Document:

AMENDED AND RESTATED EXECUTIVE EMPLOYMENT AGREEMENT

         This  AMENDED  AND  RESTATED  EXECUTIVE   EMPLOYMENT   AGREEMENT  (this
"Agreement")  is made as of March 29,  2000 by and  between  Donald  C.  Welchko
("Executive") and ANICOM, INC., a Delaware corporation (the "Company").

                              PRELIMINARY RECITALS

         WHEREAS,  the  Company  is  engaged  in the  business  of  selling  and
distributing  communication  related  wire,  cable,  fiber  optics and  computer
network and connectivity products (the "Business").

         WHEREAS,  Executive is currently  employed by the Company as the Senior
Executive Vice President and Chief Financial Officer of the Company, pursuant to
that certain Amended and Restated Executive Employment Agreement, dated November
30, 1998,  by and between the Company and  Executive  (the  "Current  Employment
Agreement").

         WHEREAS,  Executive has extensive knowledge and a unique  understanding
of the operation of the Business.

         WHEREAS,  the Company  and  Executive  desire to  continue  Executive's
employment  relationship  with the  Company in his current  positions  as Senior
Executive Vice President and Chief  Financial  Officer,  all under the terms and
conditions set forth herein.

         WHEREAS,  the  parties  hereto  desire to amend and restate the Current
Employment Agreement in the form of this Agreement.

         NOW,  THEREFORE,  in  consideration  of the  mutual  covenants  in this
Agreement and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the Company and Executive agree as follows:

1.  Employment  of  Executive.  The  Company  hereby  employs  Executive  as the
Company's  Senior  Executive Vice  President and Chief  Financial  Officer,  and
Executive  hereby accepts such employment and agrees to act as Senior  Executive
Vice  President and Chief  Financial  Officer of the Company,  all in accordance
with the terms and conditions of this Agreement.

2.  Term of  Employment.  Subject  to the  termination  provisions  set forth in
Section 8 below,  Executive's  employment under this Agreement shall commence on
the date of this  Agreement  and shall  continue  for a period of five (5) years
(the "Employment  Period"),  subject to the termination  provisions set forth in
Section 8. If, at least one hundred and eighty (180) days before the  expiration
of any Employment  Period, the Company gives Executive a written offer to extend
the Employment  Period for a subsequent term of at least two (2) years following
the end of such  Employment  Period  on  substantially  the  same  terms  and on
economic  terms not less  favorable to Executive than those set forth herein and
Executive  does not accept such offer in writing  within  thirty (30) days after
delivery of such offer,  then the  expiration  of such  Employment  Period shall
constitute  termination  without Good Reason by  Executive  for purposes of this
Agreement.  If, at least one hundred and eighty  (180)days before the expiration
of any Employment Period, the Company does not give Executive a written offer to
extend the  Employment  Period for a  subsequent  term of at least two (2) years
following the end of such Employment  Period on substantially the same terms and
on economic  terms not less  favorable to Executive than those set forth herein,
then the expiration of such Employment  Period shall  constitute  termination by
the Company without Cause for purposes of this Agreement.

3.  Offices and  Duties.  Subject to Section 8,  during the  Employment  Period,
Executive  will  perform  such duties as the Board of  Directors  of the Company
("Board") may prescribe from time to time,  consistent with Executive's  titles.
Executive agrees that during the Employment Period, he will devote substantially
all of his  business  time and  attention  to  fulfilling  his duties under this
Agreement.  Notwithstanding  the  foregoing,  nothing  in this  Agreement  shall
preclude  Employee  from devoting  reasonable  periods of time and effort to (i)
charitable,  community and personal activities,  (ii) management of his personal
investment  assets, and (iii) with the approval of the Board of Directors of the
Company,  serving  as a  director  or  advisor  of any  other  business  entity;
provided,  however,  that in each case,  such activity does not interfere in any
material respect with the performance by Employee of his duties  hereunder,  and
does not violate Section 6 hereof.

4. Board Representation. As of the date hereof, Executive is a member of Class I
of the  Board,  the  term of  which  runs  until  the  2000  annual  meeting  of
stockholders.   During  the  Employment  Period,  the  Company  shall  recommend
Executive for nomination by the Board for election at the 2000 annual meeting of
stockholders  and each  subsequent  annual  meeting of  stockholders  during the
Employment Period at which his term on the Board would otherwise expire.

5.       Compensation.
         ------------

                  5.1 Base Salary.  During the  Employment  Period,  the Company
         will pay  Executive  a base  salary  (the "Base  Salary")  at a rate of
         $230,000 per annum , payable in accordance  with the  Company's  normal
         payroll practices for executive officers. The Compensation Committee of
         the Board ("Compensation  Committee") shall perform an annual review of
         Executive's Base Salary based on Executive's  performance of his duties
         and the Company's normal practice for executive salary review; provided
         that,  in no event shall  Executive's  Base Salary for any year be less
         than $230,000. The first annual review of Executive's Base Salary shall
         occur no later than August 31,  2000,  and any  increase in Base Salary
         awarded  during that annual  review  shall be  effective  July 1, 2000.
         Subsequent  annual  reviews  shall be completed  within sixty (60) days
         after the end of the  Company's  fiscal year and any  increases in Base
         Salary shall be effective January 1 and paid retroactive to that date.

                  5.2 Bonus Payments.  Executive shall be eligible to receive an
         annual bonus ("Bonus  Payments"),  in an amount to be determined by the
         Compensation Committee, in its sole discretion,  based upon Executive's
         and  the  Company's  performance  and  the  achievement  of  goals  and
         objectives  approved by the  Compensation  Committee.  The  performance
         criteria  to be used  with  respect  to the  calendar  year  ending  on
         December 31, 2000 is attached  hereto as Exhibit A (the "2000 Matrix"),
         and the criteria for the Bonus  Payments for which  Executive  shall be
         eligible in future years shall be on  substantially  the same terms and
         on no less  favorable  economic  terms than would be received using the
         2000 Matrix.  Bonus  payments  shall be made to Executive  within sixty
         (60)  days  after the end of the  Company's  fiscal  year.  Performance
         criteria for  subsequent  fiscal years will be  determined on or before
         the later of the sixtieth day after the end of the previous fiscal year
         or thirty days after a reasonable  proposal is presented by  management
         with respect thereto.

                  5.3 Stock Options.  Executive  shall be eligible to receive an
         annual grant of options to purchase the Company's  common stock,  in an
         amount to be  determined  by the  Compensation  Committee,  in its sole
         discretion,  based upon  Executive's and the Company's  performance and
         the  achievement of goals and objectives  approved by the  Compensation
         Committee.  Stock  options  shall be awarded to Executive  within sixty
         days  after  the  end of the  Company's  fiscal  year or  prior  to the
         Company's annual earnings release, whichever occurs first.

                  5.4 Automobile  Allowance.  During the Employment  Period, the
         Company shall provide Executive with a monthly automobile  allowance of
         $1,180 (the "Automobile Allowance").

                  5.5  Transaction  Bonus.  If a Change in Control occurs within
         the five (5) year period  commencing on the date of this Agreement (the
         "Scheduled  Term"), the Company (or its successor or assigns) shall pay
         to Executive a  transaction  bonus of $750,000,  payable in cash within
         fifteen (15) business days  following the effective  date of the Change
         in Control,  regardless of whether  Executive  remains  employed by the
         Company  as of such  effective  date or any time  prior  thereto.  This
         provision shall survive any termination of this Agreement.

                  5.6 Benefits.  Executive  will be entitled to  participate  in
         group life and  medical  insurance  plans,  profit-sharing  and similar
         plans, and other "fringe  benefits" which are currently  offered or may
         be offered in the future by the Company (collectively,  "Benefits"),  a
         summary  description  of  which  is  attached  here  to as  Exhibit  B,
         comparable  to those made  available by the Company to its other senior
         executive employees, in accordance with the terms of such plans.

                  5.7 Debt Forgiveness. So long as Executive remains employed by
         the  Company,  20% of the  original  principal  amount  of  Executive's
         current  indebtedness  to the Company of $35,000,  plus all accrued but
         unpaid  interest  thereon will be forgiven by the Company as of April 1
         of each year.

                  5.8 Vacation. Executive shall be entitled to take a minimum of
         four (4) weeks of  vacation,  with  pay,  during  each full or  partial
         calendar  year during the  Employment  Period,  unless  Company  policy
         provides  for  more  vacation.   Vacation   allowances   shall  not  be
         accumulated from year to year.

                  5.9 Withholding.  All compensation  payable to Executive under
         this  Agreement  is stated in gross  amount  and will be subject to all
         applicable withholding taxes, other normal payroll deductions,  and any
         other amounts required by law to be withheld.

                  5.10 Expenses.  The Company,  in accordance  with its policies
         and past  practices,  will pay or reimburse  Executive for all expenses
         (including travel and entertainment  expenses)  reasonably  incurred by
         Executive   during  the  Employment   Period  in  connection  with  the
         performance  of  Executive's  duties under this  Agreement,  so long as
         Executive provides the Company reasonable  documentation or evidence of
         the expenses for which Executive seeks reimbursement.

6.       Covenant Not to Compete.
         -----------------------

                  6.1   Executive's   Acknowledgment.   Executive   agrees   and
         acknowledges  that in order to assure the  Company  that it will retain
         its value and that of the Business as a going concern,  it is necessary
         that  Executive  undertake not to utilize his special  knowledge of the
         Business and his relationships  with customers and suppliers to compete
         with the Company. Executive further acknowledges that:

(a)      the Company is currently engaged in the Business;

(b)      Executive  has  occupied a position  of trust and  confidence  with the
         Company  prior  to the date of this  Agreement  and  will  continue  to
         acquire an  intimate  knowledge  of all  proprietary  and  confidential
         information concerning the Business;

(c)      the agreements and covenants  contained in this Section 6 are essential
         to protect the Company and the goodwill of the Business;

(d)      the Company would be  irreparably  damaged if Executive were to provide
         services to any person or entity in violation of the provisions of this
         Agreement;

(e)      the scope and  duration of the  Restrictive  Covenants  are  reasonably
         designed to protect a  protectible  interest of the Company and are not
         excessive in light of the circumstances; and

(f)      Executive has a means to support himself and his dependents  other than
         by engaging in the Business, or a business similar to the Business, and
         the provisions of this Section 6 will not impair such ability.

         6.2 Non-Compete. The "Restricted Period" for purposes of this Agreement
         shall  commence on the date of this  Agreement and shall continue until
         the  later  of  April  1,  2005  or the  one  year  anniversary  of the
         termination of this Agreement; provided that, if Executive's employment
         with the Company is  terminated  by Executive for Good Reason or by the
         Company  without  Cause,  or by  Executive  without  Good Reason  after
         January 1, 2002 or upon a Change in Control, then the payments to which
         Executive  is  entitled  under  Section 9.1 or 9.2, as the case may be,
         shall continue to be paid to Executive during the Restricted  Period in
         consideration  for the  survival of the  Restricted  Period  beyond the
         Effective  Date.  Following  a  Change  in  Control,  at the end of the
         Restricted  Period the Company may extend the Restricted  Period for up
         to 24 additional months by continuing to pay Executive  one-half of his
         most  recent Base  Salary.  Executive  hereby  agrees that at all times
         during  the  Restricted  Period,   Executive  shall  not,  directly  or
         indirectly,  as executive,  agent, consultant,  stockholder,  director,
         co-partner or in any other individual or representative  capacity, own,
         operate,  manage,  control,  engage in, invest in or participate in any
         manner in, act as a  consultant  or advisor  to,  render  services  for
         (alone or in association with any person, firm, corporation or entity),
         or  otherwise  assist  any  person or entity  that  engages in or owns,
         invests in,  operates,  manages or controls  any venture or  enterprise
         that  directly  or  indirectly  engages  or  proposes  to engage in the
         Business   anywhere   within   the  United   States  and  Canada   (the
         "Territory").

                  6.3  Non-Solicitation.  Without limiting the generality of the
         provisions of Section 6.2 above,  Executive hereby agrees that,  during
         the  Restricted  Period,  Executive  will not,  directly or indirectly,
         solicit, or participate as executive,  agent, consultant,  stockholder,
         director, partner or in any other individual or representative capacity
         in any business  which  solicits,  business from any Person which is or
         was a customer or vendor of the Business during the Restricted  Period,
         or from any  successor in interest to any such Person,  for the purpose
         of  marketing,  selling or  providing  any such Person any  services or
         products  offered by or available from the Company,  or encouraging any
         such  Person  to  terminate   or  otherwise   alter  his,  her  or  its
         relationship with the Company.

                  6.4  Interference  with  Employee  Relationships.  During  the
         Restricted  Period,  Executive  shall not,  directly or indirectly,  as
         executive, agent, consultant,  stockholder,  director, co-partner or in
         any other  individual  or  representative  capacity,  without the prior
         written  consent of the Company,  employ or engage,  recruit or solicit
         for employment or engagement, any individual who is employed or engaged
         by the  Company at that time,  or has been  employed  or engaged by the
         Company during the six (6) months prior  thereto,  or otherwise seek to
         influence or alter any such individual's relationship with the Company.

                  6.5 Blue-Pencil.  If any court of competent jurisdiction shall
         at any  time  deem  the  term  of  this  Agreement  or  any  particular
         Restrictive  Covenant too lengthy or the Territory too  extensive,  the
         other  provisions of this Section 6 shall  nevertheless  stand, and the
         Restricted Period shall be deemed to be the longest period  permissible
         by law under the  circumstances  and the  Territory  shall be deemed to
         comprise   the  largest   territory   permissible   by  law  under  the
         circumstances.  The  court in each case  shall  reduce  the  Restricted
         Period and/or the Territory to permissible duration or size.

                  6.6  Investment  Exception.   Notwithstanding  the  foregoing,
         nothing  contained  in this  Section 6 shall be  construed  to  prevent
         Executive  from  investing  in the stock of any  competing  corporation
         listed   on  a   national   securities   exchange   or  traded  in  the
         over-the-counter  market,  but only if Executive is not involved in the
         business of said  corporation  and if Executive and his  associates (as
         such  term  is  defined  in  Regulation  14(A)  promulgated  under  the
         Securities  Exchange  Act of 1934,  as in effect  on the date  hereof),
         collectively,  do not own more than an aggregate of two percent (2%) of
         the stock of such corporation.

7. Confidential  Information.  During the term of this Agreement and thereafter,
Executive shall keep secret and retain in strictest  confidence,  and shall not,
without the prior written  consent of the Company,  furnish,  make  available or
disclose  to any Person or use for the  benefit of  himself or any  Person,  any
Confidential Information, except to the extent reasonably necessary to carry out
Executive's duties and responsibilities to the Company or to the extent required
by  law  or to  comply  with  the  lawful  subpoena  of  any  administrative  or
governmental  body,  in which case  Executive  shall give prompt  notice of such
subpoena to Company. As used in this Section 7, "Confidential Information" shall
mean any  information  relating  to the  Business  or  affairs  of the  Company,
including  but not  limited to  information  relating to  financial  statements,
business plans,  forecasts,  purchasing plans,  customer  identities,  potential
customers,   employees,   suppliers,   equipment,   programs,   strategies   and
information,  analyses,  profit margins or other proprietary information used by
the Company in connection with the Business of the Company;  provided,  however,
that Confidential  Information shall not include any information which is in the
public  domain or becomes  known in the industry  through no wrongful act on the
part of Executive.  Executive acknowledges that the Confidential  Information is
vital, sensitive, confidential and proprietary to the Company.

8.       Termination.
         -----------

                  8.1  Without  Cause.  The Company  may  terminate  Executive's
         employment  hereunder at any time, without Cause (as defined in Section
         10),  upon not less than ninety (90) days written  notice to Executive.
         Upon notice of such termination  from the Company,  the Company may (i)
         require  Executive  to continue to perform his duties  hereunder on the
         Company's  behalf  during  such  notice  period,  (ii)  limit or impose
         reasonable  restrictions on Executive's  activities  during such notice
         period as it deems  necessary,  or (iii)  choose  any date  within  the
         notice  period  as  the  effective  date  of  Executive's  termination,
         provided,  however,  that the Company will continue to pay  Executive's
         Base Salary during such notice period.

                  8.2  For  Cause.   The  Company  may   terminate   Executive's
         employment  hereunder  at any time for Cause by  providing to Executive
         written notice of termination  stating the grounds for  termination for
         Cause and such termination shall take effect immediately upon notice of
         termination.  The  decision to  terminate  Executive's  employment  for
         Cause,  to take other  action or to take no action in  response to such
         occurrence shall be in the sole and exclusive discretion of the Board.

                  8.3 By  Executive.  Executive  may  terminate  his  employment
         hereunder  at any time,  with or without  Good  Reason  (as  defined in
         Section  10),  upon not less than ninety (90) days notice  (thirty (30)
         days notice if Executive  terminates  following a Change in Control) to
         the  Company.  Upon  notice of such  termination  from  Executive,  the
         Company  may (i)  require  Executive  to continue to perform his duties
         hereunder on the Company's behalf during such notice period, (ii) limit
         or impose reasonable restrictions on Executive's activities during such
         notice period as it deems necessary, or (iii) accept Executive's notice
         of termination as Executive's resignation from the Company (including a
         resignation  from any  position as director of the Company) at any time
         during such notice period. If the Company at any time during the notice
         period  chooses  to  accept   Executive's   notice  of  termination  as
         Executive's  resignation  from the Company,  then the effective date of
         such  termination  shall be the date as of which  such  resignation  is
         accepted,  provided,  however,  that the Company  will  continue to pay
         Executive's Base Salary during such notice period.

                  8.4 Death or Disability.  The Employment Period will terminate
         immediately upon the death or Disability of Executive.

<PAGE>

                  8.5 Salary and Benefit Accruals.  Following the effective date
         of termination  by Executive  without Good Reason or by the Company for
         Cause,   Executive   will  not  be  entitled  to  receive  any  further
         compensation  (whether in the form of Base Salary,  Bonus Payments,  or
         Benefits or otherwise)  other than those  payments set forth in Section
         9.2 below and  accrued but unpaid  Base  Salary  through the  Effective
         Date.  Upon  termination by the Company  without Cause,  termination by
         Executive  for Good  Reason,  death or  Disability,  Executive  (or his
         estate)  will be  entitled  to receive  (i) all accrued but unpaid Base
         Salary through the Effective  Date,  (ii) Bonus Payment for the year in
         which such  termination  occurs,  determined by  multiplying  the prior
         year's Bonus Payment by a fraction  equal to the number of days elapsed
         in the current  year through the  effective  date of  termination  (the
         "Effective  Date")  divided  by 365,  and  (iii)  any  amounts  payable
         pursuant to Section 9.1 below, but all other obligations of the Company
         to pay Executive any further compensation,  whether in the form of Base
         Salary,  Bonus  Payments,  or Benefits (other than death and Disability
         benefits, if any) or otherwise, will terminate.

9.       Additional Obligations Upon Termination.
         ---------------------------------------

                  9.1 Termination Without Cause. If Executive's  employment with
         the Company is terminated at any time during the Employment  Period (i)
         by the Company without Cause, or (ii) by Executive for Good Reason,  or
         (iii) due to the death or Disability of Executive,  then in addition to
         the  amounts  payable in  accordance  with  Section  8.5 above,  and in
         consideration for the Restrictive Covenants,  the Company shall pay and
         provide to Executive the following:

                          (a) Within thirty (30) days after the Effective  Date,
                 the Company  shall pay to Executive  or his estate,  a lump sum
                 cash payment, in an amount equal to the Termination Payment;

                          (b) for  the  remainder  of the  Scheduled  Term,  (i)
                 Executive and his  dependents  shall  continue to be covered by
                 all survivor rights, insurance and benefit programs in type and
                 amount at least  equivalent  to those  provided  to him and his
                 dependents  by the Company  immediately  prior to the Effective
                 Date,  and (ii)  Executive  shall  continue to receive from the
                 Company  the  Automobile  Allowance  set forth in  Section  5.4
                 above;

                           (c) any stock  options  then held by Executive or his
                  permitted assignees shall immediately vest as of the Effective
                  Date; and

                          (d) the Company,  at its sole  expense,  shall provide
                 Executive  with  outplacement  services  consistent  with those
                 services  customarily  provided  by the  Company  to its senior
                 executive employees.

                 9.2      Termination by Executive.

                           (a)  If,  in the  absence  of a  Change  in  Control,
                  Executive  terminates  without  Good Reason  after  January 1,
                  2002,  then,  in   consideration   for  the  survival  of  the
                  Restricted  Period beyond the  Effective  Date, in addition to
                  the amounts payable in accordance with Section 8.5 above,  the
                  Company  shall pay and  provide  to  Executive:  (i) an annual
                  amount  during  the  balance  of the  Scheduled  Term equal to
                  one-half of Executive's highest total compensation (consisting
                  of Base Salary and Bonus Payment) in any of the five (5) years
                  prior to the year in which the Effective Date occurs,  payable
                  in accordance with the Company's normal payroll practices, and
                  (ii) all Benefits  specified  under Section 9.1(b) above.  For
                  purposes of providing Executive Benefits under Section 9.1(b),
                  Benefits  shall be equivalent  to those  provided to Executive
                  and his dependents  immediately  prior to the Effective  Date;
                  provided  that,  if  participation  in any one or more of such
                  arrangements  is not  possible  under the terms  thereof,  the
                  Company will provide substantially  identical Benefits outside
                  of the programs and cost of this coverage shall be paid by the
                  Company.

                           (b) If, after the twelve (12) month period  following
                  a Change in Control,  Executive terminates his employment with
                  the  Company  without  Good  Reason,  then in  addition to the
                  amounts payable in accordance  with Section 8.5 above,  within
                  five (5) business days after the Effective  Date,  the Company
                  shall  pay and  provide  to  Executive:  (i) a lump  sum  cash
                  payment,  in an amount  equal to (x)  one-half of  Executive's
                  highest  total  compensation  (consisting  of Base  Salary and
                  Bonus  Payment) in any of the five (5) years prior to the year
                  in which the  Effective  Date  occurs,  multiplied  by (y) the
                  number of years  remaining in the Scheduled Term, and (ii) all
                  Benefits  specified under Sections  9.1(b),  9.1(c) and 9.1(d)
                  above.  For purposes of  providing  Executive  Benefits  under
                  Section 9.1(b), Benefits shall be equivalent to those provided
                  to  Executive  and his  dependents  immediately  prior  to the
                  Change in Control;  provided that, if participation in any one
                  or more of such  arrangements  is not possible under the terms
                  thereof,  the Company  will  provide  substantially  identical
                  Benefits  outside of the  programs  and cost of this  coverage
                  shall be paid by the Company.

                  9.3 No Mitigation. Executive shall not be required to mitigate
         damages or the amount of any  payment  provided  for or  referred to in
         this Section 9 by seeking other employment or otherwise,  nor shall the
         amount of any payment  provided for or referred to in this Section 9 be
         reduced by any  compensation  earned by the  Executive as the result of
         employment by another employer after the termination of the Executive's
         employment, or otherwise.

                  9.4 Release.  As a condition to  Executive's  right to receive
         any severance  payments and Benefits made hereto in this Section 9, the
         Company  shall  require that (i)  Executive  execute and deliver to the
         Company a general release, whereby Executive shall release the Company,
         its successor, assigns, officers, directors and agents from any and all
         claims,  liabilities and obligations relating to or arising out of this
         Agreement or any  employment-related  claims Executive may have after a
         Change in Control,  including  but not limited to claims  brought under
         the Civil Rights Act of 1964, as amended, the Civil Rights Act of 1991,
         the Age  Discrimination  in  Employment  Act, the  Employee  Retirement
         Income  Security Act, the Americans  with  Disabilities  Act, any other
         federal,  state or local laws regarding  employment  discrimination  or
         termination  of employment  and the common law of any state relating to
         employment  contracts,  wrongful  discharge,  defamation,  or any other
         matter  arising  under common law, and (ii)  Executive  shall not be in
         breach of any Restrictive Covenant.

                  9.5 Termination in Anticipation of a Change in Control. If the
         Company  terminates  Executive's  employment  without  Cause during the
         period  commencing  six (6) months  prior to the  earlier of (i) public
         announcement  by the  Company  of a  Change  in  Control,  or (ii)  the
         execution  by the Company of a  definitive  agreement  with regard to a
         Change in Control, and ending on (and including) the date of the Change
         in Control,  such termination  shall be regarded as a termination after
         such  Change in  Control  for  purposes  of this  Agreement,  including
         without limitation, for purposes of Sections 5.5 and 9.

10.      Definitions.  As used in this Agreement:

         "Affiliate"   means   any   individual,    corporation,    partnership,
association,  joint-stock company,  trust,  unincorporated  association or other
entity (other than the Company) that directly or indirectly, through one or more
intermediaries, controls, is controlled by, or is under common control with, the
Company  including,  without  limitation,  any member of an affiliated  group of
which the Company is a common parent  corporation as provided in Section 1504 of
the Code.

         "Anixter  Family" means Alan B. Anixter,  William R. Anixter,  Scott C.
Anixter,  their  spouses,  heirs and any group  (within  the  meaning of Section
13(d)(3) of the  Securities  Exchange  Act of 1934,  as amended  (the  "Exchange
Act")),  of which any of the  foregoing  persons  is a member  for  purposes  of
acquiring,  holding  or  disposing  of  securities  of the  Company,  any  trust
established  by or for the benefit of any of the  foregoing and any other entity
controlled by or for the benefit of any of the foregoing.

         "Cause"  means  (a) an act of fraud or  dishonesty  by  Executive  that
results in material  gain or personal  enrichment  of Executive at the Company's
expense, (b) Executive's conviction of a felony-class crime (other than relating
to the operation of a motor  vehicle),  (c) any material  breach by Executive of
any  provision  of this  Agreement  that,  if  curable,  has not  been  cured by
Executive  within thirty days of written notice of such breach from the Company,
(d) Executive willfully engaging in gross misconduct materially injurious to the
Company that, if curable,  has not been cured by Executive within thirty days of
written  notice  specifying  the alleged  willful gross  misconduct and material
injury,  or (e) any intentional act or gross negligence on the part of Executive
that has a material,  detrimental  effect on the  reputation  or Business of the
Company.  The decision to terminate  Executive's  employment for Cause,  to take
other action or to take no action in response to such occurrence shall be in the
sole and exclusive discretion of the Board.

         "Change in Control" means the happening of any of the following events:

<PAGE>

(a)      An acquisition by any  individual,  entity or group (within the meaning
         of Section  13(d)(3) or 14(d)(2) of the Exchange Act) of the beneficial
         ownership  (within  the  meaning  of Rule 13d-3  promulgated  under the
         Exchange Act) of twenty  percent  (20%) or more of the combined  voting
         power of the then outstanding voting securities of the Company entitled
         to vote  generally  in the  election  of  directors  (the  "Outstanding
         Company Voting Securities");  provided,  however,  that for purposes of
         this subsection (a), the following  acquisitions shall not constitute a
         Change in Control: (A) any acquisition by the Company or by an employee
         benefit plan (or related trust)  sponsored or maintained by the Company
         or an  Affiliate,  (B) any  acquisition  by a member or  members of the
         Anixter Family, (C) any acquisition by a lender to the Company pursuant
         to a debt  restructuring  of the Company,  (D) any  acquisition  by, or
         consummation  of a  Corporate  Transaction  with  an  Affiliate,  (E) a
         Non-Control  Transaction,  or (F) an  acquisition  by a  Person  of the
         beneficial  ownership of twenty  percent  (20%) or more,  but less than
         fifty  percent  (50%)  of  the  combined   voting  power  of  the  then
         Outstanding Company Voting Securities unless Executive's  employment is
         terminated  by the  Company  without  Cause  or by  Executive  for Good
         Reason, within twenty-four (24) months following such acquisition;

(b)      A change in the composition of the Board such that the individuals who,
         as of the date  hereof,  constitute  the  Board  (such  Board  shall be
         hereinafter  referred to as the "Incumbent Board") cease for any reason
         to constitute at least a majority of the Board; provided,  however, for
         purposes  of this  Section  10(b),  that any  individual  who becomes a
         member of the Board  subsequent to the date hereof whose  election,  or
         nomination for election by the Company's stockholders,  was approved by
         a vote of at least a majority of those  individuals  who are members of
         the Board and who were also members of the  Incumbent  Board (or deemed
         to be such  pursuant to this  provision)  shall be considered as though
         such individual were a member of the Incumbent  Board;  but,  provided,
         further,  that any such individual  whose initial  assumption of office
         occurs as a result of either an actual or threatened  election  contest
         (as such terms are used in Rule 14a-11 of  Regulation  14A  promulgated
         under the Exchange Act) or other actual or threatened  solicitation  of
         proxies or  consents  by or on behalf of a Person  other than the Board
         shall not be so considered as a member of the Incumbent Board;

(c)      Consummation of a  reorganization,  merger or  consolidation or sale or
         other  disposition  of all or  substantially  all of the  assets of the
         Company (a "Corporate Transaction"), in each case, unless the Corporate
         Transaction is a Non-Control Transaction; or

(d)      Approval by  stockholders  of the Company of a complete  liquidation or
         dissolution of the Company.

         "Disability"  will be deemed to have  occurred  whenever  Executive has
suffered physical or mental illness, injury, or infirmity that renders Executive
unable to perform the essential  functions of his job with or without reasonable
accommodation,  except that,  prior to Change in Control,  said Disability shall
not be grounds for  termination  of this Agreement in violation of the Americans
with  Disabilities  Act,  Family Medical Leave Act or any other state or federal
law governing the obligations of employers to persons having a disability.

         "Good  Reason" means the  occurrence  of any of the  following  events,
unless (i) such event occurs with  Executive's  express prior  written  consent,
(ii) the event is an isolated, insubstantial or inadvertent action or failure to
act which was not in bad faith and which is  remedied  by the  Company  promptly
after receipt of notice thereof given by Executive, or (iii) the event occurs in
connection with termination of Executive's  employment for Cause,  Disability or
death:

(a)      the  assignment to Executive by the Company of any duties which are, in
         any material respect,  inconsistent with, a diminution of or an adverse
         change in Executive's position, duty, title, office,  responsibility or
         status with the Company,  including  without  limitation,  any material
         diminution of Executive's position or responsibility in the decision or
         management  processes  of the  Company,  reporting  relationships,  job
         description,  duties,  responsibilities,  or any  removal of  Executive
         from, or any failure to reelect  Executive to, such position or failure
         of Executive to be reelected to the Board of Directors;

(b)      a reduction by the Company in  Executive's  rate of Base Salary then in
         effect during the Employment Period;

(c)      any failure to either  continue in effect any  material  Benefits or to
         substitute and continue other plans, policies, programs or arrangements
         providing Executive with substantially  similar Benefits, or the taking
         of  any  action  which  would   substantially   and  adversely   affect
         Executive's  participation in or materially reduce Executive's Benefits
         or compensation;

(d)      any  failure by any  successor  or  assignee of the Company to continue
         this Agreement in full force and effect or any breach of this Agreement
         by the Company (or any  successor or assignee of the  Company),  unless
         such  breach is cured  within  thirty  (30) days of  receiving  written
         notice of the breach from Executive; or

(e)      following a Change in Control,  the relocation of the executive offices
         of the  Company to a  location  that is more than fifty (50) miles from
         the executive  offices of the Company as of the effective  date of such
         Change in Control.

         "Non-Control  Transaction" means a Corporate Transaction as a result of
which  the  Outstanding  Company  Voting  Securities  immediately  prior to such
Corporate  Transaction  would entitle the holders thereof  immediately  prior to
such Corporate Transaction to exercise,  directly or indirectly, more than fifty
percent (50%) of the combined voting power of all of the shares of capital stock
entitled to vote generally in election of directors of the corporation resulting
from such Corporate  Transaction  immediately  after such Corporate  Transaction
(including,  without  limitation,  a  corporation  which  as a  result  of  such
transaction owns the Company or all or substantially all of the Company's assets
either directly or through one or more subsidiaries).

         "Person"  means any  individual,  corporation,  trust,  proprietorship,
association, governmental body, agency or subdivision or other entity.

         "Termination  Payment"  means  an  amount  equal to (i)  two-thirds  of
Executive's  highest  total  compensation  (consisting  of Base Salary and Bonus
Payment)  in any of the five(5)  years prior to the year in which the  Effective
Date  occurs,  multiplied  by (ii)  the  number  of years  or  portions  thereof
remaining in the Scheduled Term.

11. Remedies.  Executive acknowledges and agrees that the covenants set forth in
Sections 6 and 7 of this Agreement  (collectively,  the "Restrictive Covenants")
are  reasonable  and  necessary for the  protection  of the  Company's  business
interests,  that  irreparable  injury will  result to the  Company if  Executive
breaches any of the terms of the Restrictive Covenants, and that in the event of
Executive's actual or threatened breach of any such Restrictive  Covenants,  the
Company will have no adequate remedy at law.  Executive  accordingly agrees that
in the event of any actual or threatened breach by him of any of the Restrictive
Covenants,  the Company shall be entitled to immediate temporary  injunctive and
other equitable relief, without bond and without the necessity of showing actual
monetary  damages,  subject to hearing as soon  thereafter as possible.  Nothing
contained herein shall be construed as prohibiting the Company from pursuing any
other remedies available to it for such breach or threatened  breach,  including
the recovery of any damages which it is able to prove.

12.      Miscellaneous.
         -------------
(a)      Notices.  All  notices  and other  communication  between  the  parties
         pursuant to this  Agreement must be in writing and will be deemed given
         when delivered in person,  one (1) business day after being  dispatched
         by  a  nationally  recognized  overnight  courier  service,  three  (3)
         business  days after being  deposited in the U.S.  Mail,  registered or
         certified  mail,  return receipt  requested,  or when sent by facsimile
         (with receipt  acknowledged  and a copy sent for next day delivery by a
         nationally recognized overnight courier service), to the Company at the
         address or  facsimile  number of its  principal  office in the Chicago,
         Illinois metropolitan area and to Executive (or his representatives) at
         his address or facsimile as shown on the Company's  records.  Executive
         (or his representatives) may change his address or facsimile number for
         notice purposes by delivering  notice to the Company in accordance with
         this  Section  12(a).  All notices  sent to the  Company  shall also be
         delivered to Katten Muchin Zavis,  525 West Monroe Street,  Suite 1600,
         Chicago,  Illinois  60661-3693,   Attention:  Jeffrey  R.  Patt,  Esq.,
         Facsimile No.: 312-902-1061.

(b)      Governing  Law. This  Agreement  will be subject to and governed by the
         laws  of the  State  of  Illinois,  without  regard  to  principles  of
         conflicts of laws.

(c)      Binding  Effect.  This  Agreement will be binding upon and inure to the
         benefit   of  the   parties   and   their   respective   heirs,   legal
         representatives,  executors,  administrators,  successors, and assigns,
         subject to the limitations on assignment in Section 12(h).

(d)      Entire  Agreement.  This  Agreement  constitutes  the entire  Agreement
         between  the  parties  with  respect  to the  subject  matter  of  this
         Agreement and supersedes any other agreements, whether oral or written,
         between  the  parties  with  respect  to the  subject  matter  of  this
         Agreement.

(e)      Modification. No change or modification of this Agreement will be valid
         unless it is in writing and signed by both of the parties. No waiver of
         any  provision  of this  Agreement  will be valid unless in writing and
         signed by the person or party to be charged.

(f)      Severability.  If any  provision of this  Agreement is, for any reason,
         invalid or  unenforceable,  the remaining  provisions of this Agreement
         will  nevertheless  be valid and  enforceable  and will  remain in full
         force and effect.  Any provision of this Agreement that is held invalid
         or  unenforceable by a court of competent  jurisdiction  will be deemed
         modified to the extent  necessary to make it valid and  enforceable and
         as so modified will remain in full force and effect.

(g)      Headings.  The headings in this Agreement are inserted for  convenience
         only and are not to be considered in the interpretation of construction
         of the provisions of this Agreement.

(h)      Assignability.  This  Agreement  may not be  assigned  by either  party
         without the prior written  consent of the other party,  except that the
         Company may assign its rights to, and cause its obligations  under this
         Agreement  to be  assumed  by, any person or entity to whom or to which
         the Company simultaneously  transfers by sale, merger, or otherwise all
         or substantially all of its assets.

(i)      No Strict  Construction.  The language used in this  Agreement  will be
         deemed  to be the  language  chosen by  Executive  and the  Company  to
         express their mutual intent, and no rule of strict construction will be
         applied against Executive or the Company.

(j)      Arbitration.  Except for any claim or dispute which gives rise or could
         give rise to equitable  relief under this Agreement,  at the request of
         Executive,  or the Company, any disagreement,  dispute,  controversy or
         claim arising out of or relating to this Agreement or the breach hereof
         shall  be  settled   exclusively  and  finally  by   arbitration.   The
         arbitration shall be conducted in accordance with such rules and before
         such arbitrator as the parties shall agree and if they fail to so agree
         within fifteen (15) days after demand for arbitration, such arbitration
         shall be conducted in accordance  with the Federal  Arbitration Act and
         the National  Rules for the  Resolution of  Employment  Disputes of the
         American Arbitration  Association which are then in effect (hereinafter
         referred to as "AAA  Rules").  Such  arbitration  shall be conducted in
         Chicago,  Illinois, or in such other city as the parties to the dispute
         may designate by mutual consent. The arbitral tribunal shall consist of
         three  arbitrators  (or such lesser number as may be agreed upon by the
         parties) selected according to the procedure set forth in the AAA Rules
         in effect on the date hereof and the arbitrators  shall be empowered to
         order any remedy which is  appropriate  to the  proceedings  and issues
         presented to them. Any party to a decision rendered in such arbitration
         proceedings  may seek an order  enforcing  the same by any court having
         jurisdiction.

(k)      Legal  Expenses.  The Company shall pay the legal expenses  incurred by
         Executive for review of this Agreement by his legal  counsel,  up to an
         amount  not to exceed  $10,000.  If  Executive  takes  legal  action to
         enforce the Company's  obligations  under this  Agreement and Executive
         prevails in such action to any  significant  extent,  the Company shall
         reimburse Executive for all reasonable  expenses (including  reasonable
         attorney's fees) actually incurred by Executive in such action.

         IN WITNESS WHEREOF, the parties have executed this Amended and Restated
Executive Employment Agreement as of the date first above written.

                                  ANICOM, INC.

                                 By:     /s/ Scott C. Anixter
                                         --------------------
                                         Scott C. Anixter, Chairman of the Board

                  EXECUTIVE:

                                    /s/ Donald C. Welchko
                                    ------------------------
                                    Donald C. Welchko<PAGE>

                                                                    EXHIBIT 10.1

EXHIBIT 10.1 Stock Purchase Agreement dated as of March 15, 2000, between the
Company and George Karfunkel

STOCK PURCHASE AGREEMENT Dated as of March 15, 2000 by and between GEORGE
KARFUNKEL (the "Purchaser") and MC LAREN AUTOMOTIVE GROUP, INC.
(the "Company")

ARTICLE I    Purchase and Sale of Common Stock and Warrant   1

Section 1.1       Sale and Purchase 1
Section 1.2       Purchase Price    1
Section 1.3       The Closing       1
Section 1.3.1     Time and Place    1
Section 1.3.2     Actions to be taken by the Company 1
Section 1.3.3     Actions to be taken by the Purchaser        2

ARTICLE II   Representations and Warranties 2

Section 2.1    Representation and Warranties of the Company         2

(a)      Representation and Warranties of the Company         2
(b)      Authorization; Enforcement 2
(c)      Capitalization    3
(d)      Issuance of Shares         3
(e)      No Conflicts      3
(f)      Commission Documents, Financial Statements  4
(g)      Subsidiaries      5
(h)      [Omitted]         5
(i)      No Undisclosed Liabilities 5
(j)      No Undisclosed Events or Circumstances      5
(k)      Indebtedness      5
(l)      Title to Assets   6
(m)      Actions Pending   6
(n)      Compliance with Law        6
(o)      Taxes             6
(p)      Certain Fees      7
(q)      Disclosure        7
(r)      Intellectual Property; Operation of Business         7
(s)      Books and Records 7
(t)      Material Agreements        7
(u)      Transactions with Affiliates       7
(v)      Securities Act of 1933     8
(w)      Governmental Approvals     8
(x)      Employees         8
(y)      Absence of Certain Developments    8
(z)      Use of Proceeds   8
(aa)     Public Utility Holding Company Act and Investment Company Act Status  9
(bb)     [Omitted]         9
(cc)     Acknowledgment Regarding Purchaser's Purchase of Shares.      9
(dd)     Commitments.      9
(ee)     "Material Adverse Effect"  9

Section 2.2       Representations and Warranties of the Purchaser      9

(a)      Acquisition for Investment 9
(b)      Accredited Purchaser       10

ARTICLE III Covenants         10

Section 3.1       Securities Compliance.    10
Section 3.2       Registration and Listing  10
Section 3.3       Registration Statement    11
<PAGE>

Section 3.4       Compliance with Laws      11
Section 3.5       Keeping of Records and Books of Account     11
Section 3.6       Reporting Requirements    11

ARTICLE IV Indemnification 11

Section 4.1       General Indemnity 11
Section 4.2       Indemnification Procedure 12

ARTICLE V  Miscellaneous   13

Section 5.1       Fees and Expenses 13
Section 5.2       Specific Enforcement, Consent to Jurisdiction        13
Section 5.3       Entire Agreement; Amendment        13
Section 5.4       Notices  14
Section 5.5       Waivers  14
Section 5.6       Headings 15
Section 5.7       Successors and Assigns    15
Section 5.8       No Third Party Beneficiaries       15
Section 5.9       Governing Law     15
Section 5.10      Survival 15
Section 5.11      Counterparts      15
Section 5.12      Publicity         15
Section 5.13      Severability      15
Section 5.14      Further Assurances        16

 TABLE OF SCHEDULES

Schedule
Topic

2.1(c)
Capitalization

2.1(g)
Subsidiaries

2.1(i)
Undisclosed Liabilities

2.1(j)
Undisclosed Events or Circumstances

2.1(k)
Indebtedness

2.1(l)
Title to Assets

2.1(m)
Actions Pending

2.1(o)
Taxes

2.1(r)
Intellectual Property

2.1(x)
Employees

2.1(y)
Absence of Certain Developments
<PAGE>

STOCK PURCHASE AGREEMENT

This STOCK PURCHASE AGREEMENT (this "Agreement") is dated as of March 15, 2000
by and between McLAREN AUTOMOTIVE GROUP, INC., a Delaware corporation (the
"Company"), and GEORGE KARFUNKEL, an individual with an office at 6201 15th
Avenue, 3rd Floor, Brooklyn, New York 11219 (the "Purchaser").

For good and valid consideration, the sufficiency of which is acknowledged by
the parties, the parties hereto agree as follows:

ARTICLE I

Purchase And Sale Of Common Stock And Warrant
Section 1.1 -Sale and Purchase. Subject to the terms and conditions of this
Agreement, the Company, on the Closing Date (as defined herein), is selling and
issuing to the Purchaser and the Purchaser is purchasing from the Company, in
reliance upon the representations, warranties and other terms and conditions of
this Agreement, 400,000 shares of Common Stock, par value $0.00001 per share
(the "Common Stock") of the Company (the "Shares"). The Company, for no
additional consideration, shall issue to the Purchaser a warrant to purchase an
additional 200,000 shares of Common Stock in the form attached hereto as Exhibit
A (the "Warrant").
Section 1.2 -Purchase Price. The purchase price for the Shares is eight hundred
thousand ($800,000) Dollars (the "Purchase Price"), and shall be paid by wire
transfer to an account designated by the Company in writing at the Closing.
Section 1.3 -The Closing.
Section 1.3.1 -Time and Place. The closing of the transactions contemplated
hereby (the "Closing") shall take place at the offices of Parker Chapin LLP at
10:00 a.m. New York City time on March 15, 2000, or at such other time or on
such other date on location as the parties shall mutually select (the "Closing
Date").
Section 1.3.2 -Actions to be taken by the Company. Subject to the
representations and warranties of the Purchaser being true and correct in all
material respects and the satisfaction of all actions taken by the Purchaser, on
or before the Closing Date, the Company shall deliver to the Purchaser the
following:
(a) stock certificates representing the Shares;
(b) the Warrant;
(c) a duly executed registration rights agreement in the form annexed hereto as
Exhibit B (the "Registration Rights Agreement");
(d) the opinion of Clark Hill PLC, attorneys for the Company, dated as of the
date hereof substantially in the form of Exhibit C attached hereto;
(e) the Certificate of Incorporation of the Company (the "Certificate") and
By-laws of the Company (the "By-laws") as in effect on the date hereof and the
resolutions of the Board of Directors of the Company, certified by the Secretary
of the Company, authorizing the execution, delivery and performance of this
Agreement, the issuance of the Shares and the Warrant, and each of the other
documents and instruments being executed and delivered by the Company herewith;
and
(f) a certificate duly executed by an executive officer of the Company
certifying that the representations and warranties made as of the date hereof
are true and correct in all material respects as of the Closing Date. Section
1.4 -Actions to be taken by the Purchaser.
Subject to the representations and warranties of the Company being true and
correct in all material respects and the satisfaction of all actions to be taken
by the Company under Section 1.3.2, on the Closing Date, the Purchaser shall pay
to the Company the Purchase Price.

ARTICLE II

Representations And Warranties
Section 2.1 -Representation and Warranties of the Company. The Company hereby
makes the following representations and warranties to the Purchaser:
(a) -Organization, Good Standing and Power. The Company is a corporation duly
incorporated, validly existing and in good standing under the laws of the State
of Delaware and has the requisite corporate power to own, lease and operate its
properties and assets and to conduct its business as it is now being conducted.
The Company and each such subsidiary is duly qualified as a foreign corporation
to do business and is in good standing in every jurisdiction in which the nature
of the business conducted or property owned by it makes such qualification
necessary except for any jurisdiction in which the failure to be so qualified
will not have a material adverse effect on the Company's financial condition.
<PAGE>

(b) -Authorization; Enforcement. The Company has the requisite corporate power
and authority to enter into and perform this Agreement and to issue and sell the
Shares in accordance with the terms hereof. The execution, delivery and
performance of this Agreement by the Company and the consummation by it of the
transactions contemplated hereby and thereby have been duly and validly
authorized by all necessary corporate action, and no further consent or
authorization of the Company or its Board of Directors or stockholders is
required. This Agreement has been duly executed and delivered by the Company.
This Agreement constitutes a valid and binding obligation of the Company
enforceable against the Company in accordance with its terms, except as such
enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium, liquidation, conservatorship, receivership or
similar laws relating to, or affecting generally the enforcement of, creditor's
rights and remedies or by other equitable principles of general application.
(c) -Capitalization. The authorized capital stock of the Company is 20,000,000
shares of Common Stock of which there are 9,088,517 shares currently issued and
outstanding and 10,000,000 shares of Preferred Stock par value $0.001, per share
of which there are no shares currently issued and outstanding. All of the
outstanding shares of the Company's Common Stock have been duly and validly
authorized. No shares of Common Stock are entitled to preemptive rights or
registration rights and except as set forth on Schedule 2.1(c) there are no
outstanding options, warrants, scrip, rights to subscribe to, call or
commitments of any character whatsoever relating to, or securities or rights
convertible into, any shares of capital stock of the Company. Furthermore,
except as set forth in this Agreement and as set forth on Schedule 2.1(c), there
are no contracts, commitments, understandings, or arrangements by which the
Company is bound to issue additional shares of the capital stock of the Company
or options, securities or rights convertible into shares of capital stock of the
Company. Except for customary transfer restrictions contained in agreements
entered into by the Company in order to sell restricted securities or Schedule
2.1(c) hereto, the Company is not a party to any agreement granting registration
rights to any person with respect to any of its equity or debt securities. The
Company is not a party to any, and to the Knowledge of the Company there is no,
agreement restricting the voting or transfer of any shares of the capital stock
of the Company. The offer and sale of all capital stock, convertible securities,
rights, warrants, or options of the Company issued prior to the Closing complied
with all applicable Federal and all applicable state securities laws and no
stockholder has a right of rescission or damages against the Company with
respect thereto. The Company has furnished or made available to the Purchaser
true and correct copies of the Certificate as in effect on the date hereof, and
the By-laws as in effect on the date hereof.
(d) -Issuance of Shares. The Shares to be issued under this Agreement, the
Warrant and the shares of Common Stock to be issued upon exercise of the Warrant
(the "Warrant Shares") have been duly authorized by all necessary corporate
action and, when paid for or issued in accordance with the terms hereof, the
Shares shall be validly issued and outstanding, fully paid and nonassessable,
and with respect to the Shares and, upon exercise of the Warrant, the Warrant
Shares the Purchaser shall be entitled to all rights accorded to a holder of
Common Stock subject to the restrictions contained herein.
(e) -No Conflicts. The execution, delivery and performance of this Agreement by
the Company and the consummation by the Company of the transactions contemplated
therein do not (i) violate any provision of the Company's Certificate or
By-laws, (ii) conflict with, or constitute a default (or an event which with
notice or lapse of time or both would become a default) under, or give to others
any rights of termination, amendment, acceleration or cancellation of, any
material agreement, mortgage, deed of trust, indenture, note, bond, license,
lease agreement, instrument or obligation to which the Company is a party, (iii)
create or impose a lien, charge or encumbrance on any material property of the
Company under any agreement or any commitment to which the Company is a party or
by which the Company is bound or by which any of its respective material
properties or assets are bound, or (iv) result in a violation of any federal,
state, local or foreign statute, rule, regulation, order, judgment or decree
(including Federal and state securities laws and regulations) applicable to the
Company or any of its subsidiaries or by which any property or asset of the
Company or any of its subsidiaries are bound or affected, the violation of which
would have a Material Adverse Effect (as defined below). Excluding the Company's
obligation to register the Shares and the Warrant Shares pursuant to the
Registration Rights Agreement, the Company is not required under Federal, state
or local law, rule or regulation to obtain any consent, authorization or order
of, or make any filing or registration with, any court or governmental
<PAGE>

agency in order for it to execute, deliver or perform any of its obligations
under this Agreement, or issue and sell the Shares or the Warrant Shares in
accordance with the terms hereof.
(f) -Commission Documents, Financial Statements. The Common Stock of the Company
is registered pursuant to Section 12(b) or 12(g) of the Securities Exchange Act
of 1934, as amended (the "Exchange Act"), and, the Company has timely filed all
reports, schedules, forms, statements and other documents required to be filed
by it with the Securities and Exchange Commission (the "Commission") pursuant to
the reporting requirements of the Exchange Act, including material filed
pursuant to Section 13(a) or 15(d) of the Exchange Act (all of the foregoing,
including filings incorporated by reference therein, being referred to herein as
the "Commission Documents"). As a result the Company is eligible to file a
registration statement on Form S-3 with the Commission. The Company has
delivered or made available to the Purchaser true and complete copies of the
Commission Documents filed with the Commission since September 30, 1998. As of
their respective dates, the Forms 10-KSB for the years ended September 30, 1998,
September 30, 1999, the Form 8-K filed on January 21, 1999, the Form 8-K/A filed
on February 12, 1999, and the Forms 10-QSB for the fiscal quarters ended
December 31, 1998, March 31, 1999, and June 30, 1999 complied in all material
respects with the requirements of the Exchange Act and the rules and regulations
of the Commission promulgated thereunder and other Federal, state and local
laws, rules and regulations applicable to such documents, and, as of their
respective dates, none of the Form 10-KSB, Form 8-K, Form 8-K/A and the Forms
10-QSB referred to above contained any untrue statement of a material fact or
omitted to state a material fact required to be stated therein or necessary in
order to make the statements therein, in light of the circumstances under which
they were made, not misleading. The financial statements of the Company included
in the Commission Documents comply as to form in all material respects with
applicable accounting requirements and the published rules and regulations of
the Commission or other applicable rules and regulations with respect thereto.
Such financial statements have been prepared in accordance with generally
accepted accounting principles ("GAAP") applied on a consistent basis during the
periods involved (except (i) as may be otherwise indicated in such financial
statements or the notes thereto or (ii) in the case of unaudited interim
statements, to the extent they may not include footnotes or may be condensed)
and fairly present in all material respects the financial position of the
Company and its subsidiaries as of the dates thereof and the results of
operations and cash flows for the periods then ended (subject, in the case of
unaudited statements, to normal year-end audit adjustments).
(g) -Subsidiaries. Schedule 2.1(g) hereto sets forth each subsidiary of the
Company, showing the jurisdiction of its incorporation or organization and
showing the percentage of each person's ownership of the outstanding stock or
other interests of such subsidiary. For the purposes of this Agreement,
"subsidiary" shall mean any corporation or other entity of which at least a
majority of the securities or other ownership interest having ordinary voting
power (absolutely or contingently) for the election of directors or other
persons performing similar functions are at the time owned directly or
indirectly by the Company and/or any of its other subsidiaries. All of the
outstanding shares of capital stock of each subsidiary have been duly authorized
and validly issued, and are fully paid and nonassessable. There are no
outstanding preemptive, conversion or other rights, options, warrants or
agreements granted or issued by or binding upon any subsidiary for the purchase
or acquisition of any shares of capital stock of any subsidiary or any other
securities convertible into, exchangeable for or evidencing the rights to
subscribe for any shares of such capital stock. Neither the Company nor any
subsidiary is subject to any obligation (contingent or otherwise) to repurchase
or otherwise acquire or retire any shares of the capital stock of any subsidiary
or any convertible securities, rights, warrants or options of the type described
in the preceding sentence. Neither the Company nor any subsidiary is party to
any, and to the Knowledge of the Company there is no, agreement restricting the
voting or transfer of any shares of the capital stock of any subsidiary.
(h) [Omitted].
(i) -No Undisclosed Liabilities. Except as disclosed in the Commission Documents
or on Schedule 2.1(i) hereto, to the Knowledge of the Company, neither the
Company nor any of its subsidiaries has incurred since September 30, 1999, any
liabilities, obligations, claims or losses (whether liquidated or unliquidated,
secured or unsecured, absolute, accrued, contingent or otherwise) that would
have a Material Adverse Effect.
<PAGE>

(j) -No Undisclosed Events or Circumstances. Except as disclosed in the
Commission Documents or on Schedule 2.1(j) hereto, to the Knowledge of the
Company, since September 30, 1999, no event or circumstance has occurred or
exists with respect to the Company or its subsidiaries or their respective
businesses, properties, prospects, operations or financial condition, which, is
reasonably likely to have a Material Adverse Effect.
(k) -Indebtedness. All outstanding secured and unsecured Indebtedness of the
Company or any subsidiary, or for which the Company or any subsidiary has
commitments is reflected in the financial statements filed with the Commission
Documents. For the purposes of this Agreement, "Indebtedness" shall mean (a) any
liabilities for borrowed money or amounts owed in excess of $10,000 (other than
trade accounts payable incurred in the ordinary course of business), (b) all
guaranties, endorsements and other contingent obligations in respect of
Indebtedness of others, whether or not the same are or should be reflected in
the Company's balance sheet (or the notes thereto), except guaranties by
endorsement of negotiable instruments for deposit or collection or similar
transactions in the ordinary course of business; and (c) the present value of
any lease payments in excess of $10,000 due under leases required to be
capitalized in accordance with GAAP. Neither the Company nor any subsidiary is
in default with respect to any Indebtedness.
(l) -Title to Assets. Each of the Company and the subsidiaries has good and
marketable title to all of its real and personal property having a value in
excess of $10,000 and reflected in the Commission Documents free of any
mortgages, pledges, charges, liens, security interests or other encumbrances,
except for those indicated on Schedule 2.1(l) hereto or such that do not result
in a Material Adverse Effect. All leases which require payments of at least
$10,000 per year of the Company and each of its subsidiaries are valid and
subsisting and in full force and effect.
(m) -Actions Pending. There is no action, suit, claim, investigation or
proceeding pending or, to the Knowledge of the Company, threatened against the
Company or any subsidiary which questions the validity of this Agreement or the
transactions contemplated hereby or any action taken or to be taken pursuant
hereto or thereto. Except as disclosed in the Commission Documents or on
Schedule 2.1(m) hereto, there is no action, suit, claim, investigation or
proceeding pending or, to the Knowledge of the Company, threatened, against or
involving the Company, any subsidiary of the Company or any of their respective
properties or assets. There are no outstanding orders, judgments, injunctions,
awards or decrees of any court, arbitrator or governmental or regulatory body
against the Company or any subsidiary.
(n) -Compliance with Law. The business of the Company and the subsidiaries has
been and is presently being conducted in accordance with all applicable Federal,
state and local governmental laws, rules, regulations and ordinances, domestic
and foreign, except where the conduct of the business of the Company in
violation of any of such laws, rules, regulations and ordinances could not
reasonably result in a Material Adverse Effect. The Company and each of its
subsidiaries have all franchises, permits, licenses, consents and other
governmental or regulatory authorizations and approvals necessary for the
conduct of its business as now being conducted by it unless the failure to
possess such franchises, permits, licenses, consents and other governmental or
regulatory authorizations and approvals, individually or in the aggregate, could
not reasonably be expected to have a Material Adverse Effect.
(o) -Taxes. The Company and each of the subsidiaries has accurately prepared and
filed all Federal, state and other tax returns required by law, domestic and
foreign, to be filed by it, has paid or made provisions for the payment of all
taxes shown to be due and all additional assessments, and adequate provisions
have been and are reflected in the financial statements of the Company and the
subsidiaries of the Company for all current taxes and other charges to which the
Company or any subsidiary of the Company is subject and which are not currently
due and payable except where the failure to prepare and file such tax returns or
the failure to pay or make provision for the payment of all such taxes could not
reasonably result in a Material Adverse Effect. Except as disclosed on Schedule
2.1(o) hereto, none of the Federal income tax returns of the Company or any
subsidiary of the Company for the years subsequent to December 31, 1995 have
been audited by the Internal Revenue Service or other foreign governmental tax
agency. To the Knowledge of the Company there are no additional assessments,
adjustments or contingent tax liability (whether federal or state) pending or
threatened against the Company or any subsidiary of the Company for any period
that would have a Material Adverse Effect, nor of any basis for any such
assessment, adjustment or contingency.
<PAGE>

(p) -Certain Fees. No brokers, finders or financial advisory fees or commissions
will be payable by the Company or any subsidiary of the Company with respect to
the transactions contemplated by this Agreement.
(q) -Disclosure. To the Knowledge of the Company, neither this Agreement nor the
Schedules hereto nor any of the Commission Documents furnished to the Purchaser
by or on behalf of the Company or any subsidiary of the Company in connection
with the transactions contemplated by this Agreement contain any untrue
statement of a material fact or omits to state a material fact necessary in
order to make the statements made herein or therein, in the light of the
circumstances under and at the time at which they were made herein or therein,
not misleading.
(r) -Intellectual Property; Operation of Business. The Company or a subsidiary
of the Company owns, or licenses from third parties, all patents and know how
("Intellectual Property"), free and clear of all liens, charges or encumbrances,
that are necessary in the conduct of its business as now conducted. Neither the
Company, nor its subsidiaries has received a notice of a claim of infringement
relating to the Intellectual Property, except as set forth on Schedule 2.1(r),
and to the Knowledge of the Company there is no reasonable basis for a claim
that such an infringement or violation exists.
(s) -Books and Records. The records and documents of the Company and its
subsidiaries accurately reflect in all material respects the information
relating to the business of the Company and its subsidiaries, the location of
their assets, and the nature of all transactions giving rise to the obligations
or accounts receivable of the Company or any subsidiary of the Company.
(t) -Material Agreements. There is no agreement that has not been filed with the
Commission as an exhibit to a registration statement or other applicable form
the omission of which could cause a Material Adverse Effect.
(u) -Transactions with Affiliates. Except for employment agreements and
consulting agreements or other Agreements disclosed in Commission Documents,
there are no loans, leases, agreements, contracts, royalty agreements,
management contracts or arrangements or other continuing transactions exceeding
$60,000 between (a) the Company, any subsidiary of the Company or any of their
respective customers or suppliers on the one hand, and (b) on the other hand,
any officer or director of the Company, or any of its subsidiaries, or any
person owning any capital stock of the Company or any subsidiary of the Company
or any member of the immediate family of such officer, director or stockholder
or any corporation or other entity controlled by such officer, director or
stockholder, or a member of the immediate family of such officer, director or
stockholder.
(v) -Securities Act of 1933. The Company has complied and will comply with all
applicable Federal and state securities laws in connection with the offer,
issuance and sale of the Shares hereunder in order that the issuance and sale of
the Shares will not be subject to the registration provisions of the Securities
Act of 1933, as amended (the "Securities Act"), and applicable state securities
laws. Neither the Company nor any of its affiliates, nor any person acting on
its or their behalf, has engaged in any form of general solicitation or general
advertising (within the meaning of Regulation D under the Securities Act) in
connection with the offer or sale of the Shares.
(w) -Governmental Approvals. Except for the filing of any notice prior or
subsequent to the Closing that may be required under applicable state and/or
Federal securities laws and/or other applicable laws of territories in which the
Company conducts business (which if required, shall be filed on a timely basis),
including the filing of a registration statement or statements pursuant to this
Agreement, no authorization, consent, approval, license, exemption of, filing or
registration with any court or governmental department, commission, board,
bureau, agency or instrumentality, domestic or foreign, is or will be necessary
for, or in connection with, the delivery of the Shares, the Warrant and the
Warrant Shares or for the performance by the Company of its obligations under
this Agreement.
(x) -Employees. Neither the Company nor any subsidiary of the Company has any
collective bargaining arrangements or agreements covering any of its employees,
except as set forth on Schedule 2.1(x) hereto. Since December 31, 1998, no
officer, consultant or key employee of the Company or any subsidiary of the
Company whose termination, either individually or in the aggregate, could have a
Material Adverse Effect, has terminated or, to the Knowledge of the Company, has
any present intention of terminating his or her employment or engagement with
the Company or any subsidiary of the Company.
(y) -Absence of Certain Developments. Except as set forth in the Commission
Documents or on Schedule 2.1(y) hereto, since December 31, 1998, neither the
Company nor any subsidiary has:
<PAGE>

(i) sold, assigned or transferred any tangible assets, or canceled any debts or
claims, except in the ordinary course of business;
(ii) suffered any substantial losses or waived any rights of material value,
whether or not in the ordinary course of business; or
(iii) experienced any material problems with labor or management in connection
with the terms and conditions of their employment.
(z) -Use of Proceeds. The proceeds from the sale of the Shares and the Warrant
Shares will be used by the Company and its subsidiaries for paydown of existing
bank debt, payment of litigation expenses and general corporate purposes.
(aa) Public Utility Holding Company Act and Investment Company Act Status. The
Company is not a "holding company" or a "public utility company" as such terms
are defined in the Public Utility Holding Company Act of 1935, as amended. The
Company is not, and as a result of and immediately upon Closing will not be, an
"investment company" or a company "controlled" by an "investment company,"
within the meaning of the Investment Company Act of 1940, as amended.
(bb) [Omitted].
(cc) Acknowledgment Regarding Purchaser's Purchase of Shares. The Company
acknowledges and agrees that the Purchaser is acting solely in the capacity of
arm's length purchaser with respect to this Agreement and the transactions
contemplated hereunder. The Company further acknowledges that the Purchaser is
not acting as a financial advisor or fiduciary of the Company (or in any similar
capacity) with respect to this Agreement and the transactions contemplated
hereunder and any advice given by the Purchaser or any of its representatives or
agents in connection with this Agreement and the transactions contemplated
hereunder is merely incidental to the Purchaser's purchase of the Shares. The
Company further represents to the Purchaser that the Company's decision to enter
into this Agreement has been based solely on the independent evaluation by the
Company and its representatives.
(dd) Commitments. The Company does not have any existing commitments for future
capital expenditures in excess of $100,000.
(ee) "Material Adverse Effect" shall mean any effect on the business,
operations, properties or financial condition of the Company that is material
and adverse to the Company and its subsidiaries and affiliates, taken as a whole
and/or any condition, circumstance, or situation that would prohibit or
otherwise interfere with the ability of the Company to enter into and perform
any of its obligations under this Agreement or the Registration Rights Agreement
in any material respect.
(ff) "Knowledge of the Company" shall mean the actual knowledge of the current
executive officers of the Company.

Section 2.2 -Representations and Warranties of the Purchaser. The Purchaser
hereby makes the following representations and warranties to the Company:
(a) Acquisition for Investment. Such Purchaser is purchasing the Shares, Warrant
and Warrant Shares solely for its own account for the purpose of investment and
not with a view to or for sale in connection with distribution. The Purchaser
does not have a present intention to sell the Shares, nor a present arrangement
(whether or not legally binding) or intention to effect any distribution of the
Shares, Warrant or Warrant Shares to or through any person or entity; provided,
however, that by making the representations herein, the Purchaser reserves the
right, to dispose of the Shares, Warrant and Warrant Shares at any time in
accordance with Federal securities laws applicable to such disposition. The
Purchaser acknowledges that it is able to bear the financial risks associated
with an investment in the Shares and that it has been given full access to such
records of the Company and the subsidiaries of the Company and to the officers
of the Company and the subsidiaries of the Company as it has deemed necessary or
appropriate to conduct its due diligence investigation. The Purchaser is capable
of evaluating the risks and merits of an investment in the Shares by virtue of
its experience as an investor and its knowledge, experience, and sophistication
in financial and business matters and the Purchaser is capable of bearing the
entire loss of its investment in the Shares.
(b) Accredited Purchaser. The Purchaser is an "accredited investor" as defined
in Regulation D promulgated under the Securities Act.
(c) The Purchaser acknowledges that neither the Shares nor the Warrant Shares
have been registered under the Securities Act, and may not be offered or sold
except pursuant to registration under the Securities Act or an available
exemption therefrom.
<PAGE>

ARTICLE III
Covenants
The Company covenants with the Purchaser as follows, which covenants are for the
benefit of the Purchaser and its permitted assignees (as defined herein).
Section 3.1 -Securities Compliance.
(a) The Company shall notify the Commission and the NASD, if applicable, in
accordance with their rules and regulations, of the transactions contemplated by
this Agreement, and shall take all other necessary action and proceedings as may
be required and permitted by applicable law, rule and regulation, for the legal
and valid issuance of the Shares, the Warrant and the Warrant Shares to the
Purchaser or subsequent holders.
(b) The Company is relying upon the truth and accuracy of the representations,
warranties, agreements, acknowledgments and understandings of the Purchaser set
forth herein in order to determine the applicability of Federal and state
securities laws exemptions and the suitability of the Purchaser to acquire the
Shares and the Warrant.
Section 3.2 -Registration and Listing. The Company will cause its Common Stock
to continue to be registered under Sections 12(b) or 12(g) of the Exchange Act,
will comply in all respects with its reporting and filing obligations under the
Exchange Act, will comply with all requirements related to any registration
statement filed pursuant to this Agreement, and will not take any action or file
any document (whether or not permitted by the Securities Act or the rules
promulgated thereunder) to terminate or suspend such registration or to
terminate or suspend its reporting and filing obligations under the Exchange Act
or Securities Act, except as permitted herein. The Company will take all action
necessary to continue the listing or trading of its Common Stock on the NASDAQ
system, if applicable, and will comply in all respects with the Company's
reporting, filing and other obligations under the bylaws or rules of the NASD
and NASDAQ system.
Section 3.3 -Registration Statement. The Company shall cause to be filed a
registration statement under the Securities Act ("Registration Statement") in
accordance with the Registration Rights Agreement, which Registration Statement
shall provide for the resale of the Shares and the Warrant Shares, if
applicable, purchased by and issued to the Purchaser.
Section 3.4 -Compliance with Laws. The Company shall comply, and cause each
subsidiary of the Company to comply, with all applicable laws, rules,
regulations and orders, noncompliance with which could have a Material Adverse
Effect.
Section 3.5 -Keeping of Records and Books of Account. The Company shall keep and
cause each subsidiary of the Company to keep adequate records and books of
account, in which complete entries will be made in accordance with GAAP
consistently applied, reflecting all financial transactions of the Company and
its subsidiaries, and in which, for each fiscal year, all proper reserves for
depreciation, depletion, obsolescence, amortization, taxes, bad debts and other
purposes in connection with its business shall be made.
Section 3.6 -Reporting Requirements. The Company shall furnish the following to
the Purchaser so long as such Purchaser shall beneficially own any Shares or
Warrant Shares:
(a) Quarterly Reports filed with the Commission on Form 10-QSB as soon as
available, and in any event within 45 days after the end of each of the first
three fiscal quarters of the Company;
(b) Annual Reports filed with the Commission on Form 10-KSB as soon as
available, and in any event within 90 days after the end of each fiscal year of
the Company; and
(c) Any other filings made with the Commission, any press releases issued or any
communications sent to stockholders.

ARTICLE IV

Indemnification
Section 4.1 -General Indemnity. The Company agrees to indemnify and hold
harmless the Purchaser (and its affiliates, agents, successors and assigns) from
and against any and all losses, liabilities, deficiencies, costs, damages and
expenses (including, without limitation, reasonable attorney's fees, charges and
disbursements) incurred by the Purchaser as a result or arising out of the
negotiation, execution or performance of this Agreement (including but not
limited to those arising from any claims or actions challenging the transaction,
no matter how meritless the claim may be) or any material inaccuracy in or
material breach of the representations, warranties or covenants made by the
Company herein. The Purchaser agrees to indemnify and hold harmless the Company
and its directors, officers, affiliates, agents, successors and assigns from and
against any and all
<PAGE>

losses, liabilities, deficiencies, costs, damages and expenses (including,
without limitation, reasonable attorneys fees, charges and disbursements)
incurred by the Company as result of any material inaccuracy in or material
breach of the representations, warranties or covenants made by the Purchaser
herein. Notwithstanding the foregoing, in no event shall either party's
liability pursuant to this Article IV or otherwise exceed the sum of the
Purchase Price and, if the Warrant is exercised, the Purchase Price and the
exercise price of the Warrant.
Section 4.2 -Indemnification Procedure. Any party entitled to indemnification
under this Article IV (the "indemnified party") will give prompt written notice
(the "Notice") to the other party (the "indemnifying party") of any matters
giving rise to a claim for indemnification; provided, that the failure of
indemnified party to indemnification hereunder to give notice as provided herein
shall not relieve the indemnifying party of its obligations under this Article
IV except to the extent that the indemnifying party is actually prejudiced by
such failure to give notice. In case any action, proceeding or claim is asserted
against the indemnified party in respect of which indemnification is sought
hereunder, the indemnifying party shall be entitled to participate in and to
assume the defense thereof with counsel reasonably satisfactory to the
indemnified party. In the event that the indemnifying party advises the
indemnified party that it will contest such a claim for indemnification
hereunder, or fails, within thirty (30) days of receipt of the Notice to notify,
in writing, the indemnified party of its election to defend, settle or
compromise, at its sole cost and expense, any action, proceeding or claim (or
discontinues its defense at any time after it commences such defense), then the
indemnified party may, at its option, defend, settle or otherwise compromise or
pay such action or claim. In any event, unless and until the indemnifying party
elects in writing to assume and does so assume the defense of any such claim,
proceeding or action, the indemnified party's costs and expenses arising out of
the defense, settlement or compromise of any such action, claim or proceeding
shall be losses subject to indemnification hereunder. The indemnified party
shall cooperate fully with the indemnifying party in connection with any
negotiation or defense of any such action or claim by the indemnifying party and
shall furnish to the indemnifying party all information reasonably available to
the indemnified party which relates to such action or claim. The indemnifying
party shall keep the indemnified party fully apprised at all times as to the
status of the defense or any settlement negotiations with respect thereto. If
the indemnifying party elects to defend any such action or claim, then the
indemnified party shall be entitled to participate in such defense with counsel
of its choice. The indemnifying party shall not be liable for any settlement of
any action, claim or proceeding effected without its prior written consent.
Notwithstanding anything in this Article IV to the contrary, the indemnifying
party shall not, without the indemnified party's prior written consent, settle
or compromise any claim or consent to entry of any judgment in respect thereof
which imposes any future obligation on the indemnified party or which does not
include, as an unconditional term thereof, the giving by the claimant or the
plaintiff to the indemnified party of a release from all liability in respect of
such claim. The indemnification required by this Article IV for an action or
claim brought by a third party shall be made by periodic payments of the amount
thereof during the course of investigation or defense, as and when bills are
received for expenses related to the legal defense or investigation, so long as
the indemnified party irrevocably agrees to refund such moneys if it is
ultimately determined by a court of competent jurisdiction that such party was
not entitled to indemnification. The indemnity agreements contained herein shall
be in addition to (a) any cause of action or similar rights of the indemnified
party against the indemnifying party or others, and (b) any liabilities the
indemnifying party may be subject pursuant to the law.

ARTICLE V

Miscellaneous
Section 5.1 -Fees and Expenses. The Company and the Purchaser shall each pay all
fees and expenses which it incurs related to the transactions contemplated by
this Agreement; provided, that, the Company is paying at the Closing, attorneys
fees and expenses incurred by the Purchaser of $15,000 in connection with the
preparation, negotiation, execution and delivery of this Agreement and the
transactions contemplated hereunder. The Company shall pay all stamp or other
similar taxes and duties levied in connection with issuance of the Shares
pursuant hereto.
Section 5.2 -Specific Enforcement; Consent to Jurisdiction.
<PAGE>

(a) The Company and the Purchaser acknowledge and agree that irreparable damage
would occur in the event that any of the provisions of this Agreement were not
performed in accordance with their specific terms or were otherwise breached. It
is accordingly agreed that the parties shall be entitled to an injunction or
injunctions to prevent or cure breaches of the provisions of this Agreement and
to enforce specifically the terms and provisions hereof or thereof, this being
in addition to any other remedy to which any of them may be entitled by law or
equity.
(b) Each of the Company and the Purchaser (i) hereby irrevocably submits to the
jurisdiction of the United States District Court and other courts of the United
States sitting in the Southern District of New York for the purposes of any
suit, action or proceeding arising out of or relating to this Agreement and (ii)
hereby waives, and agrees not to assert in any such suit, action or proceeding,
any claim that it is not personally subject to the jurisdiction of such court,
that the suit, action or proceeding is brought in an inconvenient forum or that
the venue of the suit, action or proceeding is improper. Each of the Company and
the Purchaser consents to process being served in any such suit, action or
proceeding by mailing a copy thereof to such party at the address in effect for
notices to it under this Agreement and agrees that such service shall constitute
good and sufficient service of process and notice thereof. Nothing in this
Section shall affect or limit any right to serve process in any other manner
permitted by law.
Section 5.3 -Entire Agreement; Amendment.  This Agreement contains the entire
understanding of the parties with respect to the matters covered hereby and,
except as specifically set forth herein, neither the Company nor the Purchaser
makes any representations, warranty, covenant or undertaking with respect to
such matters. No provision of this Agreement may be waived or amended other than
by a written instrument signed by the party against whom enforcement of any such
amendment or waiver is sought.
Section 5.4 -Notices. Any notice, demand, request, waiver or other communication
required or permitted to be given hereunder shall be in writing and shall be
effective (a) upon hand delivery by telex (with correct answer back received),
telecopy or facsimile at the address or number designated below (if delivered on
a business day during normal business hours where such notice is to be
received), or the first business day following such delivery (if delivered other
than on a business day during normal business hours where such notice is to be
received) or (b) on the second business day following the date of mailing by
express courier service, fully prepaid, addressed to such address, or upon
actual receipt of such mailing, whichever shall first occur. The addresses for
such communications shall be:
If to the Company:                     McLaren Automotive Group, Inc.
32233 West Eight Mile Road
Livonia, Michigan 48152
Attention:  Jacqueline K. Kurtz, CFO
Fax:  (248) 477-3349
with copies to:                        Clark Hill PLC
                                       500 Woodward Avenue, Suite 3500
                                       Detroit, MI  48226-3435
Attention:  John J. Hern, Jr., Esq.
Fax:  (313) 965-8252
If to the Purchaser:       George Karfunkel
6201 15th Avenue, 3rd Floor
Brooklyn, New York  11219
Fax:  (718) 921-8340
with copies to:            Parker Chapin LLP
The Chrysler Building
405 Lexington Avenue
New York, New York 10174
Attention: Henry I. Rothman, Esq.
Fax:  (212) 704-6288
Any party hereto may from time to time change its address for notices by giving
at least ten (10) days written notice of such changed address to the other party
hereto.
Section 5.5 -Waivers. No waiver by either party of any default with respect to
any provision, condition or requirement of this Agreement shall be deemed to be
a continuing waiver in the future or a waiver of any other provisions, condition
or requirement hereof, nor shall any delay or omission of any party to exercise
any right hereunder in any manner impair the exercise of any such right accruing
to it thereafter.
<PAGE>

Section 5.6 -Headings. The article, section and subsection headings in this
Agreement are for convenience only and shall not constitute a part of this
Agreement for any other purpose and shall not be deemed to limit or affect any
of the provisions hereof.
Section 5.7 -Successors and Assigns. This Agreement shall be binding upon and
inure to the benefit of the parties and their successors and assigns; provided,
however, that the Company may not assign any rights or obligations hereunder
without the prior written consent of the Purchaser.
Section 5.8 -No Third Party Beneficiaries. This Agreement is intended for the
benefit of the parties hereto and their respective permitted successors and
assigns and is not for the benefit of, nor may any provision hereof be enforced
by, any other person.
Section 5.9 -Governing Law. This Agreement shall be governed by and construed in
accordance with the internal laws of the State of New York, without giving
effect to the choice of law provisions.
Section 5.10 -Survival. Except as otherwise provided herein, the
representations, warranties and the agreements of the Company and the Purchaser
contained in Articles I, II, IV and V shall survive the execution and delivery
hereof, and the agreements and covenants set forth in Articles III of this
Agreement shall survive the execution and delivery hereof until the Purchaser no
longer owns any Shares or Warrant Shares.
Section 5.11 -Counterparts. This Agreement may be executed in any number of
counterparts, all of which taken together shall constitute one and the same
instrument and shall become effective when counterparts have been signed by each
party and delivered to the other parties hereto, it being understood that all
parties need not sign the same counterpart. In the event any signature is
delivered by facsimile transmission, the party using such means of delivery
shall cause four additional executed signature pages to be physically delivered
to the other parties within five days of the execution and delivery hereof.
Section 5.12 -Publicity. The Company agrees that it will not disclose, and will
not include in any public announcement, the name of the Purchaser, unless and
until such disclosure is required by law or applicable regulation, and then only
to the extent of such requirement. Any press release regarding this Agreement
shall be agreed to by the parties hereto in advance
Section 5.13 -Severability. The provisions of this Agreement are severable and,
in the event that any court of competent jurisdiction shall determine that any
one or more of the provisions or part of the provisions contained in this
Agreement shall, for any reason, be held to be invalid, illegal or unenforceable
in any respect, such invalidity, illegality or unenforceability shall not affect
any other provision or part of a provision of this Agreement shall be reformed
and construed as if such invalid or illegal or unenforceable provision, or part
of such provision, had never been contained herein, so that such provisions
would be valid, legal and enforceable to the maximum extent possible.
Section 5.14 -Further Assurances. From and after the date of this Agreement,
upon the request of the Purchaser or the Company, each of the Company and the
Purchaser shall execute and deliver such instrument, documents and other
writings as may be reasonably necessary or desirable to confirm and carry out
and to effectuate fully the intent and purposes of this Agreement and the
Shares.

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

McLAREN AUTOMOTIVE GROUP, INC.
By:/s/  Wiley R. McCoy
        Name:   Wiley R. McCoy
        Title:  President

/s/  George Karfunkel
GEORGE KARFUNKEL

 Schedule 2.1(c)
Capitalization

The Company's 1994 Stock Option Plan is described in certain Commission
Documents.

 Schedule 2.1(g)
Subsidiaries
<PAGE>

The owns 100% of the capital stock of McLaren Engines, Inc., a Michigan
corporation.

 Schedule 2.1(i)
Undisclosed Liabilities

None.
 Schedule 2.1(j)
Undisclosed Events or Circumstances

None.
 Schedule 2.1(l)
Title to Assets

None.
 Schedule 2.1(m)
Actions Pending

None.
 Schedule 2.1(o)
Taxes

None.
 Schedule 2.1(r)
Intellectual Property

         The Company entered into a License Agreement in 1994 with Dana
Corporation. On July 21, 1998, Dana terminated the License Agreement. On
September 9, 1998, the Company filed an action alleging that Dana breached the
License Agreement. On April 6, 1999, the Company filed a patent infringement
action against Dana. In its complaint, the Company alleged that Dana infringed
upon its patented Gerodisc system, United States Patent No. 5,888,163 (the "`163
patent"), and the Company is seeking damages and declaratory and injunctive
relief. In response to the patent infringement action, Dana filed a counterclaim
in which it alleged that the `163 patent is invalid, unenforceable, and not
infringed upon by Dana. Dana's counterclaim is a declaratory judgment action in
which no money damages are sought. The patent infringement action and the breach
of contract action have been consolidated for purposes of discovery and trial.
Discovery is now being undertaken in the consolidated action. The case is
pending in the U.S. District Court for the Eastern District of Michigan.

         On December 30, 1999, Murat Okcuoglu, a former employee of the Company,
filed an action against the Company. In his complaint, Mr. Okcuoglu alleges that
pursuant to his March 1, 1991, employment agreement with the Company, he is
entitled to damages in excess of $5,000,000 based on the Company's improper
commercialization of ideas he allegedly originated. The Company denies that it
has any obligations to Mr. Okcuoglu arising out of his employment agreement or
otherwise, and the Company intends to vigorously defend itself against Mr.
Okcuoglu's allegations. The case is pending in the Superior Court of Santa
Barbara, California.

 Schedule 2.1(x)
Employees

None.
 Schedule 2.1(y)
Absence of Certain Developments

None.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00009-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00009-of-00352.parquet"}]]