Document:

EXHIBIT 4.24

                            ABLE TELCOM HOLDING CORP.
                          REGISTRATION RIGHTS AGREEMENT

         THIS REGISTRATION RIGHTS AGREEMENT ("Agreement") is entered into as of
February 4, 2000 between ABLE TELCOM HOLDING CORP., a Florida corporation with
offices at 1000 Holcomb Woods Parkway, Suite 440, Roswell, Georgia 30076 (the
"Company") and each of the entities listed under "Investors" on the signature
page hereto (each an "Investor" and collectively the "Investors"), each with
offices at the address listed under such Investor's name on SCHEDULE I hereto.

                              W I T N E S S E T H:

         WHEREAS, pursuant to that certain Convertible Preferred Stock Purchase
Agreement by and between the Company and the Investors dated as of February 4,
2000 (the "Purchase Agreement"), the Company initially has agreed to sell and
issue to the Investors, and the Investors have agreed to purchase from the
Company, an aggregate of 5,000 shares of Series C Preferred Stock (the "Series C
Preferred Stock") at an aggregate price of $15,000,000 on the terms and
conditions set forth therein;

         WHEREAS, the Purchase Agreement contemplates that the Series C
Preferred Stock will be convertible into shares (the "Common Shares") of common
stock, $0.001 par value, of the Company ("Common Stock") pursuant to the terms
and conditions set forth in the Articles of Amendment to the Articles of
Incorporation of Able Telcom Holding Corp. (the "Articles of Amendment");

         WHEREAS, pursuant to the terms of, and in partial consideration for,
the Investors' agreement to enter into the Purchase Agreement, the Company has
agreed to issue to the Investors warrants exercisable for 200,000 shares of
Common Stock in the form attached as EXHIBIT 1.1B; and

         WHEREAS, pursuant to that certain Series B Preferred Stock Exchange
Agreement (the "Exchange Agreement") dated as of February 4, 2000 among certain
of the Investors named therein and the Company, such Investors currently hold
301,787 shares of Common Stock (the "Secondary Conversion Shares") and warrants
(the "Secondary Warrants") exercisable for shares of Common Stock (collectively
with the Secondary Conversion Shares, the "Secondary Common Shares");

         NOW, THEREFORE, in consideration of the mutual promises,
representations, warranties, covenants and conditions set forth in the Purchase
Agreement and this Agreement, the Company and the Investors agree as follows:

         1.       CERTAIN DEFINITIONS.

                  (a) Capitalized terms used herein and not otherwise defined
shall have the meaning ascribed thereto in the Purchase Agreement, Warrants or
the Articles of Amendment. As used in this Agreement, the following terms shall
have the following respective meanings:

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                  "APPROVED MARKET" shall mean the Nasdaq National Market or the
American Stock Exchange or the New York Stock Exchange.

                  "BEST EFFORTS" means as to any party obligated to use its Best
Efforts to accomplish a particular objective that the obligated party is
required to make diligent, good faith, prompt, substantial and persistent
efforts as a prudent person desiring to achieve the applicable objective would
use in order to ensure that such objective is achieved as expeditiously as
possible; PROVIDED, HOWEVER, that an obligation to use Best Efforts shall not be
construed to limit the applicability of any remedy for default or delay by such
party under the terms of any Transaction Document, including any applicable
default payments and mandatory redemptions).

                  "CLOSING" and "CLOSING DATE" shall have the meanings ascribed
to such terms in the Purchase Agreement.

                  "COMMISSION" or "SEC" shall mean the Securities and Exchange
Commission or any other federal agency at the time administering the Securities
Act.

                  "DAY" shall mean calendar day.

                  "HOLDER" and "HOLDERS" shall include any Investor or the
Investors, respectively, and any permitted transferee of the Secondary Common
Shares, Series C Preferred Stock, Warrants, Warrant Shares or Common Shares or
Registrable Securities which have not been sold to the public to whom the
registration rights conferred by this Agreement have been transferred in
compliance with this Agreement.

                  "NOTICE OF REDEMPTION" means any written notice by a Holder
with respect to such Holder's redemption of any such shares of Series C
Preferred Stock pursuant to the provisions of the Articles of Amendment.

                  "REGISTRABLE SECURITIES" shall mean: (i) the Secondary Common
Shares, Common Shares and Warrant Shares issued to any Holder or its permitted
transferee or designee pursuant to the Exchange Agreement or upon conversion of
the Series C Preferred Stock or exercise of the Warrants, as applicable, or upon
any stock split, stock dividend, recapitalization or similar event with respect
to such Secondary Common Shares, Common Shares or Warrant Shares; (ii) any
securities issued or issuable to each Holder upon the conversion, exercise or
exchange of any Secondary Common Shares, Series C Preferred Stock, Warrants,
Warrant Shares, or Common Shares; and (iii) any other security of the Company
issued as a dividend or other distribution with respect to, or upon conversion
or exchange of or in replacement of Registrable Securities.

                  The terms "REGISTER," "REGISTERED" and "REGISTRATION" shall
refer to a registration effected by preparing and filing a registration
statement in compliance with the Securities Act and applicable rules and
regulations thereunder, and the declaration or ordering of the effectiveness of
such registration statement.

                  "REGISTRATION DEADLINE" shall mean the earliest date following
the filing of the Company's 1999 Form 10-K with the Commission on which the
Company, using its Best Efforts, is able to secure the effectiveness of the
Registration Statement (defined herein); PROVIDED, HOWEVER, that in no event
shall the Registration Deadline extend beyond October 31, 2000.

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                  "REGISTRATION EXPENSES" shall mean all expenses to be incurred
by the Company in connection with each Holder's registration rights under this
Agreement, including, without limitation, all registration and filing fees,
printing expenses, fees and disbursements of counsel for the Company, "Blue Sky"
fees and expenses, and the expense of any audited financial statements incident
to or required by any such registration (but excluding the compensation of
regular employees of the Company, which shall be paid in any event by the
Company).

                  "REGISTRATION STATEMENT" shall have the meaning set forth in
Section 2(a) herein.

                  "REGULATION D" shall mean Regulation D as promulgated pursuant
to the Securities Act, and as subsequently amended.

                  "SECURITIES ACT" or "ACT" shall mean the Securities Act of
1933, as amended.

                  "SELLING EXPENSES" shall mean all reasonable underwriting
discounts and selling commissions applicable to the sale of Registrable
Securities and all reasonable fees and disbursements of counsel for Holders not
included within "Registration Expenses".

                  "SUSPENSION GRACE PERIOD" shall mean five (5) consecutive
Trading Days or ten (10) Trading Days in any 365-day period; PROVIDED, HOWEVER,
that upon receipt by the Holders of a written notice signed by the chief
executive officer or chief financial officer of the Company to the effect set
forth below, the Suspension Grace Period may be extended for a reasonable period
of time, but not in excess of thirty (30) days per 365-day period, (i) in order
to comply with the reasonable request of the lead underwriter in an underwritten
public offering of equity securities of the Company for the account of the
Company, or (ii) if, in connection with any pending material financing,
acquisition or corporate reorganization or other material corporate development
involving the Company, the Company determines in good faith that it must delay
or restate the disclosure of its financial statements contained in the
Registration Statement in order to make such disclosure not materially incorrect
or misleading.

                  "TRADING DAY" shall mean any day in which the Nasdaq Market or
other Approved Market on which the Common Stock is then listed or quoted is open
for trading; PROVIDED, HOWEVER, that in the event that the Common Stock is not
listed or quoted on an Approved Market, then Trading Day shall mean any weekday
(except any day which shall be a federal legal holiday or a day on which banking
institutions in the State of New York are authorized or required by law or other
governmental action to close).

                  "TRANSACTION DOCUMENT," individually, and, "TRANSACTION
DOCUMENTS," collectively, shall have the meaning attributable to such term by
the Purchase Agreement.

                  "WARRANTS" shall mean the warrants in form and substance of
EXHIBIT 1.1B to the Purchase Agreement between the Company and the Investors
dated as of the date hereof.

                  "WARRANT SHARES" shall mean shares of Common Stock of the
Company issued and issuable upon exercise of the Warrants.

                  (b) OTHER DEFINITIONS. Each of the following terms is defined
in the Section opposite such term:

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                                DEFINED TERM                 SECTION
                      ---------------------------------   ----------------
                      AGREEMENT                           Preamble
                      ARTICLES OF AMENDMENT               Preamble
                      COMMON SHARES                       Preamble
                      COMMON STOCK                        Preamble
                      COMPANY                             Preamble
                      CONVERSION BENEFIT                  2(b)(iii)
                      CONVERSION DEFICIENCY               2(b)(iv)
                      CONVERSION NOTICE                   2(b)(iv)
                      CONVERSION PRICE                    2(a)(i)
                      EXCHANGE AGREEMENT                  Preamble
                      FAIR MARKET VALUE                   2(b)(iv)(B)(II)
                      FIRST CONVERSION PRICE              2(b)(i)
                      FORCE MAJEURE                       13(l)
                      INDEMNIFIED PARTY                   6(c)
                      INDEMNIFYING PARTY                  6(c)
                      INTERFERING EVENTS                  2(b)
                      INVESTORS                           Preamble
                      MATURITY DATE                       2(b)(vii)
                      NOTICE OF REDEMPTION                2(b)(i)
                      PREMIUM REDEMPTION PRICE            2(b)(iii)
                      PURCHASE AGREEMENT                  Preamble
                      PURCHASE PRICE                      2(b)(iv)(B)(II)
                      SECONDARY COMMON SHARES             Preamble
                      SECONDARY CONVERSION SHARES         Preamble
                      SECONDARY WARRANTS                  Preamble
                      SERIES C PREFERRED STOCK            Preamble
                      SUBSCRIPTION NOTICE                 2(b)(iv)
                      TRIGGERING EVENT REDEMPTION PRICE   2(b)(iv)(B)(I)

         2. REGISTRATION REQUIREMENTS. The Company shall use its Best Efforts
(as defined in the Articles of Amendment) to effect the registration of the
Registrable Securities (including without limitation the execution of an
undertaking to file post-effective amendments, appropriate qualification under
applicable blue sky or other state securities laws and appropriate compliance
with applicable regulations issued under the Securities Act) as would permit or
facilitate the sale or distribution of all the Registrable Securities in the
manner (including manner of sale) and in all states reasonably requested by the
Holder on an Approved Market. Such Best Efforts by the Company shall include the
following:

                  (a) The Company shall, as expeditiously as reasonably possible
after the Closing Date:

                      (i) Prepare and file a registration statement with the
Commission pursuant to Rule 415 under the Securities Act on Form S-3 under the
Securities Act (or in the event

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that the Company is ineligible to use such form, such other form as the Company
is eligible to use under the Securities Act) covering the Registrable Securities
("Registration Statement") which Registration Statement (including any
amendments or supplements thereto and prospectuses contained therein) shall not
contain any untrue statement of a material fact or omit to state a material fact
required to be stated therein, or necessary to make the statements therein not
misleading. Such Registration Statement shall, in addition and without
limitation, register (pursuant to Rule 416 under the Securities Act, or
otherwise) such additional indeterminate number of Registrable Securities as
shall be necessary to permit the conversion in full of the Series C Preferred
Stock or exercise of the Warrants (A) to prevent dilution resulting from stock
splits, stock dividends or similar transactions or (B) by reason of changes in
the Conversion Price (as defined in Section 3(b) of the Articles of Amendment).
Thereafter, the Company shall use its Best Efforts to cause such Registration
Statement and other filings to be declared effective as soon as possible, and in
any event on or prior to the Registration Deadline. The number of shares of
Common Stock initially included in such Registration Statement shall be no less
than the total outstanding Secondary Common Shares, plus (x) the number of
shares of Common Stock for which the Series C Preferred Stock are at any time
convertible in full, assuming a Conversion Price of $4.00 and (y) 105% of the
number of Warrant Shares that are then issuable upon the exercise of the
Warrants, in each case, without regard to any limitation on the Investor's
ability to convert the Series C Preferred Stock or exercise the Warrants. The
Company acknowledges that such number of shares of Common Stock to be initially
included in the Registration Statement includes a good faith estimate of the
maximum number of shares issuable upon conversion of the Series C Preferred
Stock and exercise of the Warrants.

                      (ii) Prepare and file with the SEC such amendments and
supplements to such Registration Statement and the prospectus used in connection
with such Registration Statement as may be necessary to keep the Registration
Statement effective and to comply with the provisions of the Act with respect to
the disposition of all securities covered by such Registration Statement until
such time as all of such Registrable Securities have been disposed of in
accordance with the intended methods of disposition by the seller or sellers
thereof as set forth in the Registration Statement and notify the Holders of the
filing and effectiveness of such Registration Statement and any amendments or
supplements. In the event the number of shares available under a Registration
Statement filed pursuant to this Agreement is insufficient to cover all of the
Registrable Securities issued or issuable upon conversion of the Series C
Preferred Stock and exercise of the Warrants, the Company shall amend the
Registration Statement, or file a new Registration Statement (on the short form
available therefore, if applicable), or both, so as to cover all of the
Registrable Securities, in each case, as soon as practicable, but in any event
within twenty (20) Trading Days after the necessity therefor arises (based on
the market price of the Common Stock and other relevant factors on which the
Company reasonably elects to rely). The Company shall use its Best Efforts to
cause such amendment and/or new Registration Statement to become effective as
soon as practicable following the filing thereof. The provisions of Section
2(b)(i) below shall be applicable with respect to such obligation.

                      (iii) Furnish to each Holder such numbers of copies of a
current prospectus conforming with the requirements of the Act, copies of the
Registration Statement, any amendment or supplement thereto and any documents
incorporated by reference therein and such other documents as such Holder may
reasonably require in order to facilitate the disposition of Registrable
Securities owned by such Holder and, in the case of the Registration Statement
referred to in Section 2(a)(i), each letter written by or on behalf of the
Company to the SEC or the staff of

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the SEC, and each item of correspondence from the SEC or the staff of the SEC,
in each case relating to such Registration Statement (other than any portion of
any thereof which contains information for which the Company has sought
confidential treatment). The Company will immediately notify each Investor by
facsimile of the effectiveness of the Registration Statement or any
post-effective amendment. The Company will promptly respond to any and all
comments received from the SEC, with a view towards causing any Registration
Statement or any amendment thereto to be declared effective by the SEC as soon
as practicable and shall promptly file an acceleration request as soon as
practicable following the resolution or clearance of all SEC comments or, if
applicable, following notification by the SEC that the Registration Statement or
any amendment thereto will not be subject to review.

                      (iv) (a) Register and qualify, or obtain an appropriate
exemption from registration or qualification, the securities covered by such
Registration Statement under such other securities or "Blue Sky" laws of such
jurisdictions as shall be reasonably requested by each Holder (b) prepare and
file in those jurisdictions such supplements (including post-effective
amendments) and supplements to such registrations and qualifications as may be
necessary to maintain the effectiveness thereof, (c) take such other actions as
may be necessary to maintain such registrations and qualifications in effect at
all times, and (iv) take all other actions reasonably necessary or advisable to
qualify the Registrable Securities for sale in such jurisdictions; PROVIDED that
the Company shall not be required in connection therewith or as a condition
thereto to qualify to do business or to file a general consent to service of
process in any such states or jurisdictions, and shall not be required to
register or qualify in any jurisdiction where such registration or qualification
is not permitted or approved by such jurisdiction following the Company's Best
Efforts to obtain such permission or approval.

                      (v) Notify each Holder immediately of the happening of any
event as a result of which the prospectus (including any supplements thereto or
thereof) included in such Registration Statement, as then in effect, includes an
untrue statement of material fact or omits to state a material fact required to
be stated therein or necessary to make the statements therein not misleading in
light of the circumstances then existing, and use its Best Efforts to promptly
update and/or correct such prospectus to correct such untrue statement or
omission, and deliver such number of copies of such supplement or amendment to
each Holder as such Holder may reasonably request.

                      (vi) Notify each Holder immediately of the issuance by the
Commission or any state securities commission or agency of any stop order
suspending the effectiveness of the Registration Statement or the initiation of
any proceedings for that purpose. The Company shall take all reasonable actions
necessary to prevent the issuance of any stop order and, if any stop order is
issued, to obtain the lifting thereof at the earliest possible time.

                      (vii) Permit a single firm of counsel, designated as
Holders' counsel by a majority-in-interest of the Registrable Securities
included in the Registration Statement, to review the Registration Statement and
all amendments and supplements thereto within a reasonable period of time prior
to each filing, and shall not file any document in a form to which such counsel
reasonably objects and will not request acceleration of the Registration
Statement without prior notice to such counsel. The sections of the Registration
Statement covering information with respect to the Investors, the Investor's
beneficial ownership of securities of the Company or the

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Investors' intended method of disposition of Registrable Securities shall,
subject to applicable requirements of the Securities Act and SEC rules
thereunder, conform to the information provided to the Company by each of the
Investors.

                      (viii) List the Registrable Securities covered by such
Registration Statement with all securities exchange(s) and/or markets on which
the Common Stock is then listed and prepare and file any required filings with
the National Association of Securities Dealers, Inc. or any exchange or market
where the shares of Common Stock are traded.

                      (ix) If applicable, take all steps necessary to enable
Holders to avail themselves of the prospectus delivery mechanism set forth in
Rule 153 (or successor thereto) under the Act.

                      (x) The Company shall hold in confidence and not make any
disclosure of information concerning an Investor provided to the Company unless
(a) disclosure of such information is necessary to comply with federal or state
securities laws, (b) the disclosure of such information is necessary to avoid or
correct a misstatement or omission in any Registration Statement, (c) the
release of such information is ordered pursuant to a subpoena or other order
from a court or governmental body of competent jurisdiction, or (d) such
information has been made generally available to the public other than by
disclosure in violation of this or any other agreement. The Company agrees that
it shall, upon learning that disclosure of such information concerning an
Investor is sought in or by a court of governmental body of competent
jurisdiction or through other means, give prompt notice to such Investor prior
to making such disclosure, and allow the Investor, at its expense, to undertake
appropriate action to prevent disclosure of, or obtain a protective order for,
such information.

                      (xi) The Company shall provide a transfer agent and
registrar, which may be a single entity, for the Registrable Securities not
later than the effective date of the Registration Statement.

                      (xii) The Company shall cooperate with the Investors who
hold Registrable Securities being offered and the managing underwriter or
underwriters, if any, to facilitate the timely preparation and delivery of
certificates (not bearing any restrictive legends with respect to
transferability) representing Registrable Securities to be offered pursuant to
the Registration Statement and enable such certificates to be in such
denominations or amounts, as the case may be, as the managing underwriter or
underwriters, if any, or the Investors may reasonably request and registered in
such names as the managing underwriter or underwriters, if any, or the Investors
may request, and, within three (3) Trading Days after a Registration Statement
which includes Registrable Securities is ordered effective by the SEC, the
Company shall deliver, and shall cause legal counsel selected by the Company to
deliver, to the transfer agent for the Registrable Securities (with copies to
the Investors whose Registrable Securities are included in such Registration
Statement) an instruction in the form attached hereto as EXHIBIT 1 and an
opinion of such counsel in the form attached hereto as EXHIBIT 2.

                      (xiii) At the reasonable request of the holders of a
majority-in-interest of the Registrable Securities, the Company shall prepare
and file with the SEC such amendments (including post-effective amendments) and
supplements to a Registration Statement and the

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prospectus used in connection with the Registration Statement as may be
necessary in order to change the plan of distribution set forth in such
Registration Statement.

                      (xiv) From and after the date of this Agreement, the
Company shall not, and shall not agree to, allow the holders of any securities
of the Company to include any of their securities in any Registration Statement
under Section 2(a) hereof or any amendment or supplement thereto under Section
3(b) hereof without the consent of the holders of a majority-in-interest of the
Registrable Securities.

                      (xv) The Company shall take all other reasonable actions
necessary to expedite and facilitate disposition by the Investors of Registrable
Securities pursuant to the Registration Statement.

                  (b) Set forth below in this Section 2(b) are (i) events that
may arise that the Investors consider will interfere with the full enjoyment of
their rights under the Articles of Amendment, the Purchase Agreement and this
Agreement (the "Interfering Events"), and (ii) certain remedies applicable in
each of these events.

                      Paragraphs (i) through (iv) of this Section 2(b) describe
the Interfering Events, provide a remedy to the Investors if an Interfering
Event occurs and provide that the Investors may require that the Company redeem
outstanding shares of Series C Preferred Stock at a specified price if certain
Interfering Events are not timely cured.

                      Paragraph (v) provides, INTER ALIA, that if cash payments
required as the remedy in the case of certain of the Interfering Events are not
paid when due, the Company may be required by the Investors to redeem
outstanding shares of Series C Preferred Stock at a specified price.

                      Paragraph (vi) provides, INTER ALIA, that the Investors
have the right to specific performance.

                      The preceding paragraphs in this Section 2(b) are meant to
serve only as an introduction to this Section 2(b), are for convenience only,
and are not to be considered in applying, construing or interpreting this
Section 2(b).

                      (i) DELAY IN EFFECTIVENESS OF REGISTRATION STATEMENT. The
Company agrees that it shall file the Registration Statement complying with the
requirements of this Agreement as expeditiously as possible following the date
of the closing of the Purchase Agreement (the "Closing Date") and shall use its
Best Efforts to cause such Registration Statement to become effective on or
before the Registration Deadline. In the event the Registration Statement has
not been declared effective by the Commission on or before the Registration
Deadline, then the Conversion Price shall be reduced by 10% on the day following
the Registration Deadline and shall be further reduced by an additional 1% on
the last day of each successive 30-day period after the Registration Deadline
until the Registration Statement has been declared effective. For example, if
the Registration Statement does not become effective until 70 days from the
Registration Deadline, the Conversion Price during days 1 through 30 shall be
equal to 90% of the Conversion Price in effect on the Registration Deadline (the
"first Conversion Price"). The Conversion Price from day 31 through day 60 shall
be equal

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to 89% of the first Conversion Price; and from day 61 and thereafter the
Conversion Price shall be equal to 88% of the first Conversion Price. In each
case, the Conversion Price shall be subject to further adjustment as set forth
in the Articles of Amendment.

                      (ii) NO LISTING; PREMIUM PRICE REDEMPTION FOR DELISTING OF
CLASS OF SHARES. In the event that shares of Common Stock of the Company are
delisted from the Nasdaq National Market (or any other Approved Market where
they are currently listed) at any time following the Closing Date and remain
delisted for more than the Suspension Grace Period, then at the option of each
Holder and to the extent such Holder so elects, the Company shall redeem the
Series C Preferred Stock and/or Registrable Securities held by such Holder, in
whole or in part, in accordance with Sections 4(b), 4(d)(iii) and 4(f) of the
Articles of Amendment; PROVIDED, HOWEVER, that the delisting of the Common Stock
from one Approved Market concurrently with the listing of the Common Stock on
another Approved Market shall not provide a Holder with the right to redeem
Series C Preferred Stock and/or Registrable Securities under this paragraph.

                      (iii) BLACKOUT PERIODS. At any time after the effective
date of the Registration Statement, in the event that the effectiveness of the
Registration Statement is suspended for more than the Suspension Grace Period,
including without limitation by reason of any suspension or stop order with
respect to the Registration Statement or the fact that an event has occurred as
a result of which the prospectus (including any supplements thereto) included in
such Registration Statement then in effect includes an untrue statement of
material fact or omits to state a material fact required to be stated therein or
necessary to make the statements therein not misleading in light of the
circumstances then existing, then the Company shall pay in cash to each Holder
an amount equal to three percent (3%) of the Liquidation Value for the Series C
Preferred Stock held by such Holder for each 30-day period (prorated for any
partial period) from and after the expiration of the Suspension Grace Period. At
any time after the fifth (5th) Trading Day following the expiration of the
Suspension Grace Period, a Holder shall have the right to have the Company
redeem its Series C Preferred Stock and/or Registrable Securities, in whole or
in part, as follows: (I) in the case of Series C Preferred Stock, such shares
shall be redeemable at a price per share equal to the Triggering Event
Redemption Price and in accordance with Sections 4(b), 4(d)(ii) and 4(f) of the
Articles of Amendment; and (II) in the case of Registrable Securities, such
shares shall be redeemed in accordance with the procedures in Section 4(f) of
the Articles of Amendment at a redemption price (the "Premium Redemption Price")
equal to the greater of (1) 1.2 times the dollar amount that is the product of
(x) the number of shares so to be redeemed pursuant to this clause, and (y) the
Conversion Price as of the date of delivery of the Notice of Redemption (as
defined in Section 3(b) of the Articles of Amendment), or (2) the Conversion
Benefit (as defined in Section 4(b) of the Articles of Amendment).

                      (iv) CONVERSION DEFICIENCY; PREMIUM PRICE REDEMPTION FOR
CONVERSION DEFICIENCY. In the event that the Company does not have a sufficient
number of shares of Common Stock registered for resale under the Registration
Statement (or which are exempt from the registration requirements under Act
pursuant to Rule 144(k) under the Act) available to satisfy the Company's
obligations to any Holder upon receipt of a Conversion Notice (as defined in the
Articles of Amendment) or Subscription Notice (as defined in the Warrant) or is
otherwise unable or unwilling to issue such shares of Common Stock (including
without limitation by reason of the limit described in Section 10 below) in
accordance with the terms of the Articles of Amendment for any reason after
receipt of a Conversion Notice (each, a "Conversion Deficiency") then:

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                          (A) The Company shall pay in cash to each Holder an
amount equal to three percent (3%) of the Liquidation Value for the Series C
Preferred Stock held by such Holder for each 30-day period (or portion thereof)
that the Company fails or refuses to issue Common Shares in accordance with the
terms of the Articles of Amendment; and

                          (B) At any time five (5) days after the commencement
of the running of the first 30-day period described above in clause (A) of this
paragraph (iv), each Holder, at such Holder's option by delivery to the Company
of a Notice of Redemption, shall: (I) in the case of a Conversion Deficiency
with respect to a Conversion Notice, have the right to have the Company either
(1) redeem from such Holder (i) the number shares of Series C Preferred Stock
equal to such Holder's pro rata share of the Deficiency (as defined below) at a
purchase price equal to the Triggering Event Redemption Price as of that
Conversion Date (if the failure to issue Common Shares results from the lack of
a sufficient number thereof), or (ii) all (or such portion as such Holder may
elect) of such Holder's shares of Series C Preferred Stock (if the failure to
issue Common Shares results from any other cause); and (II) in the case of a
Conversion Deficiency with respect to a Subscription Notice, pay such Holder an
amount in cash equal to the product of (1) the Deficiency and (2) the difference
between the "fair market value" (as defined in the Warrant and Secondary
Warrants) as of the Trading Day next immediately preceding the date of exercise
of the Warrant or Secondary Warrants, as applicable, and the Purchase Price (as
defined in the Warrant and Secondary Warrants). With respect to any Conversion
Deficiency relating to a Conversion Notice, the "Deficiency" shall be equal to
the number of Common Shares required to be issued upon receipt of a Conversion
Notice if all outstanding shares of Series C Preferred Stock eligible for
conversion were submitted for conversion at the Conversion Price as provided in
the Articles of Amendment as of the date the Deficiency is determined, less the
number of Common Shares available for issuance upon receipt of such Conversion
Notice. With respect to any Conversion Deficiency relating to a Subscription
Notice, the "Deficiency" shall be equal to the number of shares of Common Stock
required to be issued upon receipt of a Subscription Notice if all outstanding
Warrants or Secondary Warrants, as applicable, eligible for exercise were
exercised at the Purchase Price as of the date the Deficiency is determined,
less the number of shares of Common Stock available for issuance upon receipt of
such Subscription Notice. Any request by a Holder pursuant to this paragraph
(iv)(B) shall be revocable by that Holder at any time prior to redemption of
such shares of Series C Preferred Stock.

                      (v) PREMIUM PRICE REDEMPTION FOR CASH PAYMENT DEFAULTS.

                          (A) The Company acknowledges that any failure, refusal
or inability by the Company described in the foregoing paragraphs (i) through
(iv) will cause the Holders to suffer damages in an amount that will be
difficult to ascertain, including without limitation damages resulting from the
loss of liquidity in the Registrable Securities and the additional investment
risk in holding the Registrable Securities. Accordingly, the parties agree that
it is appropriate to include in this Agreement the foregoing provisions for
default payments, discounts and mandatory redemptions in order to compensate the
Holders for such damages. The parties acknowledge and agree that the default
payments, discounts and mandatory redemptions set forth above represent the
parties' good faith effort to quantify such damages and, as such, agree that the
form and amount of such default payments, discounts and mandatory redemptions
are reasonable and will not constitute a penalty.

                                      -10-
<PAGE>

                          (B) Each default payment provided for in the foregoing
paragraphs (ii) through (iv) shall be in addition to each other default payment.
All default payments (which payments shall be pro rata on a per diem basis for
any period of less than thirty (30) days) required to be made in connection with
the above provisions shall be paid in cash at any time upon demand, and whether
or not a demand is made, by the tenth (10th) day of each calendar month for each
partial or full 30-day period occurring prior to that date.

                          (C) In accordance with Section 3(e)(iv) of the
Articles of Amendment, in the event that the Company fails or refuses to pay any
default payment or honor any penalty or similar amounts when due, at any
Holder's option and request by delivery of a Notice of Redemption the Company
shall purchase all or a portion of the Series C Preferred Stock and/or
Registrable Securities held by such Holder (with any default payment penalty or
similar amounts accruing through the date of such purchase), within five (5)
Trading Days of such request, at a purchase price equal to the Premium
Redemption Price (as defined above); PROVIDED that such Holder may revoke such
request at any time prior to receipt of such payment of such purchase price.
Until such time as the Company purchases such Series C Preferred Stock at the
request of such Holder pursuant to the preceding sentence, at any Holder's
request and option the Company shall as to such Holder pay such amount by adding
and including the amount of such default payment to the Conversion Amount and
the Liquidation Value instead of in cash.

                      (vi) CUMULATIVE REMEDIES. The default payments and
mandatory redemptions provided for above are in addition to and not in lieu or
limitation of any other rights the Holders may have at law, in equity, including
without limitation the right to specific performance. Each Holder shall be
entitled to specific performance of any and all obligations of the Company in
connection with the registration rights of the Holders hereunder. The parties
hereto agree that default payments and mandatory redemptions applicable under
the circumstances and conditions specified in this Agreement shall be
complementary to, and not cumulative with, any substantially identical default
payments and mandatory redemptions applicable under the same such circumstances
and conditions by the terms of the Articles of Amendment.

                      (vii) DEFERRAL OF MATURITY DATE. In the event of a failure
of Effective Registration, including without limitation by reason of any of the
circumstances described in the foregoing clauses (i) through (iv) above, then
the Maturity Date (as defined in the Articles of Amendment) shall be deferred by
1.5 days for each day that any of the circumstances in clauses (i), (ii), (iii)
(without regard to the applicability of the Suspension Grace Period), or (iv)
exist.

                  (c) Subject to Section 2(b) above, the Company may suspend the
use of any prospectus used in connection with the Registration Statement only in
the event, and for such period of time as, such a suspension is required by the
rules and regulations of the Commission. The Company will use its Best Efforts
to cause such suspension to terminate at the earliest possible date.

                  (d) The Company shall file a Registration Statement with
respect to any newly authorized and/or reserved shares, if necessary to fulfill
its obligations under this Agreement within five (5) Trading Days of any
shareholders meeting authorizing same and shall use its Best Efforts to cause
such Registration Statement to become effective within sixty (60) days of such
shareholders meeting. If the Holders become entitled, pursuant to an event
described in clause (iii) of the definition of Registrable Securities, to
receive any securities in respect of Registrable Securities that

                                      -11-
<PAGE>

were already included in a Registration Statement, subsequent to the date such
Registration Statement is declared effective, and the Company is unable under
the securities laws to add such securities to the then effective Registration
Statement, the Company shall promptly file, in accordance with the procedures
set forth herein, an additional Registration Statement with respect to such
newly Registrable Securities. The Company shall use its Best Efforts to (i)
cause any such additional Registration Statement, when filed, to become
effective under the Securities Act, and (ii) keep such additional Registration
Statement effective during the period described in Section 5 below. All of the
registration rights and remedies under this Agreement shall apply to the
registration of such newly reserved shares and such new Registrable Securities,
including without limitation the provisions providing for default payments
contained herein.

                  (e) If the Holder(s) intend to distribute the Registrable
Securities by means of an underwriting, the Holder(s) shall so advise the
Company. Any such underwriting may only be administered by investment bankers
reasonably satisfactory to the Company. The Company shall only be obligated to
permit one underwritten offering, which offering shall be determined by a
majority-in-interest of the Holders.

                  (f) In the event of an underwriting pursuant to Section 2(e),
the Company shall enter into such customary agreements for a secondary offering
and take all such other reasonable actions reasonably requested by the Holders
in connection therewith in order to expedite or facilitate the disposition of
such Registrable Securities and in such connection, whether or not an
underwriting agreement is entered into and whether or not the Registrable
Securities are to be sold in an underwritten offering:

                      (i) make such representations and warranties to the
Holders and the underwriter or underwriters, if any, in form, substance and
scope as are customarily made by issuers to underwriters in secondary offerings;

                      (ii) use its Best Efforts to cause to be delivered to the
sellers of Registrable Securities and the underwriter or underwriters, if any,
opinions of independent counsel to the Company, on and dated as of the effective
day (or in the case of an underwritten offering, dated the date of delivery of
any Registrable Securities sold pursuant thereto) of the Registration Statement,
and within 90 days following the end of each fiscal year thereafter, which
counsel and opinions (in form, scope and substance) shall be reasonably
satisfactory to the Holders and the underwriter(s), if any, and their counsel
and covering, without limitation, such matters as the due authorization and
issuance of the securities being registered and compliance with securities laws
by the Company in connection with the authorization, issuance and registration
thereof and other matters that are customarily given to underwriters in
underwritten offerings, addressed to the Holders and each underwriter, if any;

                      (iii) cause to be delivered, immediately prior to the
effectiveness of the Registration Statement (and, in the case of an underwritten
offering, at the time of delivery of any Registrable Securities sold pursuant
thereto), and at the beginning of each fiscal year following a year during which
the Company's independent certified public accountants shall have reviewed any
of the Company's books or records, a "comfort" letter and updates thereof from
the Company's independent certified public accountants addressed to the Holders
and each underwriter, if any, stating that such accountants are independent
public accountants within the

                                      -12-
<PAGE>

meaning of the Securities Act and the applicable published rules and regulations
thereunder, and otherwise in customary form and covering such financial and
accounting matters as are customarily covered by letters of the independent
certified public accountants delivered in connection with secondary offerings,
and each such letter and update thereof, if any, shall be reasonably
satisfactory to the Holders;

                      (iv) if an underwriting agreement is entered into, the
same shall include customary indemnification and contribution provisions to and
from the underwriters and procedures for secondary underwritten offerings;

                      (v) deliver such documents and certificates as may be
reasonably requested by the Holders of the Registrable Securities being sold or
the managing underwriter or underwriters, if any, to evidence compliance with
clause (i) above and with any customary conditions contained in the underwriting
agreement, if any; and

                      (vi) deliver to the Holders on the effective day (or in
the case of an underwritten offering, dated the date of delivery of any
Registrable Securities sold pursuant thereto) of the Registration Statement, and
at the beginning of each fiscal quarter thereafter, a certificate in form and
substance as shall be reasonably satisfactory to the Holders, executed by an
executive officer of the Company and to the effect that all the representations
and warranties of the Company contained in the Purchase Agreement are still true
and correct except as disclosed in such certificate; the Company shall, as to
each such certificate delivered at the beginning of each fiscal quarter, update
or cause to be updated each such certificate during such quarter so that it
shall remain current, complete and correct throughout such quarter; and such
updates received by the Holders during such quarter, if any, shall have been
reasonably satisfactory to the Holders.

         3. EXPENSES OF REGISTRATION. All Registration Expenses incurred in
connection with any registration, qualification or compliance with registration
pursuant to this Agreement shall be borne by the Company, and all Selling
Expenses of a Holder shall be borne by such Holder.

         4. REGISTRATION ON FORM S-3. The Company shall seek to qualify or
continue to qualify for registration on Form S-3 or any comparable or successor
form or forms, or in the event that the Company is ineligible to use such form,
such form as the Company is eligible to use under the Securities Act.

         5. REGISTRATION PERIOD. In the case of the registration effected by the
Company pursuant to this Agreement, the Company will use its Best Efforts to
keep such registration effective until all the Holders have completed the sales
or distribution described in the Registration Statement relating thereto or, if
earlier, until such Registrable Securities may be sold under Rule 144(k)
(PROVIDED that the Company's transfer agent has accepted an instruction from the
Company to such effect).

         6. INDEMNIFICATION.

            (a) THE COMPANY INDEMNITY. The Company will indemnify each Holder,
each of its officers, directors and partners, and each person controlling each
Holder, within the meaning of Section 15 of the Securities Act and the rules and
regulations thereunder with respect to which

                                      -13-
<PAGE>

registration, qualification or compliance has been effected pursuant to this
Agreement, and each underwriter, if any, and each person who controls, within
the meaning of Section 15 of the Securities Act and the rules and regulations
thereunder, any underwriter, against all claims, losses, damages and liabilities
(or actions in respect thereof) arising out of or based on any untrue statement
(or alleged untrue statement) of a material fact contained in any prospectus,
offering circular or other document (including any related registration
statement, notification or the like) incident to any such registration,
qualification or compliance, or based on any omission (or alleged omission) to
state therein a material fact required to be stated therein or necessary to make
the statements therein not misleading, or any violation by the Company of the
Securities Act or any state securities law or in either case, any rule or
regulation thereunder applicable to the Company and relating to action or
inaction required of the Company in connection with any such registration,
qualification or compliance, and will reimburse each Holder, each of its
officers, directors and partners, and each person controlling such Holder, each
such underwriter and each person who controls any such underwriter, for any
legal and any other expenses reasonably incurred in connection with
investigating and defending any such claim, loss, damage, liability or action,
PROVIDED that the Company will not be liable in any such case to a Holder to the
extent that any such claim, loss, damage, liability or expense arises out of or
is based on any untrue statement or omission based upon written information
furnished to the Company by such Holder or the underwriter (if any) therefor and
stated to be specifically for use therein. The indemnity agreement contained in
this Section 6(a) shall not apply to amounts paid in settlement of any such
loss, claim, damage, liability or action if such settlement is effected without
the consent of the Company (which consent will not be unreasonably withheld).

            (b) HOLDER INDEMNITY. Each Holder will, severally and not jointly,
if Registrable Securities held by it are included in the securities as to which
such registration, qualification or compliance is being effected, indemnify the
Company, each of its directors, officers, partners, and each underwriter, if
any, of the Company's securities covered by such a registration statement, each
person who controls the Company or such underwriter within the meaning of
Section 15 of the Securities Act and the rules and regulations thereunder, each
other Holder (if any), and each of their officers, directors and partners, and
each person controlling such other Holder(s) against all claims, losses, damages
and liabilities (or actions in respect thereof) arising out of or based on any
untrue statement (or alleged untrue statement) of a material fact contained in
any such registration statement, prospectus, offering circular or other
document, or any omission (or alleged omission) to state therein a material fact
required to be stated therein or necessary to make the statement therein not
misleading, and will reimburse the Company and such other Holder(s) and their
directors, officers and partners, underwriters or control persons for any legal
or any other expenses reasonably incurred in connection with investigating and
defending any such claim, loss, damage, liability or action, in each case to the
extent, but only to the extent, that such untrue statement (or alleged untrue
statement) or omission (or alleged omission) is made in such registration
statement, prospectus, offering circular or other document in reliance upon and
in conformity with written information furnished to the Company by such Holder
and stated to be specifically for use therein, and PROVIDED that the maximum
amount for which such Holder shall be liable under this indemnity shall not
exceed the net proceeds received by such Holder from the sale of the Registrable
Securities. The indemnity agreement contained in this Section 6(b) shall not
apply to amounts paid in settlement of any such claims, losses, damages or
liabilities if such settlement is effected without the consent of such Holder
(which consent shall not be unreasonably withheld).

                                      -14-
<PAGE>

            (c) PROCEDURE. Each party entitled to indemnification under this
Article (the "Indemnified Party") shall give notice to the party required to
provide indemnification (the "Indemnifying Party") promptly after such
Indemnified Party has actual knowledge of any claim as to which indemnity may be
sought, and shall permit the Indemnifying Party to assume the defense of any
such claim in any litigation resulting therefrom, PROVIDED that counsel for the
Indemnifying Party, who shall conduct the defense of such claim or any
litigation resulting therefrom, shall be approved by the Indemnified Party
(whose approval shall not be unreasonably withheld), and the Indemnified Party
may participate in such defense at such party's expense, and PROVIDED, FURTHER,
that the failure of any Indemnified Party to give notice as provided herein
shall not relieve the Indemnifying Party of its obligations under this Article
except to the extent that the Indemnifying Party is materially and adversely
affected by such failure to provide notice. No Indemnifying Party, in the
defense of any such claim or litigation, shall, except with the consent of each
Indemnified Party, consent to entry of any judgment or enter into any settlement
which does not include as an unconditional term thereof the giving by the
claimant or plaintiff to such Indemnified Party of a release from all liability
in respect to such claim or litigation. Each Indemnified Party shall furnish
such information regarding itself or the claim in question as an Indemnifying
Party may reasonably request in writing and as shall be reasonably required in
connection with the defense of such claim and litigation resulting therefrom.

         7. CONTRIBUTION. If the indemnification provided for in Section 6
herein is unavailable to the Indemnified Parties in respect of any losses,
claims, damages or liabilities referred to herein (other than by reason of the
exceptions provided therein), then each such Indemnifying Party, in lieu of
indemnifying such Indemnified Party, shall contribute to the amount paid or
payable by such Indemnified Party as a result of such losses, claims, damages or
liabilities as between the Company on the one hand and any Holder on the other,
in such proportion as is appropriate to reflect the relative fault of the
Company and of such Holder in connection with the statements or omissions which
resulted in such losses, claims, damages or liabilities, as well as any other
relevant equitable considerations. The relative fault of the Company on the one
hand and of any Holder on the other shall be determined by reference to, among
other things, whether the untrue or alleged untrue statement of a material fact
or omission or alleged omission to state a material fact relates to information
supplied by the Company or by such Holder.

            In no event shall the obligation of any Indemnifying Party to
contribute under this Section 7 exceed the amount that such Indemnifying Party
would have been obligated to pay by way of indemnification if the
indemnification provided for under Section 6(a) or 6(b) hereof had been
available under the circumstances.

            The Company and the Holders agree that it would not be just and
equitable if contribution pursuant to this Section 7 were determined by PRO RATA
allocation (even if the Holders or the underwriters were treated as one entity
for such purpose) or by any other method of allocation which does not take
account of the equitable considerations referred to in the immediately preceding
paragraphs. The amount paid or payable by an Indemnified Party as a result of
the losses, claims, damages and liabilities referred to in the immediately
preceding paragraphs shall be deemed to include, subject to the limitations set
forth above, any legal or other expenses reasonably incurred by such Indemnified
Party in connection with investigating or defending any such action or claim.
Notwithstanding the provisions of this section, no Holder or underwriter shall
be required to contribute any amount in excess of the amount by which (i) in the
case of any Holder, the net

                                      -15-
<PAGE>

proceeds received by such Holder from the sale of Registrable Securities or (ii)
in the case of an underwriter, the total price at which the Registrable
Securities purchased by it and distributed to the public were offered to the
public exceeds, in any such case, the amount of any damages that such Holder or
underwriter has otherwise been required to pay by reason of such untrue or
alleged untrue statement or omission or alleged omission. No person liable for
or guilty of fraudulent misrepresentation (within the meaning of Section 11(f)
of the Securities Act) shall be entitled to contribution from any person who was
not liable for or guilty of such fraudulent misrepresentation.

         8. SURVIVAL. The indemnity and contribution agreements contained in
Sections 6 and 7 shall remain operative and in full force and effect regardless
of (i) any termination of this Agreement or the Purchase Agreement or any
underwriting agreement, (ii) any investigation made by or on behalf of any
Indemnified Party or by or on behalf of the Company, and (iii) the consummation
of the sale or successive resales of the Registrable Securities.

         9. INFORMATION BY HOLDERS. Each Holder shall furnish to the Company
such information regarding such Holder and the distribution and/or sale proposed
by such Holder as the Company may reasonably request in writing and as shall be
reasonably required in connection with any registration, qualification or
compliance referred to in this Agreement. The intended method or methods of
disposition and/or sale (Plan of Distribution) of such securities as so provided
by such Investor shall be included without alteration in the Registration
Statement covering the Registrable Securities and shall not be changed without
written consent of such Holder or its designated representative.

         10. NASDAQ LIMIT ON STOCK ISSUANCES. Notwithstanding anything to the
contrary herein, the Company shall not be obligated to issue or register with
the SEC any shares of Common Stock to the extent that such issuance or
registration is prohibited by any rule, regulation or policy of Nasdaq or any
exchange or market upon which the Common Stock may be traded.

         11. REPLACEMENT CERTIFICATES. The certificate(s) representing the
Common Shares or Warrant Shares held by any Investor (or then Holder) may be
exchanged by such Investor (or such Holder) at any time and from time to time
for certificates with different denominations representing an equal aggregate
number of Common Shares or Warrant Shares, as reasonably requested by such
Investor (or such Holder) upon surrendering the same. No service charge will be
made for such registration or transfer or exchange.

         12. TRANSFER OR ASSIGNMENT. Except as otherwise provided herein, this
Agreement shall be binding upon and inure to the benefit of the parties and
their successors and permitted assigns. The rights granted to the Investors by
the Company under this Agreement to cause the Company to register Registrable
Securities may be transferred or assigned (in whole or in part) to a transferee
or assignee of Series C Preferred Stock or Warrants which transfer has been
effected in compliance with the Articles of Amendment and Warrants, and all
other rights granted to the Investors by the Company hereunder may be
transferred or assigned to any transferee or assignee of any Series C Preferred
Stock or Warrants; PROVIDED that in each case that the Company must be given
written notice by the such Investor at the time of or within a reasonable time
after said transfer or assignment, stating the name and address of said
transferee or assignee and identifying the securities with respect to which such
registration rights are being transferred or assigned; and PROVIDED,

                                      -16-
<PAGE>

FURTHER, that the transferee or assignee of such rights agrees in writing to be
bound by the registration provisions of this Agreement.

         13. MISCELLANEOUS.

             (a) REMEDIES. The Company and the Investors 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, this being in addition to any other remedy to which any of
them may be entitled by law or equity.

             (b) JURISDICTION. THE COMPANY AND EACH OF THE INVESTORS (I) HEREBY
IRREVOCABLY SUBMITS TO THE EXCLUSIVE JURISDICTION OF THE UNITED STATES DISTRICT
COURT, THE NEW YORK STATE COURTS AND OTHER COURTS OF THE UNITED STATES SITTING
IN NEW YORK COUNTY, 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. THE COMPANY AND EACH OF THE INVESTORS 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 PARAGRAPH SHALL AFFECT OR
LIMIT ANY RIGHT TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW.

             (c) NOTICES. Any notice or other communication required or
permitted to be given hereunder shall be in writing by facsimile, mail or
personal delivery and shall be effective upon actual receipt of such notice. The
addresses for such communications shall be:

                 to the Company:

                    Able Telcom Holding Corp.
                    1000 Holcomb Woods Parkway
                    Suite 440
                    Roswell, Georgia 30076
                    Facsimile:  (770) 993-8703
                    Attention:  Billy V. Ray
                                President and Chief Executive Officer

                 with copies to:

                    Paul, Hastings, Janofsky & Walker LLP
                    600 Peachtree Street, N.E.
                    Suite 2400
                    Atlanta, Georgia 30308
                    Facsimile:  (404) 815-2424
                    Attention:  Wayne H. Shortridge, Esq.

                                      -17-
<PAGE>

                 to the Investors:

                    The Palladin Group, L.P.
                    195 Maplewood Avenue
                    Maplewood, New Jersey  07040
                    Facsimile:  (973) 313-6491
                    Attention:  Robert L. Chender

                 with copies to:

                    Arnold & Porter
                    555 Twelfth Street, N.W.
                    Washington, DC  20004
                    Facsimile:  (202) 942-5999
                    Attention:  L. Stevenson Parker, Esq.

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
parties hereto.

             (d) WAIVERS. No waiver by any 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 provision, 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. The representations and warranties and the agreements and
covenants of the Company and each Investor contained herein shall survive the
Closing.

             (e) EXECUTION. This Agreement may be executed in two or more
counterparts, all of which shall be considered one and the same agreement, it
being understood that all parties need not sign the same counterpart.

             (f) PUBLICITY. The Company agrees that it will not disclose, and
will not include in any public announcement, the name of any Investor without
its consent, unless and until such disclosure is required by law or applicable
regulation, and then only to the extent of such requirement.

             (g) ENTIRE AGREEMENT. This Agreement, together with the Purchase
Agreement, the Articles of Amendment and the Warrants and the agreements and
documents contemplated hereby and thereby, contains the entire understanding and
agreement of the parties, and may not be modified or terminated except by a
written agreement signed by both parties. In the event of a conflict or
inconsistency between this Agreement and any term of the Articles of Amendment,
the Articles of Amendment shall prevail.

                                      -18-
<PAGE>

             (h) GOVERNING LAW; CONSENT OF JURISDICTION. THIS AGREEMENT AND THE
VALIDITY AND PERFORMANCE OF THE TERMS HEREOF SHALL BE GOVERNED BY AND CONSTRUED
AND ENFORCED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK
APPLICABLE TO CONTRACTS EXECUTED AND TO BE PERFORMED ENTIRELY IN SUCH STATE AND,
WHERE APPLICABLE, FEDERAL LAW.

             (i) SEVERABILITY. The parties acknowledge and agree that the
Investors are not agents, affiliates or partners of each other, that all
representations, warranties, covenants and agreements of the Investors hereunder
are several and not joint, that no Investor shall have any responsibility or
liability for the representations, warrants, agreements, acts or omissions of
any other Investor, and that any rights granted to Investors hereunder shall be
enforceable by each Investor hereunder.

             (j) JURY TRIAL. EACH PARTY HERETO WAIVES THE RIGHT TO A TRIAL BY
JURY.

             (k) TITLES. The titles used in this Agreement are used for
convenience only and are not to be considered in construing or interpreting this
Agreement.

             (l) FORCE MAJEURE. The Company shall not be liable for any default
or delay in the performance of its obligations under this Agreement if and only
to the extent such delay or default is caused by Force Majeure (as defined in
the Articles of Amendment); PROVIDED, HOWEVER, that no event of Force Majeure
shall excuse any such default or delay for longer than an aggregate of thirty
(30) days in any calendar year.

                            [SIGNATURE PAGES FOLLOW]

                                      -19-
<PAGE>

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

                            ABLE TELCOM HOLDING CORP.

                            By:
                               -------------------------------------------------
                               Name:
                               Title:

                            INVESTORS:

                            HALIFAX FUND, L.P.

                            By: The Palladin Group, L.P., as
                                Investment Manager

                            By:
                               -------------------------------------------------
                               Name:  Robert L. Chender
                               Title: Managing Director

                            THE GLENEAGLES FUND COMPANY

                            By: The Palladin Group, L.P., as
                                Investment Manager

                            By:
                               -------------------------------------------------
                               Name:  Robert L. Chender
                               Title: Managing Director

                                      -20-
<PAGE>

                            PALLADIN OVERSEAS FUND LIMITED

                            By: The Palladin Group, L.P., as
                                Investment Manager

                            By:
                               -------------------------------------------------
                               Name:  Robert L. Chender
                               Title: Managing Director

                            PALLADIN PARTNERS I, L.P.

                            By: Palladin Asset Management, LLC,
                                as Investment Manager

                            By:
                               -------------------------------------------------
                               Name:
                               Title:

                            LANCER SECURITIES (CAYMAN) LIMITED

                            By: The Palladin Group, L.P., as
                                Investment Manager

                            By:
                               -------------------------------------------------
                               Name:  Robert L. Chender
                               Title: Managing Director

                            PGEP III, LLC

                            By: The Palladin Group, L.P., as
                                Investment Manager

                            By:
                               -------------------------------------------------
                               Name:  Robert L. Chender
                               Title: Managing Director

                                      -21-
<PAGE>

                            QUATTRO FUND LIMITED

                            By: Quattro Investors LP

                            By:
                               -------------------------------------------------
                               Name:  Andrew Kaplan
                               Title: Principal

  [SIGNATURE PAGES TO ABLE TELECOM HOLDING CORP. REGISTRATION RIGHTS AGREEMENT]

                                      -22-
<PAGE>

                                   SCHEDULE 1

                                      -23-
<PAGE>
                                                                EXHIBIT 1

                                                                TO REGISTRATION

                                                                RIGHTS AGREEMENT

                              [Company Letterhead]

                                     [Date]

[Name and address of Transfer Agent]

Ladies and Gentlemen:

         This letter shall serve as our irrevocable authorization and direction
to you (1) to transfer or re-register (or at the holders request to reissue to
the holder thereof without any restrictive legend) the certificates for the
shares of Common Stock, par value $0.001 per share (the "COMMON STOCK"), of Able
Telcom Holding Corp., a Florida corporation (the "COMPANY") represented by
certificate numbers ____ for an aggregate of ____ shares (the "OUTSTANDING
SHARES") of Common Stock presently registered in the name of [Name of Investor]
(the "INVESTOR") (which shares were previously issued pursuant to the Settlement
Agreement dated February , 2000 among the Company and [Name of Investor] and
other parties thereto, or upon conversion of the Preferred Shares (as
hereinafter defined) or exercise of the Warrants (as hereinafter defined)), upon
surrender of such certificates to you, notwithstanding the legend appearing on
such certificates, (2) to issue shares (the "CONVERSION SHARES") of Common Stock
to or upon the order of the registered holder from time to time of shares of
Series C Convertible Preferred Stock of the Company (the "PREFERRED SHARES")
upon surrender to you of a properly completed and duly executed Conversion
Notice notwithstanding the legend appearing on such certificates and (3) to
issue shares (the "WARRANT SHARES") of Common Stock to or upon the order of the
registered holder from time to time of the Warrants of the Company (the
"WARRANTS") upon surrender to you of a properly completed and duly executed
Subscription Notice and such Warrants notwithstanding the legend appearing on
such Warrants. The transfer or re-registration of the certificates for the
Outstanding Shares by you should be made at such time as you are requested to do
so by the record holder of the Outstanding Shares. The certificate issued upon
such transfer or re-registration should be registered in such name as requested
by the holder of record of the certificate surrendered to you and should not
bear any legend which would restrict the transfer of the shares represented
thereby. In addition, you are hereby directed to remove any stop-transfer
instruction relating to the Outstanding Shares. Certificates for the Conversion
Shares and Warrant Shares should not bear any restrictive legend and should not
be subject to any stop-transfer restriction.

                                      -24-
<PAGE>

         Pursuant to applicable securities laws or certain agreements between
the Company and the Investor, the Investor may be prohibited during certain
limited periods of time from selling its Outstanding Shares or other shares of
Common Stock issuable upon conversion of the Preferred Shares and exercise of
the Warrants under the Registration Statement; PROVIDED, HOWEVER, that such
Investor may continue to sell such securities pursuant to an exemption from
registration under the Securities Act of 1933, as amended (the "SECURITIES
ACT"). The Company may, during such periods, deliver a notice to you advising
you to refrain from transferring any Outstanding Shares pursuant to such
Registration Statement, PROVIDED that such notice shall not prohibit the
transfer of such shares pursuant to an exemption from registration under the
Securities Act during such periods.

         Contemporaneous with the delivery of this letter, the Company is
delivering to you a letter of ____________________ as to registration of the
Outstanding Shares and the Conversion Shares under the Securities Act of 1933,
as amended.

         Should you have any questions concerning this matter, please contact
me.

                            Very truly yours,

                            ABLE TELECOM HOLDING CORP.

                            By:
                               -------------------------------------------------
                               Name:
                               Title:

Enclosures:
cc:  [Name of Investor]

                                      -25-
<PAGE>
                                                                EXHIBIT 2

                                                                TO REGISTRATION

                                                                RIGHTS AGREEMENT

                                     [Date]

[Name and address

of Transfer Agent]

         RE:  ABLE TELCOM HOLDING CORP.

Ladies and Gentlemen:

         We are counsel to Able Telcom Holding Corp., a Florida corporation (the
"COMPANY"), and we understand that [Name of Investor] (the "HOLDER") has
purchased from the Company shares of the Company's Series C Convertible
Preferred Stock (the "PREFERRED STOCK") and warrants (the "WARRANTS") that are
convertible or exercisable into the Company's Common Stock, par value $0.001 per
share (the "COMMON STOCK"). The Preferred Stock and Warrants were purchased by
the Holder pursuant to a Preferred Stock Purchase Agreement, dated as of
February , 2000, between the Holder and the Company (the "AGREEMENT") or a
Settlement Agreement between the Holder and the Company. Pursuant to a
Registration Rights Agreement, dated as of February , 2000, between the Company
and the Holder (the "REGISTRATION RIGHTS AGREEMENT"), the Company agreed with
the Holder, among other things, to register the Registrable Securities (as that
term is defined in the Registration Rights Agreement) under the Securities Act
of 1933, as amended (the "SECURITIES ACT"), upon the terms provided in the
Registration Rights Agreement. In connection with the Company's obligations
under the Registration Rights Agreement, on _______, 20 , the Company filed a
Registration Statement on Form S-[ ] (File No. 333-___________) (the
"REGISTRATION STATEMENT") with the Securities and Exchange Commission relating
to the Registrable Securities, which names the Holder as a selling stockholder
thereunder.

         [Other introductory language to be inserted]

         Based on the foregoing, we are of the opinion that the Registrable
Securities have been registered under the Securities Act.

                                      -26-
<PAGE>

                  [Other appropriate language to be included.]

                            Very truly yours,

cc:  [Name of investor]

                                      -27-Exhibit 10.9.1

                          SECURITIES PURCHASE AGREEMENT

         THIS SECURITIES  PURCHASE  AGREEMENT,  dated as of January 26, 2000, is
entered into by and between Max Internet  Communications,  Inc. (the "Company"),
and Boxer Partners LLC, a Delaware limited liability company (the "Purchaser").

                              W I T N E S S E T H:

         WHEREAS,  the Company and the Purchaser  are  executing and  delivering
this Agreement in reliance upon the  exemptions  from  registration  provided by
Regulation  D  ("Regulation  D")  promulgated  by the  Securities  and  Exchange
Commission (the "Commission")  under the Securities Act of 1933, as amended (the
"Securities Act"), or by Section 4(2) of the Securities Act; and

         WHEREAS,  the Purchaser  wishes to purchase,  and the Company wishes to
issue,  upon the terms and subject to the conditions of this Agreement,  727,273
shares of the  Company's  Common  Stock par value  $.0001 per share (the "Common
Stock")  and  warrants  (the  "Warrants")  to  purchase  four  hundred  thousand
(400,000) shares of the Company's common stock, for the aggregate purchase price
of four million dollars ($4,000,000) (the "Purchase Price"). The Warrants may be
exercised for the purchase of Common Stock, on the terms set forth therein; and

         WHEREAS,  the Purchaser has previously loaned to the Company the sum of
two million  dollars  ($2,000,000),  which loan is  represented  by a promissory
note,  dated  January 20,  2000,  issued by the  Company  (the  Note"),  and the
Purchaser  has the right (i) to convert the Note into shares of Common Stock and
the Common Stock issued by the Company upon such  conversion  shall be deemed to
be credited against the issuance of the shares of Common Stock hereunder or (ii)
to have the  principal  and  accrued  interest  under the Note  applied  towards
payment of the Purchase Price.

         NOW,  THEREFORE,  in  consideration  of the  premises  and  the  mutual
covenants  contained  herein  and other  good and  valuable  consideration,  the
receipt and sufficiency of which are hereby  acknowledged,  the parties agree as
follows:

1.       AGREEMENT TO PURCHASE; PURCHASE PRICE

                  a. Purchase of Common Stock and Warrants.  On the Closing Date
(as defined  herein),  the Purchaser  hereby agrees to purchase from the Company
(i) the Common  Stock and (ii) the Warrants to purchase  four  hundred  thousand
(400,000)  shares of Common Stock,  which shall be issued in  substantially  the
form attached  hereto as Exhibit A. The aggregate  purchase price for the Common
Stock,  and the  Warrants  (together,  the  "Securities")  shall be four million
dollars ($4,000,000) and shall be payable in same day funds. The Company and the
Purchaser acknowledge and agree that the Purchaser is applying the principal and
interest accrued under the Note towards payment of the Purchase Price.

<PAGE>

                  b.  Closing.  The  Securities to be purchased by the Purchaser
hereunder,  shall be delivered by or on behalf of the Company for the account of
the Purchaser in definitive  form, and in such  denominations  and registered in
such names as the  Purchaser  or its  representative,  if any,  may request upon
notice to the Company,  against payment by the Purchaser or on its behalf of the
purchase  price  therefor by wire transfer to an account of the Company,  all at
the offices of Cohen Tauber  Spievack & Wagner LLP, 1350 Avenue of the Americas,
26th Floor, New York, New York 10019, at 9:30 a.m., New York time on January 25,
2000, or at such other time and date as the Purchaser or its representative,  if
any, and the Company may agree upon in writing (the "Closing Date").

2.       REPRESENTATIONS AND WARRANTIES OF THE PURCHASER; ACCESS TO INFORMATION;
         INDEPENDENT INVESTIGATION.

                  The  Purchaser  represents  and warrants to, and covenants and
agrees with, the Company as follows:

                  a.  The  Purchaser  and  each  of  its  equity  owners  is (i)
experienced  in making  investments  of the kind described in this Agreement and
the  related  documents,  (ii) able,  by reason of the  business  and  financial
experience of its  management,  to protect its own interests in connection  with
the transactions  described in this Agreement and the related  documents,  (iii)
able to afford the entire loss of its  investment in the  Securities and (iv) an
accredited investor.

                  b.  All  subsequent   offers  and  sales  of  the  Securities,
including,  without  limitation  the Warrants and the Common Stock issuable upon
exercise  the  Warrants,  shall be made  pursuant to an  effective  registration
statement  under the Securities Act or pursuant to an applicable  exemption from
such registration.

                  c. The Purchaser  understands  that the  Securities  are being
offered  and  sold to it in  reliance  upon  exemptions  from  the  registration
requirements of the United States federal  securities laws, and that the Company
is relying upon the truth and accuracy of the  Purchaser's  representations  and
warranties,  and the Purchaser's  compliance  with its  agreements,  each as set
forth herein,  in order to determine the availability of such exemptions and the
eligibility of the Purchaser to acquire the Securities.

                  d.  The  Purchaser:  (i) has  been  provided  with  sufficient
information  with  respect to the  business of the  Company  and such  documents
relating  to the  Company as the  Purchaser  has  requested  and  Purchaser  has
carefully reviewed the same including,  without limitation,  the Company's Proxy
Statement for its 1999 annual meeting of  shareholders,  Form 10KSB for the year
ended June 30,  1999 and Form 10-QSB for the quarter  ended  September  30, 1999
filed with the Securities and Exchange Commission ("the  Commission"),  (ii) has
been provided with such additional  information  with respect to the Company and
its business and financial condition as the Purchaser,  or the Purchaser's agent
or  attorney,  has  requested,  and (iii) has had  access to  management  of the
Company and the opportunity to discuss the information provided by management of
the Company and any questions  that the  Purchaser has had with respect  thereto
have been answered to the full satisfaction of the Purchaser.

                                       2

<PAGE>

                  e. The  Purchaser  has the  requisite  power and  authority to
enter into this Agreement and the registration rights agreement,  dated the date
hereof,  between  the  Company  and  the  Purchaser  (the  "Registration  Rights
Agreement")  attached  hereto as  Exhibit B, and the  transactions  contemplated
hereby and thereby, have been duly and validly authorized by the Purchaser;  and
such  agreements,  when  executed and delivered by each of the Purchaser and the
Company will each be a valid and binding agreement of the Purchaser, enforceable
in accordance with their respective terms, except to the extent that enforcement
of each such agreement may be limited by bankruptcy, insolvency, reorganization,
moratorium,  fraudulent  conveyance  or other  similar  laws now or hereafter in
effect  relating to creditors'  rights  generally  and to general  principles of
equity.

3.       REPRESENTATIONS OF THE COMPANY

                  The Company represents and warrants to the Purchaser that:

                  a. Organization.  The Company is a corporation duly organized,
validly  existing  and in good  standing  under the laws of the State of Nevada.
Each of the Company's  subsidiaries  is a corporation  duly  organized,  validly
existing and in good  standing  under the laws of its  respective  jurisdiction.
Each  of the  Company  and  its  subsidiaries  is duly  qualified  as a  foreign
corporation in all jurisdictions in which the failure to so qualify would have a
material  adverse effect on the Company and its  subsidiaries  taken as a whole.
Schedule  3(a)  lists  all  subsidiaries  of the  Company  and,  except as noted
therein,  all of the outstanding  capital stock of such subsidiaries is owned of
record and beneficially by the Company.

                  b. Capitalization.  On the date hereof, the authorized capital
of the Company  consists of 50,000,000  shares of Common Stock, par value $.0001
per share, of which 15,924,492 are issued and outstanding and 50,000,000  shares
of preferred stock, par value $.0001 per share of which no shares are issued and
outstanding.  Schedule  3(b)  sets  forth  all  of  the  options,  warrants  and
convertible  securities  of  the  Company,  and  any  other  rights  to  acquire
securities of the Company (collectively,  the "Derivative Securities") which are
outstanding on the date hereof, including in each case (i) the name and class of
such Derivative  Securities,  (ii) the issue date of such Derivative Securities,
(iii)  the  number of shares of Common  Stock of the  Company  into  which  such
Derivative Securities are convertible as of the date hereof, (iv) the conversion
or exercise price or prices of such Derivative Securities as of the date hereof,
(v) the expiration  date of any conversion or exercise rights held by the owners
of such Derivative  Securities and (vi) any registration  rights associated with
such Derivative Securities or outstanding Common Stock..

                  c.  Concerning  the Common Stock and the Warrants.  The Common
Stock and the Common Stock  issuable  upon exercise of the Warrants when issued,
shall be duly and validly issued,  fully paid and  non-assessable,  and will not
subject  the holder  thereof  to  personal  liability  by reason of being such a
holder.  There are no preemptive  rights of any  stockholder of the Company,  as
such,  to acquire any of the  Securities,  or the Common  Stock  issuable to the
Purchaser pursuant to the terms of the Securities Purchase Agreement Warrants.

                                       3

<PAGE>

                  d. Reporting Company Status. The Common Stock is registered as
a reporting company under Section 12(g) of the Securities  Exchange Act of 1934,
as amended (the  "Exchange  Act").  The Company has duly filed all materials and
documents  required to be filed  pursuant  to all  reporting  obligations  under
either  Section 13(a) or 15(d) of the Exchange  Act, if any,  prior to the offer
and sale of the  Securities.  The  Common  Stock is listed and traded on the OTC
Bulletin  Board,  and the  Company is not aware of any  pending or  contemplated
action or proceeding of any kind to suspend the trading of the Common Stock.

                  e.  Authorized  Shares.  The Company  has legally  available a
sufficient  number of authorized  and unissued  shares of Common Stock as may be
necessary  to (i)  issue  the  shares of Common  Stock  being  purchased  by the
Purchaser and (ii) effect the exercise of the Warrants.  The Company understands
and  acknowledges  the  potentially  dilutive  effect to the Common Stock of the
issuance  of shares of Common  Stock upon (i)  issuance  of the shares of Common
Stock  purchasable  hereunder  by the  Purchaser  and (ii) the  exercise  of the
Warrants.  The Company further  acknowledges that its obligation to issue shares
of Common Stock (i) purchasable by Purchaser hereunder and (ii) upon exercise of
the Warrants,  is absolute and  unconditional  regardless of the dilutive effect
that such issuance may have on the ownership  interests of other stockholders of
the Company and notwithstanding the commencement of any case under 11 U.S.C. ss.
101 et seq. (the "Bankruptcy  Code").  In the event the Company becomes a debtor
under the  Bankruptcy  Code,  the Company  hereby  waives to the fullest  extent
permitted any rights to relief it may have under 11 U.S.C. ss. 362 in respect of
the exercise of the Warrants. The Company agrees, without cost or expense to the
Purchaser,  to take or  consent to any and all action  necessary  to  effectuate
relief under 11 U.S.C. ss. 362.

                  f. Legality.  The Company has the  requisite  corporate  power
and  authority  to enter into this  Agreement  and to issue and  deliver (i) the
shares of Common Stock  purchasable  hereunder  and the  Warrants,  and (ii) the
Common Stock issuable upon the exercise of the Warrants.

                  g. Transaction  Agreements.  This Agreement,  the Registration
Rights Agreement, and the Warrants (collectively,  the "Primary Documents"), and
the  transactions  contemplated  hereby and thereby,  have been duly and validly
authorized by the Company;  this  Agreement has been duly executed and delivered
by the Company and this Agreement is, and the other Primary Documents, which are
being  executed and delivered by the Company  simultaneously  with the execution
and delivery of this Agreement,  are the legal,  valid and binding  agreement of
the Company,  enforceable in accordance with their respective  terms,  except to
the extent that  enforcement of each of the Primary  Documents may be limited by
bankruptcy,  insolvency,  reorganization,  moratorium,  fraudulent conveyance or
other  similar  laws now or hereafter in effect  relating to  creditors'  rights
generally and to general principles of equity.

                  h.  Non-contravention.  The  execution  and  delivery  of this
Agreement and each of the other Primary  Documents,  and the consummation by the
Company of the other transactions contemplated by this Agreement and each of the
other  Primary  Documents,  does not and will not  conflict  with or result in a
breach by the  Company of any of the terms or  provisions  of, or  constitute  a
default under, the Articles of  Incorporation or By-laws of the Company,  or any
material indenture,  mortgage, deed of trust or other agreement or instrument to
which the Company or any of its  subsidiaries is a party or by which they or any
of their  properties or assets are bound, or any existing  applicable law, rule,
or regulation or any applicable decree, judgment or order of any court or United
States federal or state regulatory  body,  administrative  agency,  or any other
governmental  body having  jurisdiction  over the Company,  or its subsidiaries.
Except as set forth on Schedule  3(h),  neither  the filing of the  registration
statement  required  to be filed by the  Company  pursuant  to the  Registration
Rights  Agreement  nor the offering or sale of the Warrant and if the Warrant is
exercised,  the Common Stock issuable upon such exercise,  as applicable,  gives
rise to any rights,  other than those which have been waived or  satisfied on or
prior to the Closing Date, for or relating to the  registration of any shares of
the Common Stock.

                                       4

<PAGE>

                  i. Approvals.  No  authorization,  approval  or consent of any
court, governmental body, regulatory agency, self-regulatory organization, stock
exchange or market or the stockholders of the Company is required to be obtained
by the Company for the entry into or the  performance  of this Agreement and the
other Primary Documents.

                  j. SEC Filings.  None of the reports or documents filed by the
Company with the Commission (the "SEC  Documents")  contained,  at the time they
were  filed,  any untrue  statement  of a material  fact or omitted to state any
material fact required to be stated therein, or necessary to make the statements
made  therein,  in light of the  circumstances  under which they were made,  not
misleading.

                  k. Stabilization.   Neither  the  Company,  nor  any  of   its
affiliates,  has taken or may take, directly or indirectly,  any action designed
to cause or result in, or which has  constituted  or which might  reasonably  be
expected to constitute,  the  stabilization  or manipulation of the price of the
shares of Common Stock.

                  l.  Absence of Certain  Changes.  Except as  disclosed  in the
Company's  SEC  Documents  and since June 30,  1999,  there has been no material
adverse change nor any material adverse development in the business, properties,
operations, financial condition, prospects, outstanding securities or results of
operations of the Company.

                  m.  Full  Disclosure.  There is no fact  known to the  Company
(other than general economic  conditions known to the public generally) that has
not been  disclosed in writing to the  Purchaser  (i) that could  reasonably  be
expected to have a material  adverse  effect upon the  condition  (financial  or
otherwise)  or the  earnings,  business  affairs,  properties  or  assets of the
Company or (ii) that could  reasonably be expected to  materially  and adversely
affect the ability of the Company to perform  the  obligations  set forth in the
Primary Documents.  The  representations and warranties of the Company set forth
in this Agreement (and the schedules hereto) do not contain any untrue statement
of a material  fact or omit any material fact  necessary to make the  statements
contained herein, in light of the circumstances  under which they were made, not
misleading.

                  n. Title to Properties;  Liens and  Encumbrances.  The Company
has good and marketable title to all of its material properties and assets, both
real and personal,  and has good title to all its leasehold  interests,  in each
case subject only to mortgages, pledges, liens, security interests,  conditional
sale  agreements,  encumbrances  or charges  created in the  ordinary  course of
business.

                                        5

<PAGE>

                  o.  Patents  and Other  Proprietary  Rights.  The  Company has
sufficient  title and  ownership  or holds under valid  license of all  patents,
trademarks,  service marks, trade names, copyrights, trade secrets, information,
proprietary  rights and  processes  necessary for the conduct of its business as
now conducted  and as proposed to be  conducted,  and such business does not and
would not conflict with or constitute an infringement on the rights of others.

                  p. Permits.  The Company has all franchises, permits, licenses
and any  similar  authority  necessary  for the  conduct of its  business as now
conducted,  the lack of which would materially and adversely affect the business
or  financial  condition  of the  Company.  The Company is not in default in any
respect under any of such franchises, permits, licenses or similar authority.

                  q. Absence of Litigation. Except as disclosed in the Company's
SEC Documents,  there is no action, suit,  proceeding,  inquiry or investigation
before or by any court, public board or body pending or, to the knowledge of the
Company or any of its subsidiaries,  threatened against or affecting the Company
or any of its subsidiaries,  in which an unfavorable decision, ruling or finding
would have a material  adverse  effect on the  properties,  business,  condition
(financial   or  other)  or  results  of  operations  of  the  Company  and  its
subsidiaries,  taken as a whole, or the transactions contemplated by the Primary
Documents, or which would adversely affect the validity or enforceability of, or
the authority or ability of the Company to perform its  obligations  under,  the
Primary Documents.

                  r.  No  Default.  Each  of the Company and its subsidiaries is
not in default in the performance or observance of any  obligation,  covenant or
condition  contained  in  any  indenture,  mortgage,  deed  of  trust  or  other
instrument  or  agreement  to which it is a party or by which it or its property
may be bound.

                  s.  Transactions  with Affiliates.  Except as disclosed in the
Company's  public  filings  with  the  Commission,   there  are  no  agreements,
understandings  or  proposed  transactions  between  the  Company and any of its
officers,  directors or affiliates  that, had they existed June 30, 1999,  would
have been  required to be  disclosed  in the  Company's  1999  Annual  Report to
stockholders.

                  t.  Employment  Matters.  The Company is in  compliance in all
material  respects  with all  presently  applicable  provisions  of the Employee
Retirement  Income  Security Act of 1974, as amended,  including the regulations
and published  interpretations  thereunder ("ERISA");  no "reportable event" (as
defined in ERISA) has occurred with respect to any "pension plan" (as defined in
ERISA) for which the  Company  would have any  liability;  the  Company  has not
incurred and does not expect to incur liability under (i) Title IV of ERISA with
respect to  termination  of, or  withdrawal  from,  any  "pension  plan" or (ii)
Sections 412 or 4971 of the Internal Revenue Code of 1986, as amended, including
the regulations and published interpretations  thereunder (the "Code"); and each
"pension  plan" for which the Company would have any liability  that is intended
to be qualified under Section 401(a) of the Code is so qualified in all material
respects and nothing has occurred, whether by action or by failure to act, which
would cause the loss of such qualification.

                                       6

<PAGE>

                  u.  Insurance.  The Company  maintains  property and casualty,
general  liability,  personal  injury and other similar types of insurance  with
financially  sound and  reputable  insurers  that is adequate,  consistent  with
industry standards and the Company's  historical claims experience.  The Company
has not received notice from, and has no knowledge of any threat by, any insurer
(that has issued any insurance  policy to the Company) that such insurer intends
to deny coverage under or cancel,  discontinue or not renew any insurance policy
covering the Company, or any of its subsidiaries, presently in force.

                  v. Taxes.  All applicable tax returns  required to be filed by
the  Company  and each of its  subsidiaries  have  been  prepared  and  filed in
compliance  with all applicable  laws,  or, if not yet filed,  have been granted
extensions of the filing dates which extensions have not expired, and all taxes,
assessments,   fees  and  other  governmental  charges  upon  the  Company,  its
subsidiaries,  or upon any of their respective properties, income or franchises,
shown  in  such  returns  and on  assessments  received  by the  Company  or its
subsidiaries to be due and payable have been paid, or adequate reserves therefor
have been set up if any of such taxes are being  contested in good faith;  or if
any of such tax  returns  have not been filed or if any such taxes have not been
paid or so  reserved  for,  the  failure  to so file or to pay  would not in the
aggregate have a material adverse effect on the business or financial  condition
of the Company and its subsidiaries, taken as a whole.

                  w. Foreign Corrupt  Practices Act. Neither the Company nor any
of its directors, officers or other employees has (i) used any Company funds for
any unlawful contribution,  endorsement,  gift,  entertainment or other unlawful
expense  relating to any  political  activity;  (ii) made any direct or indirect
unlawful payment of Company funds to any foreign or domestic government official
or employee;  (iii)  violated or is in violation of any provision of the Foreign
Corrupt  Practices  Act of 1977,  as  amended;  or (iv) made any bribe,  rebate,
payoff, influence payment,  kickback or other similar payment to any person. The
Company maintains a system of internal accounting controls sufficient to provide
reasonable  assurances  that (i)  transactions  are executed in accordance  with
management's general or specific  authorization;  (ii) transactions are recorded
as necessary to permit  preparation of financial  statements in conformity  with
generally  accepted  accounting  principles and to maintain  accountability  for
assets; (iii) access to assets is permitted only in accordance with management's
general or specific  authorization;  and (iv) the  recorded  accountability  for
assets is compared with existing assets at reasonable  intervals and appropriate
action is taken with respect to any differences.

                  x. Investment  Company  Act.  The Company  is not  conducting,
and does not intend to conduct, its business in a manner which would cause it to
become,  an  "investment  company," as defined in Section 3(a) of the Investment
Company Act of 1940, as amended.

                  y. Agent Fees.  Except for fees payable to  Coleman &  Company
Securities,  Inc. as set forth on Schedule 3(y) hereto, which fees shall be paid
by the Company,  the Company has not incurred any  liability for any finder's or
brokerage fees or agent's  commissions in connection  with the offer and sale of
the transactions contemplated by this Agreement.

                  z. Private  Offering.   Subject   to   the   accuracy  of  the
Purchaser's  representations  and warranties set forth in Section 2 hereof,  the
offer,  sale and issuance of (i) the  Securities  or (ii) the issuance of Common
Stock upon exercise of the Warrant are exempt from the registration requirements
of the  Securities  Act. The Company  agrees that neither the Company nor anyone
acting on its behalf will offer any of the Common Stock or the Warrants,  or any
similar  securities for issuance or sale, or solicit any offer to acquire any of
the same from anyone so as to render the  issuance  and sale of such  securities
subject to the registration  requirements of the Securities Act. The Company has
not  offered  or sold the  Securities  by any form of  general  solicitation  or
general advertising,  as such terms are used in Rule 502(c) under the Securities
Act.

                                       7

<PAGE>

                  aa. Year 2000  Processing.  The  computer  systems used by the
Company and its subsidiaries (the "Systems"), both hardware and software, are in
good working  order.  The Company has taken steps that are  reasonable to ensure
that the occurrence of the year 2000 will not  materially  and adversely  affect
the Systems of the Company, its subsidiaries, or their business, and no material
expenditures in excess of currently  budgeted items will be required in order to
cause such Systems to operate properly  following the change of the year 1999 to
2000.  The Company and its  subsidiaries  have resolved or are in the process of
resolving any issues  discovered as a result of year 2000 inquires or compliance
testing or otherwise known to the Company.

                  bb.  Environmental  Matters.   Neither  the  Company  and  its
subsidiaries,  nor any predecessor in interest nor, to the Company's  knowledge,
after due inquiry,  any other person has ever caused or permitted  any Hazardous
Material (as defined below) to be released, treated or disposed of on, at, under
or within any real  property  owned,  leased or  operated by the Company and its
subsidiaries or any predecessor in interest,  and no such real property has ever
been used  (either by the  Company  and its  subsidiaries,  any  predecessor  in
interest or, to the Company's knowledge, after due inquiry, by any other person)
as a treatment, storage or disposal site for any Hazardous Material. The Company
has no liabilities with respect to Hazardous Materials,  and to the knowledge of
the Company, after due inquiry, no facts or circumstances exist which could give
rise to liabilities  with respect to Hazardous  Materials,  which could have any
reasonable  likelihood of having a material  adverse effect on the Company.  For
purposes of this Agreement  "Hazardous  Materials" shall mean (i) any pollutants
or contaminations, (ii) any asbestos or insulation or other material composed of
or containing asbestos and (iii) any petroleum product and any hazardous,  toxic
or dangerous  waste,  substance or material  defined as such in, or for purposes
of, the Comprehensive  Environmental  Response,  Compensation and Liability Act,
any so-called  "Superfund" or "Superlien" law, or any other applicable  federal,
state, local or other statute, law, ordinance, code, rule, regulation,  order or
decree concerning the protection of human health or the environment or otherwise
regulating,   relating  to,  or  imposing  liability  or  standards  of  conduct
concerning,  any hazardous,  toxic or dangerous waste, substance or material, as
now or at any time hereafter in effect.

                  cc.  Intellectual  Property.  Except  as set  forth in the SEC
Documents,  to the best of the Company's knowledge,  each of the Company and its
subsidiaries  owns or possesses  adequate  rights to use all  material  patents,
patent rights, inventions, trade secrets, know-how,  trademarks,  service marks,
trade names and copyrights  which are described in the SEC Documents;  except as
set forth in the SEC Documents,  the Company has not received any notice of, and
has no knowledge of, any infringement of or conflict with asserted rights of the
Company by others with respect to any patent, patent rights,  inventions,  trade
secrets, know-how,  trademarks, service marks, trade names and copyrights which,
singly or in the aggregate, if the subject of an unfavorable decision, ruling or
finding,  would have a material  adverse  effect on the condition  (financial or
otherwise),  earnings, operations, business of the Company and its subsidiaries,
taken as a whole,  as presently  conducted;  and, except as set forth in the SEC
Documents,  the Company has not received any notice of, and has no knowledge of,
any  infringement of or conflict with the asserted rights of others with respect
to any patent, patent rights, inventions,  trade secrets, know-how,  trademarks,
service marks, trade names and copyrights which, singly or in the aggregate,  if
the subject of an unfavorable decision, ruling or finding, would have a material
adverse effect on the condition (financial or otherwise),  earnings, operations,
or business of the Company and its subsidiaries,  taken as a whole, as presently
conducted.

                                       8

<PAGE>

4.       CERTAIN COVENANTS AND ACKNOWLEDGMENTS.

                  a. Transfer  Restrictions.  The Purchaser  acknowledges  that,
except as provided in the  Registration  Rights  Agreement,  (i) neither (A) the
Securities,  including without limitation, the Warrant, or Common Stock issuable
upon  exercise  of the  Warrant,  may not be  transferred  unless  they  are (1)
subsequently  registered  thereunder  or  otherwise  registered  pursuant to the
Securities Act, or (2) they are  transferred  pursuant to an exemption from such
registration; and (ii) any sale of the Securities,  including without limitation
the Warrant,  or the Common Stock  issuable upon exercise of the Warrant made in
reliance upon Rule 144 under the  Securities  Act may be made only in accordance
with the terms of said Rule and  further,  if said Rule is not  applicable,  any
such resale under  circumstances in which the seller, or the person through whom
the sale is made,  may be deemed to be an  underwriter,  as that term is used in
the Securities  Act, may require  compliance  with another  exemption  under the
Securities Act and the rules and regulations of the Commission  thereunder.  The
provisions  of Section  4(a) and 4(b)  hereof,  together  with the rights of the
Purchaser under this Agreement and the other Primary Documents, shall be binding
upon any subsequent transferee of the Securities and the Warrant.

                  b. Restrictive  Legend. The Purchaser  acknowledges and agrees
that,  until such time as the  Securities  or the  Common  Stock  issuable  upon
exchange  thereof shall have been  registered  under the  Securities  Act or the
Purchaser  demonstrates  to the reasonable  satisfaction  of the Company and its
counsel that such registration  shall no longer be required,  such Securities or
the  Common  Stock   issuable  upon  exchange   thereof  may  be  subject  to  a
stop-transfer  order placed  against the transfer of such  Securities,  and such
Securities shall bear a restrictive legend in substantially the following form:

                  THESE  SECURITIES  (INCLUDING ANY UNDERLYING  SECURITIES) HAVE
                  NOT BEEN  REGISTERED  UNDER  THE  SECURITIES  ACT OF 1933,  AS
                  AMENDED.  THEY MAY NOT BE SOLD,  OFFERED  FOR  SALE,  PLEDGED,
                  HYPOTHECATED  OR  OTHERWISE  TRANSFERRED  IN THE ABSENCE OF AN
                  EFFECTIVE  REGISTRATION  STATEMENT AS TO THE SECURITIES  UNDER
                  SAID ACT OR AN OPINION OF COUNSEL OR OTHER EVIDENCE REASONABLY
                  SATISFACTORY  TO THE COMPANY THAT SUCH  REGISTRATION  SHALL NO
                  LONGER BE REQUIRED.

                  c.  Filings.  The Company  undertakes  and agrees that it will
make all  required  filings  in  connection  with  the  sale of the  Securities,
including shares of Common Stock issuable upon exercise of the Warrants,  to the
Purchaser as required by United States laws and regulations,  or by any domestic
securities exchange or trading market,  including, upon exercise of the Warrants
for  trading on the OTC  Bulletin  Board or the filing of a listing  application
with NASDAQ to list all of the shares of Common Stock issuable upon the exercise
of the Warrants,  as applicable,  and if  applicable,  the filing of a notice on
Form D (at such time and in such manner as required by the rules and regulations
of the  Commission),  and to provide  copies  thereof to the Purchaser  promptly
after such filing or filings.

                                       9

<PAGE>

                  d.  Reporting  Status.  So long as the Purchaser  beneficially
owns any of the Securities,  the Company shall timely file all reports  required
to be filed with the Commission  pursuant to Section 13 or 15(d) of the Exchange
Act and shall not  terminate  its status as an issuer  required to file  reports
under the Exchange  Act even if the  Exchange  Act or the rules and  regulations
thereunder would permit such termination.

                  e. State  Securities  Filings.  The Company shall from time to
time promptly  take such action as the Purchaser or any of its  representatives,
if applicable,  may  reasonably  request to qualify the Securities or the Common
Stock  issuable  upon  exercise of the  Warrants for offering and sale under the
securities  laws (other  than  United  States  federal  securities  laws) of the
jurisdictions in the United States as shall be so identified to the Company, and
to  comply  with such laws so as to permit  the  continuance  of sales  therein,
provided  that in  connection  therewith,  the Company  shall not be required to
qualify as a foreign  corporation or to file a general consent to the service of
process in any jurisdiction.

                  f.  Use of Proceeds.  The  Company  will  use  all  of the net
proceeds  from  the  issuance  of  the  Securities  for  technology  application
developments and working capital.

                  g.  Reservation  of  Common  Stock.  The  Company  will at all
times have  authorized  and  reserved  for the purpose of issuance a  sufficient
number of shares of Common Stock to provide for the exercise of the Warrants.

                  h. Sales of Additional Shares. The Company shall not, directly
or indirectly,  without the prior written consent of the Purchaser, offer, sell,
offer to sell, contract to sell or otherwise dispose of any of its securities or
any security or other instrument  convertible into or exchangeable for shares of
its capital stock (each a "Capital Issuance Event"),  in each case, for a period
beginning on the date hereof and ending two hundred seventy (270) days after the
Registration  Statement  (as defined in the  Registration  Rights  Agreement) is
declared  effective by the  Commission  (the  "Lock-Up  Period"),  which (i) are
issued at or convertible  into or contain  rights to purchase  Common Stock at a
price of less than $5.50 per share,  (ii) contain  provisions  for re-pricing or
(iii) are  convertible  into Common  Stock at a price which  adjusts  based upon
changes in market price.

                                       10

<PAGE>

                  i. Right of First Refusal.  Subject to Section 4(h), if during
the nine (9) month period  following the Lock-Up Period the Company shall desire
to sell, offer to sell,  contract to sell or otherwise dispose of any securities
or any security or other instrument  convertible into or exchangeable for shares
of Common  Stock  (collectively,  the  "Offered  Securities")  to a  prospective
investor  (the  "Prospective  Investor"),  the Company  shall notify (the "Offer
Notice") the  Purchaser in  accordance  with Section 10 hereof of the terms (the
"Third Party Terms") on which the Company proposes to sell,  contract to sell or
otherwise  dispose of the Offered  Securities to the Prospective  Investor.  If,
within the five (5) day period  following the  Purchaser's  receipt of the Offer
Notice, the Purchaser delivers a written notice (the "Acceptance Notice") to the
Company  stating  its  desire to  purchase  all or any  portion  of the  Offered
Securities  on the Third Party Terms,  the Company shall be required to sell the
Offered  Securities (or any portion  thereof so desired by the Purchaser) to the
Purchaser  at the price and on the terms set forth in the Offer  Notice  and the
Company  shall  not  be  permitted  to  sell  such  Offered  Securities  to  the
Prospective  Investor. If the Purchaser does not deliver an Acceptance Notice to
the  Company in such five (5) day  period,  then for a period of sixty (60) days
following  the date of the  Offer  Notice  the  Company  may  sell  the  Offered
Securities  to the  Prospective  Investor  on the  terms  set forth in the Offer
Notice.  Notwithstanding the foregoing,  the Purchaser shall not have a right to
purchase  any  portion of the  Offered  Securities  if such  Offered  Securities
consist  of shares of Common  Stock and are to be sold or issued by the  Company
(i) for the aggregate consideration of at least $15 million in connection with a
bona fide, firm  commitment,  underwritten  public offering under the Securities
Act; (ii) in connection with a bona fide  transaction  involving the acquisition
of  another  business  entity or segment  of any such  entity by the  Company by
merger, asset, purchase, stock purchase or otherwise; (iii) in connection with a
stock split,  stock  dividend or similar  recapitalization  of the Company which
affects all holders of the  Company's  Common Stock on an equivalent  basis,  or
(iv) on arms length terms to a strategic third party investor providing business
services  directly  relating  to the  Company,  in each case,  without the prior
written consent of the Purchaser (each a "Capital  Issuance  Event");  provided,
however,  that the Company  shall give the  Purchaser at least fifteen (15) days
prior  written  notice of the  occurrence  of any  Capital  Issuance  Event.  In
addition,  the  Company  agrees that it will not cause any shares of its capital
stock that are issued in connection with a transaction of the type  contemplated
by clause (ii) (or upon the conversion or exercise of other  securities that are
issued in connection  with such  transaction)  or that were issued in connection
with  financing,  acquisition  or  other  transaction  that  occurred  prior  or
subsequent  to the  date of  this  Agreement  to be  covered  by a  registration
statement  that is filed  with  the  Commission  or  declared  effective  by the
Commission  prior to the time that the Common  Stock,  Warrants and Common Stock
issuable upon exercise thereof are covered by a registration  statement filed by
the Company pursuant to its obligations under the Registration  Rights Agreement
has been effective under the Securities Act for a period of at least one hundred
twenty (120) days during  which one hundred  twenty (120) day period the Company
has  not  notified  the  Purchaser  that  such  registration  statement  or  the
prospectus included in such registration  statement includes an untrue statement
of a  material  fact or omits to state a  material  fact  required  to be stated
therein in order to make the statements  therein,  in light of the circumstances
under which they were made, not misleading.

                  j.  Ownership.  At no time shall the Purchaser (including  its
officers,  directors  and  affiliates)  maintain  in  the  aggregate  beneficial
ownership (as defined for purposes of Section 16 of the Securities  Exchange Act
of 1934,  as  amended)  of  shares  of  Common  Stock in excess of 9.999% of the
Company's  outstanding  Common Stock unless the  Purchaser  gives the Company at
least sixty-one days notice that it intends to increase its ownership position.

                                       11

<PAGE>

5.       TRANSFER AGENT INSTRUCTIONS.

                  a. The Company  warrants that no  instruction,  other than the
instructions  referred to in this Section 5 and stop  transfer  instructions  to
give effect to Sections 4(a) and 4(b) hereof prior to the  registration and sale
of the  Securities  in  the  manner  contemplated  by  the  Registration  Rights
Agreement,  will be given by the  Company  to the  transfer  agent  and that the
shares of Common Stock issuable upon exercise of the Warrants shall otherwise be
freely transferable on the books and records of the Company as and to the extent
provided in this Agreement,  the  Registration  Rights  Agreement and applicable
law. Nothing in this Section shall affect in any way the Purchaser's obligations
and agreement to comply with all applicable  securities  laws upon resale of the
Securities.  If the  Purchaser  provides  the Company with an opinion of counsel
reasonably satisfactory (as to both the identity of such counsel and the content
of such opinion) to the Company and its counsel that registration of a resale by
the  Purchaser of any of the  Securities  in  accordance  with clause  (1)(B) of
Section 4(a) of this  Agreement is not required  under the  Securities  Act, the
Company  shall  permit the  transfer of the  Securities  and, in the case of the
Common Stock,  promptly  instruct the Company's  transfer  agent to issue one or
more  certificates  for Common  Stock  without  legend in such names and in such
denominations as specified by the Purchaser.

                  b. The Company will permit the Purchaser to exercise its right
to exercise the Warrants by faxing an executed and completed Form of Election to
Purchase,  as  applicable,  to the  Company,  and  delivering  within  three (3)
business  days  thereafter,  the original  Form of Election to Purchase (and the
Warrant) to the Company by hand delivery or by express  courier,  duly endorsed.
Each date on which a Form of  Election  to  Purchase  is faxed to the Company in
accordance with the provisions  hereof shall be deemed a "Conversion  Date." The
Company will transmit the  certificates  representing  the Common Stock issuable
upon  exercise  of  the  to  the  Purchaser  via  express  courier  as  soon  as
practicable,  but in all events no later than five (5) business days in the case
of the exercise of the Warrant after the Conversion Date (the "Delivery  Date").
For purposes of this Agreement,  any exercise of the Warrants shall be deemed to
have been made  immediately  prior to the close of  business  on the  Conversion
Date.

                  c. In lieu of delivering  physical  certificates  representing
the Common  Stock  issuable  upon the  exercise of the  Warrants,  provided  the
Company's  transfer  agent is  participating  in the  Depository  Trust  Company
("DTC") Fast Automated  Securities  Transfer program,  on the written request of
the Purchaser, who shall have previously instructed the Purchaser's prime broker
to confirm such request to the Company's transfer agent, the Company shall cause
its transfer agent to electronically transmit such Common Stock to the Purchaser
by crediting  the account of the  Purchaser's  prime broker with DTC through its
Deposit Withdrawal Agent Commission ("DWAC") system no later than the applicable
Delivery Date.

                  d. The  Company  understands  that a delay in the  issuance of
Common Stock  beyond the  applicable  Delivery  Date could result in an economic
loss to the  Purchaser.  As  compensation  to the Purchaser  for such loss,  the
Company  agrees to pay to the  Purchaser  for late issuance of Common Stock upon
exercise  of the  Warrants  the sum of $2,500  per day for any or all  shares of
Common Stock purchased upon the exercise of the Warrants.  The Company shall pay
any  payments  that are payable to the  Purchaser  pursuant to this Section 5 in
immediately  available  funds  upon  demand.  Nothing  herein  shall  limit  the
Purchaser's right to pursue actual damages for the Company's failure to so issue
and deliver Common Stock to the Purchaser. Furthermore, in addition to any other
remedies which may be available to the Purchaser,  in the event that the Company
fails for any reason to effect  delivery  of such Common  Stock  within five (5)
business days after the relevant  Delivery  Date, the Purchaser will be entitled
to revoke the  relevant  Form of Election to Purchase by  delivering a notice to
such effect to the Company,  whereupon the Company and the Purchaser  shall each
be restored to their respective positions  immediately prior to delivery of such
Form of Election to Purchase.  For purposes of this  Section 5,  "business  day"
shall mean any day in which the  financial  markets  of New York are  officially
open for the conduct of business therein.

                                       12

<PAGE>

6.       CONDITIONS TO THE COMPANY'S OBLIGATION TO ISSUE THE SECURITIES.

         Purchaser  understands  that the  Company's  obligation  to  issue  the
Securities  on the  Closing  Date to  Purchaser  pursuant to this  Agreement  is
conditioned upon:

                  a. The accuracy on the Closing Date of the representations and
warranties  of Purchaser  contained in this  Agreement as if made on the Closing
Date and the  performance  by  Purchaser  on or before the  Closing  Date of all
covenants and agreements of Purchaser  required to be performed on or before the
Closing Date;

                  b. The absence or  inapplicability  of any and all laws, rules
or regulations prohibiting or restricting the transactions  contemplated hereby,
or requiring any consent or approval which shall not have been obtained.

7.       CONDITIONS TO THE PURCHASER'S OBLIGATION TO PURCHASE THE SECURITIES.

         The Company  understands  that  Purchaser's  obligation to purchase the
Securities on the Closing Date is conditioned upon:

                  a. The accuracy on the Closing Date of the representations and
warranties of the Company  contained in this Agreement as if made on the Closing
Date,  and the  performance  by the Company on or before the Closing Date of all
covenants and  agreements  of the Company  required to be performed on or before
the Closing Date;

                  b. On the Closing Date, the Purchaser  shall have received (i)
the shares of Common Stock  purchasable  hereunder,  and (ii) the  Warrants,  in
substantially the form of Exhibit A hereto.

                  c. On the Closing Date,  the Purchaser  shall have received an
opinion of counsel for the Company,  dated the Closing Date, in form,  scope and
substance  reasonably  satisfactory  to  Purchaser,  to the  effect set forth in
Exhibit C attached hereto;

                  d. On the Closing  Date the Company  shall have  executed  and
delivered a signed  counterpart to the Registration  Rights Agreement,  in form,
scope and substance  reasonably  satisfactory  to  Purchaser,  to the effect set
forth in Exhibit B attached hereto;

                  e. On the Closing Date,  the  Purchaser  shall have received a
certificate  executed by (i) the  President  or the  Chairman of the Company and
(ii)  the  Chief  Financial  Officer  of the  Company,  stating  that all of the
representations  and  warranties of the Company set forth in this  Agreement are
accurate as of the Closing  Date and that the Company has  performed  all of its
covenants and  agreements  required to be performed  under this  Agreement on or
before the Closing Date;

                                       13

<PAGE>

                  f. On the Closing Date, the Purchaser shall have received from
the Company such other certificates and documents as it or its  representatives,
if  applicable,  shall  reasonably  request,  and all  proceedings  taken by the
Company in connection with the Primary Documents  contemplated by this Agreement
and the other Primary  Documents  and all documents and papers  relating to such
Primary Documents shall be satisfactory to the Purchaser;

                  g. On or prior  to the  Closing  Date,  there  shall  not have
occurred any of the  following:  (i) a suspension or material  limitation in the
trading of securities generally on the New York Stock Exchange,  NASDAQ National
Market,  NASDAQ  SmallCap or OTC Bulletin  Board;  (ii) a general  moratorium on
commercial  banking  activities in New York declared by the  applicable  banking
authorities;  (iii) the outbreak or  escalation  of  hostilities  involving  the
United States,  or the declaration by the United States of a national  emergency
or war;  or (iv) a change in  international,  political,  financial  or economic
conditions,  if the effect of any such event, in the reasonable  judgment of the
Purchaser, makes it impracticable or inadvisable to proceed with the purchase of
the Securities on the terms and in the manner contemplated in this Agreement and
in the other Primary Documents.

                  h.  The  Company   shall  have   delivered  to  the  Purchaser
reimbursement of the Purchaser's  out-of-pocket  costs and expenses  incurred in
connection with the transactions  contemplated by this Agreement (including fees
and disbursements of the Purchaser's legal counsel in the amount of $16,800.00).

8.       EXPENSES.

                  The Company  covenants and agrees with the Purchaser  that the
Company will pay or cause to be paid the following:  (a) the fees, disbursements
and expenses of the Purchaser  and  Purchaser's  counsel in connection  with the
issuance of the  Securities  payable on the Closing  Date,  (b) all  expenses in
connection with registration or qualification of the Securities for offering and
sale under state securities laws as provided in Section 4(f) hereof, and (c) all
other  costs  and  expenses  incident  to the  performance  of  its  obligations
hereunder  which are not  otherwise  specifically  provided for in this Section,
including the fees and disbursements of the Company's  counsel,  accountants and
other  professional  advisors,  if any.  If the  Company  fails to  satisfy  its
obligations or to satisfy any condition set forth in this Agreement, as a result
of which the  Securities  are not  delivered  to the  Purchaser on the terms and
conditions set forth herein,  the Company shall  reimburse the Purchaser for any
out-of-pocket  expenses  reasonably  incurred  in  making  preparations  for the
purchase, sale and delivery of the Securities not so delivered.

9.       SURVIVAL OF REPRESENTATIONS AND WARRANTIES.

         The  representations  and  warranties  of the Company and the Purchaser
shall survive the  execution and delivery of this  Agreement and the delivery of
the Common Stock and the Warrants for a period of. eighteen (18 ) months.

                                       14

<PAGE>

10.      GOVERNING LAW; MISCELLANEOUS

                  This  Agreement  shall  be  governed  by  and  interpreted  in
accordance with the laws of the State of New York,  without regard to principles
of conflict of laws. Each of the parties consents to the exclusive  jurisdiction
of the federal courts whose districts encompass any part of the City of New York
or the state  courts of the State of New York sitting in the City of New York in
connection  with  any  dispute  arising  under  this  Agreement  or  any  of the
transactions  contemplated  hereby,  and hereby  waives,  to the maximum  extent
permitted by law, any  objection,  including any  objections  based on forum non
conveniens,  to the bringing of any such proceeding in such jurisdictions.  This
Agreement  may be signed  in one or more  counterparts,  each of which  shall be
deemed an  original.  The  headings of this  Agreement  are for  convenience  of
reference only and shall not form part of, or affect the  interpretation of this
Agreement.  This  Agreement and each of the Primary  Documents have been entered
into freely by each of the parties, following consultation with their respective
counsel,  and shall be  interpreted  fairly in  accordance  with its  respective
terms,  without any  construction  in favor of or against  either party.  If any
provision  of  this  Agreement  shall  be  invalid  or   unenforceable   in  any
jurisdiction,  such invalidity or unenforceability shall not affect the validity
or  enforceability  of the  remainder  of  this  Agreement  or the  validity  or
unenforceability  of this  Agreement in any other  jurisdiction.  This Agreement
shall inure to the benefit of, and be binding upon the successors and assigns of
each of the parties hereto,  including any  transferees of the Securities.  This
Agreement may be amended only by an instrument in writing signed by the party to
be charged with enforcement.  This Agreement supersedes all prior agreements and
understandings  among the  parties  hereto with  respect to the  subject  matter
hereof.

11.      NOTICES.

                  Any notice  required or permitted  hereunder shall be given in
writing (unless otherwise specified herein) and shall be effective upon personal
delivery,   via   facsimile   (upon  receipt  of   confirmation   of  error-free
transmission)  or two  business  days  following  deposit of such notice with an
internationally  recognized courier service,  with postage prepaid and addressed
to each of the other parties thereunto entitled at the following  addresses,  or
at such other  addresses as a party may  designate by five days advance  written
notice to each of the other parties hereto.

                           If to the Company to:

                           MAX Internet Communications, Inc.
                           8115 Preston Road
                           Dallas, Texas 75225
                           Att.:   Lawrence R. Biggs, Jr.
                           Tel.:   (214) 691-0055
                           Fax: (214) 691-0887

                           With a copy to:

                           Glast, Phillips & Murray
                           2200 One Galleria Tower
                           13355 Noel Road, L.B. 48
                           Dallas, Texas 75240-6657

                           Att.:  Ronald L. Brown, Esq.
                           Tel.:  (972) 419-9300
                           Fax:  (972) 419-8329

                                       15

<PAGE>

                           If to the Purchaser to:

                           Boxer Partners LLC
                           c\o WEC Asset Management LLC
                           One World Trade Center, Suite #4563
                           New York, New York  10048
                           Attention:  Ethan Benovitz
                           Tel:  (212) 775-9299
                           Fax: (212) 775-9311

                           With a copy to:

                           Cohen Tauber Spievak & Wagner LLP
                           1350 Avenue of the Americas
                           26th Floor
                           New York, New York  10019
                           Att.:  Jay Spievak, Esq.
                           Tel.:  (212) 519-5195
                           Fax:  (212) 262-1766

12.      INDEMNIFICATION.

                  The  Company  agrees  to  indemnify  the  Purchaser  and  each
officer, director, employee, agent, partner,  stockholder,  member and affiliate
of the Purchaser  (collectively,  the "Indemnified  Parties") for, and hold each
Indemnified  Party harmless from and against:  (i) any and all damages,  losses,
claims  and  other  liabilities  of  any  and  every  kind,  including,  without
limitation,  judgments and costs of settlement,  and (ii) any and all reasonable
out-of-pocket  costs and  expenses  of any and every  kind,  including,  without
limitation,  reasonable fees and  disbursements  of counsel for such Indemnified
Parties (all of which expenses periodically shall be reimbursed as incurred), in
each case,  arising out of or suffered or incurred in connection with any of the
following:  (a) any  misrepresentation or any breach of any warranty made by the
Company  herein  or in any of the other  Primary  Documents,  (b) any  breach or
non-fulfillment  of any covenant or agreement  made by the Company  herein or in
any of the other Primary  Documents and (c) any claim relating to or arising out
of a violation of applicable  federal or state securities laws by the Company in
connection  with the sale or issuance of the  Securities,  by the Company to the
Purchaser (collectively,  the "Indemnified Liabilities"). To the extent that the
foregoing  undertaking by the Company may be unenforceable  for any reason,  the
Company shall make the maximum  contribution to the payment and  satisfaction of
each of the Indemnified Liabilities which is permissible under applicable law.

     [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK, SIGNATURE PAGE TO FOLLOW]

                                       16

<PAGE>

         IN WITNESS WHEREOF,  this Securities  Purchase  Agreement has been duly
executed by each of the undersigned.

                                 Max Internet Communications, Inc.

                                 By:____________________________________
                                 Name:

                                 Title:

                                 BOXER PARTNERS LLC
                                 By:  WEC Asset Management LLC,
                                        Manager

                                 By:____________________________________
                                       Name:  Ethan Benovitz
                                       Title:  Managing Director

                                       17

<PAGE>

                                  EXHIBIT INDEX

EXHIBIT A                                  FORM OF WARRANT
EXHIBIT B                                  FORM OF REGISTRATION RIGHTS AGREEMENT
EXHIBIT C                                  FORM OF OPINION OF COUNSEL TO COMPANY

<PAGE>

                                 SCHEDULE INDEX

SCHEDULE 3(a)                                         LIST OF SUBSIDIARIES

SCHEDULE 3(b)                                         CAPITALIZATION, DERIVATIVE
                                                      SECURITIES AND
                                                      REGISTRATION RIGHTS

SCHEDULE 3(h)                                         NON-CONTRAVENTION

SCHEDULE 3(y)                                         FEES

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00002-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00002-of-00352.parquet"}]]