Document:

ERXHIBIT 4.1

                  COMMON STOCK AND WARRANTS PURCHASE AGREEMENT

                                     Between

                              PurchasePro.com, Inc.

                                       and

                         the Investors Signatory Hereto

         COMMON STOCK AND WARRANTS  PURCHASE  AGREEMENT dated as of February 13,
2002  (the  "Agreement"),  between  the  Investors  signatory  hereto  (each  an
"Investor"  and  together  the  "Investors"),   and  PurchasePro.com,   Inc.,  a
corporation  organized  and existing  under the laws of the State of Nevada (the
"Company").

         WHEREAS,  the parties  desire  that,  upon the terms and subject to the
conditions  contained herein, the Company shall issue and sell to the Investors,
and the  Investors  shall  purchase in the  aggregate,  up to (i)  $7,000,000 of
Common Stock (as defined below) and (ii) Warrants (as defined below) to purchase
15% of the number of shares of Common  Stock  sold (as  defined  below)  with an
exercise price of $1.00 per share.

         WHEREAS,  such investments will be made in reliance upon the provisions
of Section 4(2) ("Section 4(2)") and/or 4(6) of the United States Securities Act
of 1933, as amended (the "Securities  Act") and/or Regulation D ("Regulation D")
and the other rules and regulations promulgated under the Securities Act, and/or
upon such other exemption from the  registration  requirements of the Securities
Act  as may be  available  with  respect  to  any or all of the  investments  in
securities to be made hereunder.

         NOW, THEREFORE, the parties hereto agree as follows:

                                   ARTICLE I

                               CERTAIN DEFINITIONS

Section 1.1 "Capital  Shares"  shall mean the Common Stock and any shares of any
other class of common  stock  whether now or  hereafter  authorized,  having the
right to participate in the distribution of earnings and assets of the Company.

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Section 1.2 "Capital Shares  Equivalents" shall mean any securities,  rights, or
obligations  that are convertible  into or exchangeable for or give any right to
subscribe  for any  Capital  Shares of the Company or any  Warrants,  options or
other rights to subscribe for or purchase Capital Shares or any such convertible
or exchangeable securities.

Section 1.3  "Closing"  shall mean the closing of the  purchase  and sale of the
Common Stock and Warrants pursuant to Section 2.1.

Section 1.4 "Closing  Date" shall mean the date on which all  conditions  to the
Closing  have been  satisfied  (as  defined in Section  2.1 (b)  hereto) and the
Closing shall have occurred.

Section 1.5 "Common  Stock" shall mean the  Company's  common  stock,  $.001 par
value per share.

Section 1.6 "Damages" shall mean any loss,  claim,  damage,  judgment,  penalty,
deficiency,  liability,  costs  and  expenses  (including,  without  limitation,
reasonable  attorney's fees and  disbursements and reasonable costs and expenses
of expert witnesses and  investigation;  but excluding indirect or consequential
damages).

Section 1.7 "Effective Date" shall mean the date on which the SEC first declares
effective a Registration  Statement  registering  the resale of the  Registrable
Securities as set forth in the Registration Rights Agreement.

Section 1.8 "Exchange  Act" shall mean the  Securities  Exchange Act of 1934, as
amended, and the rules and regulations promulgated thereunder.

Section 1.9  "Knowledge"  of the Company,  when  modifying a  representation  or
warranty,  means the Company has no actual knowledge that such representation or
warranty is not true and correct to the extent provided therein and that (i) the
Company  has made  appropriate  inquiries  of its  executive  officers  and (ii)
nothing  has come to the  Company's  attention  in the course of such  inquiries
which would cause the Company, in the exercise of due care, to believe that such
representation  or  warranty  is not true and  correct  to the  extent  provided
therein.

Section 1.10  "Legend" shall mean the legend set forth in Section 8.1.

Section 1.11  "Material  Adverse  Effect" shall mean any effect on the business,
operations,  properties,  or financial condition of the Company that is material
and adverse to the  Company  and its  subsidiaries  and  affiliates,  taken as a
whole, and/or any condition,  circumstance,  or situation that would prohibit or
otherwise  interfere  with the  ability of the Company to enter into and perform
any of its obligations under this Agreement,  the Registration Rights Agreement,
or the Warrants in any material respect.

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Section 1.12 "Outstanding" when used with reference to shares of Common Stock or
Capital Shares, shall mean, at any date as of which the number of such shares is
to be determined,  all issued and outstanding shares, and shall include all such
shares issuable in respect of outstanding scrip or any certificates representing
fractional interests in such shares; provided, however, that "Outstanding" shall
not mean any such shares then directly or indirectly owned or held by or for the
account of the Company.

Section 1.13 "Person" shall mean an individual, a corporation,  a partnership, a
limited  liability  company,  an  association,   a  trust  or  other  entity  or
organization,  including a government or political  subdivision  or an agency or
instrumentality thereof.

Section 1.14 "Principal Market" shall mean the American Stock Exchange,  the New
York Stock Exchange, the NASDAQ National Market, or the NASDAQ Small-Cap Market,
whichever is at the time the principal trading exchange or market for the Common
Stock, based upon share volume.

Section 1.15  "Purchase  Price"  shall mean  sixty-five  cents  ($0.65) per unit
consisting of one share of Common Stock and a Warrant to purchase 0.15 shares of
Common Stock.

Section  1.16  "Registrable  Securities"  shall  mean the  Common  Stock and the
Warrant Shares until (i) the Registration  Statement has been declared effective
by the SEC, and all shares of Common Stock and Warrant Shares have been disposed
of pursuant to the Registration  Statement,  (ii) all shares of Common Stock and
Warrant  Shares  have  been  sold  under  circumstances  under  which all of the
applicable conditions of Rule 144 (or any similar provision then in force) under
the  Securities  Act ("Rule 144") are met,  (iii) all shares of Common Stock and
Warrant  Shares have been  otherwise  transferred  to holders who may trade such
shares  without  restriction  under the  Securities  Act,  and the  Company  has
delivered a new  certificate or other evidence of ownership for such  securities
not bearing a restrictive legend or (iv) such time as, in the opinion of counsel
to the Company, all shares of Common Stock and Warrant Shares may be sold at any
time,  without volume or manner of sale limitations  pursuant to Rule 144(k) (or
any similar provision then in effect) under the Securities Act.

Section 1.17 "Registration  Rights Agreement" shall mean the agreement regarding
the  filing of the  Registration  Statement  for the  resale of the  Registrable
Securities, entered into between the Company and the Investors as of the Closing
Date in the form annexed hereto as Exhibit A.

Section 1.18  "Registration  Statement"  shall mean a registration  statement on
Form S-1 (if use of such form is then  available to the Company  pursuant to the
rules of the SEC and,  if not,  on such  other form  promulgated  by the SEC for
which the Company then  qualifies  and which  counsel for the Company shall deem
appropriate,  and which form shall be available  for the resale by the Investors
of the Registrable Securities to be registered thereunder in accordance with the
provisions  of  this  Agreement,   the  Registration  Rights  Agreement  and  in
accordance with the intended method of distribution of such securities), for the
registration of the resale by the Investors of the Registrable  Securities under
the Securities Act.

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Section 1.19  "Regulation D" shall have the meaning set forth in the recitals of
this Agreement.

Section 1.20 "SEC" shall mean the Securities and Exchange Commission.

Section 1.21 "Section 4(2)" and "Section 4(6)" shall have the meanings set forth
in the recitals of this Agreement.

Section 1.22  "Securities  Act" shall have the meaning set forth in the recitals
of this Agreement.

Section 1.23 "SEC Documents" shall mean the Company's Annual Report on Form 10-K
for the fiscal year ended December 31, 2000 and each report,  proxy statement or
registration  statement  filed  by the  Company  with  the SEC  pursuant  to the
Exchange  Act or the  Securities  Act since the  filing  of such  Annual  Report
through the date hereof, including any amendments thereto.

Section  1.24  "Shares"  shall mean the shares of Common  Stock being  purchased
pursuant to -this Agreement.

Section 1.25 "Trading Day" shall mean any day during which the Principal  Market
shall be open for business.

Section 1.26  "Warrants"  shall mean the Warrants  substantially  in the form of
Exhibit B to be issued to the Investors hereunder.

Section  1.27  "Warrant  Shares"  shall mean all shares of Common Stock or other
securities issued or issuable pursuant to exercise of the Warrants.

                                   ARTICLE II

                 PURCHASE AND SALE OF COMMON STOCK AND WARRANTS

Section 2.1     Investment.

      (a)   Upon the terms and subject to the conditions set forth herein,  the
Company agrees to sell, and the Investors,  severally and not jointly,  agree to
purchase  units  consisting  of separately  transferable  shares of Common Stock
together  with the  Warrants,  on the basis of one share of Common  Stock plus a
Warrant to purchase 0.15 shares of Common Stock (for each Investor, rounded down
to the nearest whole number of shares of Common Stock), at the Purchase Price on
the Closing Date as follows:

          (1)  Upon   execution   and  delivery  of  this   Agreement   and  the
               Registration  Rights  Agreement by each Investor and the Company,
               the Investors shall deliver to the Company immediately  available
               funds in their proportionate amount of the Purchase Price, as set
               forth on the  signature  pages  hereto,  by wire  transfer to the
               Company account set forth on Appendix A hereto.

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          (ii) Upon  receipt of each wire  transfer and this  Agreement  and the
               Registration  Rights Agreement duly executed by an Investor,  the
               Company  shall  deliver  the Common  Stock  certificates  and the
               Warrants to the applicable  Investor at the address  indicated on
               the signature pages hereto.

      (b)   The  Closing is subject to the  satisfaction  or waiver by the party
to be benefited thereby of the following conditions:

          (i)  acceptance  and  execution  by the Company and by each  Investor,
               severally,   of  this  Agreement  and  the  Registration   Rights
               Agreement;

          (ii) payment by each Investor of  immediately  available  funds in the
               amount  of  the  Purchase  Price  of the  Common  Stock  and  the
               Warrants;

          (iii)all  representations  and  warranties of the Investors  contained
               herein shall remain true and correct in all material  respects as
               of  the   Closing   Date  (as  a  condition   to  the   Company's
               obligations);

          (iv) all  representations  and  warranties  of the  Company  contained
               herein shall remain true and correct in all material  respects as
               of  the  Closing  Date,  except  to  the  extent  that  any  such
               representation or warranty  expressly relates to another date (in
               which case,  shall be true and correct as of such other specified
               date) (as a condition to the Investors' obligations);

          (v)  the Company  shall have  obtained all permits and  qualifications
               required by any state for the offer and sale of the Common  Stock
               and  Warrants,  or shall  have  the  availability  of  exemptions
               therefrom;

          (vi) the  sale and  issuance  of the  Common  Stock  and the  Warrants
               hereunder,  and  the  proposed  issuance  by the  Company  to the
               Investors of the Common Stock underlying the Common Stock and the
               Warrants upon the exercise thereof shall be legally  permitted by
               all laws and  regulations  to which the Investors and the Company
               are subject and there shall be no ruling, judgment or writ of any
               court   prohibiting   the   transactions   contemplated  by  this
               Agreement;

          (vii)delivery of the original fully executed Common Stock certificates
               and Warrants, and Registration Rights Agreement to the Investors;

         (viii) delivery to the  Investors  of  opinions  of Brobeck,  Phleger &
               Harrison LLP and Sklar Warren Conway & Williams LLP,  counsels to
               the Company, substantially in the form of Exhibit C hereto.

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Section 2.2 LIMITATION ON SHARES.  In no event shall the aggregate of the number
of Shares sold hereunder and the Warrant Shares exceed 19.99% of the outstanding
shares of Common Stock of the Company.

                                  ARTICLE III

                   REPRESENTATIONS AND WARRANTIES OF INVESTORS

Each Investor,  severally and not jointly, represents and warrants to and agrees
with the Company that:

Section 3.1 INTENT.  The Investor is entering  into this  Agreement  for its own
account and not with a view to or for sale in connection  with any  distribution
of the Shares,  the Warrants or any Warrant Shares.  The Investor has no present
plan,  intention or arrangement  (whether or not legally binding) at any time to
sell the Shares, the Warrants, or any Warrant Shares to or through any person or
entity.  The Investor  understands that the Shares, the Warrants and the Warrant
Shares have not been registered under the Securities Act or any state securities
laws in reliance on  exemptions  therefrom,  which  exemptions  may depend upon,
among other things, the bona fide nature of the Investor's  investment intent as
expressed  herein.  Investor  agrees that it will not,  directly or  indirectly,
offer, sell, pledge,  transfer or otherwise dispose of (or solicit any offers to
purchase,  transfer or otherwise acquire or take a pledge of) any of the Shares,
the Warrants or the Warrant Shares except in compliance with the Securities Act,
applicable  state  securities  laws and the  respective  rules  and  regulations
thereunder.  Notwithstanding the foregoing, the Investor is not agreeing to hold
the Shares,  the  Warrants or the Warrant  Shares for any  particular  period of
time.

Section 3.2 SOPHISTICATED INVESTOR. The Investor is a sophisticated investor (as
described in Rule  506(b)(2)(ii)  of Regulation D) and an "accredited  investor"
(as defined in Rule 501 of  Regulation  D), and Investor has such  experience in
business  and  financial  matters  that it has the  capacity  to protect its own
interests in connection  with this  transaction and is capable of evaluating the
merits and risks of an  investment  in the Common  Stock and the  Warrants.  The
Investor acknowledges that an investment in the Common Stock and the Warrants is
speculative and involves a high degree of risk.

Section 3.3 AUTHORITY.  This Agreement and the Registration Rights Agreement has
been duly authorized and validly executed and delivered by the Investor and is a
valid and binding agreement of the Investor enforceable against it in accordance
with its terms, subject to applicable  bankruptcy,  insolvency,  or similar laws
relating to, or affecting  generally the enforcement of,  creditors'  rights and
remedies or by other equitable principles of general application.

Section  3.4 NOT AN  AFFILIATE.  The  Investor  is not an  officer,  director or
"affiliate"  (as that term is defined in Rule 405 of the Securities  Act) of the
Company.

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Section 3.5 ABSENCE OF CONFLICTS.  The execution and delivery of this  Agreement
and the Registration Rights Agreement,  and the consummation of the transactions
contemplated hereby and thereby, and compliance with the requirements hereof and
thereof by the  Investor,  will not violate any law,  rule,  regulation,  order,
writ, judgment,  injunction,  decree or award binding on Investor or (a) violate
any provision of any  indenture,  instrument or agreement to which Investor is a
party or is subject,  or by which  Investor  or any of its assets is bound;  (b)
conflict with or  constitute a material  default  thereunder;  (c) result in the
creation or imposition of any lien pursuant to the terms of any such  indenture,
instrument  or agreement,  or constitute a breach of any fiduciary  duty owed by
Investor to any third  party;  or (d) require  the  approval of any  third-party
(which has not been  obtained)  pursuant to any  material  contract,  agreement,
instrument,  relationship or legal obligation to which Investor is subject or to
which any of its assets, operations or management may be subject.

Section 3.6  DISCLOSURE;  ACCESS TO  INFORMATION.  The Investor has received all
documents, records, books and other publicly available information pertaining to
Investor's  investment in the Company that have been  requested by the Investor.
The Company is subject to the periodic  reporting  requirements  of the Exchange
Act, and the Investor has reviewed  copies of all SEC Documents  deemed relevant
by Investor.  The Investor further  represents that it has had an opportunity to
ask  questions  and receive  answers  from the Company  regarding  the terms and
conditions of the offering of the Shares and the business, properties, prospects
and financial  condition of the Company.  The Investor  understands that some of
such information,  including  information  contained in the Disclosure Schedules
described  in the  preamble  to Article  IV of this  Agreement,  may  constitute
material  non-public  information  for purposes of the Exchange  Act, and agrees
that  the  information   contained  in  the  Disclosure  Schedules   constitutes
confidential  information  of the Company.  The Investor  agrees to maintain the
confidentiality  of the information  set forth in the Disclosure  Schedules with
the same degree of care with which it maintains  its own  confidential  business
information, and in no event less than a reasonable standard of care, and not to
disseminate  any of such  information  to any person  outside of Investor's  own
organization  or their  counsel,  and then  only on a need to know  basis.  Such
obligation  of  confidentiality  shall remain until  public  disclosure  of such
information as described in Section 5.1.

Section 3.7 MANNER OF SALE. At no time was Investor  presented with or solicited
by  or  through  any  leaflet,   public  promotional   meeting,   or  television
advertisement  or,  to  the  Investor's  knowledge,   with  any  other  form  of
communication  which appeared to Investor to constitute general  solicitation or
advertising.

Section 3.8 FOREIGN  INVESTOR.  If the Investor is not a United  States  person,
such Investor  hereby  represents  that it has  satisfied  itself as to the full
observance of the laws of its  jurisdiction in connection with any invitation to
subscribe for the Shares or any use of this  Agreement,  including (i) the legal
requirements  within its jurisdiction  for the purchase of the Shares,  (ii) any
foreign   exchange   restrictions   applicable  to  such  purchase,   (iii)  any
governmental or other consents that may need to be obtained, (iv) the income tax
and  other tax  consequences,  if any,  that may be  relevant  to the  purchase,
holding,   redemption,   sale  or  transfer  of  the  Shares.   Such  Investor's
subscription  and payment for,  and its  continued  beneficial  ownership of the
Shares,  will  not  violate  any  applicable  securities  or  other  laws of its
jurisdiction.

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                                   ARTICLE IV

                  REPRESENTATIONS AND WARRANTIES OF THE COMPANY

The Company represents and warrants to the Investors, subject to such exceptions
as are specifically  disclosed in the disclosure letter delivered  separately by
the Company to the Investors (the "Disclosure Schedules") dated the date of this
Agreement, and except as otherwise set forth in the SEC Documents, that:

Section 4.1  ORGANIZATION  OF THE  COMPANY.  The Company is a  corporation  duly
incorporated and existing in good standing under the laws of the State of Nevada
and has all requisite  corporate authority to own its properties and to carry on
its business as now being conducted.  The Company does not have any subsidiaries
and does not own more than fifty percent (50%) of or control any other  business
entity.  The  Company is duly  qualified  and is in good  standing  as a foreign
corporation  to do  business  in every  jurisdiction  in which the nature of the
business conducted or property owned by it makes such  qualification  necessary,
other  than those in which the  failure so to qualify  would not have a Material
Adverse Effect.

Section 4.2  AUTHORITY.  (i) The Company has the requisite  corporate  power and
corporate  authority  to enter  into and  perform  its  obligations  under  this
Agreement,  the Registration  Rights Agreement and the Warrants and to issue the
Shares,  the Warrants and the Warrant Shares pursuant to their respective terms,
(ii) the execution,  issuance and delivery of this Agreement,  the  Registration
Rights Agreement, the Common Stock certificates  representing the Shares and the
Warrants  by  the  Company  and  the  consummation  by  it of  the  transactions
contemplated  hereby have been duly authorized by all necessary corporate action
and no further consent or authorization of the Company or its Board of Directors
or stockholders is required,  and (iii) this Agreement,  the Registration Rights
Agreement,  the  Common  Stock  certificates  representing  the  Shares  and the
Warrants have been duly executed and delivered by the Company and at the Closing
shall  constitute  valid and  binding  obligations  of the  Company  enforceable
against  the  Company  in   accordance   with  their   terms,   except  as  such
enforceability may be limited by applicable bankruptcy,  insolvency,  or similar
laws relating to, or affecting  generally the enforcement of,  creditors' rights
and  remedies  or by other  equitable  principles  of general  application.  The
Company has duly and validly  authorized  and reserved  for  issuance  shares of
Common Stock sufficient in number for the exercise of the Warrants.

Section 4.3 CAPITALIZATION.  As of the date hereof, the authorized capital stock
of the Company  consists of: (a) 190,000,000  shares of Common Stock,  par value
$0.001  per  share  (the  "Common  Stock"),  of  which  78,372,254  shares  were
outstanding at February 11, 2002; (b) 5,000,000 shares of Preferred Stock,  none
of which are  outstanding;  (c) options to purchase an  aggregate  of  7,172,844
shares of Common Stock (with an additional  4,072,761 shares available for grant
at December  31,  2001) and (d)  warrants to purchase an  aggregate of 3,994,446
shares of Common  Stock at February 11,  2002.  Except as set forth  above,  and

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except for the Company's equity line of credit with Fusion Capital Fund II, LLC,
the Shares,  the  Warrants  and the  Warrant  Shares,  there are no  outstanding
Capital  Shares  Equivalents  nor any agreements or  understandings  pursuant to
which any Capital Shares Equivalents may become outstanding.  The Company is not
a party to any agreement  granting  registration or anti-dilution  rights to any
person  (other than the  Investors  herein) with respect to any of its equity or
debt  securities.  All of the outstanding  shares of Common Stock of the Company
have  been  duly and  validly  authorized  and  issued  and are  fully  paid and
non-assessable.

Section 4.4 COMMON STOCK; S-3 ELIGIBILITY. The Company has registered its Common
Stock  pursuant  to  Section  12(b)  or (g) of the  Exchange  Act and is in full
compliance with all reporting  requirements of the Exchange Act, and the Company
is in compliance with all requirements for the continued listing or quotation of
its Common  Stock,  and such Common Stock is currently  listed or quoted on, the
Principal  Market.  As of the date hereof,  the  Principal  Market is the Nasdaq
National Market,  and the Company has not received any notice regarding,  and to
its knowledge there is no threat,  of the termination or  discontinuance  of the
eligibility of the Common Stock for such listing.  The Company expects to become
eligible  to  register  the  Shares  and the  Warrant  Shares  for resale by the
Investors by amending the Form S-1 Registration Statement  post-effectively onto
Form S-3 after June 30, 2002.

Section 4.5 SEC  DOCUMENTS.  The Company has not provided to the  Investors  any
information that,  according to applicable law, rule or regulation,  should have
been disclosed  publicly prior to the date hereof by the Company,  but which has
not been so disclosed.  As of their respective dates, the SEC Documents complied
in all  material  respects  with the  requirements  of the  Exchange  Act or the
Securities Act, as applicable,  and rules and regulations of the SEC promulgated
thereunder  and the SEC  Documents  did not  contain any untrue  statement  of a
material fact or omit to state a material fact required to be stated  therein or
necessary in order to make the statements therein, in light of the circumstances
under which they were made,  not  misleading.  The  financial  statements of the
Company  included in the SEC  Documents  complied in all material  respects with
applicable  accounting  requirements  and the published rules and regulations of
the SEC or other  applicable  rules and regulations  with respect thereto at the
time  of such  inclusion.  Such  financial  statements  have  been  prepared  in
accordance with generally accepted accounting principles applied on a consistent
basis during the periods involved  (except (i) as may be otherwise  indicated in
such financial  statements or the notes thereto or (ii) in the case of unaudited
interim statements,  to the extent they exclude footnotes or may be condensed or
summary  statements)  and fairly present in all material  respects the financial
position  of the Company as of the dates  thereof and the results of  operations
and cash flows for the periods  then ended  (subject,  in the case of  unaudited
interim statements,  to normal year-end audit adjustments).  Neither the Company
nor  any of its  subsidiaries  has any  material  indebtedness,  obligations  or
liabilities of any kind (whether accrued, absolute, contingent or otherwise, and
whether due or to become due) that would have been  required to be reflected in,
reserved  against or otherwise  described in the financial  statements or in the
notes  thereto  in  accordance  with  GAAP,  which was not fully  reflected  in,
reserved against or otherwise described in the financial statements or the notes
thereto included in the SEC Documents or was not incurred in the ordinary course
of business  consistent with the Company's past practices since the last date of
such financial statements.

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Section  4.6  EXEMPTION  FROM  REGISTRATION;  VALID  ISSUANCES.  Subject  to the
accuracy  of the  Investors'  representations  in Article  III,  the sale of the
Shares, the Warrants and the Warrant Shares will not require  registration under
the Securities Act and/or any applicable  state  securities law. When issued and
paid for in accordance  with the Warrants,  the Warrant  Shares will be duly and
validly issued, fully paid, and non-assessable. Neither the sales of the Shares,
the Warrants or the Warrant Shares pursuant to, nor the Company's performance of
its obligations under, this Agreement,  the Registration Rights Agreement or the
Warrants  will (i) result in the  creation or  imposition  by the Company of any
liens,  charges,  claims or other  encumbrances upon the Shares, the Warrants or
the  Warrant  Shares or any of the assets of the  Company,  or (ii)  entitle the
holders of Outstanding Capital Shares to preemptive or other rights to subscribe
for or acquire  the  Capital  Shares or other  securities  of the  Company.  The
Shares,  the Warrants and the Warrant  Shares shall not subject the Investors to
personal  liability to the Company or its creditors by reason of the  possession
thereof.

Section  4.7  NO  GENERAL   SOLICITATION   OR  ADVERTISING  IN  REGARD  TO  THIS
TRANSACTION. Neither the Company nor any of its affiliates nor, to the knowledge
of the Company,  any person  acting on its or their behalf (i) has  conducted or
will  conduct any general  solicitation  (as that term is used in Rule 502(c) of
Regulation D) or general  advertising  with respect to the sale of the Shares or
the Warrants,  or (ii) made any offers or sales of any security or solicited any
offers  to  buy  any  security  under  any  circumstances   that  would  require
registration  of the  Shares,  the  Warrants  or the  Warrant  Shares  under the
Securities Act.

Section 4.8  NO  CONFLICTS. The  execution,  delivery  and  performance  of this
Agreement by the Company and the consummation by the Company of the transactions
contemplated  hereby,  including without  limitation the issuance of the Shares,
the  Warrants  and the  Warrant  Shares,  do not and  will not (i)  result  in a
violation  of the  Company's  Certificate  of  Incorporation  or By-Laws or (ii)
conflict with, or constitute a material default (or an event that with notice or
lapse of time or both  would  become a  default)  under,  or give to others  any
rights of termination,  amendment, acceleration or cancellation of, any material
agreement, indenture or instrument, or any "lock-up" or similar provision of any
underwriting  or similar  agreement  to which the  Company is a party,  or (iii)
result in a violation  of any  federal,  state or local law,  rule,  regulation,
order,  judgment  or decree  (including  federal and state  securities  laws and
regulations)  applicable  to the  Company or by which any  material  property or
asset of the  Company is bound or  affected,  nor is the  Company  otherwise  in
violation of,  conflict  with or default  under any of the foregoing  (except in
each case for such conflicts, defaults, terminations, amendments, accelerations,
cancellations  and  violations  as  would  not  have,  individually  or  in  the
aggregate,  a Material Adverse Effect). The business of the Company is not being
conducted in violation of any law,  ordinance or regulation of any  governmental
entity,  except for possible  violations  that either singly or in the aggregate
would not have a Material Adverse Effect.  The Company is not required under any
Federal,  state  or  local  law,  rule or  regulation  to  obtain  any  consent,
authorization or order of, or make any filing or registration with, any court or
governmental  agency in order for it to  execute,  deliver or perform any of its
obligations  under  this  Agreement  or issue and sell the  Common  Stock or the

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<PAGE>

Warrants in  accordance  with the terms  hereof  (other than any SEC,  Principal
Market  or  state  securities  filings  that may be  required  to be made by the
Company  subsequent to Closing and any registration  statement that may be filed
pursuant hereto); provided that, for purposes of the representation made in this
sentence,  the Company is assuming and relying upon the accuracy of the relevant
representations and agreements of the Investors herein.

Section 4.9  NO MATERIAL  ADVERSE  CHANGE. Since September 30, 2001, no event or
development  has occurred or exists with respect to the Company that resulted in
a Material Adverse Effect, except as disclosed in the SEC Documents.

Section 4.10  NO UNDISCLOSED  EVENTS OR CIRCUMSTANCES. Since September 30, 2001,
no event or  circumstance  has occurred or exists with respect to the Company or
its businesses,  properties, prospects, operations or financial condition, that,
under  applicable  law,  rule  or  regulation,  requires  public  disclosure  or
announcement  prior to the date  hereof by the Company but which has not been so
publicly announced or disclosed in the SEC Documents.

Section 4.11   LITIGATION AND OTHER  PROCEEDINGS. Except as disclosed in the SEC
Documents,  there are no lawsuits or proceedings pending or, to the knowledge of
the  Company,  threatened,  against the Company or any  subsidiary,  nor has the
Company received any written or oral notice of any such action, suit, proceeding
or investigation,  which could reasonably be expected to have a Material Adverse
Effect.  Except as set forth in the SEC  Documents,  no judgment,  order,  writ,
injunction  or decree or award has been  issued by or, to the  knowledge  of the
Company,  requested of any court,  arbitrator or governmental agency which could
result in a Material Adverse Effect.

Section 4.12  MATERIAL NON-PUBLIC  INFORMATION. The Company has not disclosed to
the Investors any material  non-public  information that according to applicable
law,  rule or  regulation,  should have been  disclosed  publicly by the Company
prior to the date hereof but which has not been so disclosed.

Section 4.13  PROPERTY. Neither the Company nor any of its subsidiaries owns any
real property.  Each of the Company and its subsidiaries has good and marketable
title to all  personal  property  owned  by it,  free  and  clear of all  liens,
encumbrances  and defects except such as do not  materially  affect the value of
such property and do not materially  interfere with the use made and proposed to
be made of such property by the Company; and to the Company's knowledge any real
property, mineral or water rights, and buildings held under lease by the Company
as tenant are held by it under valid,  subsisting  and  enforceable  leases with
such  exceptions as are not material and do not interfere  with the use made and
intended to be made of such property,  mineral or water rights, and buildings by
the Company.

Section 4.14   INTELLECTUAL  PROPERTY. Each of the Company and its  subsidiaries
owns or possesses  adequate and enforceable  rights to use all material patents,
patent applications,  trademarks,  trademark applications,  trade names, service
marks, copyrights,  copyright applications,  licenses, know-how (including trade
secrets and other  unpatented  and/or  unpatentable  proprietary or confidential
information,  systems or procedures)  and other similar  rights and  proprietary
knowledge  (collectively,  "Intangibles")  necessary  for  the  conduct  of  its
business as now being  conducted  in all  material  respects.  To the  Company's
knowledge,  except as disclosed in the SEC Documents neither the Company nor any

                                       11
<PAGE>

of its  subsidiaries  is  infringing  upon or in conflict  with any right of any
other  person with  respect to any  Intangibles.  Except as disclosed in the SEC
Documents,  no adverse  claims have been asserted by any person to the ownership
or use of any Intangibles and the Company has no knowledge of any basis for such
claim.

Section 4.15  INTERNAL  CONTROLS AND PROCEDURES. The Company maintains books and
records and internal accounting controls which provide reasonable assurance that
(i) all  transactions  to which the Company or any  subsidiary  is a party or by
which its  properties  are bound are executed with  management's  authorization;
(ii) the recorded  accounting of the Company's  consolidated  assets is compared
with  existing  assets at  regular  intervals;  (iii)  access  to the  Company's
consolidated   assets  is  permitted  only  in  accordance   with   management's
authorization;  and (iv) all transactions to which the Company or any subsidiary
is a party or by which its  properties  are bound are  recorded as  necessary to
permit preparation of the financial statements of the Company in accordance with
U.S. generally accepted accounting principles.

Section 4.16  PAYMENTS AND  CONTRIBUTIONS. Neither the Company,  any subsidiary,
nor any of its directors, officers or, to its knowledge, other employees has (i)
used  any  Company  funds  for any  unlawful  contribution,  endorsement,  gift,
entertainment  or other unlawful expense  relating to political  activity;  (ii)
made any direct or indirect  unlawful payment of Company funds to any foreign or
domestic government  official or employee;  (iii) violated or is in violation of
any provision of the Foreign Corrupt Practices Act of 1977, as amended;  or (iv)
made any bribe,  rebate,  payoff,  influence payment,  kickback or other similar
payment to any person with respect to Company matters.

Section 4.17  NO  MISREPRESENTATION. The  representations  and warranties of the
Company contained in this Agreement,  any schedule,  annex or exhibit hereto and
any  agreement,  instrument  or  certificate  furnished  by the  Company  to the
Investors  pursuant to this Agreement,  do not contain any untrue statement of a
material fact or omit to state a material fact required to be stated  therein or
necessary to make the statements  therein,  in light of the circumstances  under
which they were made, not misleading.

                                   ARTICLE V

                   COVENANTS OF THE COMPANY AND THE INVESTORS

Section 5.1  REGISTRATION RIGHTS.The Company shall cause the Registration Rights
Agreement to remain in full force and effect as provided therein and the Company
shall comply in all material respects with the terms thereof.  The Company shall
include in its next-filed  Form 10-K or the initial filing of such  Registration
Statement,  whichever is filed first with the SEC, all  information set forth on
the Disclosure  Schedules which the Company  considers to be material within the
provisions  of Section 3.6,  and, if one of such filings is not made by April 1,
2002,  any Investor may  immediately  thereafter  make public  disclosure of the
contents  of  the  Disclosure  Schedules  by any  means  available  to any  such
Investor.  The Company shall not file any  registration  statement in respect of
the Common Stock Purchase  Agreement between the Company and Fusion Capital Fund

                                       12
<PAGE>

II, LLC until at least thirty (30) days after the  Effective  Date,  or, if such
delay would  constitute a default under any agreement  with Fusion  Capital Fund
II, LLC, then the Company shall take such affirmative action as may be necessary
to not sell any shares of Common  Stock to Fusion  Capital Fund II, LLC until at
least thirty (30) days after the Effective Date.

Section 5.2  RESERVATION OF COMMON STOCK. As of the date hereof, the Company has
reserved  and the Company  shall  continue to reserve and keep  available at all
times,  free of  preemptive  rights,  shares of Common  Stock for the purpose of
enabling the Company to issue the Warrant Shares pursuant to any exercise of the
Warrants.

Section  5.3   LISTING OF COMMON  STOCK. The  Company  hereby  agrees to use its
reasonable  best  efforts to  maintain  the  listing  of the  Common  Stock on a
Principal Market, and as soon as reasonably practicable following the Closing to
list the Shares and the  Warrant  Shares on the  Principal  Market.  The Company
further  agrees,  if the Company  applies to have the Common Stock traded on any
other Principal  Market,  it will include in such application the Shares and the
Warrant Shares,  and will take such other action as is necessary or desirable in
the opinion of the Investors to cause the Shares and Warrant Shares to be listed
on such other  Principal  Market as promptly as possible.  The Company will take
all action  reasonably  necessary  to  continue  the  listing and trading of its
Common Stock on a Principal Market (including,  without limitation,  maintaining
sufficient  net  tangible  assets)  and will  comply  in all  respects  with the
Company's  reporting,  filing and other obligations under the bylaws or rules of
the  Principal   Market  and  shall  provide   Investors   with  copies  of  any
correspondence  to or from such  Principal  Market which  questions or threatens
delisting of the Common  Stock,  within three (3) Trading Days of the  Company's
receipt thereof,  until the Investors have disposed of all of their  Registrable
Securities.

Section 5.4  EXCHANGE ACT  REGISTRATION. The Company will cause its Common Stock
to continue to be  registered  under  Section  12(b) or (g) of the Exchange Act,
will use its best  efforts  to comply in all  respects  with its  reporting  and
filing  obligations under the Exchange Act, and will not take any action or file
any  document  (whether  or not  permitted  by  the  Exchange  Act or the  rules
thereunder) to terminate or suspend such registration or to terminate or suspend
its reporting  and filing  obligations  under said Act until the Investors  have
disposed of all of their Registrable Securities.

Section 5.5  LEGENDS. The  certificates  evidencing the  Registrable  Securities
shall be free of legends,  except as set forth in Article VIII and except as may
be required by state securities laws.

Section 5.6  CORPORATE EXISTENCE; CONFLICTING AGREEMENTS.  The Company will take
all steps  necessary to preserve and  continue  the  corporate  existence of the
Company.  The  Company  shall not enter into any  agreement,  the terms of which
agreement  would  restrict  or impair  the right or  ability  of the  Company to
perform  any  of its  obligations  under  this  Agreement  or  any of the  other
agreements attached as exhibits hereto.

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<PAGE>

Section 5.7  SECURITIES  FILINGS.  The Company  shall make any necessary SEC and
"blue sky"  filings  required to be made by the Company in  connection  with the
sale of the Securities to the Investors as required by all applicable  laws, and
shall provide a copy thereof to the Investors promptly after such filing.

Section 5.8  NO  MANIPULATION  OF STOCK. Neither  the  Company nor the  Investor
(severally  and not jointly) has taken and will not take any action  outside the
ordinary course of business  designed to or that might reasonably be expected to
cause or result in  unlawful  manipulation  of the price of the Common  Stock to
facilitate the sale or resale of the Shares.

                                   ARTICLE VI

                            SURVIVAL; INDEMNIFICATION

Section 6.1 SURVIVAL. The representations, warranties and covenants made by each
of the Company and each Investor in this  Agreement,  the exhibits hereto and in
each  instrument,  agreement and certificate  entered into and delivered by them
pursuant to this  Agreement,  shall survive the Closing and the  consummation of
the transactions  contemplated  hereby. In the event of a breach or violation of
any of such  representations,  warranties or  covenants,  the party to whom such
representations,  warranties  or covenants  have been made shall have all rights
and remedies for such breach or violation  available to it under the  provisions
of this  Agreement,  irrespective of any  investigation  made by or on behalf of
such party on or prior to the Closing Date.

Section 6.2   INDEMNITY. (a) The Company  hereby  agrees to  indemnify  and hold
harmless  the  Investors,  their  respective  Affiliates  and  their  respective
officers,   directors,   partners  and  members  (collectively,   the  "Investor
Indemnitees"), from and against any and all Damages, and agrees to reimburse the
Investor  Indemnitees for all reasonable  out-of-pocket  expenses (including the
reasonable  fees and  expenses  of legal  counsel),  in each  case  promptly  as
incurred  by the  Investor  Indemnitees  and to the extent  arising out of or in
connection with:

          (i)  any material misrepresentation,  omission of any material fact or
               breach  of any of the  Company's  representations  or  warranties
               contained in this Agreement,  the annexes,  schedules or exhibits
               hereto or any instrument,  agreement or certificate  entered into
               or delivered by the Company pursuant to this Agreement; or

          (ii) any failure by the Company to perform in any material respect any
               of its covenants,  agreements,  undertakings  or obligations  set
               forth in this  Agreement,  the  annexes,  schedules  or  exhibits
               hereto or any instrument,  agreement or certificate  entered into
               or delivered by the Company pursuant to this Agreement; or

                                       14
<PAGE>

          (iii)any action instituted  against the Investors,  or any of them, by
               any  stockholder  of the  Company who is not an  Affiliate  of an
               Investor, with respect to any of the transactions contemplated by
               this  Agreement,  except for any claim arising out of a breach by
               any  Investor of this  Agreement or the misuse by any Investor of
               any non-public information with respect to the Company.

      (b)   Each   Investor,  severally  and  not  jointly,  hereby   agrees  to
indemnify and hold harmless the Company,  its  Affiliates  and their  respective
officers,   directors,   partners  and  members   (collectively,   the  "Company
Indemnitees"), from and against any and all Damages, and agrees to reimburse the
Company  Indemnitees for reasonable all  out-of-pocket  expenses  (including the
reasonable  fees and  expenses  of legal  counsel),  in each  case  promptly  as
incurred  by the  Company  Indemnitees  and to the extent  arising  out of or in
connection with any material misrepresentation,  omission of a material fact, or
breach of any of the Investor's  representations or warranties contained in this
Agreement,  the  annexes,  schedules  or  exhibits  hereto  or  any  instrument,
agreement or certificate  entered into or delivered by the Investor  pursuant to
this Agreement.  Notwithstanding  anything to the contrary herein,  the Investor
shall be liable  under  this  Section  6.2(b)  for only that  amount as does not
exceed the net proceeds to such Investor as a result of the sale of  Registrable
Securities  pursuant to the  Registration  Statement  (including any amount that
could be received by such Investor for Registrable Securities not yet sold).

Section  6.3  NOTICE. Promptly  after  receipt by either  party  hereto  seeking
indemnification  pursuant  to Section  6.2 (an  "Indemnified  Party") of written
notice of any  investigation,  claim,  proceeding  or other action in respect of
which  indemnification is being sought (each, a "Claim"),  the Indemnified Party
promptly  shall notify the party from whom  indemnification  pursuant to Section
6.2 is being sought (the "Indemnifying  Party") of the commencement thereof; but
the omission so to notify the  Indemnifying  Party shall not relieve it from any
liability  that it otherwise may have to the  Indemnified  Party,  except to the
extent that the  Indemnifying  Party is actually  prejudiced by such omission or
delay. In connection with any Claim as to which both the Indemnifying  Party and
the Indemnified Party are parties,  the Indemnifying  Party shall be entitled to
assume the defense thereof. Notwithstanding the assumption of the defense of any
Claim by the Indemnifying  Party, the Indemnified  Party shall have the right to
employ  separate  legal counsel and to participate in the defense of such Claim,
and the Indemnifying Party shall bear the reasonable fees,  out-of-pocket  costs
and expenses of such  separate  legal counsel to the  Indemnified  Party if (and
only if):  (x) the  Indemnifying  Party  shall  have  agreed  to pay such  fees,
out-of-pocket  costs and expenses,  (y) the Indemnified  Party  reasonably shall
have concluded that representation of the Indemnified Party and the Indemnifying
Party by the same legal  counsel would not be  appropriate  due to actual or, as
reasonably  determined by legal counsel to the  Indemnified  Party,  potentially
differing  interests  between such parties in the conduct of the defense of such
Claim, or if there may be legal defenses available to the Indemnified Party that
are in addition to or disparate from those available to the Indemnifying  Party,
or (z) the  Indemnifying  Party  shall  have  failed  to  employ  legal  counsel
reasonably  satisfactory to the Indemnified  Party within a reasonable period of
time after notice of the  commencement of such Claim.  If the Indemnified  Party
employs  separate  legal  counsel in  circumstances  other than as  described in

                                       15
<PAGE>

clauses  (x),  (y) or (z)  above,  the fees,  costs and  expenses  of such legal
counsel shall be borne exclusively by the Indemnified Party.  Except as provided
above,  the  Indemnifying  Party shall not, in connection  with any Claim in the
same jurisdiction,  be liable for the fees and expenses of more than one firm of
legal  counsel  for the  Indemnified  Party  (together  with  appropriate  local
counsel). The Indemnifying Party shall not, without the prior written consent of
the Indemnified Party (which consent shall not unreasonably be withheld), settle
or  compromise  any Claim or consent to the entry of any judgment  that does not
include an unconditional  release of the Indemnified  Party from all liabilities
with respect to such Claim or judgment.

        All fees and expenses of the Indemnified  Party  (including  reasonable
costs of  defense  and  investigation  in a manner  not  inconsistent  with this
Section and, except as otherwise provided above, all reasonable  attorneys' fees
and expenses)  shall be paid to the Indemnified  Party, as incurred,  within ten
(10)  Trading  Days  of  written  notice  thereof  to  the  Indemnifying   Party
(regardless of whether it is ultimately  determined that an Indemnified Party is
not entitled to indemnification hereunder; provided, that the Indemnifying Party
may require such  Indemnified  Party to undertake to reimburse all such fees and
expenses,  with interest at market rates, to the extent it is finally judicially
determined  that  such  Indemnified  Party is not  entitled  to  indemnification
hereunder).

Section 6.4  DIRECT CLAIMS. In the event one party hereunder should have a claim
for indemnification  that does not involve a claim or demand being asserted by a
third party,  the Indemnified  Party promptly shall deliver notice of such claim
to the Indemnifying  Party. If the Indemnifying  Party disputes the claim,  such
dispute shall be resolved by mutual  agreement of the Indemnified  Party and the
Indemnifying  Party or by binding  arbitration  conducted in accordance with the
procedures  and rules of the American  Arbitration  Association  as set forth in
Article IX.  Judgment upon any award rendered by any  arbitrators may be entered
in any court having competent jurisdiction thereof.

                                  ARTICLE VII

         DUE DILIGENCE REVIEW; NON-DISCLOSURE OF NON-PUBLIC INFORMATION.

Section 7.1 DUE DILIGENCE REVIEW. Subject to Section 7.2, the Company shall make
available  for  inspection  and  review  by  the  Investors,   advisors  to  and
representatives  of the  Investors  (who may or may not be  affiliated  with the
Investors and who are reasonably acceptable to the Company), and any underwriter
participating in any disposition of the Registrable  Securities on behalf of the
Investors  pursuant  to the  Registration  Statement,  upon the  request  of the
Investors, any such registration statement or amendment or supplement thereto or
any blue sky, Nasdaq or other filing,  all publicly  available SEC Documents and
other filings with the SEC, and all other publicly available 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 publicly available information reasonably requested by the Investors or
any  such  representative,  advisor  or  underwriter  in  connection  with  such

                                       16
<PAGE>

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 Investors 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.

Section 7.2  NON-DISCLOSURE OF NON-PUBLIC INFORMATION.

      (a)   The Company  shall  not  disclose  material  non-public  information
to the Investors,  advisors to or  representatives of the Investors unless prior
to disclosure of such  information the Company  identifies  such  information as
being  non-public  information  and provides the  Investors,  such  advisors and
representatives  with the  opportunity  to  accept  or  refuse  to  accept  such
non-public information for review. The Company may, as a condition to disclosing
any non-public information hereunder, require the Investors and their respective
advisors and  representatives to enter into a confidentiality  agreement in form
and content reasonably satisfactory to the Company and the Investors.

      (b)   Nothing  herein  shall  require  the  Company  to disclose  material
non-public  information to the Investors or their  advisors or  representatives,
and the Company  represents  that it does not  disseminate  material  non-public
information in violation of Regulation FD promulgated by the Commission,  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,
promptly notify the advisors and  representatives  of the Investors 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 material non-public information (whether or not requested of
the Company specifically or generally during the course of due diligence by 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 7.2 shall be construed
to mean that such  persons or entities  other than the  Investors  (without  the
written consent of the Investors prior to disclosure of such  information as set
forth in Section 7.2(a)) may not obtain non-public  information in the course of
conducting  due  diligence in  accordance  with the terms of this  Agreement and
nothing  herein shall  prevent any such persons or entities  from  notifying the
Company of their  opinion  that based on such due  diligence  by such persons or
entities,  that the  Registration  Statement  contains an untrue  statement of 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.

                                       17
<PAGE>

                                  ARTICLE VIII

                      LEGENDS; TRANSFER AGENT INSTRUCTIONS

Section  8.1   LEGENDS.  Unless  otherwise   provided  below,  each  certificate
representing Registrable Securities will bear the following legend or equivalent
(the "Legend"), and such other legends as may be required under state securities
laws:

THE SECURITIES  EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
U.S.  SECURITIES ACT OF 1933, AS AMENDED (THE  "SECURITIES  ACT"),  OR ANY OTHER
APPLICABLE  SECURITIES  LAWS AND HAVE BEEN ISSUED IN RELIANCE  UPON AN EXEMPTION
FROM  THE  REGISTRATION  REQUIREMENTS  OF THE  SECURITIES  ACT  AND  SUCH  OTHER
SECURITIES LAWS. NEITHER THIS SECURITY NOR ANY INTEREST OR PARTICIPATION  HEREIN
MAY BE SOLD, ASSIGNED,  TRANSFERRED,  PLEDGED, ENCUMBERED, OR OTHERWISE DISPOSED
OF, EXCEPT PURSUANT TO AN EFFECTIVE  REGISTRATION STATEMENT UNDER THE SECURITIES
ACT OR PURSUANT TO A TRANSACTION THAT IS EXEMPT FROM SUCH REGISTRATION.

Section 8.2 NO OTHER LEGEND OR STOCK TRANSFER RESTRICTIONS. No legend other than
the ones  specified  in  Section  8.1 has been or shall be  placed  on the share
certificates  representing  the  Registrable  Securities and no  instructions or
"stop transfer  orders," "stock transfer  restrictions,"  or other  restrictions
have been or shall be given to the Company's transfer agent with respect thereto
other than as expressly set forth in this Article VIII. The Company will provide
its transfer agent with  instructions and any necessary legal opinions to enable
the  transfer  agent  to  issue  or  re-issue  all of the  Shares  without  such
restrictive legends upon effectiveness of the Registration Statement.

Section 8.3  INVESTORS'  COMPLIANCE. Nothing in this Article shall affect in any
way each Investor's  obligations to comply with all applicable  securities laws,
including prospectus delivery requirements, upon resale of the Common Stock.

                                   ARTICLE IX

                           CHOICE OF LAW; ARBITRATION

Section 9.1  GOVERNING  LAW/ARBITRATION. This Agreement shall be governed by and
construed in  accordance  with the laws of the State of New York  applicable  to
contracts  made in New York by persons  domiciled  in New York City and  without
regard to its  principles of conflicts of laws. Any dispute under this Agreement
shall be submitted to  arbitration  under the American  Arbitration  Association
(the "AAA") in New York City,  New York,  and shall be finally and  conclusively
determined  by the decision of a board of  arbitration  consisting  of three (3)
members  (hereinafter  referred  to as  the  "Board  of  Arbitration")  selected
according to the rules governing the AAA. The Board of Arbitration shall meet on
consecutive business days in New York City, New York, and shall reach and render
a decision in writing (concurred in by a majority of the members of the Board of

                                       18
<PAGE>

Arbitration)  with  respect to the  amount,  if any,  which the losing  party is
required to pay to the other party in respect of a claim  filed.  In  connection
with  rendering its decisions,  the Board of Arbitration  shall adopt and follow
the laws of the State of New York unless the matter at issue is the  corporation
law of the company's state of incorporation,  in which event the corporation law
of such jurisdiction shall govern such issue. To the extent practical, decisions
of the Board of Arbitration  shall be rendered no more than thirty (30) calendar
days following  commencement of proceedings with respect  thereto.  The Board of
Arbitration  shall cause its written  decision  to be  delivered  to all parties
involved in the dispute.  Any decision made by the Board of Arbitration  (either
prior to or after the  expiration of such thirty (30) calendar day period) shall
be final,  binding and conclusive on the parties to the dispute, and entitled to
be enforced to the fullest  extent  permitted by law and entered in any court of
competent  jurisdiction.  The Board of  Arbitration  shall be authorized  and is
hereby  directed  to enter a  default  judgment  against  any party  failing  to
participate in any proceeding hereunder within the time periods set forth in the
AAA rules.  The  non-prevailing  party to any  arbitration (as determined by the
Board of Arbitration) shall pay the expenses of the prevailing party,  including
reasonable attorney's fees, in connection with such arbitration. Any party shall
be entitled to seek injunctive relief from a court in any case where such relief
is available,  and the  non-prevailing  party to any such injunctive  proceeding
shall pay the expenses of the prevailing party,  including reasonable attorney's
fees, in connection with such proceeding.

                                   ARTICLE X

                                   ASSIGNMENT

Section 10.1  ASSIGNMENT. Neither this Agreement nor any rights of the Investors
or the Company  hereunder  may be assigned by either party to any other  person.
Notwithstanding the foregoing,  (a) the provisions of this Agreement shall inure
to the benefit of, and be enforceable by, any permitted transferee of any of the
Shares or Warrants  purchased or acquired by any Investor hereunder with respect
to the Shares or Warrants  held by such person,  and (b) upon the prior  written
consent of the Company,  which  consent  shall not  unreasonably  be withheld or
delayed, each Investor's interest in this Agreement may be assigned at any time,
in whole or in part,  to an  Affiliate  of the  Investor or any other  person or
entity who purchases substantially all of the Shares of such Investor,  provided
that in each case such transferee  shall agree to make the  representations  and
warranties  contained in Article III and shall agree to be bound by the terms of
this Agreement.

                                   ARTICLE XI

                                     NOTICES

Section 11.1  NOTICES. All notices, demands, requests, consents,  approvals, and
other  communications  required or permitted  hereunder shall be in writing and,
unless otherwise specified herein,  shall be (i) hand delivered,  (ii) deposited
in the mail, registered or certified, return receipt requested, postage prepaid,

                                       19
<PAGE>

(iii) delivered by reputable air courier service with charges  prepaid,  or (iv)
transmitted by facsimile,  addressed as set forth below or to such other address
as such party shall have specified most recently by written  notice.  Any notice
or other  communication  required or  permitted to be given  hereunder  shall be
deemed effective (a) upon hand delivery or delivery by facsimile,  with accurate
confirmation  generated by the transmitting facsimile machine, at the address or
number  designated  below (if delivered on a business day during normal business
hours where such notice is to be received),  or the first business day following
such delivery (if delivered  other than on a business day during normal business
hours  where such notice is to be  received)  or (b) on the first  business  day
following  the date of sending by  reputable  courier  service,  fully  prepaid,
addressed  to such  address,  or (c) upon  actual  receipt of such  mailing,  if
mailed. The addresses for such communications shall be:

If to the Company:                   PurchasePro.com, Inc.
                                     7710 West Cheyenne Avenue
                                     Las Vegas, NV 89129
                                     Attn: Richard L. Clemmer, CEO
                                     Phone: 702-316-7000
                                     Fax: 702-316-7660

with a copy to (shall not            Michael S. Kagnoff, Esq.
constitute notice):                  Brobeck, Phleger & Harrison LLP
                                     12390 El Camino Real
                                     San Diego, CA 92130
                                     Phone: 858-702-2500
                                     Fax: 858-720-2555

if to the Investors:                 As set forth on the signature pages hereto

Either party hereto may from time to time change its address or facsimile number
for notices  under this  Section 11.1 by giving  written  notice of such changed
address  or  facsimile  number to the other  party  hereto as  provided  in this
Section 11.1.

                                   ARTICLE XII

                                  MISCELLANEOUS

Section 12.1  COUNTERPARTS/FACSIMILE/ AMENDMENTS. This Agreement may be executed
in multiple counterparts,  each of which may be executed by less than all of the
parties  and  shall  be  deemed  to be an  original  instrument  which  shall be
enforceable  against the parties actually executing such counterparts and all of
which together shall constitute one and the same instrument. Except as otherwise
stated herein, in lieu of the original  documents,  a facsimile  transmission or
copy of the original  documents  shall be as effective  and  enforceable  as the
original.  This  Agreement  may be  amended  only by a writing  executed  by all
parties.

                                       20
<PAGE>

Section 12.2  ENTIRE  AGREEMENT. This Agreement and the  agreements  attached as
Exhibits  hereto,  which  include  the  Warrants  and  the  Registration  Rights
Agreement,  set forth the entire  agreement  and  understanding  of the  parties
relating   to  the  subject   matter   hereof  and   supersede   all  prior  and
contemporaneous agreements, negotiations and understandings between the parties,
both oral and  written  relating  to the subject  matter  hereof.  The terms and
conditions  of all Exhibits to this  Agreement are  incorporated  herein by this
reference  and shall  constitute  part of this  Agreement  as if fully set forth
herein.

Section 12.3  SEVERABILITY.  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,  this Agreement  shall continue in full force and effect
without said provision;  provided that such severability shall be ineffective if
it materially changes the economic benefit of this Agreement to any party.

Section  12.4   HEADINGS. The  headings  used in this  Agreement  are  used  for
convenience only and are not to be considered in construing or interpreting this
Agreement.

Section  12.5  NUMBER AND GENDER. There may be one or more  Investor  parties to
this  Agreement,  which  Investors  may be  natural  persons  or  entities.  All
references to plural Investors shall apply equally to a single Investor if there
is only one  Investor,  and all  references  to an  Investor as "it" shall apply
equally to a natural person.

Section  12.6   REPLACEMENT  OF  CERTIFICATES.  Upon  (i)  receipt  of  evidence
reasonably  satisfactory  to the  Company  of the loss,  theft,  destruction  or
mutilation of a certificate  representing  the Shares or Warrants or any Warrant
Shares  and (ii) in the  case of any such  loss,  theft or  destruction  of such
certificate, upon delivery by the Investor of an indemnity agreement or security
reasonably  satisfactory  in form to the  Company  (which  shall not include the
posting of any bond other than that required by the Company's transfer agent) or
(iii) in the case of any such mutilation,  on surrender and cancellation of such
certificate,  the  Company at its expense  will  execute  and  deliver,  in lieu
thereof, a new certificate of like tenor.

Section 12.7  FEES AND EXPENSES. Each of the Company and the Investors agrees to
pay its own expenses incident to the performance of its obligations hereunder.

Section 12.8 BROKERAGE. Each of the parties hereto represents that it has had no
dealings in connection with this  transaction with any finder or broker who will
demand  payment  of any fee or  commission  from  the  other  party  except  for
Ladenburg  Thalmann  & Co.  Inc.,  whose fee shall be paid by the  Company.  The
Company  on the one  hand,  and the  Investors,  on the  other  hand,  agree  to
indemnify  the  other  against  and hold  the  other  harmless  from any and all
liabilities  to any person  claiming  brokerage  commissions or finder's fees on
account  of  services   purported  to  have  been  rendered  on  behalf  of  the
indemnifying  party  in  connection  with  this  Agreement  or the  transactions
contemplated hereby.

                                       21
<PAGE>

Section  12.9   PUBLICITY. Except  as  contemplated  by this  Agreement  and the
Registration  Rights  Agreement  and except as required by  applicable  law, the
Company  agrees that it will issue a press release  describing  the  transaction
contemplated  by this  Agreement  within one business day of Closing,  and shall
file a Form 8-K with respect to the same within five business days of Closing.

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed by the undersigned, thereunto duly authorized, as of the date first set
forth above.

                                              PURCHASEPRO.COM, INC.

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

  [signature pages continued]

                                       22
<PAGE>

  Delivery Address:                                  Investor:

  Fax:                                           By:_________________________
                                                      Name:
                                                      Authorized Signatory

  Number of Units:

  Total Purchase Price:

                                       23
<PAGE>

                                   APPENDIX A

                           Company Wire Instructions

                                       24EXHIBIT 4.2

NEITHER  THIS WARRANT NOR THE SHARES  ISSUABLE  UPON  EXERCISE  HEREOF HAVE BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE  "SECURITIES  ACT")
OR ANY OTHER  APPLICABLE  STATE  SECURITIES  LAWS.  THIS  WARRANT  WAS ISSUED IN
RELIANCE UPON AN EXEMPTION FROM THE REGISTRATION  REQUIREMENTS OF THE SECURITIES
ACT AND SUCH OTHER SECURITIES LAWS. NEITHER THIS WARRANT NOR THE SHARES ISSUABLE
UPON EXERCISE HEREOF MAY BE SOLD, PLEDGED, TRANSFERRED,  ENCUMBERED OR OTHERWISE
DISPOSED OF EXCEPT  PURSUANT TO AN EFFECTIVE  REGISTRATION  STATEMENT  UNDER THE
SECURITIES ACT OR IN A TRANSACTION WHICH IS EXEMPT FROM  REGISTRATION  UNDER THE
PROVISIONS OF THE SECURITIES ACT OR ANY APPLICABLE  STATE LAWS. THIS WARRANT MAY
NOT BE EXERCISED BY OR ON BEHALF OF A UNITED  STATES  PERSON  UNLESS  REGISTERED
UNDER THE SECURITIES ACT OR AN EXEMPTION FROM SUCH REGISTRATION IS AVAILABLE.

                             STOCK PURCHASE WARRANT

                To Purchase __________ Shares of Common Stock of

                             PURCHASEPRO.COM, INC.

                  THIS CERTIFIES that, for value received,  ______________  (the
"Holder"),  is  entitled,  upon the  terms and  subject  to the  limitations  on
exercise and the conditions  hereinafter  set forth, at any time on or after the
date  hereof  (the  "Initial  Exercise  Date")  and on or prior to the  close of
business on February 12, 2006 (the  "Termination  Date") but not thereafter,  to
subscribe   for  and  purchase   from   PurchasePro.com,   Inc.,  a  corporation
incorporated in the State of Nevada (the "Company"), up to _________ shares (the
"Warrant Shares") of Common Stock, $0.001 par value, of the Company (the "Common
Stock").  The purchase price of one share of Common Stock (the "Exercise Price")
under this Warrant shall be $1.00.  The Exercise  Price and the number of shares
for which the Warrant is exercisable  shall be subject to adjustment as provided
herein.  In the event of any conflict  between the terms of this Warrant and the
Common Stock Purchase  Agreement dated as of February 13, 2002 pursuant to which
this Warrant has been issued (the "Purchase Agreement"),  the Purchase Agreement
shall  control.  Capitalized  terms used and not otherwise  defined herein shall
have the meanings set forth for such terms in the Purchase Agreement.

               1. TITLE TO WARRANT. Prior to the Termination Date and subject to
compliance  with  applicable  laws and the terms  hereof,  this  Warrant and all
rights hereunder are transferable,  in whole or in part, at the office or agency
of the Company by the holder  hereof in person or by duly  authorized  attorney,
upon surrender of this Warrant  together with the Assignment Form annexed hereto
properly endorsed.

                                       1
<PAGE>

               2. AUTHORIZATION OF SHARES. The Company covenants that all shares
of Common  Stock which may be issued upon the  exercise of the  purchase  rights
represented  by  this  Warrant  will,  upon  exercise  of  the  purchase  rights
represented by this Warrant, be duly authorized,  validly issued, fully paid and
nonassessable and free from all taxes, liens and charges in respect of the issue
thereof (other than taxes in respect of any transfer occurring contemporaneously
with such issue).

               3. EXERCISE OF WARRANT.

               (a)  Except as  provided  in  Section 4 herein,  exercise  of the
purchase rights  represented by this Warrant may be made at any time or times on
or after the  Initial  Exercise  Date,  and before the close of  business on the
Termination  Date by the  surrender  of this  Warrant and the Notice of Exercise
Form annexed hereto duly  executed,  at the office of the Company (or such other
office or agency of the Company as it may  designate by notice in writing to the
registered holder hereof at the address of such holder appearing on the books of
the  Company)  and upon  payment of the  Exercise  Price of the  shares  thereby
purchased by wire transfer or cashier's check drawn on a United States bank, the
holder of this Warrant shall be entitled to receive a certificate for the number
of  shares of Common  Stock so  purchased.  Certificates  for  shares  purchased
hereunder  shall be delivered to the holder hereof within three (3) Trading Days
after the date on which this Warrant  shall have been  exercised  as  aforesaid.
This Warrant  shall be deemed to have been  exercised  and such  certificate  or
certificates shall be deemed to have been issued, and Holder or any other person
so  designated  to be named  therein  shall be deemed to have become a holder of
record of such  shares for all  purposes,  as of the date the  Warrant  has been
exercised by payment to the Company of the Exercise Price and all taxes required
to be paid by Holder,  if any,  pursuant  to Section 5 prior to the  issuance of
such shares, have been paid.

               (b) If this  Warrant  shall  have  been  exercised  in part,  the
Company  shall,  at the time of  delivery  of the  certificate  or  certificates
representing  Warrant  Shares,  deliver to Holder a new Warrant  evidencing  the
rights of Holder to purchase the  unpurchased  shares of Common Stock called for
by this Warrant, which new Warrant shall in all other respects be identical with
this Warrant.

               (c) If there is no  registration  statement in effect which would
permit the free resale of the Warrant Shares by the Holder, at any time which is
ninety (90) days after the date of this Warrant, then this Warrant shall also be
exercisable  by means of a  "cashless  exercise"  in which the  holder  shall be
entitled to receive a certificate for the number of shares equal to the quotient
obtained by dividing [(A-B) (X)] by (A), where:

          (A) = the volume  weighted  average price per share of Common Stock on
          the  Trading  Day  preceding  the date of such  election on the Nasdaq
          Stock Market, or if the Common Stock is not traded on the Nasdaq Stock
          Market,  then the Principal  Market in terms of volume,  and converted
          into US Dollars;

          (B) = the Exercise Price of the Warrants; and

          (X) = the number of shares  issuable  upon exercise of the Warrants in
          accordance with the terms of this Warrant.

                                       2
<PAGE>

               4. NO FRACTIONAL  SHARES OR SCRIP. No fractional  shares or scrip
representing  fractional  shares  shall  be  issued  upon the  exercise  of this
Warrant.  As to any fraction of a share which Holder would otherwise be entitled
to purchase  upon such  exercise,  the Company  shall pay a cash  adjustment  in
respect of such final fraction in an amount equal to such fraction multiplied by
the Exercise Price.

               5. CHARGES,  TAXES AND  EXPENSES.  Issuance of  certificates  for
shares of Common Stock upon the  exercise of this Warrant  shall be made without
charge to the holder  hereof for any issue or transfer  tax or other  incidental
expense in respect of the issuance of such  certificate,  all of which taxes and
expenses shall be paid by the Company,  and such certificates shall be issued in
the  name of the  holder  of this  Warrant  or in such  name or  names as may be
directed by the holder of this  Warrant;  provided,  however,  that in the event
certificates  for  shares of Common  Stock are to be issued in a name other than
the name of the  holder of this  Warrant,  this  Warrant  when  surrendered  for
exercise  shall be  accompanied  by the  Assignment  Form  attached  hereto duly
executed  by the holder  hereof;  and the Company  may  require,  as a condition
thereto,  the payment of a sum  sufficient  to reimburse it for any transfer tax
incidental thereto.

               6. CLOSING OF BOOKS.  The Company will not close its  stockholder
books or records in any  manner  which  prevents  the  timely  exercise  of this
Warrant.

               7. TRANSFER, DIVISION AND COMBINATION.  (a) Subject to compliance
with any  applicable  securities  laws,  transfer of this Warrant and all rights
hereunder,  in whole or in part, shall be registered on the books of the Company
to be  maintained  for such  purpose,  upon  surrender  of this  Warrant  at the
principal  office of the Company,  together  with a written  assignment  of this
Warrant substantially in the form attached hereto duly executed by Holder or its
agent or attorney and funds  sufficient  to pay any transfer  taxes payable upon
the making of such transfer. Upon such surrender and, if required, such payment,
the Company  shall  execute and deliver a new Warrant or Warrants in the name of
the assignee or assignees and in the denomination or denominations  specified in
such  instrument  of  assignment,  and shall issue to the assignor a new Warrant
evidencing  the portion of this Warrant not so assigned,  and this Warrant shall
promptly be cancelled.  A Warrant,  if properly assigned,  may be exercised by a
new holder  for the  purchase  of shares of Common  Stock  without  having a new
Warrant issued.

               (b) This Warrant may be divided or combined  with other  Warrants
upon presentation hereof at the aforesaid office of the Company, together with a
written notice  specifying the names and denominations in which new Warrants are
to be issued,  signed by Holder or its agent or attorney.  Subject to compliance
with Section 7(a), as to any transfer  which may be involved in such division or
combination,  the Company shall execute and deliver a new Warrant or Warrants in
exchange  for the Warrant or  Warrants  to be divided or combined in  accordance
with such notice.

               (c) The  Company  shall  prepare,  issue and  deliver  at its own
expense  (other than  transfer  taxes) the new  Warrant or  Warrants  under this
Section 7.

                                       3
<PAGE>

               (d) The Company  agrees to  maintain,  at its  aforesaid  office,
books for the registration and the registration of transfer of the Warrants.

               8. NO RIGHTS AS SHAREHOLDER UNTIL EXERCISE. This Warrant does not
entitle the holder  hereof to any voting rights or other rights as a shareholder
of the Company prior to the exercise hereof.  Upon the surrender of this Warrant
and the payment of the aggregate Exercise Price, the Warrant Shares so purchased
shall be and be deemed to be issued to such  holder as the record  owner of such
shares as of the close of business on the later of the date of such surrender or
payment.

               9. LOSS, THEFT, DESTRUCTION OR MUTILATION OF WARRANT. The Company
covenants that upon receipt by the Company of evidence  reasonably  satisfactory
to it of the loss, theft,  destruction or mutilation of this Warrant certificate
or any stock  certificate  relating to the Warrant Shares,  and in case of loss,
theft or  destruction,  of indemnity or security  reasonably  satisfactory to it
(which  shall not  include  the  posting of any bond),  and upon  surrender  and
cancellation  of such Warrant or stock  certificate,  if mutilated,  the Company
will make and deliver a new Warrant or stock certificate of like tenor and dated
as of such cancellation, in lieu of such Warrant or stock certificate.

               10. SATURDAYS,  SUNDAYS,  HOLIDAYS, ETC. If the last or appointed
day for the  taking of any action or the  expiration  of any right  required  or
granted herein shall be a Saturday,  Sunday or a legal holiday, then such action
may be taken or such right may be  exercised  on the next  succeeding  day not a
Saturday, Sunday or legal holiday.

               11.  ADJUSTMENTS OF EXERCISE PRICE AND NUMBER OF WARRANT  SHARES;
STOCK  SPLITS,  ETC.  The number  and kind of  securities  purchasable  upon the
exercise of this Warrant and the Exercise  Price shall be subject to  adjustment
from  time to time  upon  the  happening  of any of the  following.  In case the
Company  shall  (i)  pay a  dividend  in  shares  of  Common  Stock  or  make  a
distribution  in shares of Common  Stock to  holders of its  outstanding  Common
Stock,  (ii)  subdivide  its  outstanding  shares of Common Stock into a greater
number of shares of Common Stock, (iii) combine its outstanding shares of Common
Stock into a smaller  number of shares of Common  Stock or (iv) issue any shares
of its  capital  stock in a  reclassification  of the Common  Stock  (including,
without limitation, any spin-off of any subsidiary),  then the number of Warrant
Shares purchasable upon exercise of this Warrant immediately prior thereto shall
be adjusted so that the holder of this Warrant  shall be entitled to receive the
kind and number of Warrant  Shares or other  securities  of the Company which he
would  have  owned or have  been  entitled  to  receive  had such  Warrant  been
exercised in advance  thereof.  Upon each such adjustment of the kind and number
of Warrant  Shares or other  securities  of the  Company  which are  purchasable
hereunder,  the holder of this Warrant shall  thereafter be entitled to purchase
the number of Warrant Shares or other securities  resulting from such adjustment
at an Exercise Price per Warrant Share or other security obtained by multiplying
the Exercise Price in effect  immediately prior to such adjustment by the number
of  Warrant  Shares  purchasable  pursuant  hereto  immediately  prior  to  such
adjustment and dividing by the number of Warrant  Shares or other  securities of
the Company resulting from such adjustment.  An adjustment made pursuant to this
paragraph shall become  effective  immediately  after the effective date of such
event retroactive to the record date, if any, for such event.

                                       4
<PAGE>

               12. REORGANIZATION,  RECLASSIFICATION,  MERGER,  CONSOLIDATION OR
DISPOSITION  OF  ASSETS.  In case the  Company  shall  reorganize  its  capital,
reclassify  its  capital  stock,  consolidate  or  merge  with or  into  another
corporation  (where the Company is not the surviving  corporation or where there
is a change in or distribution with respect to the Common Stock of the Company),
or sell, transfer or otherwise dispose of all or substantially all its property,
assets or business  to another  corporation  and,  pursuant to the terms of such
reorganization,   reclassification,  merger,  consolidation  or  disposition  of
assets, shares of common stock of the successor or acquiring corporation, or any
cash,  shares of stock or other securities or property of any nature  whatsoever
(including  warrants or other subscription or purchase rights) in addition to or
in lieu of  common  stock of the  successor  or  acquiring  corporation  ("Other
Property"),  are to be received by or distributed to the holders of Common Stock
of the Company,  then Holder shall have the right  thereafter  to receive,  upon
exercise of this Warrant,  the number of shares of common stock of the successor
or acquiring corporation or of the Company, if it is the surviving  corporation,
and  Other  Property  receivable  upon or as a  result  of such  reorganization,
reclassification,  merger, consolidation or disposition of assets by a holder of
the  number of shares of Common  Stock for which  this  Warrant  is  exercisable
immediately   prior  to  such  event.  In  case  of  any  such   reorganization,
reclassification,  merger, consolidation or disposition of assets, the successor
or acquiring  corporation (if other than the Company) shall expressly assume the
due and  punctual  observance  and  performance  of each and every  covenant and
condition of this  Warrant to be  performed  and observed by the Company and all
the obligations and liabilities hereunder,  subject to such modifications as may
be deemed appropriate (as determined in good faith by resolution of the Board of
Directors  of the  Company)  in order to provide  for  adjustments  of shares of
Common  Stock for which this  Warrant is  exercisable  which  shall be as nearly
equivalent as  practicable to the  adjustments  provided for in this Section 12.
For purposes of this  Section 12,  "common  stock of the  successor or acquiring
corporation"  shall include stock of such  corporation of any class which is not
preferred  as to  dividends  or  assets  over any  other  class of stock of such
corporation  and which is not subject to  redemption  and shall also include any
evidences  of  indebtedness,  shares  of  stock or other  securities  which  are
convertible into or exchangeable for any such stock,  either immediately or upon
the arrival of a specified  date or the  happening of a specified  event and any
warrants  or other  rights to  subscribe  for or purchase  any such  stock.  The
foregoing  provisions  of this Section 12 shall  similarly  apply to  successive
reorganizations,  reclassifications,  mergers,  consolidations or disposition of
assets.

               13. VOLUNTARY  ADJUSTMENT BY THE COMPANY.  The Company may at any
time during the term of this Warrant  reduce the then current  Exercise Price to
any  amount  and for any  period  of time  deemed  appropriate  by the  Board of
Directors of the Company.

                                       5
<PAGE>

               14. NOTICE OF  ADJUSTMENT.  Whenever the number of Warrant Shares
or number or kind of securities or other property  purchasable upon the exercise
of this  Warrant or the  Exercise  Price is adjusted,  as herein  provided,  the
Company shall  promptly mail by registered  or certified  mail,  return  receipt
requested,  to  the  holder  of  this  Warrant  notice  of  such  adjustment  or
adjustments  setting forth the number of Warrant Shares (and other securities or
property)  purchasable  upon the exercise of this Warrant and the Exercise Price
of such Warrant Shares (and other securities or property) after such adjustment,
setting  forth a brief  statement of the facts  requiring  such  adjustment  and
setting forth the computation by which such adjustment was made. Such notice, in
the absence of manifest error,  shall be conclusive  evidence of the correctness
of such adjustment.

               15. NOTICE OF CORPORATE ACTION. If at any time:

               (a) the Company  shall take a record of the holders of its Common
Stock  for the  purpose  of  entitling  them to  receive  a  dividend  or  other
distribution,  or any right to subscribe  for or purchase  any  evidences of its
indebtedness,  any  shares  of stock of any  class or any  other  securities  or
property, or to receive any other right, or

               (b) there shall be any capital reorganization of the Company, any
reclassification  or recapitalization of the capital stock of the Company or any
consolidation  or merger of the  Company  with,  or any sale,  transfer or other
disposition of all or substantially all the property,  assets or business of the
Company to, another corporation or,

               (c)  there  shall  be a  voluntary  or  involuntary  dissolution,
liquidation or winding up of the Company;

then, in any one or more of such cases,  the Company shall give to Holder (i) at
least 20 days'  (or as many days as is  reasonably  practicable)  prior  written
notice of the date on which a record date shall be selected  for such  dividend,
distribution or right or for  determining  rights to vote in respect of any such
reorganization,   reclassification,   merger,  consolidation,   sale,  transfer,
disposition,  liquidation  or  winding  up,  and  (ii) in the  case of any  such
reorganization,   reclassification,   merger,  consolidation,   sale,  transfer,
disposition,  dissolution,  liquidation  or winding  up, at least 20 days' prior
written  notice of the date  when the same  shall  take  place.  Such  notice in
accordance  with the  foregoing  clause also shall specify (i) the date on which
any such record is to be taken for the purpose of such dividend, distribution or
right,  the date on which the  holders of Common  Stock shall be entitled to any
such dividend,  distribution or right, and the amount and character thereof, and
(ii) the  date on  which  any  such  reorganization,  reclassification,  merger,
consolidation, sale, transfer, disposition,  dissolution, liquidation or winding
up is to take place and the time,  if any such time is to be fixed,  as of which
the holders of Common Stock shall be entitled to exchange their shares of Common
Stock for  securities  or other  property  deliverable  upon  such  disposition,
dissolution,  liquidation  or winding  up.  Each such  written  notice  shall be
sufficiently  given if  addressed  to  Holder  at the  last  address  of  Holder
appearing on the books of the Company and delivered in  accordance  with Section
17(c).

                                       6
<PAGE>

               16.  AUTHORIZED  SHARES.  The Company  covenants  that during the
period the Warrant is  outstanding,  it will  reserve  from its  authorized  and
unissued Common Stock a sufficient  number of shares to provide for the issuance
of the  Warrant  Shares  upon the  exercise of any  purchase  rights  under this
Warrant.  The Company further  covenants that its issuance of this Warrant shall
constitute  full  authority  to its  officers  who are charged  with the duty of
executing stock certificates to execute and issue the necessary certificates for
the Warrant Shares upon the exercise of the purchase  rights under this Warrant.
The Company will take all such  reasonable  action as may be necessary to assure
that such Warrant Shares may be issued as provided  herein without  violation of
any applicable law or regulation, or of any requirements of the Principal Market
upon which the Common Stock may be listed.

               The  Company  shall  not  by  any  action,   including,   without
limitation,   amending   its   articles   of   incorporation   or  through   any
reorganization, transfer of assets, consolidation, merger, dissolution, issue or
sale of securities  or any other  voluntary  action,  avoid or seek to avoid the
observance or performance  of any of the terms of this Warrant,  but will at all
times in good  faith  assist in the  carrying  out of all such  terms and in the
taking of all such  actions as may be necessary  or  appropriate  to protect the
rights of Holder  against  impairment.  Without  limiting the  generality of the
foregoing,  the  Company  will (a) not  increase  the par value of any shares of
Common  Stock  receivable  upon the  exercise of this  Warrant  above the amount
payable  therefor upon such exercise  immediately  prior to such increase in par
value, (b) take all such action as may be necessary or appropriate in order that
the Company may validly and legally issue fully paid and nonassessable shares of
Common  Stock  upon  the  exercise  of this  Warrant,  and (c) use  commercially
reasonable  efforts to obtain all such  authorizations,  exemptions  or consents
from any public regulatory body having jurisdiction  thereof as may be necessary
to enable the Company to perform its obligations under this Warrant.

               Before  taking any action which would result in an  adjustment in
the number of shares of Common Stock for which this Warrant is exercisable or in
the  Exercise  Price,  the  Company  shall  obtain  all such  authorizations  or
exemptions  thereof,  or consents  thereto,  as may be necessary from any public
regulatory body or bodies having jurisdiction thereof.

               17. MISCELLANEOUS.

               (a)  Jurisdiction.   This  Warrant  shall  be  binding  upon  any
successors or assigns of the Company.  This Warrant shall  constitute a contract
under the laws of Nevada,  without regard to its conflict of law,  principles or
rules,  and be subject  to  arbitration  pursuant  to the terms set forth in the
Purchase Agreement.

               (b) Restrictions. The holder hereof acknowledges that the Warrant
Shares acquired upon the exercise of this Warrant, if not registered,  will have
restrictions upon resale imposed by state and federal securities laws.

               (c) Notices.  Any notice,  request or other document  required or
permitted to be given or delivered to the holder  hereof by the Company shall be
delivered in accordance with the notice provisions of the Purchase Agreement.

                                       7
<PAGE>

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

               (e)  Successors  and Assigns.  Subject to  applicable  securities
laws, this Warrant and the rights and obligations  evidenced  hereby shall inure
to the  benefit of and be binding  upon the  successors  of the  Company and the
successors and permitted  assigns of Holder.  The provisions of this Warrant are
intended to be for the benefit of all Holders  from time to time of this Warrant
and shall be enforceable by any such Holder or holder of Warrant Shares.

               (f)  Amendment.  This  Warrant  may be modified or amended or the
provisions hereof waived with the written consent of the Company and the Holder.

               (g)  Severability.  Wherever  possible,  each  provision  of this
Warrant shall be  interpreted  in such manner as to be effective and valid under
applicable  law, but if any  provision of this Warrant shall be prohibited by or
invalid under  applicable law, such provision shall be ineffective to the extent
of such  prohibition or invalidity,  without  invalidating the remainder of such
provisions or the remaining provisions of this Warrant.

               (h)  Headings.  The  headings  used in this  Warrant  are for the
convenience of reference  only and shall not, for any purpose,  be deemed a part
of this Warrant.

               IN WITNESS WHEREOF, the Company  has  caused this  Warrant to  be
executed by its officer thereunto duly authorized.

Dated: February 13, 2002
                                            PURCHASEPRO.COM, INC.

                                            By:
                                                  -------------------------

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

                                       8
<PAGE>

oc-219279
                               NOTICE OF EXERCISE

To:      [________________________]

               (1)______The  undersigned  hereby  elects  to  purchase  ________
shares  of  Common  Stock  (the  "Common  Stock"),  of  [______________________]
pursuant to the terms of the attached  Warrant,  and tenders herewith payment of
the exercise price in full, together with all applicable transfer taxes, if any.

               (2)______Please issue a certificate or certificates  representing
said shares of Common Stock in the name of the undersigned or in such other name
as is specified below:

               ----------------------------------------
               (Name)

               ----------------------------------------
               (Address)
               ----------------------------------------

Dated:

                                           ------------------------------
                                                    Signature

                                       9
<PAGE>

                                 ASSIGNMENT FORM

                    (To assign the foregoing warrant, execute
                   this form and supply required information.
                                  Do not use this form to exercise the warrant.)

               FOR  VALUE  RECEIVED,   the  foregoing  Warrant  and  all  rights
evidenced thereby are hereby assigned to

_______________________________________________ whose address is

___________________________________________________________________.

                                    Dated:  ______________, _______

                 Holder's Signature:    _____________________________

                 Holder's Address:      _____________________________

Signature Guaranteed:  ___________________________________________

NOTE: The signature to this  Assignment Form must correspond with the name as it
appears on the face of the Warrant,  without  alteration or  enlargement  or any
change whatsoever,  and must be guaranteed by a bank or trust company.  Officers
of  corporations  and  those  acting  in an  fiduciary  or other  representative
capacity  should  file  proper  evidence of  authority  to assign the  foregoing
Warrant.

                                       10

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