FEES. The Company has incurred no liability, contingent
or otherwise, for brokerage or finders' fees or agents' commissions or other
similar payments in connection with the Agreements or the transactions
contemplated therein, other than fees payable to C.E. Unterberg, Towbin as the
placement agent of the Company for the Offering (the "Placement Agent"), and the
Company shall indemnify and hold harmless the Purchasers from and against any
such claims.

         3.16. LISTING COMPLIANCE. The only securities exchange or automated
quotation system or market on which the Common Stock is traded is Nasdaq, and
the Company has no other securities listed or traded on any other securities
exchange or automated quotation system or market. The Company is in compliance
in all material respects with the listing or maintenance requirements of Nasdaq.
The approval of the Company's stockholders is not required under the listing or
maintenance requirements of Nasdaq for the consummation of the transactions
contemplated herein. After giving effect to the transactions contemplated by the
Agreements, the Company is and will be in compliance with all such maintenance
requirements.

         3.17. INTELLECTUAL PROPERTY RIGHTS. The Company and its subsidiaries
own or possess adequate rights or licenses to use material (A) patents (and any
renewals and extensions thereof), patent rights (and any applications therefor),
rights of priority and other rights in inventions; (B) trademarks, service
marks, trade names and trade dress, and all registrations and applications
therefor and all legal and common-law equivalents of any of the foregoing; (C)
copyrights and rights in mask works (and any applications or registrations for
the foregoing, and all renewals and extensions thereof), common-law copyrights
and rights of authorship including all rights to exploit any of the foregoing in
any media and by any manner and means now known or hereafter devised; (D)
industrial design rights, and all registrations and applications therefor; (E)
rights in data, collections of data and databases, and all legal or common-law
equivalents thereof; (F) rights in domain names and domain name reservations;
(G) rights in trade secrets, proprietary information and know-how (collectively
with all licenses and other agreements providing the Company or its subsidiaries
with the right to use any item of the type referred to in clauses (A) through
(G) (collectively, "Intellectual Property Rights") which are necessary for use
in connection with their business as now conducted and as described in the SEC
Reports, except for those Intellectual Property

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Rights the absence of which would not, individually or in the aggregate, result
in a Material Adverse Effect. None of the Company or any of its subsidiaries has
knowledge that any of them has infringed on any of the Intellectual Property
Rights of any Person and, except as would not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect, none of the Company or
any of its subsidiaries is infringing on any of the Intellectual Property Rights
of any Person. Except as disclosed in the SEC Reports, there is no Proceeding
that is pending, or to the Company's knowledge, is threatened against, the
Company regarding the infringement of any of the Intellectual Property Rights.
The Company is not, to its knowledge, making unauthorized use of any
confidential information or trade secrets of any third party, and the Company
has not received any notice of any asserted infringement (nor is the Company
aware of any reasonable basis for any third party asserting an infringement) by
the Company, of the rights of a third party with respect to any Intellectual
Property Rights that, individually or in the aggregate, would have a Material
Adverse EFFECT. The Company and its subsidiaries have taken reasonable security
measures to protect the secrecy, confidentiality and value of all of their
Intellectual Property Rights.

         3.18. REGISTRATION RIGHTS; RIGHTS OF PARTICIPATION. Except as disclosed
in the Company's SEC Reports, the Company has not granted or agreed to grant to
any Person any rights (including "piggy-back" registration rights) to have any
securities of the Company registered with the Commission or any other
Governmental Authority which have not been satisfied. Except as disclosed on
Schedule 3.18, no Person, including current or former stockholders of the
Company, underwriters, brokers or agents, has any right of first refusal,
preemptive right, right of participation, or any similar right to participate in
the transactions contemplated by the Agreements or to require that the Company
include any such securities in the registration of Shares as contemplated
herein.

         3.19. FORM S-3 ELIGIBILITY. The Company meets the requirements for use
of the SEC's registration statement on Form S-3 under the Securities Act
relating to the resale of the Shares by the Purchasers and is eligible for
filing and maintaining registration statements on Form S-3 relating to the
resale of the Shares by the Purchasers.

         3.20. ABSENCE OF CERTAIN CHANGES. Since the date of the financial
statements included in the Company's most recent Quarterly Report on Form 10-Q,
Transition Report on Form 10-K, or latest Current Report on Form 8-K, whichever
is more recently filed prior to the date of this Agreement, except as disclosed
publicly, the Company and its subsidiaries have conducted their business only in
the ordinary course of such business consistent with past practice and there has
not been (i) any Material Adverse Effect, (ii) any material commitment,
contractual obligation, borrowing, capital expenditure or transaction (each, a
"Commitment") entered into by the Company or any of its subsidiaries, other than
(a) Commitments in the ordinary course of business and (b) this Agreement, (iii)
any action taken which, if taken after the date hereof, would constitute a
material breach of any provision or covenant herein, or (iv) any material change
in the Company's accounting principles, practices or methods other than as
required by concurrent changes in GAAP.

         3.21. BOOKS AND RECORDS. The minute books and other records of the
Company and its subsidiaries contain in all material respects accurate records
of all Company board, committee and stockholders' meetings and accurately
reflect in all material respects all other corporate action of the stockholders
and directors and any committees thereof of the Company and its subsidiaries and
all actions of the directors of the Company's subsidiaries, in each case since
March 31, 2003.

         3.22. NO MANIPULATION OF STOCK. The Company has not taken, in violation
of applicable law, any action designed to or that might reasonably be expected
to cause or result in stabilization or manipulation of the price of the Common
Stock to facilitate the transactions contemplated hereby or the sale or resale
of the shares of Common Stock.

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         3.23. COMPANY NOT AN "INVESTMENT COMPANY." The Company has been advised
of the rules and requirements under the Investment Company Act of 1940, as
amended (the "Investment Company Act"). The Company is not, and immediately
after receipt of payment for the Shares will not be, an "investment company"
within the meaning of the Investment Company Act.

         3.24. LABOR RELATIONS. Neither the Company nor its subsidiaries is
party to any collective bargaining agreement covering any individual who
performs services as an employee primarily for the Company or any of its
subsidiaries (including such persons who are on an approved leave of absence,
vacation, short-term disability or otherwise treated as an active employee of
the Company or any of its subsidiaries, "Employees"), and there are no
controversies or unfair labor practice proceedings pending or, to the Company's
knowledge, threatened between the Company or any of its subsidiaries and any of
their current or former Employees or any labor or other collective bargaining
unit representing any current or former Employee of the Company or any of its
subsidiaries that would reasonably be expected to result in a labor strike,
dispute, slow-down or work stoppage or otherwise have a Material Adverse Effect.
To the Company's knowledge, no organizational effort is presently being made or,
to the Company's knowledge, threatened by or on behalf of any labor union.

         3.25. EMPLOYEE BENEFITS.

         (a) "Benefit Plans" shall mean (i) all "employee pension benefit
plans," as defined in section 3(2) of the Employee Retirement Income Security
Act of 1974, as amended ("ERISA"), established, maintained, or contributed to by
the Company or its subsidiaries for the benefit of any employees or agents of
the Company or its subsidiaries; (ii) all "employee welfare benefit plans," as
defined in section 3(1) of ERISA, established, maintained, or contributed to by
the Company or its subsidiaries for the benefit of any employees or agents of
the Company or its subsidiaries; and (iii) to the knowledge of the Company, all
other material incentive, employment, supplemental retirement, severance,
deferred compensation and other employee benefit plans, programs, agreements and
arrangements established, maintained, or contributed to by the Company or its
subsidiaries for the benefit of any employees or agents of the Company or its
subsidiaries, without regard to the coverage of any such plan, program,
agreement or arrangement by ERISA or any provision of the Internal Revenue Code
of 1986, as amended (the "Code").

         (b) Each of the Benefit Plans has been administered in accordance with
its terms and any federal, state or local statute, law, ordinance, regulation,
order, writ, injunction, directive, judgment or decree applicable to the
Company, its subsidiaries, or any of their respective properties, or assets, as
the case may be (including, where applicable, ERISA and the Code), except where
the failure to so administer such Benefit Plan would not have a Material Adverse
Effect.

         (c) Each of the Benefit Plans intended to be "qualified" within the
meaning of section 401(a) of the Code has been determined by the United States
Internal Revenue Service to be so qualified, except where the failure to so
qualify such Benefit Plan would not have a Material Adverse Effect.

         3.26. ENVIRONMENTAL MATTERS.

         (a) The Company and its subsidiaries are in compliance with all
applicable Federal, state, and local laws and regulations relating to Releases
or threatened Releases of Hazardous Materials or otherwise relating to the
generation, treatment, storage, transport or handling of Hazardous Materials,
except where failure to be in compliance would not have a Material Adverse
Effect; and, to the Company's knowledge, there is no Environmental Claim pending
or threatened against the Company or its subsidiaries which would have a
Material Adverse Effect.

                                      A-8
<PAGE>

         (b) For the purpose of this Section 3.26, (i) "Environmental Claim"
means any claim, action, demand, order, or written notice by or on behalf of,
any Governmental Entity or Person alleging potential liability arising out of,
based on or resulting from the violation of any Environmental Law or permit;
(ii) "Hazardous Materials" means all substances defined as hazardous substances
in the Comprehensive Environmental Response, Compensation and Liability Act; and
(iii) "Release" has the meaning set forth in the Comprehensive Environmental
Response, Compensation and Liability Act.

         3.27. TAXES.

         (a) (i) The Company has filed (or joined in the filing of) when due all
Tax Returns required by applicable law to be filed with respect to the Company
and all Taxes shown to be due on such Tax Returns have been paid; (ii) all such
Tax Returns were true, correct and complete in all material respects as of the
time of such filing; or (iii) any liability of the Company for Taxes not yet due
and payable, or which are being contested in good faith, in each case as of
March 31, 2003, has been accrued or reserved for on the financial statements of
the Company in accordance with GAAP, in each case except that any such failure
to file or pay Taxes would not result in a Material Adverse Effect.

         (b) For purposes of this Section 3.27, (i) the term "Taxes" shall mean
any federal, state, county, local, or foreign taxes, charges, fees, levies,
imposts, duties, or other assessments, including income, gross receipts, excise,
employment, sales, use, transfer, license, payroll, franchise, severance, stamp,
occupation, windfall profits, environmental, federal highway use, commercial
rent, customs duties, capital stock, paid-up capital, profits, withholding,
Social Security, single business and unemployment, disability, real property,
personal property, registration, ad valorem, value added, alternative or add-on
minimum, estimated, or other tax or governmental fee of any kind whatsoever,
imposes or required to be withheld by the United States or any state, county,
local or foreign government or subdivision or agency thereof, including any
interest, penalties, and additions imposed thereon or with respect thereto and
(ii) the term "Tax Return" shall mean any report, return, information return, or
other information required to be supplied to a Governmental Authority in
connection with Taxes, including any return of an affiliated or combined or
unitary group that includes the Company and any amendments thereof.

         3.28. INSURANCE. All insurance policies carried by the Company or any
subsidiary or covering the Company's properties are in full force and effect,
and, to the Company's knowledge, no notice of cancellation has been given with
respect to any such policy, except where the lapse of such coverage or
cancellation of such policy would not reasonably be expected to have a Material
Adverse Effect. The insurance coverage provided by such policies is provided by
insurers that, to the knowledge of the Company, are solvent and is in such
amount and types of coverage which are adequate and customary for the industries
in which the Company operates.

         3.29. ACCOUNTING CONTROLS. The Company maintains a system of internal
accounting controls sufficient to provide reasonable assurances that (i)
transactions are executed in accordance with management's general or specific
authorizations, (ii) transactions are recorded as necessary to permit
preparation of financial statements in accordance with generally accepted
accounting principles and to maintain assets 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, except for any controls the absence of which would
not result in a Material Adverse Effect.

         3.30 SARBANES-OXLEY. The Company is in compliance in all material
respects with all applicable requirements of the Sarbanes-Oxley Act of 2002 and
applicable rules and regulations promulgated by the Commission thereunder.

                                      A-9
<PAGE>

                                    SECTION 4

                            COVENANTS OF THE COMPANY

         The Company hereby covenants with the Purchasers and the Placement
Agent as follows:

         4.1. OFFERING LIMITATIONS. None of the Company or any of its Affiliates
or any attorney, accountant, financial adviser or other representative
(collectively, "Representatives") will solicit any offer to buy or offer to sell
shares of Common Stock or securities convertible into or exchangeable for Common
Stock by means of any form of general solicitation or general advertising (as
such terms are used in Regulation D under the Securities Act) in any manner
involving a public offering (within the meaning of Section 4(2) of the
Securities Act) prior to the effective date of the Registration Statement.

         4.2. INTEGRATION. None of the Company or any of its Affiliates will
offer, sell or solicit offers to buy or otherwise negotiate in respect of any
security (as defined in the Securities Act) in a manner that would cause the
offer and sale of the Shares to fail to be entitled to the exemption from
registration afforded by Rule 506 of Regulation D and Section 4(2) of the
Securities Act.

         4.3. DISCLOSURES. Subject to Section 8.14, as applicable, the Company,
promptly following the Closing will (i) issue a press release announcing the
sale of the Shares through the Placement Agent, (ii) file such press release and
other appropriate information with the SEC on a Form 8-K, and (iii) include in
the filing of its next Form 10-Q or Form 10-K, as applicable, appropriate
disclosures relating to the sale of the Shares, including, without limitation,
the disclosure required by Item 701 of Regulation S-K. The Company shall not,
and shall cause each of its subsidiaries and its and each of their
Representatives, not to, provide any Purchaser with any material, nonpublic
information regarding the Company or any of its subsidiaries from and after the
issuance of the press release described in this Section without the express
written consent of such Purchaser.

         4.4. USE OF PROCEEDS. The Company will use the proceeds from the sale
of the Shares in the manner specified in the Offering Document under the caption
"Use of Proceeds."

         4.5. COMPLIANCE. Except as disclosed on Schedule 4.5, the Company has
complied in all respects with the provisions of those agreements which evidence
the rights covered by Section 3.18 regarding any right of first refusal,
preemptive right, right of participation, or any similar right of a stockholder
or any other third party to participate in the transactions contemplated by the
Agreements, including, but not limited to, any notice, consent and waiver
requirements. Except as disclosed on Schedule 4.5, the Company has performed the
timely notification of all affected Persons and has either (i) solicited and
obtained the appropriate consent and waiver from such Person, or (ii)
affirmatively received notice of participation in the transactions contemplated
by the Agreements from each of the affected Persons. For purposes of the
immediately preceding sentence only, the failure of any such affected Person to
exercise its rights or participate in the transactions contemplated by the
Agreements during any specified exercise or participation period shall be deemed
a waiver by the affected Person of such rights.

                                    SECTION 5

           REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE PURCHASERS

         Each Purchaser, severally and not jointly, hereby represents, warrants
and covenants to the Company with respect to the purchase of Shares by such
Purchaser as follows:

                                      A-10
<PAGE>

         5.1. EXPERIENCE. Such Purchaser has substantial experience in
evaluating and investing in private placement transactions of securities in
companies similar to the Company, and the Purchaser is capable of evaluating the
merits and risks of its investment in the Company and has the capacity to
protect its own interests.

         5.2. QUALIFIED INSTITUTIONAL BUYER; ACCREDITED INVESTOR. Such Purchaser
is a "qualified institutional buyer," as defined in Rule 144A of the Securities
Act, or an "accredited investor," as defined in SEC Regulation D promulgated
pursuant to the Securities Act (an "Accredited Investor").

         5.3. RULE 144. Such Purchaser acknowledges that the Shares must be held
indefinitely unless subsequently registered for resale under the Securities Act
or unless an exemption from such registration is available. Such Purchaser is
aware of the provisions of the SEC's Rule 144 promulgated under the Securities
Act, which permit limited resale of securities purchased in a private placement,
subject to the satisfaction of certain conditions, including, among other
things, (i) the existence of a public market for the securities, (ii) the
availability of certain current public information about the Company, (iii) the
resale occurring not less than one year after a party has purchased and fully
paid for the security to be sold, (iv) the sale being effected through a
"broker's transaction" or in a transaction directly with a "market maker," and
(v) the number of securities being sold during any three-month period not
exceeding specified limitations.

         5.4. ACCESS TO INFORMATION. Such Purchaser has had an opportunity to
discuss the Company's business, management and financial affairs with its
management. It has also had an opportunity to ask questions of officers of the
Company, which questions were answered to its satisfaction. Such Purchaser
understands that such discussions, as well as any written information issued by
the Company, were intended to describe certain aspects of the Company's business
and prospects. Further, such Purchaser acknowledges and understands that the
fact that the Company is seeking to effect the private placement of the Shares
is itself material, non-public information, and disclosure of such information
or use of such information by such Purchaser or anyone receiving such
information from such Purchaser in connection with the purchase, sale or trade
of the Company's securities (other than use by such Purchaser in acquiring the
Shares) is a violation of securities laws. Neither such inquiries nor any other
due diligence investigation conducted by such Purchaser or any of its advisors
or representatives shall modify, amend or affect such Purchaser's right to rely
on the Company's representations, warranties and covenants contained herein or
in the other Agreements. Such Purchaser understands that its investment in the
Shares involves a high degree of risk.

         5.5 ORGANIZATION; AUTHORIZATION. Such Purchaser is either (i) an
individual who hereby certifies that he or she is an Accredited Investor who
possesses the legal capacity, understanding and financial ability necessary and
appropriate to enter into, and bear the risks of, the transactions contemplated
hereby, or (ii) a corporation, a limited liability company or a partnership duly
formed, validly existing and in good standing under the laws of the jurisdiction
of its organization. Such Purchaser shall acquire the Shares in this Offering in
the ordinary course of business, without any agreement, plan or understanding,
directly or indirectly, with any Person to distribute such Shares. Such
Purchaser, if a corporation, a limited liability company or a partnership, has
the requisite power and authority, to enter into and to consummate the
transactions contemplated by the Agreements and otherwise to carry out its
obligations under the Agreements. The purchase by such Purchaser of the Shares
hereunder has been duly authorized by all necessary action on the part of such
Purchaser. This Agreement, when executed and delivered by such Purchaser, will
constitute a valid and binding obligation of the Purchaser, enforceable in
accordance with its terms, subject to the Bankruptcy and Equity Exception.

                                      A-11
<PAGE>

         5.6. RESTRICTIVE LEGEND. Such Purchaser understands that the
certificates evidencing the Shares will bear the following legends when issued:

         "THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
         1933, AS AMENDED (THE "SECURITIES ACT"), OR THE SECURITIES, OR "BLUE
         SKY," LAWS OF ANY STATE OR OTHER DOMESTIC OR FOREIGN JURISDICTION.
         THESE SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW
         TO DISTRIBUTION AND RESALE AND MAY NOT BE SOLD, OFFERED FOR SALE,
         PLEDGED, HYPOTHECATED, TRANSFERRED OR OTHERWISE DISPOSED OF EXCEPT
         PURSUANT TO A REGISTRATION STATEMENT IN EFFECT UNDER THE SECURITIES ACT
         AND OTHER APPLICABLE LAWS OR A WRITTEN OPINION OF COUNSEL REASONABLY
         SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED AND
         THAT AN EXEMPTION FROM SUCH REGISTRATION IS AVAILABLE FOR SUCH
         TRANSACTIONS UNDER THE SECURITIES ACT AND OTHER APPLICABLE LAWS."

         In addition, the Purchasers acknowledge that each certificate for
Shares shall bear any additional legend required by any other applicable
domestic or foreign securities or blue sky laws.

         The Company will direct its transfer agent and registrar to maintain
stop transfer instructions on record for the Shares until it has been notified
by the Company, upon the advice of counsel, that such instructions may be waived
consistent with the Securities Act and applicable domestic and foreign
securities laws. Such stop transfer instructions will limit the method of sale
or transfer of the Shares, consistent with Rule 144 or other available
exemptions from registration under the Securities Act. Any transfers other than
pursuant to a registration statement under the Securities Act will require an
opinion of counsel reasonably satisfactory to the Company and its counsel prior
to such transfers.

         5.7. NO GOVERNMENTAL REVIEW. Such Purchaser understands that no United
States federal or state agency or any other government or governmental agency or
authority has passed upon or made any recommendation or endorsement of the
Shares or the contents of the Offering Document.

         5.8. RESIDENCY. Such Purchaser is a resident of the jurisdiction set
forth immediately below such Purchaser's name on the Subscription Agreement.

         5.9. INVESTMENT INTENT. Such Purchaser is acquiring the Shares for
investment for its own account, not as a nominee or agent, and not with the view
to, or for resale in connection with, any distribution thereof; provided,
however, that by making the representations herein, such Purchaser is not
prohibited from selling or otherwise disposing of any of such Purchaser's Shares
in compliance with applicable federal and state securities laws and as otherwise
contemplated by this Agreement. Such Purchaser understands and agrees that the
Shares have not been registered under the Securities Act by reason of the
exemption from the registration provisions of the Securities Act contained in
Rule 506 of Regulation D and Section 4(2) of the Securities Act, the
availability of which depends upon, among other things, the bona fide nature of
the investment intent and the accuracy of such Purchaser's representations,
warranties and covenants as expressed herein, which are being relied upon by the
Company and the Placement Agent.

         5.10.    NO MANIPULATION. Neither such Purchaser nor, to such
                  Purchaser's knowledge, any of its directors, officers,
                  managers, subsidiaries, controlling persons or other
                  affiliates has taken, or presently plans to take, directly or
                  indirectly, any action designed to or which might reasonably
                  be expected to cause or result in, or which has constituted,
                  under the Exchange

                                      A-12
<PAGE>

                  Act, the stabilization or manipulation of the price of any
                  security of the Company to facilitate the sale of the Shares.
                  Since the time of becoming aware of the Offering, such persons
                  have not engaged in any (i) "short sales" (as such term is
                  defined in Rule 3b-3 promulgated under the Exchange Act) of
                  the Common Stock, including, without limitation, any such
                  transaction that transfers to another, in whole or in part,
                  any economic consequences or ownership, or otherwise dispose
                  of, any of the Shares or (ii) hedging transaction which
                  establishes a net short position with respect to the Shares.

                                    SECTION 6

                 CONDITIONS TO PURCHASERS' OBLIGATIONS TO CLOSE

         The obligation of each Purchaser to close the Offering is subject to
the fulfillment, as of the date of Closing, of the following conditions, any of
which may be waived by each such Purchaser:

         6.1. REPRESENTATIONS AND WARRANTIES CORRECT. The representations and
warranties by the Company contained herein qualified as to materiality shall be
true and correct (in light of such qualification(s)) and those not so qualified
shall be true and correct in all material respects as of the date hereof and at
and as of the Closing as though such representations and warranties were made at
and as of such date unless limited by their terms to a prior date.

         6.2. COVENANTS. All covenants, agreements and conditions contained in
this Agreement to be performed by the Company on or prior to the Closing shall
have been performed or complied with in all material respects.

         6.3. NO INJUNCTION. No statute, rule, regulation, order, decree, ruling
or injunction shall have been enacted, entered, promulgated, endorsed or
threatened or is pending by or before any Governmental Authority of competent
jurisdiction which in any material respect restricts, prohibits or threatens to
restrict or prohibit the consummation of any of the transactions contemplated by
the Agreements.

         6.4. NO SUSPENSIONS OF TRADING IN COMMON STOCK. The trading in the
Common Stock shall not have been restricted or suspended by the Commission,
Nasdaq or any other market or exchange where such Common Stock is traded (except
for any suspension of trading of limited duration solely to permit dissemination
of material information regarding the Company).

         6.5 ADVERSE CHANGES. Since the date of this Agreement, no event which
has had or could reasonably be expected to have a Material Adverse Change shall
have occurred.

         6.6. LITIGATION. No Proceeding shall have been instituted or threatened
against the Company that could reasonably be expected to, individually or in the
aggregate, have a Material Adverse Effect.

         6.7. COMPLIANCE CERTIFICATE. The Company shall have delivered to the
Purchasers a certificate of the Company executed by the President of the
Company, dated as of the Closing, certifying to the fulfillment of the
conditions specified in Section 6 of this Agreement.

                                      A-13
<PAGE>

         6.8. SECRETARY'S CERTIFICATE. The Company shall have delivered to the
Purchasers a certificate of the Company executed by an officer of the Company,
dated as of the Closing, certifying (i) resolutions adopted by the Board of
Directors of the Company authorizing the execution of the Agreements, the
issuance of the Shares, the filing of the Registration Statement, and the
transactions contemplated hereby; (ii) the Certificate of Incorporation and
Bylaws of the Company, each as amended, and copies of the third party consents,
approvals and filings required in connection with the consummation of the
transactions contemplated by the Agreements; and (iii) such other documents
relating to the transactions contemplated by the Agreements as the Purchasers
may reasonably request.

         6.9. OPINION OF COUNSEL. At the Closing, the Purchasers and the
Placement Agent shall have received the opinion of Alston & Bird LLP, as counsel
to the Company, dated as of Closing, in the form set forth below to the effect
that:

                  (a) The Company is validly existing and in good standing under
         the laws of the State of Delaware, with corporate power and authority
         to carry on its business as now conducted and to own, lease and operate
         its assets and properties and to enter into and perform its obligations
         under this Agreement, the Subscription Agreement, the Registration
         Rights Agreement and the other documents and agreements to be executed
         by the Company in connection with the Closing (collectively, the
         "Operative Documents");

                  (b) The execution, delivery and performance by the Company of
         each of the Operative Documents to which the Company is a party have
         been duly authorized by the Company;

                  (c) No consent or other action by, or filing or registration
         with, any Governmental Authority is required for (i) the execution and
         delivery by the Company of the Operative Documents, (ii) the offer,
         sale, and issuance of the Shares in accordance with the Operative
         Documents, (iii) the performance by the Company of its obligations
         under the Operative Documents, except such as may be required (a) in
         connection with the registration under the Securities Act of the Shares
         pursuant to the Registration Rights Agreement (including any filing
         with the National Association of Securities Dealers, Inc.), (b) under
         the "blue sky" or securities laws of any jurisdiction in connection
         with the purchase and sale or resale of the Shares; (c) to provide
         notice and application to list or quote the Shares on Nasdaq (and with
         any other national securities exchange or automated quotation system or
         market on which the Common Stock is then traded, listed or quoted), (d)
         to satisfy the disclosure requirements of the Exchange Act, and the
         disclosure requirements of Item 701 of SEC Regulation S-K, and (v) to
         file a Form D and a Form 8-K in respect of the sale and issuance of the
         Shares with the Commission (collectively, the "Required Approvals").

                  (d) Neither the execution and delivery of this Agreement or
         the other Operative Documents, nor the consummation by the Company of
         the transactions contemplated hereby or thereby (including the
         issuance, sale and delivery of the Shares), nor compliance by the
         Company with any of the provisions hereof or thereof, will (i)
         constitute or result in a default under, or require any consent
         pursuant to any contract or permit of the Company listed on Schedule A
         to the opinion, (ii) conflict with or result in a breach of any
         provision of the Certificate of Incorporation or Bylaws of the Company,
         or any federal or state law, rule or regulation known to such counsel
         of any court or federal, state or other regulatory board or body or
         administrative agency having jurisdiction over the Company or over its
         properties or business, or (iii) conflict with or constitute a default
         under any judgment, writ, decree or order known to such counsel to be
         applicable by its terms to the Company;

                                      A-14
<PAGE>

                  (e) Each of this Agreement, Subscription Agreement and the
         Registration Rights Agreement have been duly authorized, executed and
         delivered by the Company;

                  (f) When issued to a Purchaser against payment therefor in
         accordance with the Agreement and other Operative Documents, each Share
         will be duly and validly authorized and issued, fully paid and
         nonassessable;

                  (g) To the knowledge of such counsel, there is no action,
         suit, investigation or proceeding pending or threatened against the
         Company or any of its properties or assets by or before any court,
         arbitrator or Governmental Authority, department, commission, board,
         bureau, agency or instrumentality, which questions the validity of the
         Agreement or any action taken or to be taken pursuant hereto or
         thereto;

                  (h) The Company is not an "investment company" or required to
         register as an investment company as such term is defined in the 1940
         Act and the SEC's rules and regulations thereunder; and

                  (i) Assuming the accuracy of the Purchasers' representations
         and warranties in Section 5 of this Agreement, the accuracy of the
         Company's representations and warranties in Sections 3.8 and 3.9 of
         this Agreement, and the Company's and the Purchasers' satisfaction of
         their respective covenants hereunder, the offer, sale and issuance of
         the Shares, as contemplated by the Agreements is exempt from the
         registration requirements under Section 5 of the Securities Act.

         Such opinions may be subject to such assumptions, qualifications and
limitations as are customary. Without limiting the foregoing, such counsel (i)
need not express any opinion with regard to the application of laws of any
jurisdiction other than the Federal law of the United States and the relevant
corporate act of the State where the issuer is organized and (ii) may rely, as
to matters of fact, to the extent appropriate on representations or certificates
of responsible officers of the Company and certificates of public officials.

         6.10 OTHER DOCUMENTS. The Company shall have delivered to each
Purchaser such other documents relating to the transactions contemplated by the
Agreements as the Purchasers or their counsel may reasonably request.

         6.11. LISTING APPROVALS. The Company shall have obtained any necessary
approvals for the listing of the Shares on Nasdaq.

         6.12. REGISTRATION RIGHTS AGREEMENT. The Company and the Purchasers
shall have executed, entered into and delivered the Registration Rights
Agreement to each such Purchaser.

                                    SECTION 7

                CONDITIONS TO THE COMPANY'S OBLIGATIONS TO CLOSE

         The Company's obligation to close the Offering is subject to the
fulfillment as of the date of Closing, of the following conditions, any of which
may be waived by the Company:

                                      A-15
<PAGE>

         7.1. REPRESENTATIONS AND WARRANTIES CORRECT. The representations and
warranties made by the Purchasers herein shall be true and correct in all
material respects on the dates made and on the date of Closing.

         7.2. PERFORMANCE BY THE PURCHASERS. Each Purchaser shall have
performed, satisfied and complied in all material respects with all covenants,
agreements and conditions required by the Agreements to be performed, satisfied
or complied with by such Purchaser at or before the Closing.

         7.3. NO INJUNCTION. No statute, rule, regulation, executive order,
decree, ruling or injunction shall have been enacted, entered, promulgated,
endorsed or threatened or is pending by or before any Governmental Authority of
competent jurisdiction which prohibits or threatens to prohibit the consummation
of any of the transactions contemplated by the Agreements.

         7.4. RECEIPT OF FUNDS. The Company shall have received the Purchase
Price from each of the Purchasers.

                                    SECTION 8
                                  MISCELLANEOUS

         8.1. GOVERNING LAW.

         (a) This Agreement shall be governed in all respects by the laws of the
State of New York, without giving effect to the conflict of law rules thereof to
the extent that the application of the law of another jurisdiction would be
required thereby.

         (b) Each of the parties hereto acknowledges and agrees that damages
will not be an adequate remedy for any material breach or violation of this
Agreement if such material breach or violation would cause immediate and
irreparable harm (an "Irreparable Breach"). Accordingly, in the event of a
threatened or ongoing Irreparable Breach, each party hereto shall be entitled to
seek, in any state or federal court in the State of New York, equitable relief
of a kind appropriate in light of the nature of the ongoing or threatened
Irreparable Breach, which relief may include, without limitation, specific
performance or injunctive relief. Such remedies shall not be the parties'
exclusive remedies, but shall be in addition to all other remedies provided in
this Agreement, and this provision shall survive the termination of this
Agreement.

         8.2. SURVIVAL. The representations and warranties made herein shall
survive any investigation made by the Purchasers and the closing of the
transactions contemplated hereby until the first anniversary date of the
Closing.

         8.3. SUCCESSORS AND ASSIGNS. Except as otherwise provided herein, the
provisions hereof shall inure to the benefit of, and be binding upon, the
successors, assigns, heirs, executors and administrators of the parties hereto,
provided that the rights of the Purchasers to purchase the Shares shall not be
assignable without the consent of the Company, not to be unreasonably withheld,
other than to Affiliates.

         8.4. AMENDMENT AND WAIVER. This Agreement may not be amended or waived
except in writing executed by the party against which such amendment or waiver
is sought to be enforced. No course of dealing between or among any Persons
having any interest in this Agreement will be deemed effective to modify or
amend any part of this Agreement or any rights or obligations of any person
under or by reason of this Agreement.

                                      A-16
<PAGE>

         8.5. NOTICES, ETC. All notices and other communications required or
permitted hereunder shall be in writing and shall be mailed by United States
mail, postage prepaid, by reliable overnight delivery service such as UPS or
FedEx, or by facsimile transmission, or otherwise delivered by hand or by
messenger, addressed (a) if to any Purchaser, at the Purchaser's address set
forth on the Subscription Agreement, or at such other address as such Purchaser
shall have furnished to the Company in writing in the manner set forth herein,
with a copy to the Purchasers' Counsel listed below, (b) if to any other holder
of any shares, at such address as such holder shall have furnished the Company
in writing, or, until any such holder so furnishes an address to the Company,
then to and at the address of the last holder of such shares who has so
furnished an address to the Company, with a copy to the Purchasers' Counsel
listed below, or (c) if to the Company, one copy should be sent to the Company
at the address listed below, in each case with a copy to the Placement Agent at
the address also listed below. In the event that any notice or other
communication is sent by facsimile transmission to the Company, such
transmission shall be followed immediately by overnight delivery to the Company
of such notice or other communication.

Company:                                          Placement Agent:

Indus International, Inc..                        C.E. Unterberg, Towbin
3301 Windy Ridge Parkway                          350 Madison Avenue
Atlanta, Georgia 30339                            New York, New York  10017
Attention: Adam Battani                           Attention: Mark G. Hadlock
Facsimile: (770) 989-4488                         Facsimile: (212) 389-8401

with a copy to:                                   with a copy to:

Company Counsel:                                  Placement Agent Counsel:

Alston & Bird LLP                                 Mayer, Brown, Rowe & Maw LLP
One Atlantic Center                               1675 Broadway, Suite 1900
1201 West Peachtree Street                        New York, New York  10019
Atlanta, Georgia  30309-3424                      Attention: Ronald S. Brody
Attention: Scott Ortwein                          Facsimile: (212) 262-1910
Facsimile: 404) 253-8376

         Each such notice or other communication shall for all purposes of this
Agreement be treated as effective or having been given when delivered, or if by
facsimile transmission, as indicated by the facsimile imprint date.

         8.6. DELAYS OR OMISSIONS; RIGHTS CUMULATIVE. Except as expressly
provided herein, no delay or omission to exercise any right, power or remedy
accruing to any Purchaser upon any breach or default of the Company under the
Agreements shall impair any such right, power or remedy of such Purchaser, nor
shall it be construed to be a waiver of any such breach or default, or an
acquiescence therein, or of any similar breach or default thereafter occurring;
nor shall any waiver of any single breach or default be deemed a waiver of any
other breach or default theretofore or thereafter occurring. Any waiver, permit,
consent or approval of any kind or character on the part of any Purchaser of any
breach or default under this Agreement, or any waiver on the part of any party
hereto of any provisions or conditions of this Agreement, must be in writing and
shall be effective only to the extent specifically set forth in such writing.
All remedies, either under this Agreement or by law or otherwise afforded to any
Purchaser, shall be cumulative and not alternative.

         8.7. EXPENSES. All fees, costs and expenses (including attorneys' fees
and expenses) incurred by any party hereto in connection with the preparation,
negotiation and execution of this Agreement and the

                                      A-17
<PAGE>

exhibits and schedules hereto and the consummation of the transactions
contemplated hereby and thereby (including the costs associated with any filings
with, or compliance with any of the requirements of any governmental
authorities), shall be the sole and exclusive responsibility of such party.

         8.8 SUBSCRIPTION AGREEMENT; COUNTERPARTS. Persons may become parties to
this Agreement by executing the Subscription Agreement, which may be executed in
two or more identical counterparts and by facsimile, each of which shall be
deemed an original and all of which shall constitute one and the same agreement.
Any signature that is delivered by facsimile transmission shall be valid and
binding, with the same force and effect as if an original, manually signed
counterpart.

         8.9. SEVERABILITY. In the event that any provision of this Agreement is
unenforceable, the remaining provisions shall continue in full force and effect.

         8.10. SECTION HEADINGS, ETC. The titles and subtitles used in this
Agreement are used for convenience only and are not considered in construing or
interpreting this Agreement. As used herein, any gender shall include all other
genders, and the singular shall include the plural and vice versa. The terms
"include," "including" and similar terms shall mean include without limitation,
whether by enumeration or otherwise.

         8.11. NO THIRD-PARTY BENEFICIARIES. This Agreement is intended for the
benefit of the parties hereto and their respective permitted successors and
assigns, and no other person is intended to or shall have any rights hereunder
whether as a third party beneficiary or otherwise.

         8.12. INDEPENDENT NATURE OF PURCHASERS' OBLIGATIONS AND RIGHTS. The
obligations of each Purchaser hereunder are several and not joint with the
obligations of the other Purchasers hereunder, and no Purchaser shall be
responsible in any way for the performance of the obligations of any other
Purchaser hereunder. The obligations of each Purchaser are not conditioned upon
the action of any other Purchaser. Nothing contained herein or in any other
agreement or document delivered at the Closing, and no action taken by any
Purchaser pursuant hereto or thereto, shall be deemed to constitute the
Purchasers as a partnership, an association, a joint venture or any other kind
of Person, or create a presumption that the Purchasers are in any way acting in
concert with respect to such obligations or the transactions contemplated by
this Agreement. Each Purchaser shall be entitled to protect and enforce its
rights, including, without limitation, the rights arising out of the Agreements,
and it shall not be necessary for any other Purchaser to be joined as an
additional party in any proceeding for such purpose.

         8.13. FURTHER ASSURANCES; COOPERATION. Each party shall do and perform,
and shall cooperate with and assist each other to do or 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 parties may reasonably request in order to carry out the intent and
accomplish the purposes of the Agreements and the consummation of the
transactions contemplated thereby in a timely manner, and further agrees not to
take any actions, or to permit, authorize or direct any of its affiliates to
take any actions, that would have the effect of delaying, threatening the
success of, or preventing in any way the transactions contemplated by each of
the Agreements.

         8.14. PUBLIC STATEMENTS OR RELEASES. Neither the Company nor any
Purchaser shall make any public announcement with respect to the existence or
terms of this Agreement or the transactions provided for herein without the
prior approval of the other parties, which shall not be unreasonably withheld or
delayed. Any such public announcement shall not include the name of any
Purchaser without the express approval of such Purchaser. Notwithstanding the
foregoing, nothing in this Section 8.14 shall prevent any party from making any
public announcement it considers necessary in order to satisfy its obligations
under the law or the rules of any national securities exchange or Nasdaq;
provided such party,

                                      A-18
<PAGE>

to the extent practicable, provides the other parties or their representatives
with an opportunity to review and comment on any proposed public announcement
before it is made.

         8.15. ENTIRE AGREEMENT; AMENDMENT. This Agreement, the Registration
Rights Agreement, the Subscription Agreement and the other Agreements constitute
the entire understanding and agreement between the Purchasers and the Company
with regard to the subject matter. Except as expressly provided herein, this
Agreement, any of the other Agreements or any term hereof may be amended,
modified, waived or discharged only by a written instrument signed by the party
waiving any term, condition, or right or remedy that benefits it hereunder.

         [The remainder of this page has been intentionally left blank.]

                                      A-19
<PAGE>
                             SCHEDULE OF INVESTORS

Amaranth L.L.C.
Anno, L.P.
Atlas Equity I, Ltd.
Bald Eagle Fund LTD
Basso Equity Opportunity Holding Fund Ltd.
Basso Multi-Strategy Holding Fund Ltd.
Chestnut Ridge Partners, L.P.
Columbia Acord Fund
Common Fund Hedged Equity Company
Contra Offshore Partners, Ltd.
DKR SoundShore Strategic Holding Fund Ltd.
GW 2001 Fund, L.P.
Iroquois Capital L.P.
Joan Schapiro IRA
Kensington Partners, L.P.
Knott Partners L.P.
Laddcap Value Partners LP
Langley Partners, L.P.
MAIG Partners
Matterhorn Offshore Fund Ltd.
Optimum Small Cap Growth Fund
PCM Partners L.P. II
Paulou Children's Trust DTD 10/15/97
RHP Master Fund, Ltd.
S.A.C. Capital Associates, LLC
SF Capital Partners Ltd.
Shoshone Partners, LLP
Smithfield Fiduciary LLC
Smart Schapiro Money Purchase Plan
STG Capital Fund Ltd.
STG Capital Partners (AP) LP
TCMP(3) Partners
Truk International Fund, LP
Truk Opportunity Fund, LLC
Turkel Partners, LP
UT Technology Fund, Ltd.
UT Technology Partners I, L.P.
UT Technology Partners II, L.P.
Vertical Ventures, LLC
Wanger US Smaller Companies
Weber Capital Partners, L.P.<PAGE>
                                                                    EXHIBIT 10.2

                          REGISTRATION RIGHTS AGREEMENT

         THIS REGISTRATION RIGHTS AGREEMENT (this "Agreement") is made and
entered into as of February 6, 2004 by and among Indus International, Inc., a
Delaware corporation (the "Company"), and those persons (the "Purchasers")
identified on, and a party to, an executed copy of the Subscription Agreement to
which this Agreement is an Exhibit (the "Subscription Agreement").

         This Agreement is made pursuant to the Subscription Agreement and the
Purchase Agreement that is included as Exhibit A to the Subscription Agreement
(the "Purchase Agreement"), by and between the Company and the Purchasers,
pursuant to which the Company is issuing and selling up to 5,000,000 shares of
its common stock, $0.001 par value per share (the "Common Stock" or the
"Shares"). The Shares are being offered and sold to the Purchasers without
registration under the Securities Act of 1933, as amended (the "Securities
Act"), in reliance upon the exemption from registration provided by Section 4(2)
of the Securities Act and the provisions of Rule 506 of Regulation D,
promulgated under the Securities Act. In order to induce the Purchasers to enter
into the Purchase Agreement, the Company has agreed to provide to the Purchasers
(and their direct and indirect permitted transferees, if any) the registration
rights set forth in this Agreement with respect to the resale of the Shares. The
execution and delivery of this Agreement is a condition to the Closing under the
Purchase Agreement. Capitalized terms used but not defined herein shall have the
meaning provided in the Purchase Agreement.

         In consideration of the foregoing premises and for other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties, intending to be legally bound, agree as follows:

                                    SECTION 1

                               REGISTRATION RIGHTS

         1.1. FILING OF FORM S-3 RESALE REGISTRATION STATEMENT. As soon as
practical and, within thirty (30) days after the Closing under the Purchase
Agreement, the Company shall file with the Securities and Exchange Commission
(the "SEC" or the "Commission") a registration statement on Form S-3 pursuant to
Rule 415 under the Securities Act, or, in the event that Form S-3 is unavailable
to the Company, a registration statement on such other SEC Form that is
available to the Company (together with any exhibits, amendments or supplements
thereto, and any documents incorporated by reference therein, the "Registration
Statement"), with respect to the resale of the Shares, and any securities of the
Company issued as a dividend or other distribution with respect to, or in
exchange for or in replacement of, the Shares. The securities described in the
preceding sentence are collectively referred to herein as the "Registrable
Securities"; provided, that the term "Registrable Securities" shall not include
securities transferred to a person other than a permitted transferee.

         1.2. EFFECTIVENESS OF REGISTRATION STATEMENT. The Company shall,
subject to Section 6 hereof, use its commercially reasonable efforts to cause
the Registration Statement to be declared effective as soon as reasonably
practicable and within 90 days after the Closing or, in the event of a review of
the Registration Statement by the Commission, within 120 days after the Closing,
and shall use its commercially reasonable efforts to keep the Registration
Statement continuously effective from the date such Registration Statement
becomes effective until the earlier of (i) the date on which all Registrable
Securities have been resold under such Registration Statement, and (ii) the date
on which all Registrable Securities may be resold without restriction or
limitation under the federal securities laws (the "Effectiveness Period").

         1.3  LIQUIDATED DAMAGES.

                                      B-1

<PAGE>

                  (a) If the Registration Statement is not filed within the
         period provided under Section 1.1 of this Agreement, the Company shall
         pay to each Purchaser liquidated damages (in addition to the rights and
         remedies available to each Purchaser under applicable law and this
         Agreement) for the period from and including the first business day
         following 30 days after the Closing until the date on which such
         Registration Statement is filed, at a rate per week equal to
         twenty-five basis points of the total purchase price of the Shares
         purchased by such Purchaser pursuant to this Agreement. Such liquidated
         damages shall be payable monthly in cash.

                  (b) If the Registration Statement is not declared effective
         within the period provided under Section 1.2 of this Agreement, the
         Company shall pay to each Purchaser liquidated damages (in addition to
         the rights and remedies available to each Purchaser under applicable
         law and this Agreement) for the period from and including the first
         business day following 90 days after the Closing or, in the event of a
         review of the Registration Statement by the Commission, the first
         business day following 120 days after the Closing until, but excluding
         the date on which such Registration Statement is declared effective, at
         a rate per week equal to twenty-five basis points of the total purchase
         price of the Shares purchased by such Purchaser pursuant to this
         Agreement. Such liquidated damages shall be payable monthly in cash.

                  (c) If the effectiveness of the Registration Statement lapses
         at any point during the Effectiveness Period, without such lapse being
         cured within twenty (20) business days (the "Cure Period") by a
         post-effective amendment to the Registration Statement, a supplement to
         the prospectus included in the Registration Statement or a report filed
         with the Commission pursuant to Section 13(a), 13(c), 14 or 15(d) of
         the Securities Exchange Act of 1934, as amended (the "Exchange Act")
         that cures such lapse, then the Company shall pay to each Purchaser
         that holds Shares purchased under this Agreement at the time such Cure
         Period has expired, liquidated damages (in addition to the rights and
         remedies available to each Purchaser under applicable law and this
         Agreement), for the period from and including the first business day
         following the expiration of the Cure Period until, but excluding, the
         earlier of (1) the date on which such failure is cured and (2) the date
         on which the Effectiveness Period expires, at a rate per week equal to
         twenty-five basis points of the total purchase price of the Shares
         purchased and still held by such Purchaser pursuant to this Agreement.
         Such liquidated damages shall be payable monthly in cash.

         1.4. SUPPLEMENTS; AMENDMENTS. Subject to Section 6 hereof, the Company
shall supplement or amend the Registration Statement, (i) as required by Form
S-3, including, without limitation, the instructions applicable to Form S-3, or
by the Securities Act, the Exchange Act, or the rules and regulations
promulgated under the Securities Act or the Exchange Act, respectively, and (ii)
to include in the Registration Statement any additional securities that become
Registrable Securities by operation of the definition thereof unless such
securities are otherwise registered under the Securities Act. The Company shall
furnish to the holders, or their permitted transferees, as appropriate
(collectively, the "Holders") of the Registrable Securities to which the
Registration Statement relates copies of any such supplement or amendment
sufficiently in advance (but in no event less than five (5) business days in
advance) of its use and/or filing with the Commission to allow the Holders a
meaningful opportunity to comment thereon with respect to the information
contained therein regarding the Holders. The Holders agree that they will within
five (5) business days prior to the filing of the Registration Statement supply
information regarding themselves and their plan of resale to the Company and
hereby waive any notice of the initial filing of the Registration Statement, and
that such Holders and their successors and assigns will promptly notify the
Company of any changes in such information, other than sales or transfers of
Common Stock.

                                      B-2

<PAGE>

                                    SECTION 2

                                    EXPENSES

         The Company shall pay all expenses, fees and costs incurred in
connection with the preparation, filing, distribution and effectiveness of the
Registration Statement and any supplements or amendments thereto, whether or not
the Registration Statement becomes effective, and whether all, none or some of
the Registrable Securities are sold pursuant to the Registration Statement,
including, without limitation, all registration and filing fees, printing
expenses, fees and disbursements of counsel for the Company, fees and state
securities, or "blue sky," and the expense of any special audits incident to or
required by, or in connection with the filing and effectiveness of the
Registration Statement (but excluding the compensation of regular employees of
the Company, which shall be paid in any event by the Company). The Holders
shall, severally and not jointly, pay all underwriting fees and discounts,
selling commissions, brokerage fees and stock transfer taxes applicable to the
Registrable Securities sold by such Holder and the fees and expenses of their
counsel, if any.

                                    SECTION 3

                             REGISTRATION PROCEDURES

         The Company will advise the Holders as to the status of the
preparation, filing and effectiveness of the Registration Statement and, at the
Company's expense, will do the following:

                  (a) make available to each Holder upon request a copy of the
         Registration Statement (including all exhibits thereto) and any
         prospectus forming a part thereof and any amendments and supplements
         thereto (including all documents incorporated or deemed incorporated by
         reference therein prior to the effectiveness of the Registration
         Statement and including each preliminary prospectus) and any other
         prospectus filed under Rule 424 under the Securities Act, which
         documents, other than documents incorporated or deemed incorporated by
         reference, will be subject to the review of the information contained
         therein regarding the Holders and any such underwriter for a period of
         at least five (5) business days from the Holder's receipt of such
         documents, and the Company shall not file the Registration Statement or
         such prospectus or any amendment or supplement to the Registration
         Statement or prospectus if any Holder shall reasonably object within
         the five (5) business day period after the receipt thereof unless the
         Company shall have been advised by its counsel that the Registration
         Statement or such prospectus or amendment or supplement thereto is
         required under the Securities Act or the rules or regulations adopted
         thereunder in connection with the distribution of Registrable
         Securities by the Holders or the Company. A Holder shall be deemed to
         have reasonably objected to such filing only if the Registration
         Statement, amendment, prospectus or supplement, as applicable, as
         proposed to be filed, contains a material misstatement or omission with
         respect to such Holder or its plan of resale;

                  (b) make available to each Holder upon request one conformed
         copy of the Registration Statement and of each amendment and supplement
         thereto (in each case including all exhibits) and such number of copies
         of the prospectus forming a part of the Registration Statement
         (including each preliminary prospectus) and any other prospectus filed
         under Rule 424 under the Securities Act, in conformity with the
         requirements of the Securities Act, and such other documents,
         including, without limitation, documents incorporated or deemed to be
         incorporated by reference prior to the effectiveness of such
         Registration Statement, as each of the Holders or any such underwriter,
         from time to time may reasonably request;

                                      B-3

<PAGE>

                  (c) to the extent practicable, promptly upon the filing of any
         document that is to be incorporated by reference into the Registration
         Statement or prospectus forming a part thereof subsequent to the
         effectiveness thereof, and in any event no later than five (5) business
         days after such document is filed with the Commission, make available
         copies of such document to the Holders upon request, and make
         representatives of the Company available for discussion of such
         document and other customary due diligence matters; and provide
         promptly to the Holders upon request any document filed by the Company
         with the Commission pursuant to the requirements of Section 13 and
         Section 15 of the Exchange Act;

                  (d) make available at reasonable times for inspection by the
         Holders, and any attorney, accountant, financial adviser or other
         representative (collectively, "Representatives") retained by the
         Holders, subject to the recipient's prior written agreement to keep
         such information confidential and not use or disclose it, all financial
         and other records, pertinent corporate documents and properties of the
         Company and cause the officers, directors and employees of the Company
         to supply all information reasonably requested by the Holders or their
         respective Representatives in connection with the preparation, filing
         and effectiveness of the Registration Statement;

                  (e) use its commercially reasonable efforts (i) to register or
         qualify all Registrable Securities covered by the Registration
         Statement under state securities, or "blue sky," laws of such States of
         the United States of America where required and where an exemption is
         not available and as the Holders of Registrable Securities covered by
         the Registration Statement shall reasonably request, (ii) to keep such
         registration or qualification in effect for so long as the Registration
         Statement is required to be effective hereunder, and (iii) to take any
         other action which may be reasonably necessary or advisable to enable
         the Holders to consummate the disposition of the securities to be sold
         by the Holders in such jurisdictions, consistent with the plan of
         distribution described in the prospectus included in the Registration
         Statement, except that the Company shall not for any such purpose be
         required to qualify generally to do business as a foreign corporation
         in any jurisdiction where it is not so qualified, or to execute a
         general consent to service of process in effecting such registration,
         qualification or compliance, unless the Company is already subject to
         service in such jurisdiction and except as may be required by the
         Securities Act or applicable rules or regulations thereunder;

                  (f) use its commercially reasonable efforts to cause all
         Registrable Securities covered by the Registration Statement to be
         registered or qualified with or approved by all other applicable
         Governmental Authorities as may be necessary, in the opinion of counsel
         to the Company and counsel to the Holders of Registrable Securities, to
         enable the Holders thereof the consummate the disposition of such
         Registrable Securities;

                  (g) subject to Section 6 hereof, promptly notify each Holder
         of Registrable Securities covered by the Registration Statement (i)
         upon discovery that, or upon the occurrence of any event as a result of
         which, the prospectus forming a part of the Registration Statement, as
         then in effect, includes an untrue statement of a material fact or
         omits 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, (ii) of the
         issuance by the Commission of any stop order suspending the
         effectiveness of the Registration Statement or the initiation of
         proceedings for that purpose, (iii) of any request by the Commission
         for (A) amendments to the Registration Statement or any document
         incorporated or deemed to be incorporated by reference in the
         Registration Statement, or (B) supplements to the prospectus forming a
         part of the Registration Statement, or (C) additional information, or
         (iv) of the receipt by the Company of any notification

                                      B-4

<PAGE>

         with respect to the suspension of the registration, qualification or
         exemption from registration or qualification of any of the Registrable
         Securities for sale in any jurisdiction or the initiation of any
         proceeding for such purpose, and at the request of any such Holder
         promptly prepare and file an amendment to the Registration Statement or
         a supplement to the prospectus as the Company may deem necessary so
         that, as thereafter delivered to the purchasers of such securities,
         such prospectus shall not include an untrue statement of a material
         fact or omit to state a 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 make
         available to each Holder upon their request a reasonable number of
         copies of such supplement to, or amendment of, such Registration
         Statement and prospectus, and, in the event of a stop order, use its
         commercially reasonable efforts to obtain the withdrawal of any order
         suspending the effectiveness of the Registration Statement, or the
         lifting of any suspension of the qualification (or exemption from
         qualification) of any of the Registrable Securities for sale in any
         jurisdiction;

                  (h) if reasonably requested by any Holder or if required by
         law or SEC or other applicable rule or regulation, promptly incorporate
         in the Registration Statement such appropriate information as the
         Holder may reasonably request to have included therein by filing a Form
         8-K, or filing a supplement to the prospectus, to reflect any change in
         the information regarding the Holder, and make all required filings
         with the Commission in respect of any offer or sale of Registrable
         Securities or any amendment or supplement to the Registration Statement
         or related prospectus;

                  (i) otherwise use its commercially reasonable best efforts to
         comply with all applicable rules and regulations, and make available to
         its security holders, as soon as reasonably practicable, an earnings
         statement covering the period of at least twelve (12) months, but not
         more than eighteen (18) months, beginning with the first full calendar
         month after the effective date of the Registration Statement, which
         earnings statement shall satisfy the provisions of Section 11(a) of the
         Securities Act and Rule 158 promulgated thereunder; and

                  (j) use its commercially reasonable efforts to cause all
         Registrable Securities included in the Registration Statement to be
         listed on Nasdaq and each securities exchange on which securities of
         the same class are then listed, or, if not then listed on any
         securities exchange or Nasdaq, to be eligible for trading in any
         over-the-counter market or trading system in which securities of the
         same class are then traded.

                                    SECTION 4

                                 INDEMNIFICATION

         4.1.  INDEMNIFICATION BY THE COMPANY.  The Company will indemnify:

               (a)  each of the Holders, as applicable,

               (b)  each of the Holder's officers, directors, members and
                    partners, and

               (c)  each individual, partnership, joint stock company,
                    corporation, trust, unincorporated organization, government
                    agency or political subdivision (each of the foregoing, a
                    "Person") controlling each of the Holders within the meaning
                    of SEC Rule 405 under the Securities Act, Section 15 of the
                    Securities Act or Section 20 of the Exchange Act,

                                      B-5

<PAGE>

with respect to the Registration Statement, against all expenses, claims,
losses, damages and liabilities (or actions, investigations or proceedings in
respect thereof) (collectively, a "Claim") arising out of or based on any actual
or alleged untrue statement of a material fact, or any omission or alleged
omission of a material fact required to be stated therein or necessary in order
to make the statements included therein not misleading, contained in the
Registration Statement, any prospectus or other offering document, and will
reimburse each of the Holders, each of its officers, directors, members and
partners, and each Person controlling each of the Holders, for any legal and any
other expenses reasonably incurred in connection with investigating and
defending any such Claim; provided, however, that the Company will not be liable
in any such case to the extent that any such Claim arises out of or is based on
(i) any untrue statement or omission based upon written information furnished to
the Company by the Holders or their Representatives and stated to be
specifically for use therein, or (ii) any untrue statement or omission of a
material fact required to make such statement not misleading in any prospectus
that is corrected in any subsequent prospectus that was delivered to the Holder
before the pertinent sale or sales by such Holder.

         4.2. INDEMNIFICATION BY THE HOLDERS. Each of the Holders will, if
Registrable Securities held by it are included in the securities as to which
such Registration Statement is being effected, severally and not jointly,
indemnify the Company, each of its directors and officers, and each Person who
"controls" the Company within the meaning of SEC Rule 405 under the Securities
Act, Section 15 of the Securities Act or Section 20 of the Exchange Act, and
each other Holder, against all Claims arising out of or based on (i) any actual
or alleged untrue statement of a material fact, or any omission or alleged
omission of a material fact required to be stated therein or necessary in order
to make the statement included or incorporated therein not misleading, contained
in the Registration Statement, prospectus, or other offering document based
solely upon written information furnished to the Company by or on behalf of such
Holder and stated to be specifically for use therein, or (ii) any untrue
statement or omission of a material fact required to make such statement not
misleading in any prospectus that is corrected in any subsequent prospectus that
was delivered to such Holder before the pertinent sale or sales by such Holder,
and will reimburse the Company, its directors, officers, partners, members or
control Persons for any legal or any other expenses reasonably incurred in
connection with investigating and defending any such Claim, in the case of
subsection (i) above to the extent, but only to the extent as to, that such
untrue statement (or alleged untrue statement) or omission (or alleged omission)
is made in the Registration Statement, prospectus, offering memorandum or other
document in reliance upon and in conformity with written information furnished
to the Company by or on behalf of such Holder and stated to be specifically for
use therein; provided, however, that the several obligations of each of the
Holders hereunder shall be limited to an amount equal to the net proceeds
received by such Holder from the sale of the Registrable Securities pursuant to
the Registration Statement.

         4.3. PROCEDURES. Each party entitled to indemnification under this
Agreement (each, an "Indemnified Party") shall give notice to the party required
to provide indemnification (the "Indemnifying Party") promptly after such
Indemnified Party has actual knowledge of any Claim as to which indemnity may be
sought, and shall permit the Indemnifying Party to assume the defense of any
such Claim; provided that counsel for the Indemnifying Party, who shall conduct
the defense of such Claim, shall be approved by the Indemnified Party (whose
approval shall not unreasonably be withheld), and the Indemnified Party may
participate in such defense at such party's expense (unless the Indemnified
Party shall have reasonably concluded that there may be a conflict of interest
between the Indemnifying Party and the Indemnified Party in such action, in
which case the fees and expenses of one such counsel for all Indemnified Parties
shall be at the expense of the Indemnifying Party), and provided further that
the failure of any Indemnified Party to give notice as provided herein shall not
relieve the Indemnifying Party of its obligations under this Agreement unless
the Indemnifying Party is materially prejudiced thereby. No Indemnifying Party,
in the investigation or defense of any such Claim shall, except with the consent
of each Indemnified Party (which consent shall not be unreasonably withheld or
delayed), consent to entry of any judgment or enter into any settlement or
compromise which does not include an unconditional

                                      B-6
<PAGE>

release of the Indemnified Party from all liability in respect to such Claim.
Each Indemnified Party shall furnish such information regarding itself or the
Claim in question as an Indemnifying Party may reasonably request in writing and
as shall be reasonably required in connection with the investigation and defense
of such Claim.

         4.4. CONTRIBUTION. If the indemnification provided for in this
Agreement is held by a court of competent jurisdiction to be unavailable to an
Indemnified Party with respect to any Claim, then the Indemnifying Party, in
lieu of indemnifying such Indemnified Party hereunder, shall contribute to the
amount paid or payable by such Indemnified Party as a result of such loss,
liability, claim, damage or expense in such proportion as is appropriate to
reflect the relative fault of the Indemnifying Party on the one hand and of the
Indemnified Party on the other in connection with the statements or omissions
which resulted in such Claim, as well as any other relevant equitable
considerations; provided, however, that the Company will not be liable in any
such case to the extent that any such Claim (i) arises out of or is based on any
untrue statement or omission based upon written information furnished to the
Company by the Holders or their Representatives and stated to be specifically
for use therein, or (ii) is finally judicially determined to have resulted
primarily from the gross negligence or willful misconduct of any person or
entity set forth in Section 4.1(a) through 4.1(c) above. The relative fault of
the Indemnifying Party and of the Indemnified Party shall be determined by
reference to, among other things, whether the untrue (or alleged untrue)
statement of a material fact or the omission (or alleged omission) to state a
material fact relates to information supplied by the Indemnifying Party or by
the Indemnified Party and the parties' relative intent, knowledge, access to
information and opportunity to correct or prevent such statement or omission,
and provided that each Holder shall not be required to contribute, in the
aggregate, more than the net proceeds received by such Holder from the sale of
its Registrable Securities pursuant to the Registration Statement and further
provided that the obligations of the Holders under this Section 4.4 shall be
several and not joint.

                                    SECTION 5

                     PROVISION OF INFORMATION BY THE HOLDERS

         Each of the Holders whose Registrable Securities are included in the
Registration Statement shall furnish to the Company such information regarding
such Holder as the Company may reasonably request in writing and as shall be
reasonably required or advisable in connection with any registration,
qualification or compliance referred to in this Agreement, and shall promptly
notify the Company if such information becomes incorrect or misleading, or
requires amendment or updating. Each of the Holders, severally and not jointly,
agrees that the plan of distribution included in any prospectus relating to the
Registrable Securities shall be substantially as set forth on Schedule B-1
hereto and that such Holder will not resell any Registrable Securities pursuant
to the Registration Statement in any manner other than as provided therein or
herein. The other information regarding the Holders required for the initial
filing of the Registration Statement has been provided by each Holder on the
Subscription Agreement. Each Holder, severally and not jointly, represents,
warrants and covenants to the Company that the information regarding such Holder
that appears in the Subscription Agreement and/or Schedule B-2 is accurate and
complete in all material respects consistent with Commission Regulation S-K,
Items 507 and 508. The Purchaser will confirm promptly by delivery of a signed
copy of Schedule B-2, the sale of any Shares pursuant to Rule 144 or the
Registration Statement.

                                    SECTION 6

                             HOLDBACK; POSTPONEMENT

                                      B-7

<PAGE>

         Notwithstanding the other provisions of this Agreement, if (a) there is
material non-public information regarding the Company which the Company's Board
of Directors reasonably and in good faith determines not to be in the Company's
best interest to disclose and which the Company is not otherwise required to
disclose, or (b) there is a extraordinary business opportunity (including but
not limited to the acquisition or disposition of assets (other than in the
ordinary course of business) or any merger, consolidation, tender offer or other
similar extraordinary transaction not in the ordinary course of business) which
the Company's Board of Directors reasonably and in good faith determines not to
be in the Company's best interest to disclose, then the Company may postpone or
suspend filing or effectiveness of a registration statement for a period not to
exceed forty-five (45) days, provided that the Company may not postpone or
suspend filing or effectiveness of a registration statement for more than ninety
(90) days in the aggregate during any 365-day period and there shall be an
aggregate of not more than two (2) suspensions during any 365-day period;
provided, however that no postponement or suspension shall be permitted for
consecutive forty-five (45) day periods arising out of the same set of facts,
circumstances or transactions.

                                    SECTION 7

                            RULE 144 REPORTING, ETC.

         7.1.  SEC REPORTING COMPLIANCE.

                  (a) With a view to making available the benefits of certain
         rules and regulations of the Commission which may at any time permit
         the sale of the Registrable Securities to the public without
         registration, through the second anniversary of this Agreement, the
         Company will:

                           (i) make and keep "current public information"
                  regarding the Company available, as defined in Commission Rule
                  144(c) under the Securities Act, and cooperate with the
                  Holders and take such further reasonable action as the Holders
                  may reasonably request in writing (including, without
                  limitation, making such reasonable representations as the
                  Holders may reasonably request);

                           (ii) use its commercially reasonable efforts to file
                  with the Commission in a timely manner all SEC Reports and
                  other filings and documents required of the Company under the
                  Securities Act and the Exchange Act; and

                           (iii) so long as a Holder owns any Registrable
                  Securities, furnish the Holder forthwith upon request a
                  written statement by the Company as to its compliance with the
                  reporting requirements under the Securities Act and the
                  Exchange Act, including compliance with SEC Rule 144(c), a
                  copy of the most recent annual or quarterly report of the
                  Company, and such other reports and documents of the Company
                  and other information in the possession of, or reasonably
                  obtainable by, the Company as a Holder may reasonably request
                  in availing itself of any rule or regulation of the Commission
                  allowing a Holder to sell any such securities without
                  registration.

         Notwithstanding the foregoing, nothing in this Section 7.1(a) shall be
         deemed to require the Company to register any of its securities (other
         than the Common Stock) under any section of the Exchange Act.

                  (b) The Company shall file the reports required to be filed by
         it under the Exchange Act and shall comply with all other requirements
         set forth in the instruction to Form S-3 in order to allow the Company
         to be eligible to file registration statements on Form S-3.

                                      B-8

<PAGE>

                                    SECTION 8

                                  MISCELLANEOUS

         8.1. ASSIGNMENT. The registration rights set forth herein may be
assigned, in whole or in part, to any transferee of Registrable Securities
permitted in accordance with the Purchase Agreement, which transferee, upon
registration on the Company's or its transfer agent's books and records as a
holder of record of Registrable Securities, shall be considered thereafter to be
a Holder (provided that any transferee who is not an affiliate of a Purchaser
shall be a Holder only with respect to such Registrable Securities so acquired
and any stock of the Company issued as a dividend or other distribution with
respect to, or in exchange for or in replacement of, such Registrable
Securities) and shall be bound by all obligations and limitations of this
Agreement and the Purchase Agreement.

         8.2.  SECTION  HEADINGS. The titles and headings of the sections and
subsections of this Agreement are inserted for convenience only and shall not be
deemed to constitute a part thereof.

         8.3. GOVERNING LAW. This Agreement shall be governed by and construed
in accordance with the laws of the State of New York without giving effect to
the conflict of law rules thereof to the extent that the application of the law
of another jurisdiction would be required thereby.

         8.4.  NOTICES.

                  (a) All communications under this Agreement shall be in
         writing and shall be delivered by facsimile, by hand, by reliable
         overnight delivery service such as UPS or FedEx or by registered or
         certified mail, postage prepaid:

                           (i) if to the Company, to the address listed in the
                  Purchase Agreement,  or at such other address as it may have
                  furnished in writing to the Purchasers;

                           (ii) if to the Purchasers, at the addresses listed on
                  Subscription Agreement, or at such other addresses as may have
                  been furnished the Company in writing.

                  (b) Any notice so addressed shall be deemed to be given (i) if
         delivered by hand, on the date of such delivery, (ii) if sent by
         reliable overnight delivery service such as UPS or FedEx, on the first
         business day following the date of delivery to such service for
         overnight delivery, (iii) if delivered by facsimile, on the date of
         such facsimile, or (iv) if mailed by registered or certified mail, on
         the third business day after the date of such mailing. In the event
         that any notice is sent by facsimile transmission to the Company, such
         transmission shall be followed immediately by overnight delivery to the
         Company of such notice.

         8.5. SUCCESSORS AND ASSIGNS; NO THIRD PARTY BENEFICIARIES. This
Agreement shall inure to the benefit of and be binding upon the successors and
permitted assigns of each of the parties. No other person is intended to or
shall have any rights or remedies hereunder, whether as a third part beneficiary
or otherwise.

         8.6. COUNTERPARTS. Persons may become parties to this Agreement be
entering into the Subscription Agreement, which may be executed in one or more
identical counterparts, each of which shall be deemed an original and all of
which shall be one and the same agreement. Any signature that is delivered by
facsimile signature page shall be valid and binding, with the same force and
effect as if an original, manually signed counterpart.

                                      B-9

<PAGE>

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

         8.8.  SEVERABILITY.  In the event that any  provision contained
herein is unenforceable, the remaining provisions shall continue in full force
and effect.

         8.9. DELAYS OR OMISSIONS. It is agreed that no delay or omission to
exercise any right, power or remedy accruing to the Holders, upon any breach or
default of the Company under this Agreement, shall impair any such right, power
or remedy, nor shall it be construed to be a waiver of any provision hereof, or
of any similar breach or default thereafter occurring; nor shall any waiver of
any single breach or default be deemed a waiver of any other breach or default
theretofore or thereafter occurring. It is further agreed that any waiver,
permit, consent or approval of any kind or character by a Holder of any breach
or default under this Agreement, or any waiver by a Holder of any provisions or
conditions of this Agreement, must be in writing and shall be effective only to
the extent specifically set forth in the writing, and that all remedies, either
under this Agreement, or by law or otherwise afforded to a Holder, shall be
cumulative and not alternative.

         8.10. ATTORNEY'S FEES. If any action at law or in equity is necessary
to enforce or interpret the terms of this Agreement, the prevailing party shall
be entitled to reasonable attorney's fees, costs and necessary disbursements in
addition to any other relief to which such party may be entitled.

         8.11. ENTIRE AGREEMENT; AMENDMENT. This Agreement, the Purchase
Agreement, the Subscription Agreement and the other Agreements constitute the
entire understanding and agreement of the parties with respect to the subject
matter hereof and supersede all prior understandings, written or otherwise,
among such parties. This Agreement may be amended only in a writing signed by
the Company and the Holders of at least a majority of the then outstanding
Registrable Securities.

         [The remainder of this page has been intentionally left blank.]

                                      B-10

<PAGE>
                                                                    SCHEDULE B-1

                              PLAN OF DISTRIBUTION

         The Selling Stockholders and any of their pledgees, assignees and
successors-in-interest may, from time to time, sell any or all of their shares
of common stock on any stock exchange, market or trading facility (including,
without limitation, the Nasdaq National Market and the over the counter market)
on which the shares are traded or in private transactions, subject to applicable
law. These sales may be public or private at prices prevailing in such market,
fixed prices or prices negotiated at the time of sale. The shares may be sold by
the Selling Stockholders directly to one or more purchasers, through agents
designated from time to time or to or through broker-dealers designated from
time to time. In the event the shares are publicly offered through
broker-dealers or agents, the selling stockholders may enter into agreements
with respect thereto. The Selling Stockholders may, subject to applicable law,
also use any one or more of the following methods when selling shares:

              -   ordinary brokerage transactions and transactions in which the
                  broker-dealer solicits purchasers;

              -   block trades in which the broker-dealer will attempt to sell
                  the shares as agent but may position and resell a portion of
                  the block as principal to facilitate the transaction;

              -   purchases by a broker-dealer as principal and resale by the
                  broker-dealer for its account;

              -   an exchange distribution in accordance with the rules of the
                  applicable exchange;

              -   privately negotiated transactions;

              -   short sales;

              -   sales by broker-dealers of a specified number of such shares
                  at a stipulated price per share;

              -   a combination of any such methods of sale; or

              -   any other method permitted pursuant to applicable law.

         The Selling Stockholders may also sell shares under Rule 144 under the
Securities Act, if available, rather than under this prospectus. Broker-dealers
engaged by the Selling Stockholders may arrange for other brokers-dealers to
participate in sales. Broker-dealers may receive commissions or discounts from
the Selling Stockholders (or, if any broker-dealer acts as agent for the
purchaser of shares, from the purchaser) in amounts to be negotiated. The
Selling Stockholders do not expect these commissions and discounts to exceed
what is customary in the types of transactions involved.

         The Selling Stockholder may from time to time pledge or grant a
security interest in some or all of the shares of common stock owned by them
and, if they default in the performance of their secured obligations, the
pledgees or secured parties may offer and sell the shares of common stock from
time to time under this prospectus, or under an amendment to this prospectus
under Rule 424(b)(3), or other applicable provision of the Securities Act of
1933, amending the list of Selling Stockholders to include the pledgee,
transferee or other successors in interest as selling stockholders under this
prospectus.

<PAGE>

         The Selling Stockholders also may transfer the shares of common stock
in other circumstances, in which case the transferees, pledgees or other
successors in interest will be the selling beneficial owners for purposes of
this prospectus. The Selling Stockholders and the broker-dealers or agents that
participate in the distribution of the shares may be deemed to be "underwriters"
within the meaning of the Securities Act in connection with such sales. In such
event, any discounts and any commissions received by such broker-dealers or
agents and any profit on the sale of the shares purchased by them and any
discounts or commissions might be deemed to be underwriting discounts or
commissions under the Securities Act. Any such broker-dealers and agents may
engage in transactions with, and perform services for, the Company. At the time
a particular offer of shares is made by the selling stockholders, to the extent
required, a prospectus will be distributed which will set forth the aggregate
number of shares being offered, and the terms of the offering, including the
public offering price thereof, the name or names of any broker-dealers or
agents, any discounts, commissions and other items constituting compensation
from, and the resulting net proceeds to, the Selling Stockholders. Each Selling
Stockholder has purchased the shares of our common stock in the ordinary course
of business, and at the time the Selling Stockholder purchased the shares of our
common stock, it was not a party to any agreements, plans or understandings,
directly or indirectly, with any person to distribute the shares.

         In order to comply with the securities laws of certain states, sales of
shares offered hereby to the public in such states may be made only through
broker-dealers who are registered or licensed in such states. Sales of shares
offered hereby must also be made by the Selling Stockholders in compliance with
other applicable state securities laws and regulations. The Company is required
to pay all fees and expenses incident to the registration of the shares;
provided, that the Selling Stockholders are required, severally and not jointly,
to pay any legal or other fees incurred by such Selling Stockholder and all
underwriting fees and discounts, selling commissions, brokerage fees and stock
transfer taxes applicable to shares sold by such Selling Stockholders hereby.
The Company has agreed to indemnify the Selling Stockholders against certain
losses, claims, damages and liabilities, including liabilities under the
Securities Act.

<PAGE>

                                                                    SCHEDULE B-2

                   PURCHASER'S CERTIFICATE OF SUBSEQUENT SALE(1)

         The undersigned, an officer of, or other person duly authorized by the
Purchaser named below hereby certifies to the Company, as defined in the
Registration Rights Agreement, dated as of __________, 2004 (the "Agreement")
that he/she (said institution) is the Purchaser of the shares evidenced by the
attached certificate, and as such, sold or otherwise transferred such shares on
___________________, 200__ in accordance with:

         (i)      Registration Statement number  ______________________________,
                  in the manner indicated under "Plan of Distribution" in the
                  current prospectus and has delivered a current prospectus, or

         (ii)     Pursuant to the applicable requirements of Rule 144 of the
                  Securities Act of 1933, as amended, in which case, a copy of
                  Form 144 as filed with the Securities and Exchange Commission,
                  together with the representation letter of the undersigned and
                  the broker's representation letter are enclosed.

Print or Type:

         Name of Purchaser (Individual or Institution):

         _________________________________

         Name of Individual Representing Purchaser (if an Institution):

         _________________________________

         Title:___________________________

Confirmed by the undersigned thereunto duly authorized:

         _________________________________
         Purchaser Name

       By:________________________________
          Name:
          Title:

-------------
(1) All capitalized terms used but not defined herein shall have the meanings
provided in the Agreement.

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