Document:

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                                                                 EXHIBIT 10.8

                             SOLUTIONSAMERICA, INC.

                              INVESTMENT AGREEMENT

        THE SECURITIES OFFERED HEREBY HAVE NOT BEEN REGISTERED WITH THE
        SECURITIES AND EXCHANGE COMMISSION OR ANY STATE OR OTHER SECURITIES
        AUTHORITIES. THEY MAY NOT BE SOLD OR TRANSFERRED EXCEPT PURSUANT TO AN
        EFFECTIVE REGISTRATION STATEMENT OR AN EXEMPTION FROM THE REGISTRATION
        REQUIREMENTS OF THE FEDERAL AND STATE SECURITIES LAWS.

        THIS INVESTMENT AGREEMENT DOES NOT CONSTITUTE AN OFFER TO SELL, OR A
        SOLICITATION OF AN OFFER TO PURCHASE, ANY OF THE SECURITIES DESCRIBED
        HEREIN BY OR TO ANY PERSON 1N ANY JURISDICTION IN WHICH SUCH OFFER OR
        SOLICITATION WOULD BE UNLAWFUL. THESE SECURITIES HAVE NOT BEEN
        RECOMMENDED BY ANY FEDERAL OR STATE SECURITIES AUTHORITIES, NOR HAVE
        SUCH AUTHORITIES CONFIRMED THE ACCURACY OR DETERMINED THE ADEQUACY OF
        THIS DOCUMENT. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.

        AN INVESTMENT IN THESE SECURITIES INVOLVES A HIGH DEGREE OF RISK. THE
        INVESTOR MUST RELY ON ITS OWN ANALYSIS OF THE INVESTMENT AND ASSESSMENT
        OF THE RISKS INVOLVED. SEE THE RISK FACTORS SET FORTH IN THE ATTACHED
        DISCLOSURE DOCUMENTS AS EXHIBIT J.

        SEE ADDITIONAL LEGENDS AT SECTIONS 4.7.

             THIS INVESTMENT AGREEMENT (this "Agreement" or "Investment
Agreement") is made as of the 18th day of July, 2000, by and between
SolutionsAmerica, Inc., a corporation duly organized and existing under the laws
of the State of Delaware (the "Company"), and Swartz Private Equity, LLC, a
limited liability company duly organized and existing under the laws of the
State of Georgia ("Investor").

                                    RECITALS:

        WHEREAS, the parties desire that, upon the terms and subject to the
conditions contained herein, the Company shall issue to the Investor, and the
Investor shall purchase from the Company, from time to time as provided herein,
shares of the Company's Common Stock, as part of an offering of Common Stock by
the Company to Investor, for a maximum aggregate offering amount of Thirty
Million Dollars ($30,000,000) (the "Maximum Offering Amount"); and

        WHEREAS, the solicitation of this Investment Agreement and, if accepted
by the Company, the offer and sale of the Common Stock are being made in
reliance upon the

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provisions of Regulation D ("Regulation D") promulgated under the Act, Section
4(2) of the Act, and/or upon such other exemptions from the registration
requirements of the Act as may be available with respect to any or all of the
purchases of Common Stock to be made hereunder.

                                     TERMS:

        NOW, THEREFORE, the parties hereto agree as follows:

        1. Certain Definitions. As used in this Agreement (including the
recitals above), the following terms shall have the following meanings (such
meanings to be equally applicable to both the singular and plural forms of the
terms defined):

        " 20% Approval" shall have the meaning set forth in Section 5.25.

        "9.9% Limitation" shall have the meaning set forth in Section 2.3.1(f).

        "Accredited Investor" shall have the meaning set forth in Section 3.1.

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

        "Advance Put Notice" shall have the meaning set forth in Section
2.3.1(a), the form of which is attached hereto as Exhibit E.

        "Advance Put Notice Confirmation" shall have the meaning set forth in
Section 2.3.1(a), the form of which is attached hereto as Exhibit F.

        "Advance Put Notice Date" shall have the meaning set forth in Section
2.3.1(a).

        "Affiliate" shall have the meaning as set forth Section 6.4.

        "Aggregate Issued Shares" means the aggregate number of shares of Common
Stock issued to Investor pursuant to the terms of this Agreement or the
Registration Rights Agreement as of a given date, including Put Shares and
Warrant Shares.

        "Agreed Upon Procedures Report" shall have the meaning set forth in
Section 2.5.3(b).

        "Agreement" shall mean this Investment Agreement.

        "Automatic Termination" shall have the meaning set forth in Section
2.3.2.

        "Bring Down Cold Comfort Letters" shall have the meaning set forth in
Section 2.3.6(b).

        "Business Day" shall mean any day during which the Principal Market is
open for trading.

        "Calendar Month" shall mean the period of time beginning on the Numeric
Day in a month of the year on which a particular measuring event occurs, and for
months of the year

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thereafter, beginning on the same Numeric Day, unless a particular month does
not have a corresponding Numeric Day, in which event, solely for that month, the
Calendar Month shall begin on the last day of such month.

        "Cap Amount" shall have the meaning set forth in Section 2.3.10.

        "Capital Raising Limitations" shall have the meaning set forth in
Section 6.5.1.

        "Capitalization Schedule" shall have the meaning set forth in Section
3.2.4, attached hereto as Exhibit K.

        "Closing" shall mean one of (i) the Investment Commitment Closing and
(ii) each closing of a purchase and sale of Common Stock pursuant to Section 2.

        "Closing Bid Price" means, for any security as of any date, the last
closing bid price for such security during Normal Trading on the O.T.C. Bulletin
Board, or, if the O.T.C. Bulletin Board is not the principal securities exchange
or trading market for such security, the last closing bid price during Normal
Trading of such security on the principal securities exchange or trading market
where such security is listed or traded as reported by such principal securities
exchange or trading market, or if the foregoing do not apply, the last closing
bid price during Normal Trading of such security in the over-the-counter market
on the electronic bulletin board for such security, or, if no closing bid price
is reported for such security, the average of the bid prices of any market
makers for such security as reported in the "pink sheets" by the National
Quotation Bureau, Inc. If the Closing Bid Price cannot be calculated for such
security on such date on any of the foregoing bases, the Closing Bid Price of
such security on such date shall be the fair market value as mutually determined
by the Company and the Investor in this Offering. If the Company and the
Investor in this Offering are unable to agree upon the fair market value of the
Common Stock, then such dispute shall be resolved by an investment banking firm
mutually acceptable to the Company and the Investor in this Offering and any
fees and costs associated therewith shall be paid by the Company.

        "Commitment Evaluation Period" shall have the meaning set forth in
Section 2.6.

        "Commitment Warrants" shall have the meaning set forth in Section 2.4.1,
the form of which is attached hereto as Exhibit U.

        "Commitment Warrant Exercise Price" shall have the meaning set forth in
Section 2.4.1.

        "Common Shares" shall mean the shares of Common Stock of the Company.

        "Common Stock" shall mean the common stock of the Company.

        "Company" shall mean SolutionsAmerica, Inc., a corporation duly
organized and existing under the laws of the State of Delaware, or any successor
corporation, including Avenue Entertainment Group, Inc., a Delaware corporation
("Avenue").

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        "Company Designated Maximum Put Dollar Amount" shall have the meaning
set forth in Section 2.3.1(a).

        "Company Designated Minimum Put Share Price" shall have the meaning set
forth in Section 2.3.1(a).

        "Company Termination" shall have the meaning set forth in Section
2.3.12.

        "Conditions to Investor's Obligations" shall have the meaning as set
forth in Section 2.2.2.

        "Delisting Event" shall mean any time during the term of this Investment
Agreement, that, following the initial listing of the Company's Common Stock,
the Company's Common Stock is not listed for and actively trading on the O.T.C.
Bulletin Board, the Nasdaq Small Cap Market, the Nasdaq National Market, the
American Stock Exchange, or the New York Stock Exchange or is suspended or
delisted with respect to the trading of the shares of Common Stock on such
market or exchange.

        "Disclosure Documents" shall have the meaning as set forth in Section
3.2.4.

        "Due Diligence Review" shall have the meaning as set forth in Section
2.5.

        "Effective Date" shall have the meaning set forth in Section 2.3.1.

        "Equity Securities" shall have the meaning set forth in Section 6.5.1.

        "Evaluation Day" shall have the meaning set forth in Section 2.3.1(b).

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

        "Excluded Day" shall have the meaning set forth in Section 2.3.1(b).

        "Extended Put Period" shall mean the period of time between the Advance
Put Notice Date until the Pricing Period End Date.

        "Financial Statements" shall have the meaning set forth in Section
3.2.4.

        "Impermissible Put Cancellation" shall have the meaning set forth in
Section 2.3.1(e).

        "Indemnified Liabilities" shall have the meaning set forth in Section 9.

        "Indemnities" shall have the meaning set forth in Section 9.

        "Indemnitor" shall have the meaning set forth in Section 9.

        "Individual Put Limit" shall have the meaning set forth in Section 2.3.1
(b).

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        "Ineffective Period" shall mean any period of time that the Registration
Statement or any Supplemental Registration Statement (each as defined in the
Registration Rights Agreement) becomes ineffective or unavailable for use for
the sale or resale, as applicable, of any or all of the Registrable Securities
(as defined in the Registration Rights Agreement) for any reason (or in the
event the prospectus under either of the above is not current and deliverable)
during any time period required under the Registration Rights Agreement.

        "Initial Exercise Price" shall have the meaning set forth in Section
2.4.1.

        "Intended Put Share Amount" shall have the meaning set forth in Section
2.3.1(a).

        "Investment Commitment Closing" shall have the meaning set forth in
Section 2.2.1.

        "Investment Agreement" shall mean this Investment Agreement.

        "Investment Commitment Opinion of Counsel" shall mean an opinion from
Company's independent counsel, substantially in the form attached as Exhibit B,
or such other form as agreed upon by the parties, as to the Investment
Commitment Closing.

        "Investment Date" shall mean the date of the Investment Commitment
Closing.

        "Investor" shall have the meaning set forth in the preamble hereto.

        "Key Employee" shall have the meaning set forth in Section 5.17, as set
forth in Exhibit N.

        "Late Payment Amount" shall have the meaning set forth in Section 2.3.8.

        "Legend" shall have the meaning set forth in Section 4.7.

        "Major Transaction" shall mean and shall be deemed to have occurred at
such time upon any of the following events:

             (i) a consolidation, merger or other business combination or event
or transaction following which the holders of Common Stock of the Company
immediately preceding such consolidation, merger, combination or event either
(i) no longer hold a majority of the shares of Common Stock of the Company or
(ii) no longer have the ability to elect the board of directors of the Company
(a "Change of Control"); provided, however, that if the other entity involved in
such consolidation, merger, combination or event is a publicly traded company
with "Substantially Similar Trading Characteristics" (as defined below) as the
Company and the holders of Common Stock are to receive solely Common Stock or no
consideration (if the Company is the surviving entity) or solely common stock of
such other entity (if such other entity is the surviving entity), such
transaction shall not be deemed to be a Major Transaction (provided the
surviving entity, if other than the Company, shall have agreed to assume all
obligations of the Company under this Agreement and the Registration Rights
Agreement). For purposes hereof, an entity shall have Substantially Similar
Trading Characteristics as the Company if the average daily dollar Trading
Volume of the common stock of such entity is equal

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to or in excess of $100,000 for the 90th through the 31st day prior to the
public announcement of such transaction;

             (ii) the sale or transfer of all or substantially all of the
Company's assets; or

             (iii) a purchase, tender or exchange offer made to the holders of
outstanding shares of Common Stock, such that following such purchase, tender or
exchange offer a Change of Control shall have occurred.

        "Market Price" shall equal the lowest Closing Bid Price for the Common
Stock on the Principal Market during the Pricing Period for the applicable Put.

        "Material Facts" shall have the meaning set forth in Section 2.3.6(a).

        "Maximum Put Dollar Amount" shall mean the lesser of (i) the Company
Designated Maximum Put Dollar Amount, if any, specified by the Company in a Put
Notice, and (ii) $2 million.

        "Maximum Offering Amount" shall mean Thirty Million Dollars
($30,000,000).

        "Nasdaq 20% Rule" shall have the meaning set forth in Section 2.3.10.

        "NASD" shall have the meaning set forth in Section 6.9.

        "Normal Trading" shall mean trading that occurs between 9:30 AM and 4:00
PM, New York City Time, on any Business Day, and shall expressly exclude "after
hours" trading.

        "NYSE" shall have the meaning set forth in Section 6.9.

        "Numeric Day" shall mean the specific numerical day of a Calendar Month.

        "Offering" shall mean the Company's offering of Common Stock and
Warrants issued under this Investment Agreement.

        "Officer's Certificate" shall mean a certificate, signed by an officer
of the Company, to the effect that the representations and warranties of the
Company in this Agreement required to be true for the applicable Closing are
true and correct in all material respects and all of the conditions and
limitations set forth in this Agreement for the applicable Closing are
satisfied.

        "Opinion of Counsel" shall mean, as applicable, the Investment
Commitment Opinion of Counsel, the Put Opinion of Counsel, and the Registration
Opinion.

        "Payment Due Date" shall have the meaning set forth in Section 2.3.8.

        "Pricing Period" shall mean, unless otherwise shortened under the terms
of this Agreement, the period beginning on the Business Day immediately
following the Put Date and ending on and including the date which is 20 Business
Days after such Put Date.

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        "Pricing Period End Date" shall mean the last Business Day of any
Pricing Period.

        "Principal Market" shall mean the O.T.C. Bulletin Board, the Nasdaq
Small Cap Market, the Nasdaq National Market, the American Stock Exchange or the
New York Stock Exchange, whichever is at the time the principal trading exchange
or market for the Common Stock.

        "Proceeding" shall have the meaning as set forth Section 5.1.

        "Purchase" shall have the meaning set forth in Section 2.3.7.

        "Purchase Warrants" shall have the meaning set forth in Section 2.4.2,
the form of which is attached hereto as Exhibit D.

        "Purchase Warrant Exercise Price" shall have the meaning set forth in
Section 2.4.2.

        "Put" shall have the meaning set forth in Section 2.3.1(d).

        "Put Cancellation" shall have the meaning set forth in Section
2.3.11(a).

        "Put Cancellation Date" shall have the meaning set forth in Section
2.3.11(a).

        "Put Cancellation Notice Confirmation" shall have the meaning set forth
in Section 2.3.11(c), the form of which is attached hereto as Exhibit S.

        "Put Cancellation Notice" shall have the meaning set forth in Section
2.3.11(a), the form of which is attached hereto as Exhibit Q.

        "Put Closing" shall have the meaning set forth in Section 2.3.8.

        "Put Closing Date" shall have the meaning set forth in Section 2.3.8.

        "Put Date" shall mean the date that is specified by the Company in any
Put Notice for which the Company intends to exercise a Put under Section 2.3.1,
unless the Put Date is postponed pursuant to the terms hereof, in which case the
"Put Date" is such postponed date.

        "Put Dollar Amount" shall be determined by multiplying the Put Share
Amount by the respective Put Share Prices with respect to such Put Shares,
subject to the limitations herein.

        "Put Notice" shall have the meaning set forth in Section 2.3.1(d), the
form of which is attached hereto as Exhibit G.

        "Put Notice Confirmation" shall have the meaning set forth in Section
2.3.1(d), the form of which is attached hereto as Exhibit H.

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        "Put Opinion of Counsel" shall mean an opinion from Company's
independent counsel, in the form attached as Exhibit I, or such other form as
agreed upon by the parties, as to any Put Closing.

        "Put Share Amount" shall have the meaning as set forth Section 2.3.1(b).

        "Put Share Price" shall have the meaning set forth in Section 2.3.1(c).

        "Put Shares" shall mean shares of Common Stock that are purchased by the
Investor pursuant to a Put.

        "Registrable Securities" shall have the meaning as set forth in the
Registration Rights Agreement.

        "Registration Opinion" shall have the meaning set forth in Section
2.3.6(a), the form of which is attached hereto as Exhibit R.

        "Registration Opinion Deadline" shall have the meaning set forth in
Section 2.3.6(a).

        "Registration Rights Agreement" shall mean that certain registration
rights agreement entered into by the Company and Investor on even date herewith,
in the form attached hereto as Exhibit A, or such other form as agreed upon by
the parties.

        "Registration Statement" shall have the meaning as set forth in the
Registration Rights Agreement.

        "Regulation D" shall mean Regulation D promulgated under the Act.

        "Reporting Issuer" shall have the meaning set forth in Section 6.2.

        "Required Put Documents" shall have the meaning set forth in Section
2.3.5.

        "Risk Factors" shall have the meaning set forth in Section 3.2.4,
attached hereto as Exhibit J.

        "Schedule of Exceptions" shall have the meaning set forth in Section 5,
and is attached hereto as Exhibit C.

        "SEC" shall mean the Securities and Exchange Commission.

        "Securities" shall mean this Investment Agreement, together with the Put
Shares, the Warrants and the Warrant Shares issuable pursuant to this Investment
Agreement.

        "Semi-Annual Non-Usage Fee" shall have the meaning set forth in Section
2.6.

        "Share Authorization Increase Approval" shall have the meaning set forth
in Section 5.25.

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        "Six Month Anniversary" shall mean the date that is the same Numeric Day
as the Investment Date of the sixth (6th) Calendar Month after the Investment
Date, and the date that is the same Numeric Day of each sixth (6th) Calendar
Month thereafter, provided that if such date is not a Business Day, the next
Business Day thereafter.

        "Stockholder 20% Approval" shall have the meaning set forth in Section
6.11.

        "Supplemental Registration Statement" shall have the meaning set forth
in the Registration Rights Agreement.

        "Term" shall mean the term of this Agreement, which shall be a period of
time beginning on the Investment Date and ending on the Termination Date.

        "Termination Date" shall mean the earlier of (i) the date that is three
(3) years after the Effective Date, or (ii) the date that is thirty (30)
Business Days after the later of (a) the Put Closing Date on which the sum of
the aggregate Put Share Price for all Put Shares equal the Maximum Offering
Amount, (b) the date that the Company has delivered a Termination Notice to the
Investor, (c) the date of an Automatic Termination, and (d) the date that all of
the Warrants have been exercised.

        "Termination Fee" shall have the meaning as set forth in Section 2.6.

        "Termination Notice" shall have the meaning as set forth in Section
2.3.12.

        "Third Party Report" shall have the meaning set forth in Section 3.2.4.

        "Trading Volume" shall mean the volume of shares of the Company's
Common Stock that trade between 9:30 AM and 4:00 PM, New York City Time, on any
Business Day, and shall expressly exclude any shares trading during "after
hours" trading.

        "Transaction Documents" shall have the meaning set forth in Section 9.

        "Transfer Agent Instructions" shall mean the Company's instructions to
its transfer agent, substantially in the form attached as Exhibit T, or such
other form as agreed upon by the parties.

        "Trigger Price" shall have the meaning set forth in Section 2.3.1(b).

        "Truncated Pricing Period" shall have the meaning set forth in Section
2.3.11(d).

        "Truncated Put Share Amount" shall have the meaning set forth in Section
2.3.11(b).

        "Unlegended Share Certificates" shall mean a certificate or certificates
(in denominations as instructed by Investor) representing the shares of Common
Stock to which the Investor is then entitled to receive, registered in the name
of Investor or its nominee (as instructed by Investor) and not containing a
restrictive legend or stop transfer order, including but not limited to the Put
Shares for the applicable Put and Warrant Shares.

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        "Use of Proceeds Schedule" shall have the meaning as set forth in
Section 3.2.4, attached hereto as Exhibit L.

        "Volume Limitations" shall have the meaning set forth in Section
2.3.1(b).

        "Warrant Shares" shall mean the Common Stock issued or issuable upon
exercise of the Warrants.

        "Warrants" shall mean Purchase Warrants and Commitment Warrants.

        2. Purchase and Sale of Common Stock.

             2.1 Offer to Subscribe.

             Subject to the terms and conditions herein and the satisfaction of
the conditions to closing set forth in Sections 2.2 and 2.3 below, Investor
hereby agrees to purchase such amounts of Common Stock and accompanying Warrants
as the Company may, in its sole and absolute discretion, from time to time elect
to issue and sell to Investor according to one or more Puts pursuant to Section
2.3 below.

             2.2 Investment Commitment.

                    2.2.1 Investment Commitment Closing. The legal effectiveness
of this Agreement (the "Investment Commitment Closing") shall be deemed to occur
when this Agreement and the Registration Rights Agreement have been executed and
delivered by both Investor and the Company, and the other Conditions to
Investor's Obligations set forth in Section 2.2.2 below have been met.

                    2.2.2 Conditions to Investor's Obligations. As a
prerequisite to the Investment Commitment Closing and the Investor's obligations
hereunder, all of the following (the "Conditions to Investor's Obligations")
shall have been satisfied prior to or concurrently with the Company's execution
and delivery of this Agreement:

            (a)     the following documents shall have been delivered to the
                    Investor: (i) the Investment Commitment Opinion of Counsel
                    (signed by the Company's counsel and (ii) a Secretary's
                    Certificate as to (A) the resolutions of the Company's board
                    of directors authorizing this transaction, (B) the Company's
                    Certificate of Incorporation, and (C) the Company's Bylaws;

            (b)     other than continuing losses described in the Risk Factors
                    set forth in the Disclosure Documents (provided for in
                    Section 3.2.4), as of the Investment Commitment Closing
                    there have been no material adverse changes in the Company's
                    business prospects or financial condition since the date of
                    the last balance sheet included in the Disclosure Documents,
                    including but not limited to incurring material liabilities;
                    and

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            (c)     the representations and warranties of the Company in this
                    Agreement shall be true and correct in all material respects
                    and the conditions to Investor's obligations set forth in
                    this Section 2.2.2 shall have been satisfied as of such
                    Investment Commitment Closing; and the company shall deliver
                    an Officer's Certificate, signed by an officer of the
                    Company, to such effect to the Investor.

             2.3 Puts of Common Shares to the Investor.

                    2.3.1 Procedure to Exercise a Put. Subject to the Individual
Put Limit, the Maximum Offering Amount and the Cap Amount (if applicable), and
the other conditions and limitations set forth in this Agreement, at any time
beginning on the date on which the Registration Statement is declared effective
by the SEC (the "Effective Date"), the Company may, in its sole and absolute
discretion, elect to exercise one or more Puts according to the following
procedure, provided that each subsequent Put Date after the first Put Date shall
be no sooner than five (5) Business Days following the preceding Pricing Period
End Date:

                         (a) Delivery of Advance Put Notice. At least ten (10)
Business Days but not more than twenty (20) Business Days prior to any intended
Put Date (unless otherwise agreed in writing by the Investor), the Company shall
deliver advance written notice (the "Advance Put Notice," the form of which is
attached hereto as Exhibit E, the date of such Advance Put Notice being the
"Advance Put Notice Date") to Investor stating the Put Date for which the
Company shall, subject to the limitations and restrictions contained herein,
exercise a Put and stating the number of shares of Common Stock (subject to the
Individual Put Limit and the Maximum Put Dollar Amount) which the Company
intends to sell to the Investor for the Put (the "Intended Put Share Amount").

        The Company may, at its option, also designate in any Advance Put Notice
(i) a maximum dollar amount of Common Stock, not to exceed $2,000,000, which it
shall sell to Investor pursuant to the Put (the "Company Designated Maximum Put
Dollar Amount") and/or (ii) a minimum purchase price per Put Share at which the
Investor may purchase Shares pursuant to such Put Notice (a "Company Designated
Minimum Put Share Price"). The Company Designated Minimum Put Share Price, if
applicable, shall be no greater than the lesser of (a) 80% of the Closing Bid
Price of the Company's common stock on the Business Day immediately preceding
the Advance Put Notice Date, or (b) the Closing Bid Price of the Company's
common stock on the Business Day immediately preceding the Advance Put Notice
Date minus $0.15. The Company may decrease (but not increase) the Company
Designated Minimum Put Share Price for a Put at any time by giving the Investor
written notice of such decrease not later than 12:00 Noon, New York City time,
on the Business Day immediately preceding the Business Day that such decrease is
to take effect. A decrease in the Company Designated Minimum Put Share Price
shall have no retroactive effect on the determination of Trigger Prices and
Excluded Days for days preceding the Business Day that such decrease takes
effect.

        Notwithstanding the above, if, at the time of delivery of an Advance Put
Notice, more than two (2) Calendar Months have passed since the date of the
previous Put Closing, such Advance Put Notice shall provide at least twenty (20)
Business Days notice of the intended Put

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Date, unless waived in writing by the Investor. In order to effect delivery of
the Advance Put Notice, the Company shall (i) send the Advance Put Notice by
facsimile on such date so that such notice is received by the Investor by 6:00
p.m., New York, NY time, and (ii) surrender such notice on such date to a
courier for overnight delivery to the Investor. Upon receipt by the Investor of
a facsimile copy of the Advance Put Notice, the Investor shall, within two (2)
Business Days, send, via facsimile, a confirmation of receipt (the "Advance Put
Notice Confirmation," the form of which is attached hereto as Exhibit F) of the
Advance Put Notice to the Company specifying that the Advance Put Notice has
been received and affirming the intended Put Date and the Intended Put Share
Amount.

                         (b) Put Share Amount. The "Put Share Amount" is the
number of shares of Common Stock that the Investor shall be obligated to
purchase in a given Put, and shall equal the lesser of (i) the Intended Put
Share Amount, and (ii) the Individual Put Limit. The "Individual Put Limit"
shall equal the lesser of (i) 15% of the sum of the aggregate daily reported
Trading Volumes in the outstanding Common Stock on the Company's Principal
Market, excluding any block trades of 30,000 or more shares of Common Stock, for
all Evaluation Days (as defined below) in the Pricing Period, (ii) the number of
Put Shares which, when multiplied by their respective Put Share Prices, equals
the Maximum Put Dollar Amount, and (iii) the 9.9% Limitation, but in no event
shall the Individual Put Limit exceed 15% of the sum of the aggregate daily
reported Trading Volumes in the outstanding Common Stock on the Company's
Principal Market, excluding any block trades of 30,000 or more shares of Common
Stock, for the twenty (20) Business Days immediately preceding the Put Date
(this limitation, together with the limitation in (i) immediately above, are
collectively referred to herein as the "Volume Limitations"). Company agrees not
to trade Common Stock or arrange for Common Stock to be traded for the purpose
of artificially increasing the Volume Limitations.

        For purposes of this Agreement:

             "Trigger Price" for any Pricing Period shall mean the greater of
(i) the Company Designated Minimum Put Share Price, plus $.10, or (ii) the
Company Designated Minimum Put Share Price divided by .91.

             An "Excluded Day" shall mean each Business Day during a Pricing
Period where the lowest intra-day trading price of the Common Stock is less than
the Trigger Price.

             An "Evaluation Day" shall mean each Business Day during a Pricing
Period that is not an Excluded Day.

                    (c) Put Share Price. The purchase price for the Put Shares
(the "Put Share Price") shall equal the lesser of (i) the Market Price for such
Put, minus $.10, or (ii) 91 % of the Market Price for such Put, but shall in no
event be less than the Company Designated Minimum Put Share Price for such Put,
if applicable.

                    (d) Delivery of Put Notice. After delivery of an Advance Put
Notice, on the Put Date specified in the Advance Put Notice the Company shall
deliver written

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notice (the "Put Notice," the form of which is attached hereto as Exhibit G to
Investor stating (i) the Put Date, (ii) the Intended Put Share Amount as
specified in the Advance Put Notice, (iii) the Company Designated Maximum Put
Dollar Amount (if applicable), and (iv) the Company Designated Minimum Put Share
Price (if applicable) (such exercise a "Put"). In order to effect delivery of
the Put Notice, the Company shall (i) send the Put Notice by facsimile on the
Put Date so that such notice is received by the Investor by 6:00 p.m., New York,
NY time, and (ii) surrender such notice on the Put Date to a courier for
overnight delivery to the Investor. Upon receipt by the Investor of a facsimile
copy of the Put Notice, the Investor shall, within two (2) Business Days, send,
via facsimile, a confirmation of receipt (the "Put Notice Confirmation," the
form of which is attached hereto as Exhibit H) of the Put Notice to Company
specifying that the Put Notice has been received and affirming the Put Date and
the Intended Put Share Amount.

                         (e) Delivery of Required Put Documents. On or before
the Put Date for such Put, the Company shall deliver the Required Put Documents
(as defined in Section 2.3.5 below) to the Investor (or to an agent of Investor,
if Investor so directs). If the Company has not delivered all of the Required
Put Documents to the Investor on or before the Put Date, the Put shall be
automatically cancelled, unless the Investor agrees to delay the Put Date by up
to three (3) Business Days, in which case the Pricing Period begins on the
Business Day following such new Put Date. If the Company has not delivered all
of the Required Put Documents to the Investor on or before the Put Date (or new
Put Date, if applicable), and the Investor has not agreed in writing to delay
the Put Date, the Put is automatically canceled (an "Impermissible Put
Cancellation") and, unless the Put was otherwise canceled in accordance with the
terms of Section 2.3.11, the Company shall pay the Investor $5,000 for its
reasonable due diligence expenses incurred in preparation for the canceled Put
and the Company may deliver an Advance Put Notice for the subsequent Put no
sooner than ten (10) Business Days after the date that such Put was canceled,
unless otherwise agreed by the Investor.

                         (f) Limitation on Investor's Obligation to Purchase
Shares. Notwithstanding anything to the contrary in this Agreement, in no event
shall the Investor be required to purchase, and an Intended Put Share Amount may
not include, an amount of Put Shares, which when added to the number of Put
Shares acquired by the Investor pursuant to this Agreement during the 31 days
preceding the Put Date with respect to which this determination of the permitted
Intended Put Share Amount is being made, would exceed 9.99% of the number of
shares of Common Stock outstanding (on a fully diluted basis, to the extent that
inclusion of unissued shares is mandated by Section 13(d) of the Exchange Act)
on the Put Date for such Pricing Period, as determined in accordance with
Section 13(d) of the Exchange Act (the "Section 13(d) Outstanding Share
Amount"). Each Put Notice shall include a representation of the Company as to
the Section 13(d) Outstanding Share Amount on the related Put Date. In the event
that the Section 13(d) Outstanding Share Amount is different on any date during
a Pricing Period than on the Put Date associated with such Pricing Period, then
the number of shares of Common Stock outstanding on such date during such
Pricing Period shall govern for purposes of determining whether the Investor,
when aggregating all purchases of Shares made pursuant to this Agreement in the
31 calendar days preceding such date, would have acquired more than 9.99% of the
Section 13(d) Outstanding Share Amount. The limitation set forth in this Section
2.3.1(f) is referred to as the "9.9% Limitation."

                                       13
<PAGE>   14

                    2.3.2 Termination of Right to Put. The Company's right to
require the Investor to purchase any subsequent Put Shares shall terminate
permanently (each, an "Automatic Termination") upon the occurrence of any of the
following:

                         (a) the Company shall not exercise a Put or any Put
thereafter if, at any time, either the Company or any director or executive
officer of the Company has engaged in a transaction or conduct related to the
Company that has resulted in (i) a Securities and Exchange Commission
enforcement action, or (ii) a civil judgment or criminal conviction for fraud or
misrepresentation, or for any other offense that, if prosecuted criminally,
would constitute a felony under applicable law;

                         (b) From and after the Company becoming a Reporting
Person, the Company shall not exercise a Put or any Put thereafter, on any date
after a cumulative time period or series of time periods, including both
Ineffective Periods and Delisting Events, that lasts for an aggregate of four
(4) months;

                         (c) the Company shall not exercise a Put or any Put
thereafter if at any time the Company has filed for and/or is subject to any
bankruptcy, insolvency, reorganization or liquidation proceedings or other
proceedings for relief under any bankruptcy law or any law for the relief of
debtors instituted by or against the Company or any subsidiary of the Company;

                         (d) the Company shall not exercise a Put after the
sooner of (i) the date that is three (3) years after the Effective Date, or (ii)
the Put Closing Date on which the aggregate of the Put Dollar Amounts for all
Puts equal the Maximum Offering Amount; and

                         (e) the Company shall not exercise a Put after the
Company has materially breached any covenant in Section 2.6, Section 6, or
Section 9 hereof.

                         (f) if no Registration Statement has been declared
effective by the date that is one (1) year after the date of this Agreement, the
Automatic Termination shall occur on the date that is one (1) year after the
date of this Agreement.

                    2.3.3 Put Limitations. The Company's right to exercise a Put
shall be limited as follows:

                         (a) notwithstanding the amount of any Put, the Investor
shall not be obligated to purchase any additional Put Shares once the aggregate
Put Dollar Amount paid by Investor equals the Maximum Offering Amount;

                         (b) the Investor shall not be obligated to acquire and
pay for the Put Shares with respect to any Put for which the Company has
announced a subdivision or combination, including a reverse split, of its Common
Stock or has subdivided or combined its Common Stock during the Extended Put
Period;

                                       14
<PAGE>   15

                         (c) the Investor shall not be obligated to acquire and
pay for the Put Shares with respect to any Put for which the Company has paid a
dividend of its Common Stock or has made any other distribution of its Common
Stock during the Extended Put Period;

                         (d) the Investor shall not be obligated to acquire and
pay for the Put Shares with respect to any Put for which the Company has made,
during the Extended Put Period, a distribution of all or any portion of its
assets or evidences of indebtedness to the holders of its Common Stock;

                         (e) the Investor shall not be obligated to acquire and
pay for the Put Shares with respect to any Put for which a Major Transaction has
occurred during the Extended Put Period.

                    2.3.4 Conditions Precedent to the Right of the Company to
Deliver an Advance Put Notice or a Put Notice and the Obligation of the Investor
to Purchase Put Shares. The right of the Company to deliver an Advance Put
Notice or a Put Notice and the obligation of the Investor hereunder to acquire
and pay for the Put Shares incident to a Closing is subject to the satisfaction,
on (i) the date of delivery of such Advance Put Notice or Put Notice and (ii)
the applicable Put Closing Date, of each of the following conditions:

            (a)     the Company's Common Stock shall be listed for and actively
                    trading on the O.T.C. Bulletin Board, the Nasdaq Small Cap
                    Market, the Nasdaq National Market, the American Stock
                    Exchange or the New York Stock Exchange and the Put Shares
                    shall be so listed, and to the Company's knowledge there is
                    no notice of any suspension or delisting with respect to the
                    trading of the shares of Common Stock on such market or
                    exchange;

            (b)     the Company shall have satisfied any and all obligations
                    pursuant to the Registration Rights Agreement, including,
                    but not limited to, the filing of the Registration Statement
                    with the SEC with respect to the resale of all Registrable
                    Securities and the requirement that the Registration
                    Statement shall have been declared effective by the SEC for
                    the resale of all Registrable Securities and the Company
                    shall have satisfied and shall be in compliance with any and
                    all obligations pursuant to this Agreement and the Warrants;

            (c)     the representations and warranties of the Company are true
                    and correct in all material respects as if made on such date
                    and the conditions to Investor's obligations set forth in
                    this Section 2.3.4 are satisfied as of such Closing, and the
                    Company shall deliver a certificate, signed by an officer of
                    the Company, to such effect to the Investor;

            (d)     the Company shall have reserved for issuance a sufficient
                    number of Common Shares for the purpose of enabling the
                    Company to satisfy any obligation to issue Common Shares
                    pursuant to any Put and to effect exercise of the Warrants;

                                       15
<PAGE>   16

            (e)     the Registration Statement is not subject to an Ineffective
                    Period as defined in the Registration Rights Agreement, the
                    prospectus included therein is current and deliverable, and
                    to the Company's knowledge there is no notice of any
                    investigation or inquiry concerning any stop order with
                    respect to the Registration Statement; and

            (f)     if the Aggregate Issued Shares after the Closing of the Put
                    would exceed the Cap Amount, the Company shall have obtained
                    the Stockholder 20% Approval as specified in Section 6.11,
                    if the Company's Common Stock is listed on the NASDAQ Small
                    Cap Market or NMS, and such approval is required by the
                    rules of the NASDAQ.

            (g)     the Company shall have retained an independent transfer
                    agent, and shall have retained an independent transfer, and
                    shall have delivered to the Investor the Transfer Agent
                    Instructions (signed by the Company and the Transfer Agent).

                    2.3.5 Documents Required to be Delivered on the Put Date as
Conditions to Closing of any Put. The Closing of any Put and Investor's
obligations hereunder shall additionally be conditioned upon the delivery to the
Investor of each of the following (the "Required Put Documents") on or before
the applicable Put Date:

                         (a) a number of Unlegended Share Certificates equal to
the Intended Put Share Amount, in denominations of not more than 50,000 shares
per certificate;

                         (b) the following documents: Put Opinion of Counsel,
Officer's Certificate, Put Notice, Registration Opinion, and any report or
disclosure required under Section 2.3.6 or Section 2.5;

                         (c) all documents, instruments and other writings
required to be delivered on or before the Put Date pursuant to any provision of
this Agreement in order to implement and effect the transactions contemplated
herein.

                    2.3.6 Accountant's Letter and Registration Opinion.

                         (a) The Company shall have caused to be delivered to
the Investor, (i) whenever required by Section 2.3.6(b) or by Section 2.5.3, and
(ii) on the date that is three (3) Business Days prior to each Put Date (the
"Registration Opinion Deadline"), an opinion of the Company's independent
counsel, in substantially the form of Exhibit R (the "Registration Opinion"),
addressed to the Investor stating, inter alia, that no facts ("Material Facts")
have come to such counsel's attention that have caused it to believe that the
Registration Statement is subject to an Ineffective Period or to believe that
the Registration Statement, any Supplemental Registration Statement (as each may
be amended, if applicable), and any related prospectuses, contain an untrue
statement of material fact or omits a material fact required to make the
statements contained therein, in light of the circumstances under which they
were made, not misleading. If a Registration Opinion cannot be delivered by the
Company's independent counsel to the Investor on the Registration Opinion
Deadline due to the existence of Material Facts or an

                                       16
<PAGE>   17

Ineffective Period, the Company shall promptly notify the Investor and as
promptly as possible amend each of the Registration Statement and any
Supplemental Registration Statements, as applicable, and any related prospectus
or cause such Ineffective Period to terminate, as the case may be, and deliver
such Registration Opinion and updated prospectus as soon as possible thereafter.
If at any time after a Put Notice shall have been delivered to Investor but
before the related Pricing Period End Date, the Company acquires knowledge of
such Material Facts or any Ineffective Period occurs, the Company shall promptly
notify the Investor and shall deliver a Put Cancellation Notice to the Investor
pursuant to Section 2.3.11 by facsimile and overnight courier by the end of that
Business Day.

                         (b)  (i) the Company shall engage its independent
auditors to perform the procedures in accordance with the provisions of
Statement on Auditing Standards No. 71, as amended, as agreed to by the parties
hereto, and reports thereon (the "Bring Down Cold Comfort Letters") as shall
have been reasonably requested by the Investor with respect to certain financial
information contained in the Registration Statement and shall have delivered to
the Investor such a report addressed to the Investor, on the date that is three
(3) Business Days prior to each Put Date.

                              (ii) in the event that the Investor shall have
requested delivery of an Agreed Upon Procedures Report pursuant to Section
2.5.3, the Company shall engage its independent auditors to perform certain
agreed upon procedures and report thereon as shall have been reasonably
requested by the Investor with respect to certain financial information of the
Company and the Company shall deliver to the Investor a copy of such report
addressed to the Investor. In the event that the report required by this Section
2.3.6(b) cannot be delivered by the Company's independent auditors, the Company
shall, if necessary, promptly revise the Registration Statement and the Company
shall not deliver a Put Notice until such report is delivered.

                    2.3.7 Investor's Obligation and Right to Purchase Shares.
Subject to the conditions set forth in this Agreement, following the Investor's
receipt of a validly delivered Put Notice, the Investor shall be required to
purchase (each a "Purchase") from the Company a number of Put Shares at the Put
Share Price equal to the Put Share Amount, in the manner described below.

                    2.3.8 Mechanics of Put Closing. Each of the Company and the
Investor shall deliver all documents, instruments and writings required to be
delivered by either of them pursuant to this Agreement at or prior to each
Closing. Subject to such delivery and the satisfaction of the conditions set
forth in Sections 2.3.4 and 2.3.5, the closing of the purchase by the Investor
of Shares shall occur by 5:00 PM, New York City Time, on the date which is five
(5) Business Days following the applicable Pricing Period End Date (the "Payment
Due Date") at the offices of Investor. On each or before each Payment Due Date,
the Investor shall deliver to the Company, in the manner specified in Section 8
below, the Put Dollar Amount to be paid for such Put Shares, determined as
aforesaid. The closing (each a "Put Closing") for each Put shall occur on the
date that both (i) the Company has delivered to the Investor all Required Put
Documents, and (ii) the Investor has delivered to the Company such Put Dollar
Amount and any Late Payment Amount, if applicable (each a "Put Closing Date").

                                       17
<PAGE>   18

                    2.3.9 Limitation on Short Sales. The Investor and its
Affiliates shall not engage in short sales of the Company's Common Stock;
provided, however, that the Investor may enter into any short exempt sale or any
short sale or other hedging or similar arrangement it deems appropriate with
respect to Put Shares after it receives a Put Notice with respect to such Put
Shares so long as such sales or arrangements do not involve more than the number
of such Put Shares specified in the Put Notice.

                    2.3.10 Cap Amount. If the Company becomes listed on the
Nasdaq Small Cap Market or the Nasdaq National Market, then, unless the Company
has obtained Stockholder 20% Approval as set forth in Section 6.11 or unless
otherwise permitted by Nasdaq, in no event shall the Aggregate Issued Shares
exceed the maximum number of shares of Common Stock (the "Cap Amount") that the
Company can, without stockholder approval, so issue pursuant to Nasdaq Rule
4460(i)(1)(d)(ii) (or any other applicable Nasdaq Rules or any successor rule)
(the "Nasdaq 20% Rule").

                    2.3.11 Put Cancellation.

                         (a) Mechanics of Put Cancellation. If at any time
during a Pricing Period the Company discovers the existence of Material Facts or
any Ineffective Period or Delisting Event occurs, the Company shall cancel the
Put (a "Put Cancellation"), by delivering written notice to the Investor (the
"Put Cancellation Notice"), attached as Exhibit Q, by facsimile and overnight
courier. The "Put Cancellation Date" shall be the date that the Put Cancellation
Notice is first received by the Investor, if such notice is received by the
Investor by 6:00 p.m., New York, NY time, and shall be the following date, if
such notice is received by the Investor after 6:00 p.m., New York, NY time.

                         (b) Effect of Put Cancellation. Anytime a Put
Cancellation Notice is delivered to Investor after the Put Date, the Put, shall
remain effective with respect to a number of Put Shares (the "Truncated Put
Share Amount") equal to the Individual Put Limit for the Truncated Pricing
Period.

                         (c) Put Cancellation Notice Confirmation. Upon receipt
by the Investor of a facsimile copy of the Put Cancellation Notice, the Investor
shall promptly send, via facsimile, a confirmation of receipt (the "Put
Cancellation Notice Confirmation," a form of which is attached as Exhibit S) of
the Put Cancellation Notice to the Company specifying that the Put Cancellation
Notice has been received and affirming the Put Cancellation Date.

                         (d) Truncated Pricing Period. If a Put Cancellation
Notice has been delivered to the Investor after the Put Date, the Pricing Period
for such Put shall end at on the close of trading on the last full trading day
on the Principal Market that ends prior to the moment of initial delivery of the
Put Cancellation Notice (a "Truncated Pricing Period") to the Investor.

                                       18
<PAGE>   19

                    2.3.12 Investment Agreement Cancellation. The Company may
terminate (a "Company Termination") its right to initiate future Puts by
providing written notice ("Termination Notice") to the Investor, by facsimile
and overnight courier, at any time other than during an Extended Put Period,
provided that such termination shall have no effect on the parties' other rights
and obligations under this Agreement, the Registration Rights Agreement or the
Warrants. Notwithstanding the above, any cancellation occurring during an
Extended Put Period is governed by Section 2.3.11.

                    2.3.13 Return of Excess Common Shares. In the event that the
number of Shares purchased by the Investor pursuant to its obligations hereunder
is less than the Intended Put Share Amount, the Investor shall promptly return
to the Company any shares of Common Stock in the Investor's possession that are
not being purchased by the Investor.

             2.4 Warrants.

                    2.4.1 Commitment Warrants. In partial consideration hereof,
following the execution of the Letter of Agreement dated May 3, 2000 between the
Company and the Investor, the Company issued and delivered to Investor or its
designated assignees, warrants (the "Commitment Warrants") in the form attached
hereto as Exhibit U, to purchase 600,000 shares of Common Stock. Each Commitment
Warrant shall be immediately exercisable at the Commitment Warrant Exercise
Price, and shall have a term beginning on the date of issuance and ending on
date that is five (5) years thereafter. The Warrant Shares shall be registered
for resale pursuant to the Registration Rights Agreement. The Commitment Opinion
of Counsel shall cover the issuance of the Commitment Warrant and the issuance
of the common stock upon exercise of the Commitment Warrant.

        Notwithstanding any Termination or Automatic Termination of this
Agreement, regardless of whether or not the Registration Statement is or is not
filed, and regardless of whether or not the Registration Statement is approved
or denied by the SEC, the Investor shall retain full ownership of the Commitment
Warrant as partial consideration for its commitment hereunder.

                    2.4.2 Purchase Warrants. Concurrently with a Put Closing,
the Company shall issue and deliver to the Investor a warrant ("Purchase
Warrant"), in the form attached hereto as Exhibit D, or such other form as
agreed upon by the parties, to purchase a number of shares of Common Stock equal
to 10% of the Put Shares purchased by the Investor for that Put. Each Purchase
Warrant shall be exerciseable at a price (the "Purchase Warrant Exercise Price")
which shall initially equal 110% of the Market Price for the applicable Put, and
shall have semi-annual reset provisions. Each Purchase Warrant shall be
immediately exercisable at the Purchase Warrant Exercise Price, and shall have a
term beginning on the date of issuance and ending on the date that is five (5)
years thereafter. The Warrant Shares shall be registered for resale pursuant to
the Registration Rights Agreement.

             2.5 Due Diligence Review. The Company shall make available for
inspection and review by the Investor (the "Due Diligence Review"), advisors to
and representatives of the Investor (who may or may not be affiliated with the
Investor and who are reasonably acceptable to the Company), any underwriter
participating in any disposition of Common Stock on behalf of

                                       19
<PAGE>   20

the Investor pursuant to the Registration Statement, any Supplemental
Registration Statement, or amendments or supplements thereto or any blue sky,
NASD or other filing, all financial and other records, all SEC Documents and
other filings with the SEC, and all other corporate documents and properties of
the Company as may be reasonably necessary for the purpose of such review, and
cause the Company's officers, directors and employees to supply all such
information reasonably requested by the Investor or any such representative,
advisor or underwriter in connection with such Registration Statement
(including, without limitation, in response to all questions and other inquiries
reasonably made or submitted by any of them), prior to and from time to time
after the filing and effectiveness of the Registration Statement for the sole
purpose of enabling the Investor and such representatives, advisors and
underwriters and their respective accountants and attorneys to conduct initial
and ongoing due diligence with respect to the Company and the accuracy of the
Registration Statement.

                    2.5.1 Treatment of Nonpublic Information. The Company shall
not disclose nonpublic information to the Investor or to its advisors or
representatives unless prior to disclosure of such information the Company
identifies such information as being nonpublic information and provides the
Investor and such advisors and representatives with the opportunity to accept or
refuse to accept such nonpublic information for review. The Company may, as a
condition to disclosing any nonpublic information hereunder, require the
Investor and its advisors and representatives to enter into a confidentiality
agreement (including an agreement with such advisors and representatives
prohibiting them from trading in Common Stock during such period of time as they
are in possession of nonpublic information) in form reasonably satisfactory to
the Company and the Investor.

        Nothing herein shall require the Company to disclose nonpublic
information to the Investor or its advisors or representatives, and the Company
represents that it does not disseminate nonpublic information to any investors
who purchase stock in the Company in a public offering, to money managers or to
securities analysts, provided, however, that notwithstanding anything herein to
the contrary, the Company will, as hereinabove provided, immediately notify the
advisors and representatives of the Investor and, if any, underwriters, of any
event or the existence of any circumstance (without any obligation to disclose
the specific event or circumstance) of which it becomes aware, constituting
nonpublic information (whether or not requested of the Company specifically or
generally during the course of due diligence by and such persons or entities),
which, if not disclosed in the Prospectus included in the Registration
Statement, would cause such Prospectus to include a material misstatement or to
omit a material fact required to be stated therein in order to make the
statements therein, in light of the circumstances in which they were made, not
misleading. Nothing contained in this Section 2.5 shall be construed to mean
that the Investor or its advisors and representatives may not obtain nonpublic
information in the course of conducting due diligence in accordance with the
terms of this Agreement. Investor understands and acknowledges that the proposed
reorganization with Avenue is material, nonpublic information.

                    2.5.2 Disclosure of Misstatements and Omissions. Upon
receipt of such disclosure, the Investor's counsel may consult with the
Company's independent counsel in order to address the concern raised as to the
existence of a material misstatement or omission and to discuss appropriate
disclosure with respect thereto; provided, however, that such consultation

                                       20
<PAGE>   21

shall not constitute the advice of the Company's independent counsel to the
Investor as to the accuracy of the Registration Statement and related
Prospectus.

                    2.5.3 Procedure if Material Facts are Reasonably Believed to
be Untrue or are Omitted. In the event after such consultation the Investor or
the Investor's counsel reasonably believes that the Registration Statement
contains an untrue statement or a material fact or omits a material fact
required to be stated in the Registration Statement or necessary to make the
statements contained therein, in light of the circumstances in which they were
made, not misleading,

                         (a) the Company shall file with the SEC an amendment to
the Registration Statement responsive to such alleged untrue statement or
omission and provide the Investor, as promptly as practicable, with copies of
the Registration Statement and related Prospectus, as so amended, or

                         (b) if the Company disputes the existence of any such
material misstatement or omission, (i) the Company's independent counsel shall
provide the Investor's counsel with a Registration Opinion and (ii) in the event
the dispute relates to the adequacy of financial disclosure and the Investor
shall reasonably request, the Company's independent auditors shall provide to
the Company a letter ("Agreed Upon Procedures Report") outlining the performance
of such "agreed upon procedures" as shall be reasonably requested by the
Investor and the Company shall provide the Investor with a copy of such letter.

             2.6 Commitment Payments.

        On the last Business Day of each six (6) Calendar Month period following
the Effective Date (each such period a "Commitment Evaluation Period"), if the
Company has not Put at least $1,000,000 in aggregate Put Dollar Amount during
that Commitment Evaluation Period, the Company, in consideration of Investor's
commitment costs, including, but not limited to, due diligence expenses, shall
pay to the Investor an amount (the "Semi-Annual Non-Usage Fee") equal to the
difference of (i) $100,000, minus (ii) 10% of the aggregate Put Dollar Amount of
the Put Shares put to Investor during that Commitment Evaluation Period. In the
event that the Company delivers a Termination Notice to the Investor or an
Automatic Termination occurs, the Company shall pay to the Investor (the
"Termination Fee") the greater of (i) the Semi-Annual Non-Usage Fee for the
applicable Commitment Evaluation Period, or (ii) the difference of (x) $200,000,
minus (y) 10% of the aggregate Put Dollar Amount of the Put Shares put to
Investor during all Puts to date, and the Company shall not be required to pay
the Semi-Annual Non-Usage Fee thereafter.

        Each Semi Annual Non-Usage Fee or Termination Fee is payable, in cash,
within five (5) business days of the date it accrued. The Company shall not be
required to deliver any payments to Investor under this subsection until
Investor has paid all Put Dollar Amounts that are then due.

        3. Representations, Warranties and Covenants of Investor. Investor
hereby represents and warrants to and agrees with the Company as follows:

                                       21
<PAGE>   22

             3.1 Accredited Investor. Investor is an accredited investor
("Accredited Investor"), as defined in Rule 501 of Regulation D, and has checked
the applicable box set forth in Section 10 of this Agreement.

             3.2 Investment Experience; Access to Information; Independent
Investigation.

                    3.2.1 Access to Information. Investor or Investor's
professional advisor has been granted the opportunity to ask questions of and
receive answers from representatives of the Company, its officers, directors,
employees and agents concerning the terms and conditions of this Offering, the
Company and its business and prospects, and to obtain any additional information
which Investor or Investor's professional advisor deems necessary to verify the
accuracy and completeness of the information received.

                    3.2.2 Reliance on Own Advisors. Investor has relied
completely on the advice of, or has consulted with, Investor's own personal tax,
investment, legal or other advisors and has not relied on the Company or any of
its affiliates, officers, directors, attorneys, accountants or any affiliates of
any thereof and each other person, if any, who controls any of the foregoing,
within the meaning of Section 15 of the Act for any tax or legal advice (other
than reliance on information in the Disclosure Documents as defined in Section
3.2.4 below and on the Opinion of Counsel). The foregoing, however, does not
limit or modify Investor's right to rely upon covenants, representations and
warranties of the Company in this Agreement.

                    3.2.3 Capability to Evaluate. Investor has such knowledge
and experience in financial and business matters so as to enable such Investor
to utilize the information made available to it in connection with the Offering
in order to evaluate the merits and risks of the prospective investment, which
are substantial, including without limitation those set forth in the Disclosure
Documents (as defined in Section 3.2.4 below).

                    3.2.4 Disclosure Documents. Investor, in making Investor's
investment decision to subscribe for the Investment Agreement hereunder,
represents that (a) Investor has received and had an opportunity to review (i)
the audited Financial Statements of the Company attached hereto as Exhibit P
(the "Financial Statements"), (ii) the Risk Factors, attached as Exhibit J, (the
"Risk Factors") (iii) the Capitalization Schedule, attached as Exhibit K, (the
"Capitalization Schedule") and (iv) the Use of Proceeds Schedule, attached as
Exhibit L, (the "Use of Proceeds Schedule"); (b) Investor has read, reviewed,
and relied solely on the documents described in (a) above, the Company's
representations and warranties and other information in this Agreement,
including the exhibits and documents prepared by the Company which are attached
hereto (the documents described in this Section 3.2.4 (a) and (b) are
collectively referred to as the "Disclosure Documents"), and an independent
investigation made by Investor and Investor's representatives, if any; (c)
Investor has, prior to the date of this Agreement, been given an opportunity to
review material contracts and documents of the Company and has had an
opportunity to ask questions of and receive answers from the Company's officers
and directors; and (d) is not relying on any oral representation of the Company
or any other person, nor any written representation or assurance from the
Company other than those contained in the Disclosure Documents or incorporated
herein or therein. The foregoing, however, does not limit or modify Investor's
right to rely upon covenants, representations and warranties of the Company in
Sections 5 and 6 of this Agreement. Investor acknowledges and agrees that the
Company has no responsibility for, does not ratify, and is under no
responsibility whatsoever to comment upon or correct any reports, analyses or
other comments made about the Company by any third parties,

                                       22
<PAGE>   23

including, but not limited to, analysts' research reports or comments
(collectively, "Third Party Reports"), and Investor has not relied upon any
Third Party Reports in making the decision to invest.

                    3.2.5 Investment Experience; Fend for Self. Investor has
substantial experience in investing in securities and it has made investments in
securities other than those of the Company. Investor acknowledges that Investor
is able to fend for Investor's self in the transaction contemplated by this
Agreement, that Investor has the ability to bear the economic risk of Investor's
investment pursuant to this Agreement and that Investor is an "Accredited
Investor" by virtue of the fact that Investor meets the investor qualification
standards set forth in Section 3.1 above. Investor has not been organized for
the purpose of investing in securities of the Company, although such investment
is consistent with Investor's purposes.

             3.3 Exempt Offering Under Regulation D.

                    3.3.1 No General Solicitation. The Investment Agreement was
not offered to Investor through, and Investor is not aware of, any form of
general solicitation or general advertising, including, without limitation, (i)
any advertisement, article, notice or other communication published in any
newspaper, magazine or similar media or broadcast over television or radio, and
(ii) any seminar or meeting whose attendees have been invited by any general
solicitation or general advertising.

                    3.3.2 Restricted Securities. Investor understands that the
Investment Agreement is, the Put Shares and Warrants issued at each Put Closing
will be, and the Warrant Shares will be, characterized as "restricted
securities" under the federal securities laws inasmuch as they are being
acquired from the Company in a transaction exempt from the registration
requirements of the federal securities laws and that under such laws and
applicable regulations such securities may not be transferred or resold without
registration under the Act or pursuant to an exemption therefrom. In this
connection, Investor represents that Investor is familiar with Rule 144 under
the Act, as presently in effect, and understands the resale limitations imposed
thereby and by the Act.

                    3.3.3 Disposition. Without in any way limiting the
representations set forth above, Investor agrees that until the Securities are
sold pursuant to an effective Registration Statement or an exemption from
registration, they will remain in the name of Investor and will not be
transferred to or assigned to any broker, dealer or depositary. Investor further
agrees not to sell, transfer, assign, or pledge the Securities (except for any
bona fide pledge arrangement to the extent that such pledge does not require
registration under the Act or unless an exemption from such registration is
available and provided further that if such pledge is realized upon, any
transfer to the pledgee shall comply with the requirements set forth herein), or
to otherwise dispose of all or any portion of the Securities unless and until:

                         (a) There is then in effect a registration statement
under the Act and any applicable state securities laws covering such proposed
disposition and such disposition is made in accordance with such registration
statement and in compliance with applicable prospectus delivery requirements; or

                                       23
<PAGE>   24

                         (b) (i) Investor shall have notified the Company of the
proposed disposition and shall have furnished the Company with a statement of
the circumstances surrounding the proposed disposition to the extent relevant
for determination of the availability of an exemption from registration, and
(ii) if reasonably requested by the Company, Investor shall have furnished the
Company with an opinion of counsel, reasonably satisfactory to the Company, that
such disposition will not require registration of the Securities under the Act
or state securities laws. It is agreed that the Company will not require the
Investor to provide opinions of counsel for transactions made pursuant to Rule
144 provided that Investor and Investor's broker, if necessary, provide the
Company with the necessary representations for counsel to the Company to issue
an opinion with respect to such transaction.

             The Investor is entering into this Agreement for its own account
and the Investor has no present arrangement (whether or not legally binding) at
any time to sell the Common Stock to or through any person or entity; provided,
however, that by making the representations herein, the Investor does not agree
to hold the Common Stock for any minimum or other specific term and reserves the
right to dispose of the Common Stock at any time in accordance with federal and
state securities laws applicable to such disposition.

             3.4 Due Authorization.

                    3.4.1 Authority. The person executing this Investment
Agreement on behalf of Investor has full power and authority to execute and
deliver this Agreement and each other document included herein for which a
signature is required in such capacity and on behalf of the Investor, and when
so executed and delivered will be legal, valid and binding on Investor,
enforceable in accordance with its terms.

                    3.4.2 Due Authorization. Investor is duly and validly
organized, validly existing and in good standing as a limited liability company
under the laws of Georgia with full power and authority to purchase the
Securities to be purchased by Investor and to execute and deliver this
Agreement.

        4. Acknowledgments. Investor is aware that:

             4.1 Risks of Investment. Investor recognizes that an investment in
the Company involves substantial risks, including the potential loss of
Investor's entire investment herein. Investor recognizes that the Disclosure
Documents, this Agreement and the exhibits hereto do not purport to contain all
the information, which would be contained in a registration statement under the
Act;

             4.2 No Government Approval. No federal or state agency has passed
upon the Securities, recommended or endorsed the Offering, or made any finding
or determination as to the fairness of this transaction;

             4.3 No Registration, Restrictions on Transfer. As of the date of
this Agreement, the Securities and any component thereof have not been
registered under the Act or any applicable state securities laws by reason of
exemptions from the registration requirements of the

                                       24

<PAGE>   25
Act and such laws, and may not be sold, pledged (except for any limited pledge
in connection with a margin account of Investor to the extent that such pledge
does not require registration under the Act or unless an exemption from such
registration is available and provided further that if such pledge is realized
upon, any transfer to the pledgee shall comply with the requirements set forth
herein), assigned or otherwise disposed of in the absence of an effective
registration of the Securities and any component thereof under the Act or unless
an exemption from such registration is available;

               4.4 Restrictions on Transfer. Investor may not attempt to sell,
transfer, assign, pledge or otherwise dispose of all or any portion of the
Securities or any component thereof in the absence of either an effective
registration statement or an exemption from the registration requirements of the
Act and applicable state securities laws;

               4.5 No Assurances of Registration. There can be no assurance that
any registration statement will become effective at the scheduled time, or ever,
or remain effective when required, and Investor acknowledges that it may be
required to bear the economic risk of Investor's investment for an indefinite
period of time;

               4.6 Exempt Transaction. Investor understands that the Securities
are being offered and sold in reliance on specific exemptions from the
registration requirements of federal and state law and that the representations,
warranties, agreements, acknowledgments and understandings set forth herein are
being relied upon by the Company in determining the applicability of such
exemptions and the suitability of Investor to acquire such Securities.

               4.7 Legends. The certificates representing the Put Shares shall
not bear a Restrictive Legend. The certificates representing the Warrant Shares
shall not bear a Restrictive Legend unless they are issued at a time when the
Registration Statement is not effective for resale. It is understood that the
certificates evidencing any Warrant Shares issued at a time when the
Registration Statement is not effective for resale, subject to legend removal
under the terms of Section 6.8 below, shall bear the following legend (the
"Legend"):

        "The securities represented hereby have not been registered under the
        Securities Act of 1933, as amended, or applicable state securities laws,
        nor the securities laws of any other jurisdiction. They may not be sold
        or transferred in the absence of an effective registration statement
        under those securities laws or pursuant to an exemption therefrom."

        5. Representations and Warranties of the Company. The Company hereby
makes the following representations and warranties to Investor (which shall be
true at the signing of this Agreement, and as of any such later date as
contemplated hereunder) and agrees with Investor that, except as set forth in
the "Schedule of Exceptions" attached hereto as Exhibit C:

               5.1 Organization, Good Standing, and Qualification. The Company
is a corporation duly organized, validly existing and in good standing under the
laws of the State of Delaware, USA and has all requisite corporate power and
authority to carry on its business as now conducted and as proposed to be
conducted. The Company is duly qualified to transact business and is in good
standing in each jurisdiction in which the failure to so qualify would have a
material adverse effect on the business or properties of the Company and its
subsidiaries taken

                                       25
<PAGE>   26

as a whole. The Company is not the subject of any pending, threatened or, to its
knowledge, contemplated investigation or administrative or legal proceeding (a
"Proceeding") by the Internal Revenue Service, the taxing authorities of any
state or local jurisdiction, or the Securities and Exchange Commission, The
National Association of Securities Dealer, Inc., The Nasdaq Stock Market, Inc.
or any state securities commission, or any other governmental entity, which have
not been disclosed in the Disclosure Documents. None of the disclosed
Proceedings, if any, will have a material adverse effect upon the Company or the
market for the Common Stock. The Company has the subsidiaries set forth in the
Schedule of Exceptions.

               5.2 Corporate Condition. The Company's financial condition is, in
all material respects, as described in the Financial Statements, except for
changes in the ordinary course of business and normal year-end adjustments that
are not, in the aggregate, materially adverse to the Company. Except for
continuing losses, there have been no material adverse changes to the Company's
business, or financial condition, since the dates of such Financial Statements.
The Financial Statements have been prepared in accordance with generally
accepted accounting principles, consistently applied (except as otherwise
permitted by Regulation S-X of the Exchange Act), subject, in the case of
unaudited interim financial statements, to customary year end adjustments and
the absence of certain footnotes, and fairly present the financial condition of
the Company as of the dates of the balance sheets included therein and the
consolidated results of its operations and cash flows for the periods then
ended. Without limiting the foregoing, there are no material liabilities,
contingent or actual, that are not disclosed in the Disclosure Documents (other
than liabilities incurred by the Company in the ordinary course of its business,
consistent with its past practice, after the period covered by the Disclosure
Documents). The Company has paid all material taxes that are due, except for
taxes that it reasonably disputes. There is no material claim, litigation, or
administrative proceeding pending or, to the best of the Company's knowledge,
threatened against the Company, except as disclosed in the Disclosure Documents.
This Agreement and the Disclosure Documents do not contain any untrue statement
of a material fact and do not omit to state any material fact required to be
stated therein or herein necessary to make the statements contained therein or
herein not misleading in the light of the circumstances under which they were
made. No event or circumstance exists relating to the Company which, under
applicable law, requires public disclosure but which has not been so publicly
announced or disclosed.

               5.3 Authorization. All corporate action on the part of the
Company by its officers, directors and stockholders necessary for the
authorization, execution and delivery of this Agreement, the performance of all
obligations of the Company hereunder and the authorization, issuance and
delivery of the Put Shares being sold hereunder and the issuance (and/or the
reservation for issuance) of the Warrants and the Warrant Shares have been
taken, and this Agreement and the Registration Rights Agreement constitute valid
and legally binding obligations of the Company, enforceable in accordance with
their terms, except insofar as the enforceability may be limited by applicable
bankruptcy, insolvency, reorganization, or other similar laws affecting
creditors' rights generally or by principles governing the availability of
equitable remedies. The Company has obtained all consents and approvals required
for it to execute, deliver and perform each agreement referenced in the previous
sentence.

               5.4 Valid Issuance of Common Stock. The Put Shares and the
Warrants, when issued, sold and delivered in accordance with the terms hereof,
for the consideration expressed

                                       26
<PAGE>   27

herein, will be validly issued, fully paid and nonassessable and, based in part
upon the representations of Investor in this Agreement, will be issued in
compliance with all applicable U.S. federal and state securities laws. The
Warrant Shares, when issued in accordance with the terms of the Warrants, shall
be duly and validly issued and outstanding, fully paid and nonassessable, and
based in part on the representations and warranties of Investor, will be issued
in compliance with all applicable U.S. federal and state securities laws. The
Put Shares, the Warrants and the Warrant Shares will be issued free of any
preemptive rights.

               5.5 Compliance with Other Instruments. The Company is not in
violation or default of any provisions of its Certificate of Incorporation or
Bylaws, each as amended and in effect on and as of the date of the Agreement, or
of any material provision of any material instrument or material contract to
which it is a party or by which it is bound or of any provision of any federal
or state judgment, writ, decree, order, statute, rule or governmental regulation
applicable to the Company, which would have a material adverse effect on the
Company's business or financial condition, or on the performance of its
obligations under this Agreement or the Registration Rights Agreement. The
execution, delivery and performance of this Agreement and the other agreements
entered into in conjunction with the Offering and the consummation of the
transactions contemplated hereby and thereby will not (a) result in any such
violation or be in conflict with or constitute, with or without the passage of
time and giving of notice, either a default under any such provision, instrument
or contract or an event which results in the creation of any lien, charge or
encumbrance upon any assets of the Company, which would have a material adverse
effect on the Company's business or financial condition, or on the performance
of its obligations under this Agreement, the Registration Rights Agreement, (b)
violate the Company's Certificate of Incorporation or By-Laws or (c) violate any
statute, rule or governmental regulation applicable to the Company which
violation would have a material adverse effect on the Company's business or
financial condition.

               5.6 Reporting Company. The Company will use its best efforts to
become subject to the reporting requirements of the Exchange Act, and to have a
class of securities registered under Section 12 of the Exchange Act not later
than six (6) months from the date hereof, and shall file all reports required by
the Exchange Act following the date the Company first becomes subject to such
reporting obligations. The Company undertakes to furnish Investor with copies of
such reports as may be reasonably requested by Investor prior to consummation of
this Offering and thereafter, to make such reports available, for the full term
of this Agreement, including any extensions thereof, and for as long as Investor
holds the Securities.

               5.7 Capitalization. The capitalization of the Company as of the
date hereof, is, and the capitalization as of the Investment Commitment Closing,
subject to exercise of any outstanding warrants and/or exercise of any
outstanding stock options, after taking into account the offering of the
Securities contemplated by this Agreement and all other share issuances
occurring prior to this Offering, will be, as set forth in the Capitalization
Schedule as set forth in Exhibit K. There are no securities or instruments
containing anti-dilution or similar provisions that will be triggered by the
issuance of the Securities. Except as disclosed in the Capitalization Schedule,
as of the date of this Agreement, (i) there are no outstanding options,
warrants, scrip, rights to subscribe for, calls or commitments of any character
whatsoever relating to, or securities or rights convertible into or exercisable
or exchangeable for, any shares of capital stock of the Company or any of its
subsidiaries, or arrangements by which the Company or any of its

                                       27
<PAGE>   28

subsidiaries is or may become bound to issue additional shares of capital stock
of the Company or any of its subsidiaries, and (ii) there are no agreements or
arrangements under which the Company or any of its subsidiaries is obligated to
register the sale of any of its or their securities under the Act (except the
Registration Rights Agreement).

               5.8 Intellectual Property. The Company has valid, unrestricted
and exclusive ownership of or rights to use the patents, trademarks, trademark
registrations, trade names, copyrights, know-how, technology and other
intellectual property necessary to the conduct of its business. Exhibit M lists
all patents, trademarks, trademark registrations, trade names and copyrights of
the Company. The Company has been granted licenses, know-how, technology and/or
other intellectual property necessary to the conduct of its business as set
forth in Exhibit M. To the best of the Company's knowledge after due inquiry,
the Company is not infringing on the intellectual property rights of any third
party, nor is any third party infringing on the Company's intellectual property
rights. There are no restrictions in any agreements, licenses, franchises, or
other instruments that preclude the Company from engaging in its business as
presently conducted.

               5.9 Use of Proceeds. As of the date hereof, the Company expects
to use the proceeds from this Offering (less fees and expenses) for the purposes
and in the approximate amounts set forth on the Use of Proceeds Schedule set
forth as Exhibit L hereto. These purposes and amounts are estimates and are
subject to change without notice to any Investor.

               5.10 No Rights of Participation. No person or entity, including,
but not limited to, current or former stockholders of the Company, underwriters,
brokers, agents or other third parties, has any right of first refusal,
preemptive right, right of participation, or any similar right to participate in
the financing contemplated by this Agreement which has not been waived.

               5.11 Company Acknowledgment. The Company hereby acknowledges that
Investor may elect to hold the Securities for various periods of time, as
permitted by the terms of this Agreement, the Warrants, and other agreements
contemplated hereby, and the Company further acknowledges that Investor has made
no representations or warranties, either written or oral, as to how long the
Securities will be held by Investor or regarding Investor's trading history or
investment strategies.

               5.12 No Advance Regulatory Approval. The Company acknowledges
that this Investment Agreement, the transaction contemplated hereby and the
Registration Statement contemplated hereby have not been approved by the SEC, or
any other regulatory body and there is no guarantee that this Investment
Agreement, the transaction contemplated hereby and the Registration Statement
contemplated hereby will ever be approved by the SEC or any other regulatory
body. The Company is relying on its own analysis and is not relying on any
representation by Investor that either this Investment Agreement, the
transaction contemplated hereby or the Registration Statement contemplated
hereby has been or will be approved by the SEC or other appropriate regulatory
body.

               5.13 Underwriter's Fees and Rights of First Refusal. The Company
is not obligated to pay any compensation or other fees, costs or related
expenditures in cash or

                                       28
<PAGE>   29

securities to any underwriter, broker, agent or other representative other than
the Investor in connection with this Offering.

               5.14 Availability of Suitable Form for Registration. The Company
is currently eligible and agrees to maintain its eligibility to register the
resale of its Common Stock on a registration statement on a suitable form under
the Act.

               5.15 No Integrated Offering. Neither the Company, nor any of its
affiliates, nor any person acting on its or their behalf, has directly or
indirectly made any offers or sales of any of the Company's securities or
solicited any offers to buy any security under circumstances that would prevent
the parties hereto from consummating the transactions contemplated hereby
pursuant to an exemption from registration under Regulation D of the Act or
would require the issuance of any other securities to be integrated with this
Offering under the Rules of Nasdaq. The Company has not engaged in any form of
general solicitation or advertising in connection with the offering of the
Common Stock or the Warrants.

               5.16 Foreign Corrupt Practices. Neither the Company, nor any of
its subsidiaries, nor any director, officer, agent, employee or other person
acting on behalf of the Company or any subsidiary has, in the course of its
actions for, or on behalf of, the Company, used any corporate funds for any
unlawful contribution, gift, entertainment or other unlawful expenses relating
to political activity; made any direct or indirect unlawful payment to any
foreign or domestic government official or employee from corporate funds;
violated or is in violation of any provision of the U.S. Foreign Corrupt
Practices Act of 1977, as amended; or made any bribe, rebate, payoff, influence
payment, kickback or other unlawful payment to any foreign or domestic
government official or employee.

               5.17 Key Employees. Each "Key Employee" (as defined in Exhibit
N)is currently serving the Company in the capacity disclosed in Exhibit N. No
Key Employee, to the best knowledge of the Company and its subsidiaries, is, or
is now expected to be, in violation of any material term of any employment
contract, confidentiality, disclosure or proprietary information agreement,
non-competition agreement, or any other contract or agreement or any restrictive
covenant, and the continued employment of each Key Employee does not subject the
Company or any of its subsidiaries to any liability with respect to any of the
foregoing matters. No Key Employee has, to the best knowledge of the Company and
its subsidiaries, any intention to terminate his employment with, or services
to, the Company or any of its subsidiaries.

               5.18 Representations Correct. The foregoing representations,
warranties and agreements are true, correct and complete in all material
respects, and shall survive any Put Closing and the issuance of the Put Shares
and Warrant Shares.

               5.19 Tax Status. The Company has made or filed all federal and
state income and all other tax returns, reports and declarations required by any
jurisdiction to which it is subject (unless and only to the extent that the
Company has set aside on its books provisions reasonably adequate for the
payment of all unpaid and unreported taxes) and has paid all taxes and other
governmental assessments and charges that are material in amount, shown or
determined to be due on such returns, reports and declarations, except those
being contested in good faith and as set aside on its books provision reasonably
adequate for the payment of all taxes for periods

                                       29
<PAGE>   30

subsequent to the periods to which such returns, reports or declarations apply.
There are no unpaid taxes in any material amount claimed to be due by the taxing
authority of any jurisdiction, and the officers of the Company know of no basis
for any such claim.

               5.20 Transactions With Affiliates. Except as set forth in the
Disclosure Documents, none of the officers, directors, or employees of the
Company is presently a party to any transaction with the Company (other than for
services as employees, officers and directors), including any contract,
agreement or other arrangement providing for the furnishing of services to or
by, providing for rental of real or personal property to or from, or otherwise
requiring payments to or from any officer, director or such employee or, to the
knowledge of the Company, any corporation, partnership, trust or other entity in
which any officer, director, or any such employee has a substantial interest or
is an officer, director, trustee or partner.

               5.21 Application of Takeover Protections. The Company and its
board of directors have taken all necessary action, if any, in order to render
inapplicable any control share acquisition, business combination or other
similar anti-takeover provision under Delaware law which is or could become
applicable to the Investor as a result of the transactions contemplated by this
Agreement, including, without limitation, the issuance of the Put Shares, any
exercise of the Warrants and ownership of the Put Shares and Warrant Shares. The
Company has not adopted and will not adopt any "poison pill" provision that will
be applicable to Investor as a result of transactions contemplated by this
Agreement.

               5.22 Other Agreements. The Company has not, directly or
indirectly, made any agreements with the Investor under a subscription in the
form of this Agreement for the purchase of Common Stock, relating to the terms
or conditions of the transactions contemplated hereby or thereby except as
expressly set forth herein, respectively, or in exhibits hereto or thereto.

               5.23 Major Transactions. Except for the proposed reorganization
with Avenue, there are no other Major Transactions currently pending or
contemplated by the Company.

               5.24 Financings. There are no financings other than the Offering
currently pending or contemplated by the Company.

               5.25 Shareholder Authorization. The Company shall, at its next
annual shareholder meeting or at a special meeting to be held as soon as
practicable thereafter, use its best efforts to obtain approval of its
shareholders to (i) authorize the issuance of the full number of shares of
Common Stock which would be issuable under this Agreement and eliminate any
prohibitions under applicable law or the rules or regulations of any stock
exchange, interdealer quotation system or other self-regulatory organization
with jurisdiction over the Company or any of its securities with respect to the
Company's ability to issue shares of Common Stock in excess of the Cap Amount
(such approvals being the "20% Approval") and (ii) the increase in the number of
authorized shares of Common Stock of the Company (the "Share Authorization
Increase Approval") such that at least 10,000,000 shares can be reserved for
this Offering. As soon as practicable after the 20% Approval and the Share
Authorization Increase Approval, the Company agrees to use its best efforts to
reserve 10,000,000 shares of Common Stock for issuance under this Agreement.

                                       30
<PAGE>   31

               5.26 Acknowledgment of Limitations on Put Amounts. The Company
understands and acknowledges that the amounts available under this investment
Agreement are limited, among other things, based upon the liquidity of the
Company's Common Stock traded on its Principal Market.

        6.      Covenants of the Company

               6.1 Independent Auditors. The Company shall, until at least the
Termination Date, maintain as its independent auditors an accounting firm
authorized to practice before the SEC.

               6.2 Corporate Existence and Taxes. The Company shall, until at
least the Termination Date, maintain its corporate existence in good standing
and, once it becomes a "Reporting Issuer" (defined as a Company which files
periodic reports under the Exchange Act), remain a Reporting Issuer (provided,
however, that the foregoing covenant shall not prevent the Company from entering
into any merger or corporate reorganization as long as the surviving entity in
such transaction, if not the Company, assumes the Company's obligations with
respect to the Common Stock and has Common Stock listed for trading on a stock
exchange or on Nasdaq and is a Reporting Issuer) and shall pay all its taxes
when due except for taxes which the Company disputes.

               6.3 Registration Rights. The Company will enter into a
registration rights agreement covering the resale of the Put Shares and the
Warrant Shares substantially in the form of the Registration Rights Agreement
attached as Exhibit A.

               6.4 Asset Transfers. Except as contemplated in the Avenue
reorganization, the Company shall not (i) transfer, sell, convey or otherwise
dispose of any of its material assets to any Subsidiary except for a cash or
cash equivalent consideration and for a proper business purpose or (ii)
transfer, sell, convey or otherwise dispose of any of its material assets to any
Affiliate, as defined below, during the Term of this Agreement. For purposes
hereof, "Affiliate" shall mean any officer of the Company, director of the
Company or owner of twenty percent (20%) or more of the Common Stock or other
securities of the Company.

               6.5 Rights of First Refusal.

                    6.5.1 Capital Raising Limitations. During the period from
the date of this Agreement until the date that is ninety (90) days after the
Termination Date, the Company shall not issue or sell, or agree to issue or sell
Equity Securities (as defined below), for cash in private capital raising
transactions without obtaining the prior written approval of the Investor of the
Offering (the limitations referred to in this subsection 6.5.1 are collectively
referred to as the "Capital Raising Limitations"). For purposes hereof, the
following shall be collectively referred to herein as, the "Equity Securities":
(i) Common Stock or any other equity securities, (ii) any debt or equity
securities which are convertible into, exercisable or exchangeable for, or carry
the right to receive additional shares of Common Stock or other equity
securities, or (iii) any securities of the Company pursuant to an equity line
structure or format similar in nature to this Offering.

                                       31
<PAGE>   32

                    6.5.2 Investor's Right of First Refusal. For any private
capital raising transactions of Equity Securities which close after the date
hereof and on or prior to the date that is ninety (90) days after the
Termination Date of this Agreement, not including any warrants issued in
conjunction with this Investment Agreement, the Company agrees to deliver to
Investor, at least ten (10) days prior to the closing of such transaction,
written notice describing the proposed transaction, including the terms and
conditions thereof, and providing the Investor and its affiliates an option (the
"Rights of First Refusal") during the ten (10) day period following delivery of
such notice to purchase the securities being offered in such transaction on the
same terms as contemplated by such transaction.

                         6.5.3 Exceptions to Rights of First Refusal.
Notwithstanding the above, the Capital Raising Limitations and Rights of First
Refusal shall not apply to any transaction involving issuances of securities in
connection with a merger, consolidation, acquisition or sale of assets, or in
connection with any strategic partnership or joint venture (the primary purpose
of which is not to raise equity capital), or in connection with the disposition
or acquisition of a business, product or license by the Company or exercise of
options by employees, consultants or directors, or a primary underwritten
offering of the Company's Common Stock. The Capital Raising Limitations also
shall not apply to (a) the issuance of securities upon exercise or conversion of
the Company's options, warrants or other convertible securities outstanding as
of the date hereof, (b) the grant of additional options or warrants, or the
issuance of additional securities, under any Company stock option or restricted
stock plan for the benefit of the Company's employees, directors or consultants,
(c) the issuance of debt securities, with no equity feature, incurred solely for
working capital purposes, or (d) to an offering or offerings of an aggregate of
up to $5,000,000 in Common Stock and Warrants, placed between the date hereof
and the effective date of the Registration Statement required pursuant to the
Registration Rights Agreement, provided that the price of such Common Stock and
the exercise price of such Warrants are not subject to being reset based upon
the market price of the Company's Common Stock (not related to the issuance of
other securities by the Company) at some future date at any time after the
initial issuance of such securities. If the Investor, at any time, is more than
five (5) business days late in paying any Put Dollar Amounts that are then due,
the Investor shall not be entitled to the benefits of Sections 6.5.1 and 6.5.2
above until the date that the Investor has paid all Put Dollar Amounts that are
then due.

               6.6 Financial 10-KSB Statements, Etc. and Current Reports on Form
8-K. Once the Company becomes a "reporting company" within the meaning of the
Exchange Act, the Company shall deliver to the Investor copies of its annual
reports on Form 10-KSB, and quarterly reports on Form 10-QSB and shall deliver
to the Investor current reports on Form 8-K within two (2) days of filing for
the Term of this Agreement.

               6.7 Opinion of Counsel. Investor shall, concurrent with the
Investment Commitment Closing, receive an opinion letter from the Company's
legal counsel, in the form attached as Exhibit B, or in such form as agreed upon
by the parties, and shall, concurrent with each Put Date, receive an opinion
letter from the Company's legal counsel, in the form attached as Exhibit I or in
such form as agreed upon by the parties.

                                       32
<PAGE>   33

               6.8 Removal of Legend. If the certificates representing any
Securities are issued with a restrictive Legend in accordance with the terms of
this Agreement, the Legend shall be removed and the Company shall issue a
certificate without such Legend to the holder of any Security upon which it is
stamped, and a certificate for a security shall be originally issued without the
Legend, if (a) the sale of such Security is registered under the Act, or (b)
such holder provides the Company with an opinion of counsel, in form, substance
and scope customary for opinions of counsel in comparable transactions (the
reasonable cost of which shall be borne by the Investor), to the effect that a
public sale or transfer of such Security may be made without registration under
the Act, or (c) such holder provides the Company with reasonable assurances that
such Security can be sold pursuant to Rule 144. Each Investor agrees to sell all
Securities, including those represented by a certificate(s) from which the
Legend has been removed, or which were originally issued without the Legend,
pursuant to an effective registration statement and to deliver a prospectus in
connection with such sale or in compliance with an exemption from the
registration requirements of the Act.

               6.9 Listing. The Company shall (i) use its best efforts to become
eligible for and have its Common Stock listed and available for trading on the
O.T.C. Bulletin Board, the Nasdaq Small Cap Market, the NMS, the American Stock
Exchange or the New York Stock Exchange ("NYSE"); and (ii) comply in all
material respects with the Company's reporting, filing and other obligations
under the By-Laws or rules of the National Association of Securities Dealers
("NASD") and such exchanges, as applicable.

               6.10 The Company's Instructions to Transfer Agent. At such time
as the Company appoints an independent Transfer Agent, the Company will instruct
the Transfer Agent of the Common Stock, by delivering instructions in the form
of Exhibit T hereto, to issue certificates, registered in the name of each
Investor or its nominee, for the Put Shares and Warrant Shares in such amounts
as specified from time to time by the Company upon any exercise by the Company
of a Put and/or exercise of the Warrants by the holder thereof. Such
certificates shall not bear a Legend unless issuance with a Legend is permitted
by the terms of this Agreement and Legend removal is not permitted by Section
6.8 hereof and the Company shall cause the Transfer Agent to issue such
certificates without a Legend. Nothing in this Section shall affect in any way
Investor's obligations and agreement set forth in Sections 3.3.2 or 3.3.3 hereof
to resell the Securities pursuant to an effective registration statement and to
deliver a prospectus in connection with such sale or in compliance with an
exemption from the registration requirements of applicable securities laws. If
(a) an Investor provides the Company with an opinion of counsel, which opinion
of counsel shall be in form, substance and scope customary for opinions of
counsel in comparable transactions, to the effect that the Securities to be sold
or transferred may be sold or transferred pursuant to an exemption from
registration or (b) an Investor transfers Securities, pursuant to Rule 144, to a
transferee which is an accredited investor, the Company shall permit the
transfer, and, in the case of Put Shares and Warrant Shares, promptly instruct
its transfer agent to issue one or more certificates in such name and in such
denomination as specified by such Investor. The Company acknowledges that a
breach by it of its obligations hereunder will cause irreparable harm to an
Investor by vitiating the intent and purpose of the transaction contemplated
hereby. Accordingly, the Company acknowledges that the remedy at law for a
breach of its obligations under this Section 6.10 will be inadequate and agrees,
in the event of a breach or threatened breach by the Company of the provisions
of this Section 6.10, that an Investor shall be entitled, in addition to all
other available remedies, to an

                                       33
<PAGE>   34

injunction restraining any breach and requiring immediate issuance and transfer,
without the necessity of showing economic loss and without any bond or other
security being required.

               6.11 Stockholder 20% Approval. Prior to the closing of any Put
that would cause the Aggregate Issued Shares to exceed the Cap Amount, if
required by the rules of NASDAQ because the Company's Common Stock is listed on
NASDAQ, the Company shall obtain approval of its stockholders to authorize (i)
the issuance of the full number of shares of Common Stock which would be
issuable pursuant to this Agreement but for the Cap Amount and eliminate any
prohibitions under applicable law or the rules or regulations of any stock
exchange, interdealer quotation system or other self-regulatory organization
with jurisdiction over the Company or any of its securities with respect to the
Company's ability to issue shares of Common Stock in excess of the Cap Amount
(such approvals being the "Stockholder 20% Approval").

               6.12 Press Release. The Company agrees that the Investor shall
have the right to review and comment upon any press release issued by the
Company in connection with the Offering which approval shall not be unreasonably
withheld by Investor.

               6.13 Change in Law or Policy. In the event of a change in law, or
policy of the SEC, as evidenced by a No-Action letter or other written
statements of the SEC or the NASD which causes the Investor to be unable to
perform its obligations hereunder, this Agreement shall be automatically
terminated and no Termination Fee shall be due, provided that notwithstanding
any termination under this section 6.13, the Investor shall retain full
ownership of the Commitment Warrant as partial consideration for its commitment
and its consulting, legal and other services rendered hereunder.

        7.      Investor Covenant/Miscellaneous.

               7.1 Representations and Warranties Survive the Closing;
Severability. Investor's and the Company's representations and warranties shall
survive the Investment Date and any Put Closing contemplated by this Agreement
notwithstanding any due diligence investigation made by or on behalf of the
party seeking to rely thereon, but subject to any actual knowledge obtained
thereby. In the event that any provision of this Agreement becomes or is
declared by a court of competent jurisdiction to be illegal, unenforceable or
void, or is altered by a term required by the Securities Exchange Commission to
be included in the Registration Statement, this Agreement shall continue in full
force and effect without said provision; provided that if the removal of such
provision materially changes the economic benefit of this Agreement to the
Investor, this Agreement shall terminate.

               7.2 Successors and Assigns.

                    (a) This Agreement shall not be assignable by Investor
without the Company's written consent, If assigned, the terms and conditions of
this Agreement shall inure to the benefit of and be binding upon the respective
successors and assigns of the parties. Nothing in this Agreement, express or
implied, is intended to confer upon any party other than the parties hereto or
their respective successors and assigns any rights, remedies, obligations, or

                                       34
<PAGE>   35

liabilities under or by reason of this Agreement, except as expressly provided
in this Agreement. Investor may assign Investor's rights hereunder, in
connection with any private sale of the Common Stock of such Investor, so long
as, as a condition precedent to such transfer, the transferee executes an
acknowledgment agreeing to be bound by the applicable provisions of this
Agreement in a form acceptable to the Company and provides an original copy of
such acknowledgment to the Company.

                    (b) Investor understands and acknowledges that Company has
entered into a letter of intent providing for a reorganization of the Company
with Avenue pursuant to which it is contemplated that the Company will become a
wholly-owned subsidiary of Avenue and the shareholders of the Company will
become substantial shareholders of Avenue (the "Avenue Transaction"). On the
Closing of the Avenue Transaction, Investor hereby consents to the Avenue
Transaction and agrees that this Agreement and all related agreements shall be
assigned to and assumed by Avenue, and that the Common Stock to which this
Agreement and all related agreements apply shall on such assignment and
assumption be Avenue's Common Stock in lieu of the Company's Common Stock in a
ratio equal to the ratio of the number of shares of Avenue Common Stock received
in the Avenue Transaction by all other shareholders of the Company for each
share of the Company that they held immediately prior to such transaction.

               7.3 Execution in Counterparts Permitted. This Agreement may be
executed in any number of counterparts, each of which shall be enforceable
against the parties actually executing such counterparts, and all of which
together shall constitute one (1) instrument.

               7.4 Titles and Subtitles; Gender. The titles and subtitles used
in this Agreement are used for convenience only and are not to be considered in
construing or interpreting this Agreement. The use in this Agreement of a
masculine, feminine or neuter pronoun shall be deemed to include a reference to
the others.

               7.5 Written Notices, Etc. Any notice, demand or request required
or permitted to be given by the Company or Investor pursuant to the terms of
this Agreement shall be in writing and shall be deemed given when delivered
personally, or by facsimile or upon receipt if by overnight or two (2) day
courier, addressed to the parties at the addresses and/or facsimile telephone
number of the parties set forth at the end of this Agreement or such other
address as a party may request by notifying the other in writing.

               7.6 Expenses. Except as set forth in the Registration Rights
Agreement, each of the Company and Investor shall pay all costs and expenses
that it respectively incurs, with respect to the negotiation, execution,
delivery and performance of this Agreement.

               7.7 Entire Agreement; Written Amendments Required. This
Agreement, including the Exhibits attached hereto, the Common Stock
certificates, the Warrants, the Registration Rights Agreement, and the other
documents delivered pursuant hereto constitute the full and entire understanding
and agreement between the parties with regard to the subjects hereof and
thereof, and no party shall be liable or bound to any other party in any manner
by any warranties, representations or covenants, whether oral, written, or
otherwise except as specifically set forth herein or therein. Except as
expressly provided herein, neither this

                                       35
<PAGE>   36

Agreement nor any term hereof may be amended, waived, discharged or terminated
other than by a written instrument signed by the party against whom enforcement
of any such amendment, waiver, discharge or termination is sought.

               7.8 Actions at Law or Equity; Jurisdiction and Venue. The parties
acknowledge that any and all actions, whether at law or at equity, and whether
or not said actions are based upon this Agreement between the parties hereto,
shall be filed in any state or federal court sitting in Atlanta, Georgia.
Georgia law shall govern both the proceeding as well as the interpretation and
construction of the Transaction Documents and the transaction as a whole. In any
litigation between the parties hereto, the prevailing party, as found by the
court, shall be entitled to an award of all attorney's fees and costs of court.
Should the court refuse to find a prevailing party, each party shall bear its
own legal fees and costs.

        8.      Subscription and Wiring Instructions; Irrevocability.

               8.1 Subscription

                    (a) Wire transfer of Subscription Funds. Investor shall
deliver Put Dollar Amounts (as payment towards any Put Share Price) by wire
transfer, to the Company pursuant to a wire instruction letter to be provided by
the Company, and signed by the Company.

                    (b) Irrevocable Subscription. Investor hereby acknowledges
and agrees, subject to the provisions of any applicable laws providing for the
refund of subscription amounts submitted by Investor, that this Agreement is
irrevocable and that Investor is not entitled to cancel, terminate or revoke
this Agreement or any other agreements executed by such Investor and delivered
pursuant hereto, and that this Agreement and such other agreements shall survive
the dissolution of Investor and shall be binding upon and inure to the benefit
of the parties and their successors and assigns.

               8.2 Acceptance of Subscription. Ownership of the number of
securities purchased hereby will pass to Investor upon the Warrant Closing or
any Put Closing.

        9.      Indemnification.

        In consideration of the Investor's execution and delivery of the
Investment Agreement, the Registration Rights Agreement and the Warrants (the
"Transaction Documents") and acquiring the Securities thereunder and in addition
to all of the Company's other obligations under the Transaction Documents, the
Company shall defend, protect, indemnify and hold harmless Investor and all of
its stockholders, officers, directors, employees and direct or indirect
investors and any of the foregoing person's agents, members, partners or other
representatives (including, without limitation, those retained in connection
with the transactions contemplated by this Agreement) (collectively, the
"Indemnitees") from and against any and all actions, causes of action, suits,
claims, losses, costs, penalties, fees, liabilities and damages, and expenses in
connection therewith (irrespective of whether any such Indemnitee is a party to
the action for which indemnification hereunder is sought), and including
reasonable attorney's fees and disbursements (the "Indemnified Liabilities"),
incurred by any Indemnitee as a result of, or arising out of, or relating to (a)
any misrepresentation or breach of any representation or warranty

                                       36
<PAGE>   37

made by the Company in the Transaction Documents or any other certificate,
instrument or documents contemplated hereby or thereby, (b) any breach of any
covenant, agreement or obligation of the Company contained in the Transaction
Documents or any other certificate, instrument or document contemplated hereby
or thereby, (c) any cause of action, suit or claim, derivative or otherwise, by
any stockholder of the Company based on a breach or alleged breach by the
Company or any of its officers or directors of their fiduciary or other
obligations to the stockholders of the Company, or (d) claims made by third
parties against any of the Indemnitees based on a violation of Section 5 of the
Securities Act caused by the integration of the private sale of common stock to
the Investor and the public offering pursuant to the Registration Statement.

        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 it
would be required to make if such foregoing undertaking was enforceable which is
permissible under applicable law.

        Promptly after receipt by an Indemnified Party of notice of the
commencement of any action pursuant to which indemnification may be sought, such
Indemnified Party will, if a claim in respect thereof is to be made against the
other party (hereinafter "Indemnitor") under this Section 9, deliver to the
Indemnitor a written notice of the commencement thereof and the Indemnitor shall
have the right to participate in and to assume the defense thereof with counsel
reasonably selected by the Indemnitor, provided, however, that an Indemnified
Party shall have the right to retain its own counsel, with the reasonably
incurred fees and expenses of such counsel to be paid by the Indemnitor, if
representation of such Indemnified Party by the counsel retained by the
Indemnitor would be inappropriate due to actual or potential conflicts of
interest between such Indemnified Party and any other party represented by such
counsel in such proceeding. The failure to deliver written notice to the
Indemnitor within a reasonable time of the commencement of any such action, if
prejudicial to the Indemnitor's ability to defend such action, shall relieve the
Indemnitor of any liability to the Indemnified Party under this Section 9, but
the omission to so deliver written notice to the Indemnitor will not relieve it
of any liability that it may have to any Indemnified Party other than under this
Section 9 to the extent it is prejudicial.

                           [INTENTIONALLY LEFT BLANK]

                                       37
<PAGE>   38

10.     Accredited Investor. Investor is an "accredited investor" because (check
        all applicable boxes):

(a) [ ] it is an organization described in Section 501(c)(3) of the Internal
        Revenue Code, or a corporation, limited duration company, limited
        liability company, business trust, or partnership not formed for the
        specific purpose of acquiring the securities offered, with total assets
        in excess of $5,000,000.

(b) [ ] any trust, with total assets in excess of $5,000,000, not formed for the
        specific purpose of acquiring the securities offered, whose purchase is
        directed by a sophisticated person who has such knowledge and experience
        in financial and business matters that he is capable of evaluating the
        merits and risks of the prospective investment.

(c) [ ] a natural person, who

    [ ] is a director, executive officer or general partner of the issuer of the
        securities being offered or sold or a director, executive officer or
        general partner of a general partner of that issuer.

    [ ] has an individual net worth, or joint net worth with that person's
        spouse, at the time of his purchase exceeding $1,000,000.

    [ ] had an individual income in excess of $200,000 in each of the two most
        recent years or joint income with that person's spouse in excess of
        $300,000 in each of those years and has a reasonable expectation of
        reaching the same income level in the current year.

(d) [ ] an entity each equity owner of which is an entity described in a - b
        above or is an individual who could check one (1) of the last three (3)
        boxes under subparagraph (c) above.

(e) [ ] other [specify] ______________________________________________________ .

                                       38
<PAGE>   39

        The undersigned hereby subscribes the Maximum Offering Amount and
acknowledges that this Agreement and the subscription represented hereby shall
not be effective unless accepted by the Company as indicated below.

        IN WITNESS WHEREOF, the undersigned Investor does represent and certify
under penalty of perjury that the foregoing statements are true and correct and
that Investor by the following signature(s) executed this Agreement.

Dated this 18th day of July, 2000.

SWARTZ PRIVATE EQUITY, LLC

By: /s/ ERIC S. SWARTZ
   --------------------------------
       Eric S. Swartz, Manager

SECURITY DELIVERY INSTRUCTIONS:
Swartz Private Equity, LLC
C/o Eric S. Swartz
200 Roswell Summit, Suite 285
1080 Holcomb Bridge Road
Roswell, GA 30076
Telephone: (770) 640-8130

THIS AGREEMENT IS ACCEPTED BY THE COMPANY IN THE AMOUNT OF THE MAXIMUM OFFERING
AMOUNT ON THE 18th DAY OF JULY, 2000.

                                   SOLUTIONSAMERICA, INC.

                                   By: /s/ FLOYD W. KEPHART
                                      ------------------------------------------
                                       Floyd W. Kephart, Chairman & CEO

                                   Address:
                                          Attn: Floyd W. Kephart
                                          600 Corporate Point, 12th Floor
                                          Culver City, CA 90230
                                          Telephone (310) 665-7600
                                          Facsimile (310) 665-7606

                                       39
<PAGE>   40

        The undersigned hereby subscribes the Maximum Offering Amount and
acknowledges that this Agreement and the subscription represented hereby shall
not be effective unless accepted by the Company as indicated below.

        IN WITNESS WHEREOF, the undersigned Investor does represent and certify
under penalty of perjury that the foregoing statements are true and correct and
that Investor by the following signature(s) executed this Agreement.

Dated this 18th day of July, 2000.

SWARTZ PRIVATE EQUITY, LLC

By:
   -----------------------------------
        Eric S. Swartz, Manager

SECURITY DELIVERY INSTRUCTIONS:
Swartz Private Equity, LLC
C/o Eric S. Swartz
200 Roswell Summit, Suite 285
1080 Holcomb Bridge Road
Roswell, GA 30076
Telephone: (770) 640-8130

THIS AGREEMENT IS ACCEPTED BY THE COMPANY IN THE AMOUNT OF THE MAXIMUM OFFERING
AMOUNT ON THE 18th DAY OF JULY, 2000.

                                        SOLUTIONSAMERICA, INC.

                                        By: /s/ FLOYD W. KEPHART
                                           -------------------------------------
                                           Floyd W Kephart, Chairman & CEO

                                 Address:
                                        Attn: Floyd W. Kephart
                                        600 Corporate Point, 12th Floor
                                        Culver City, CA 90230
                                        Telephone (310) 665-7600
                                        Facsimile (310) 665-7606

                                       39
<PAGE>   41

                               ADVANCE PUT NOTICE

SOLUTIONSAMERICA, INC. (the "Company") hereby intends, subject to the Individual
Put Limit (as defined in the Investment Agreement), to elect to exercise a Put
to sell the number of shares of Common Stock of the Company specified below, to
______________________________, the Investor, as of the Intended Put Date
written below, all pursuant to that certain Investment Agreement (the
"Investment Agreement") by and between the Company and Swartz Private Equity,
LLC dated on or about July 18, 2000.

                       Date of Advance Put Notice:
                                                  ------------------------
                       Intended Put Date:
                                         ---------------------------------
                       Intended Put Share Amount:
                                                 -------------------------
                       Company Designation Maximum Put Dollar Amount (Optional):

                       ---------------------------------------------------.

                       Company Designation Minimum Put Share Price (Optional):

                       ---------------------------------------------------.

                                        SOLUTIONSAMERICA, INC.

                                        By:
                                           -------------------------------------
                                               Floyd W. Kephart, Chairman & CEO

                                 Address:
                                        Attn: Floyd W. Kephart
                                        600 Corporate Point, 12th Floor
                                        Culver City, CA 90230
                                        Telephone (310) 665-7600
                                        Facsimile (310) 665-7606

                                    EXHIBIT E

                                       40
<PAGE>   42

                       CONFIRMATION OF ADVANCE PUT NOTICE

_________________________________, the Investor, hereby confirms receipt of
SOLUTIONSAMERICA, INC.'s (the "Company") Advance Put Notice on the Advance Put
Date written below, and its intention to elect to exercise a Put to sell shares
of common stock ("Intended Put Share Amount") of the Company to the Investor, as
of the intended Put Date written below, all pursuant to that certain Investment
Agreement (the "Investment Agreement") by and between the Company and Swartz
Private Equity, LLC dated on or about July 18, 2000.

                       Date of Confirmation:
                                            ------------------------------
                       Date of Advance Put Notice:
                                                  ------------------------
                       Intended Put Date:
                                         ---------------------------------
                       Intended Put Share Amount:
                                                 -------------------------
                       Company Designation Maximum Put Dollar Amount (Optional):

                       --------------------------------------------------------.

                       Company Designation Minimum Put Share Price (Optional):

                       --------------------------------------------------------.

                                        INVESTOR(S)

                                        ----------------------------------------
                                        Investor's Name

                                        By:
                                           -------------------------------------
                                                       (Signature)

                       Address:
                                        ----------------------------------------

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

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

                       Telephone No.:
                                        ----------------------------------------

                       Facsimile No.:
                                        ----------------------------------------

                                    EXHIBIT F

                                       41
<PAGE>   43

                                   PUT NOTICE

SOLUTIONSAMERICA, INC. (the "Company") hereby elects to exercise a Put to sell
shares of common stock ("Common Stock") of the Company
to _____________________________, the Investor, as of the Put Date, at the Put
Share Price and for the number of Put Shares written below, all pursuant to that
certain Investment Agreement (the "Investment Agreement") by and between the
Company and Swartz Private Equity, LLC dated on or about July 18, 2000.

                       Put Date: ___________________________

                       Intended Put Share Amount (from Advance Put Notice):
                       _______________________________ Common Shares

                       Company Designation Maximum Put Dollar Amount (Optional):

                       --------------------------------------------------------.

                       Company Designation Minimum Put Share Price (Optional):

                       --------------------------------------------------------.

Note: Capitalized terms shall have the meanings ascribed to them in this
Investment Agreement.

                                        SOLUTIONSAMERICA, INC.

                                        By:
                                           -------------------------------------
                                           Floyd W. Kephart, Chairman & CEO

                                 Address:
                                        Attn: Floyd W. Kephart
                                        600 Corporate Point, 12th Floor
                                        Culver City, CA 90230
                                        Telephone (310) 665-7600
                                        Facsimile (310) 665-7606

                                    EXHIBIT G

                                       42
<PAGE>   44

                           CONFIRMATION OF PUT NOTICE

________________________________, the Investor, hereby confirms receipt of
SolutionsAmerica, Inc. (the "Company") Put Notice and election to exercise a Put
to sell __________________________ shares of common stock ("Common Stock") of
the Company to Investor, as of the Put Date, all pursuant to that certain
Investment Agreement (the "Investment Agreement") by and between the Company and
Swartz Private Equity, LLC dated on or about July 18, 2000.

                                        Date of this Confirmation:
                                                                  --------------

                                        Put Date:
                                                 -------------------------------

                                        Number of Put Shares of
                                        Common Stock to be Issued:
                                                                  --------------

                                        Volume Evaluation Period:__Business Days

                                        Pricing Period:___Business Days

                                        INVESTOR(S)

                                        ----------------------------------------
                                        Investor's Name

                                        By:
                                           -------------------------------------
                                                         (Signature)

                       Address:
                                        ----------------------------------------

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

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

                       Telephone No.:
                                        ----------------------------------------

                       Facsimile No.:
                                        ----------------------------------------

                                   EXHIBIT H

                                       43
<PAGE>   45

                             PUT CANCELLATION NOTICE

SOLUTIONSAMERICA, INC. (the "Company") hereby cancels the Put specified below,
pursuant to that certain Investment Agreement (the "Investment Agreement") by
and between the Company and Swartz Private Equity, LLC dated on or about July
18, 2000, as of the close of trading on the date specified below (the
"Cancellation Date," which date must be on or after the date that this notice is
delivered to the Investor), provided that such cancellation shall not apply to
the number of shares of Common Stock equal to the Truncated Put Share Amount (as
defined in the Investment Agreement).

                                        Cancellation Date: _____________________

                                        Put Date of Put Being Canceled: ________

                                        Number of Shares Put on Put Date: ______

                                        Reason for Cancellation (check one):

                                               [ ] Material Facts, Ineffective
                                               Registration Period.

                                               [ ] Delisting Event

The Company understands that, by canceling this Put, it must give twenty (20)
Business Days advance written notice to the Investor before effecting the next
Put.

                                        SOLUTIONSAMERICA, INC.

                                        By:
                                           -------------------------------------
                                           Floyd W. Kephart, Chairman & CEO

                                 Address:
                                        Attn: Floyd W. Kephart
                                        600 Corporate Point, 12th Floor
                                        Culver City, CA 90230
                                        Telephone (310) 665-7600
                                        Facsimile (310) 665-7606

                                    EXHIBIT Q

                                       44
<PAGE>   46

                      PUT CANCELLATION NOTICE CONFIRMATION

The undersigned Investor to that certain Investment Agreement (the "Investment
Agreement") by and between the SolutionsAmerica, Inc.'s, and Swartz Private
Equity, LLC dated on or about July 18, 2000, hereby confirms receipt of
SolutionsAmerica, Inc.'s (the "Company") Put Cancellation Notice, and confirms
the following:

                                        Date of this Confirmation:
                                                                  --------------

                                        Put Cancellation Date:
                                                              ------------------

                                        INVESTOR(S)

                                        ----------------------------------------
                                        Investor's Name

                                        By:
                                           -------------------------------------
                                                        (Signature)

                       Address:
                                        ----------------------------------------

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

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

                       Telephone No.:
                                        ----------------------------------------

                       Facsimile No.:
                                        ----------------------------------------

                                    EXHIBIT S

                                       45<PAGE>   1

                                                                    EXHIBIT 10.9

                          PROCESSING SERVICES AGREEMENT

        THIS PROCESSING SERVICES AGREEMENT is entered into this 17th day of
April, 2000, by and between MAVERICK INTERNATIONAL PROCESSING SERVICES, INC., a
wholly owned subsidiary of CardSystems Solutions, Inc.. ("Processor"), with its
principal place of business at 6390 E. Broadway, Tucson, Arizona 85710 and
SOLUTIONS AMERICA, INC. ("Company"), a Delaware corporation with its principal
place of business at 600 Corporate Pointe, Culver City, CA 90230.

                                    RECITALS

        Processor provides total transaction processing services to financial
institutions and other entities within the electronic payments industry and has
developed certain software programs, procedures related to such services.

        Company provides services for internet-based transactions to web
merchants and has relationships with financial institutions that acquire such
transactions for collection on behalf of Company.

        Company wishes to obtain transaction and other data processing and
related services from Processor for The Bank of Nevis (hereinafter, the
"Acquirer").

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

SECTION 1. SERVICES.

1.1 Jurisdiction for Services. Services to be performed under the terms of this
Agreement shall apply only to those transactions originating at merchants of
Acquirer. All transactions shall be in United States Dollars.

1.2 Company will obtain a completed Exhibit A from Acquirer to authorize
Processor to submit payment transactions for collection under the Acquirer's
membership license with Visa. Processor shall be entitled to rely on such
authorization in providing any services under this Agreement to Company. Company
acknowledges that the implementation of the BIN is subject to approval of and
timeframes set by Visa and agrees that it will obtain all the paperwork required
by Visa for such implementation.

1.3 Transaction Authorization and Data Capture.Company will transmit payment
transactions for authorization by card issuers by communications methods
currently available with Processor and with software and hardware that has been
certified to Processor's StrongBox(TM) authorization system. Company will bear
the expense for transmission by means that are not included in Processor's
current communications methods. Processor will obtain authorization responses
using BASE I and BankNet file formats through a Visa Access Point ("VAP") and
MasterCard Interface Processor ("MIP") maintained by Processor and will provide
Company with authorization responses returned via the VAP and MIP. Transaction
data transmitted to Processor will be captured by the StrongBox(TM) system. Once
during each business day transaction data will be prepared in file formats
suitable for export to an external clearing and settlement system designated by
Company or will be submitted directly to Visa and MasterCard on behalf of any
financial institution providing such authorization in Exhibit A. At Company's
option, other card types for which Processor is certified to provide
authorization and capture services for all merchants will be accepted by the
StrongBox(TM)

                                       1
<PAGE>   2
system and transmitted to the appropriate card companies in formats and at such
times as have been agreed to between Processor and the applicable card
companies.

1.4 Interchange Clearing and Settlement Processing. Processor will fully format
captured transaction data records, as required by the respective Card
Associations for transactions relating to international processing requirements,
from its authorization systems or received from other processing vendors and
will transmit such records into the Card Associations' respective systems at
such times as are determined by Processor and the respective associations but in
any event no less than once daily to each association. Processor shall obligate
itself to meet the cut-off deadlines for transmission of data for each Card
Association on a daily basis. Company will be provided with reporting of cleared
transactions, rejects, retrievals and other items received in interchange
settlement records, including net amounts to be paid to Company's account by
each Card Association. Processor shall have no responsibility for payment to
merchants beyond providing Company with reports regarding the total number of
transactions and US Dollars submitted by each merchant for settlement and
clearing.

1.5 Company shall be responsible for back-up and other protection against loss,
damage or destruction of data received from Processor, and Processor shall have
no obligation or liability with respect thereto. Processor shall be responsible
for back-up and other protection of all data received from Company or its
merchants or agents and from the Card Associations but shall have no duty or
responsibility to provide such data to Company except as required by ordinary
processing practices or by specific terms of this Agreement.

1.6 Portfolio Management Services. At Company's election, Processor will provide
one or more of the following portfolio support services, which will be more
specifically described in Processor's client services operations manuals:

        (a) Exceptions Management. Full retrieval and chargeback processing as
set forth in the Card Associations' rules and regulations, including the entry
of debit and credit items for adjustment and collection from Company's customers
into the settlement processing systems of Visa and MasterCard. Company will
provide Processor with written procedures for charging merchants and
resubmitting any dispute items.

        (b) Account Activation. Account data entry and setup on authorization
and settlement systems and activation of approved accounts pursuant to Company's
written instructions.

        (c) Risk Management. Production and distribution of daily transaction
reporting for review and disposition by Company.

        (d) Customer Service. Processor will provide direct support to Company
during business hours, Pacific Standard Time to receive inquiries, perform
related research services and provide written responses to inquiries that are
not capable of phone resolution.

        (e) Other Services. Processor may perform such other services for or on
behalf of Company as the parties may agree from time to time in writing.

1.7 Communication Services. At Company's request and expense, Processor will
provide communications lines between Processor's facilities and one or more
sites designated by Company and appropriate server links and related services
for the purpose of providing Company with access to its merchant data and for
communications between computer systems, including computer servers, located at
Company or at the facilities of any merchant of Company.

SECTION 2. PROCESSOR PROGRAM LICENSE

        Processor hereby grants to Company a non-exclusive and non-transferable
license to use any proprietary products of Processor that may be required in
connection with the performance of this

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<PAGE>   3

Agreement. This license, regardless of product covered hereby, shall terminate
immediately upon termination of this Agreement whether for cause or otherwise.
In the event Company obtains any portion of PurchasePoint(TM) (Processor's
proprietary suite of internet-enabled applications), a separate written grant of
license shall be required prior to delivery of PurchasePoint(TM).

SECTION 3. PAYMENT FOR SERVICES

3.1 Fees payable by Company for transaction processing and related services are
set forth on Schedule A. Fees for services that are to be performed by Processor
at Company's option are set forth on Schedule B.

3.2 Prior to initiation of services, Company shall provide Processor with a
completed Exhibit B which contains the routing number of a commercial checking
account maintained by Company with a financial institution that is a member of
the United States Federal Reserve's Automated Clearing House ("ACH") system (the
"Account') and hereby authorizes Processor to debit the Account for any fees
payable to Processor and for all adjustments and debits that are made in the
ordinary course of business. A statement or advice of debit will be provided no
less than ten (10) days prior to such debit. In the event Company disagrees with
any amount included in the invoice, Processor shall be provided written notice
of the same within five (5) business days from receipt of the invoice and shall,
nonetheless, be prepared to pay all undisputed amounts within 10 days of receipt
of the invoice. The parties will act in good faith to revolve any dispute within
twenty (20) days following notice from Company, but in any event, such dispute
shall not prevent timely payment of any subsequent invoices for which no dispute
is raised. Company shall at all times maintain sufficient balances in the
Account to cover all fees, payments, adjustments and processing entries which
will be made pursuant to and during the term of this Agreement and for a minimum
of sixty (60) days after termination of services and any de-conversion period
agreed to by the parties. Company shall be liable to Processor for expenses of
collection of its fees including its reasonable attorney's fees and court costs.
Late payments shall incur a fee calculated as interest of 10% per annum or
highest rate permitted by law, whichever is less, during the period in which any
undisputed amount remains unpaid.

SECTION 4 TERM; TERMINATION; EFFECT OF TERMINATION.

4.1 Term: This Agreement is effective from the date hereof and shall continue
for a term of two (2) years (the "Initial Term"). Thereafter, this Agreement
shall be automatically renewed for consecutive two (2) year periods (a "Renewal
Term") unless either party gives the other written notice of non-renewal at
least one hundred and eighty (180) days prior to the expiration date of the
then-current term.

4.2 Termination:

        (a) Processor shall have the right to terminate this Agreement upon
fifteen (15) days written notice for:

               (i) Failure by Company to remit payment for undisputed fees
within five (5) business days from the date of any demand by Processor for prior
failure of Company to pay any invoice for undisputed fees as set forth in
Section 3 or if Processor has had the right to give second notice and make
demand for payment more than three (3) times in any twelve-month period, whether
or not such notice actually given.

               (ii) Any violation of material rules relating to Acquirer's
membership in either Card Association, of which the applicable card association
has provided notice to Processor of Company's suspension if such notice results
in any suspension of more than fifteen (15) consecutive days or for more than
any twenty (20) days in 12-month period.

                                       3
<PAGE>   4

        (b) Company shall have the right to terminate this Agreement:

               (i) Upon completion of any then-current term for which Company
has provided proper notice of non-renewal under subsection 4.1.

               (ii) For breach by Processor of any material provision of this
Agreement and failure to cure such breach within fifteen (15) days of written
notice specifying the cause thereof.

               (iii) Notwithstanding the provisions of Section 8.10(b) below,
immediately, in the event Processor is unable to perform services set forth in
Sections 1.3 and 1.4 for a period in excess of two (2) consecutive calendar
days.

4.3 Effect of Termination.

        (a) Immediately upon termination by either party, whether by expiration
or otherwise, Processor's obligation to provide services hereunder shall
immediately cease, and any unpaid amounts due and owing by Company shall become
immediately due and payable. The foregoing notwithstanding, Processor will
continue to provide services for a reasonable period necessary to convert
Company's accounts to another processor of Company's choice, provided Company is
not in breach of any obligation to pay fees to Processor as set hereto set
forth.

        (b) Payment for any services rendered or any other obligation of
liability owing at the time of termination or which becomes owing under this
Agreement whether or not such obligations arise prior to or after the
termination date shall not be affected by termination of this Agreement.

        (c) Processor will provide all reasonable assistance to transfer
Company's accounts to another payment processor; provided, however, all costs of
transfer shall be at Company's sole expense based upon Processor's then current
rates for de-conversion of accounts.

SECTION 5 INDEMNIFICATION; LIMITATION OF DAMAGES

5.1 Processor's cumulative liability for any loss or damage, direct or indirect,
for any cause whatsoever (including, but not limited to those arising out of or
related to this Agreement) with respect to claims relating to events in any one
12-month period following the effective date of this Agreement shall not, under
any circumstances, exceed the lesser of:

        (a) Two Hundred Thousand Dollars ($200,000); or

        (b) The amount of Processing Fees paid to Processor pursuant to this
Agreement for services performed in the immediately preceding 12-month period,
and in the case of the first 12-month period of the Agreement, any minimum
processing fees specified for year one in Schedule A.

5.2 Processor shall not be liable to Company, to merchants of Company or to any
other party for fraudulent or unauthorized transactions submitted by Company or
its agents or merchants howsoever and wheresoever originated.

5.3 Processor shall not be liable for selection and operation of any
point-of-sale devices or software by Company or its agents and merchants or for
loss of data in transit between Company's agents and merchants and Processor or
between Processor and acquirers and issuers except for any losses directly
attributable to loss of transactions from the point at which Processor has
received such transactions and prior to a successful transmission of the
transactions into the Visa and MasterCard interchange systems or to gross
negligence, willful misconduct or fraudulent misconduct by Processor or its
officers or employees. Processor will use its best efforts to contract with
third parties for the products and services on which it is dependent, including,

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<PAGE>   5

but not limited to, communications carriers, voice authorization providers,
equipment manufacturers and their associated hardware and software providers,
whether owned or licensed, however, Processor shall not be liable to Company for
damages, loss, costs or liabilities suffered or incurred by Company or its
merchants attributable to the fault or negligence of any such third party or
parties. In the event of loss of interchange processing data, Processor will use
its best efforts to re-create and provide the lost data to the appropriate card
association or card under company or to Company, as the case may be, within a
reasonable time.

5.4 IN NO EVENT SHALL EITHER PARTY BE RESPONSIBLE TO THE OTHER FOR SPECIAL,
INCIDENTAL, CONSEQUENTIAL, EXEMPLARY OR PUNITIVE DAMAGES ARISING FROM OR AS A
RESULT OF ANY BREACH OF THIS AGREEMENT.

SECTION 6. PROPRIETARY AND CONFIDENTIAL INFORMATION.

6.1 The parties acknowledge that in the performance of the terms of this
Agreement, each may be entrusted with information which the other deems to be
Confidential Information, whether prepared or owned by the party deeming such
information confidential, or otherwise coming into that party's possession or
control, from any third party who deems it confidential or proprietary.
Therefore, each party agrees to keep all information confidential belonging to
the other party confidential and will not disclose any Confidential Information
to any person except that either party may disclose:

        (a) Information to its employees and representatives, to the extent
required to perform this Agreement;

        (b) Any portion of the Information that was or becomes generally
available to the public other than as a result of a disclosure by the party not
claiming ownership of confidential information;

        (c) Information required to be disclosed by the any state or federal
bank regulatory agency or any card association having jurisdiction over the
subject matter of this Agreement or by court order or pursuant to governmental
process; and

        (d) Information for which the party claiming ownership of confidential
information provides written consent for disclosure.

6.2 For purposes of this Agreement, the term "Confidential Information" shall
mean the following:

        (a) Any information, know-how, data process, technique, design, drawing,
program, formula or test data, work-in-progress, engineering, manufacturing,
marketing, financial, sales supplier, customer, employee, investor or business
information, whether in oral, written, graphic, electronic or other form; or any
other information or a business nature to the extent not disclosed to or
generally known by those persons engaged in business similar to that conducted
by the party claiming confidentiality (other than by the act or acts of an
employee not authorized by the party claiming confidentiality to disclose such
information), including, but not limited to, confidential sales or marketing
information, actual or anticipated research and development endeavors, customer
lists, customer usages and requirements, financial data, products, technology,
equipment, data processing procedures and techniques and any other secret
business plans or activities of either party, its parents, affiliates or
subsidiaries, or information from any third party which was disclosed to the
party claiming confidentiality; or

        (b) Any trade secret and any patentable and/or copyrightable subject
matter, including, but not limited to, ideas, inventions, processes, formulae,
methods, refinements, source code and listings, enhancements, specifications,
user manuals, screen displays and formats, computer and software documentation,
software performance results, data and data formats, protocols, network
configurations and the like which are conceived, developed, created or owned by
the party claiming confidentiality; all confidential or secret letters,
memoranda, summaries, notes and any other documents or data in any form or
recorded on any medium pertaining to either party or its respective business.

                                       5
<PAGE>   6

6.3 Failure to mark any of the trade secrets of Confidential Information as
"Confidential" shall not affect its status as trade secrets or Confidential
Information under this Agreement.

6.4 Company acknowledges that all software programs, software systems designs or
architectures, plans, documents, know-how and data bases provided by Processor
(the "Processor Systems") are, and shall remain, the property of Processor or
any third party licensor providing software for Processor's use and shall
include any modifications to the Processor System made specifically at Company's
request and cost. Further, use of the Processor System does not grant to Company
any proprietary or license rights to the system or any part thereof except as
may be specifically set forth in this Agreement.

        Likewise, Processor acknowledges that all merchant records, merchant
data, including transaction data, and any other information acquired by
Processor from Company and its employees, agents and merchants are, and shall
remain the property of Company.

6.5 The provisions of this Section 6 shall survive any expiration or termination
of this Agreement.

SECTION 7. WARRANTIES AND REPRESENTATIONS.

7.1 Year 2000. Processor represents, warrants, and agrees in favor of Company
that (i) all present and future computer and data-processing hardware, firmware,
software, microcode, and related items used by Processor (Data Equipment) shall
be Year 2000 Compliant in that the Data Equipment shall accurately handle the
input, output, storage, retrieval, manipulation, and calculation of all
chronological date and time information whether such dates and times are prior
to, coincident with, or after January 1, 2000, provided that systems other than
Processor's Data Equipment properly exchange date and time information with the
Data Equipment, (ii) Processor has assessed and will continue to assess, using
competent and experienced personnel, its Data Equipment with respect to Year
2000 Compliance, (iii) Processor will from time to time at the request of
Company provide Company with copies of all tests, reports, and assessments
performed by or on behalf of Processor with respect to Year 2000 Compliance of
its Data Equipment, (iv) Processor shall periodically inquire of its key vendors
and service providers whether they are Year 2000 Compliant, (v) with respect to
date and time information that is ambiguous in that it is susceptible of more
than one interpretation or unique value, the Data Equipment shall handle such
ambiguous data in a pre-defined way so that an operator of the Data Equipment
shall be notified of such ambiguous data and such ambiguous data shall not be
processed as a valid date and time value, and (vi) Processor shall immediately
notify Company in writing of any failure by Processor or its key vendors and
service providers to be Year 2000 Compliant.

7.2 Third Party Components. Processor represents and Company acknowledges that
(i) Processor's processing systems and software may contain software and
hardware components that are either owned by a third party or in the public
domain, and (ii) that Processor has no proprietary interest in such software or
hardware, and as such, cannot grant to Company a license to use such software or
hardware and any related documentation. Processor represents and warrants that
it has the necessary licenses and/or permissions to utilize such hardware and
software for performance of this Agreement. MAVERICK MAKES NO WARRANTIES OR
REPRESENTATION AS TO SUCH THIRD PARTY SOFTWARE OR HARDWARE (INCLUDING
INFRINGEMENT) AND FURTHER DISCLAIMS ANY AND ALL LIABILITY FOR ANY LOSSES OR
DAMAGES THAT MAY RESULT FROM THE USE THEREOF EXCEPT AS MAY BE OTHERWISE SET
FORTH IN THIS AGREEMENT.

7.3 DISCLAIMER OF IMPLIED WARRANTIES. EXCEPT FOR THOSE WARRANTIES SET FORTH IN
THIS AGREEMENT, MAVERICK MAKES NO WARRANTIES REGARDING THE USE, OPERATION OR
PERFORMANCE OR NON-PERFORMANCE OF SOFTWARE AND SYSTEMS UTILIZED FOR THIS
AGREEMENT, WHETHER EXPRESS OR IMPLIED, AND MAVERICK

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<PAGE>   7
EXPRESSLY DISCLAIMS ALL IMPLIED WARRANTIES OR MERCHANTABILITY OR FITNESS FOR A
PARTICULAR PURPOSE.

SECTION 8. GENERAL PROVISIONS.

8.1 Disclosure.

        (a) Each party shall promptly notify the other of any claim, demand,
action, suit or proceeding, facts or circumstances, or the prospect or threat of
the same, which might materially and adversely affect either party's ability to
perform its obligations pursuant to this Agreement.

        (b) Processor warrants and represents to Company that there are no
pending or threatened claims, suits, actions, or legal, administrative,
arbitration, or other proceedings or government investigations against
Processor, shareholders, affiliates, officers, directors or employees that have
not been previously disclosed in writing to Company, and which might materially
and adversely affect the financial condition of Processor or its ability to
perform its obligations under this Agreement.

8.2 Financial Reporting. Processor agrees to provide Company annually within one
hundred and twenty (120) days of the end of Processor's fiscal year a copy of
its true, correct and complete financial statements for such fiscal year
prepared in accordance with generally accepted accounting principles by an
independent certified public accountant acceptable to Company. Processor agrees
to furnish such other financial information as Company may request from time to
time. Processor agrees to submit to any examination that may be required by any
Regulatory Authority.

8.3 Assignment. Neither party may assign this Agreement or any of its rights and
obligations herein to any third party without the prior written consent of the
other party which consent shall not be unreasonably withheld. The foregoing
shall not include any assignment to a parent, affiliate or subsidiary of the
assigning party.

8.4 Amendment; Waiver. This Agreement, any of the schedules and exhibits
referred to herein and any of the provisions hereof or thereof shall not be
amended, modified or waived in any fashion except by an instrument in writing
signed by the parties hereto. No delay on the part of any party hereto in
exercising any right, power or privilege hereunder shall operate as a waiver
thereof, nor shall any waiver on the part of any party hereto of any right,
power or privilege hereunder operate as a waiver of any other right, power or
privilege hereunder, nor shall any single or partial exercise of any right,
power or privilege hereunder preclude any other or further exercise thereof or
the exercise of any other right, power or privilege hereunder.

8.5 Notice. All notices, demands and other communications hereunder shall be in
writing and shall be delivered in person or deposited in the United States mail,
certified or registered, with return receipt requested, or sent by reputable
overnight delivery service as follows:

        (a) If to Processor:    John A. Hunnicutt
                                President, Electronic Delivery Systems
                                CardSystems, Inc.
                                6390 E. Broadway
                                Tucson, AZ 85710

        with a copy to:         Linda P. Ford, VP and General Counsel
                                CardSystems, Inc.
                                (at above address)

        (b) If to Company:      Floyd W. Kephart

                                       7
<PAGE>   8
                                Chairman,
                                Viviane Mattey
                                Senior Vice President, Financial Services
                                Solutions America, Inc.
                                600 Corporate Pointe, 12th Floor
                                Culver City, CA 90230

        with a copy to:         Michael Bales
                                Greenberg, Klusker Flields Claman &
                                Machtinger LLP
                                1900 Ave. of the Stars, Suite 2100
                                Los Angeles, CA 90067

        The persons or addresses to which mailings or deliveries shall be made
or facsimiles sent may be changed from time to time by notice given pursuant to
the provisions of this subsection 8.5.

        Any notice, demand or other communication given pursuant to the
provisions of this subsection 8.5 shall be deemed to have been given on the date
actually delivered or five days following the date deposited in the United
States mail, properly addressed, postage prepaid, as the case may be.

8.6 Relationship of Parties. Nothing contained in this Agreement or any other
schedule or exhibit hereto shall be construed as constituting a partnership,
joint venture or agency between Processor and Company. The parties are
independent parties to an agreement and shall be deemed independent contractors
for all purposes.

8.7 Choice of Law, Jurisdiction and Venue. The validity of this Agreement, the
construction of its terms and the determination of the rights and duties of the
parties hereto shall be governed by and construed in accordance with the laws of
the State of Arizona, United States of America, applicable to contracts made and
to be performed wholly within the State of Arizona. Company hereby submits to
the jurisdictions of the United States of America and the State of Arizona for
the purposes of any action maintained hereon and agrees that venue for any such
action shall be in United States Federal Courts located in the County of Pima,
State of Arizona.

8.8 Headings; Severability. The headings contained in this Agreement are for
convenience of reference only and do not form a part of this Agreement. If any
provision of this Agreement, or the application or any such provision to any
person or circumstance, shall be held invalid by a court of competent
jurisdiction, the remainder of this Agreement, or the application of such
provision to persons or circumstances other than those as to which it is held
invalid, shall not be affected thereby.

8.9 Attorney Fees. In the event of any litigation or arbitration between the
parties hereto respecting or arising out of this Agreement, the prevailing party
in such action and any appeals therefrom shall be entitled to recover reasonable
legal fees, whether or not such litigation or arbitration proceeds to final
judgment or determination.

8.10 Force Majeure.

        (a) Neither party shall be liable to the other by reason of any failure
in the performance of this Agreement to the extent such failure arises beyond
the control of that party. Such causes may include but are not limited to acts
of God, acts of civil or military authority, fires, strikes, unavailabilty of
energy resources, delay in transportation, riots or war. In the event of any
such occurrence, the disable party shall thereafter endeavor to perform its
obligations as promptly as possible. The disabled party shall promptly

                                       8
<PAGE>   9

and in writing advise the other party if it is unable to perform due to any such
event, the expected duration or such inability to perform and of any
developments (or changes therein) that appear likely to affect the ability of
that party to perform any of its obligations hereunder in whole or in part.

         (b) In the event either party or any of its designated agents is
disabled and is unable to perform any material obligation hereunder in whole or
in part in excess of ten (10) consecutive business days, and in the absence of a
commercially reasonably recovery plan, the other party shall be entitled to
immediately terminate this Agreement.

8.11 Counterparts. This Agreement may be executed in one or more counterparts
and by different parties in separate counterparts, with the same effect as if
all parties hereto had signed the same documents. All counterparts so executed
and delivered shall be deemed to be an original, shall be construed together and
shall constitute one agreement.

8.12 Integrated Agreement. This Agreement, the exhibits hereto and all other
documents and instruments delivered in accordance with the terms hereof
constitute the entire understanding and agreement among the parties hereto with
respect to the subject matter hereof, and there are no agreements,
understandings, restrictions, representations or warranties among the parties
other than those set forth herein or herein provided for.

8.13 Equal Employment Opportunity. Processor will provide equal employment
opportunities to any employee or applicant and will not discriminate against any
person because of race, color, religion, sex, national origin, disability, age
or veteran status as set forth in applicable federal and state laws and
regulations.

        IN WITNESS WHEREOF, the parties hereof have caused this Agreement to be
executed by their duly authorized officers as of the effective date hereof.

MAVERICK INTERNATIONAL                 SOLUTIONS AMERICA, INC.
PROCESSING SERVICES, INC.

--------------------------------       -----------------------------------------
John A. Hunnicutt                      Floyd W. Kephart
President, EDS                         Chairman

Date                                   Date
     ---------------------------           -------------------------------------

                                       9

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