Document:

<PAGE>

                                                                    EXHIBIT 4.3

                                   EXHIBIT A

                        FORM OF EQUITY PURCHASE AGREEMENT

THE SECURITY REPRESENTED HEREBY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT
OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITY HAS BEEN
ACQUIRED FOR INVESTMENT AND MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR
ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS, OR
UNLESS AN EXEMPTION FROM SUCH REGISTRATION IS AVAILABLE AND REGISTRATION IS
THEREFORE NOT REQUIRED UNDER SAID ACT OR APPLICABLE STATE SECURITIES LAWS. ANY
TRANSFEREE OF THIS EQUITY PURCHASE AGREEMENT SHOULD CAREFULLY REVIEW THE TERMS
OF THIS EQUITY PURCHASE AGREEMENT, INCLUDING SECTION 2(E)(VI) HEREOF. THE
AVAILABLE AMOUNT UNDER THIS EQUITY PURCHASE AGREEMENT MAY BE LESS THAN THE
AMOUNTS SET FORTH ON THE FACE HEREOF PURSUANT TO SECTION 2(E)(VI) OF THIS EQUITY
PURCHASE AGREEMENT.

                            EQUITY PURCHASE AGREEMENT

ADAM.COM, INC.                                  EQUITY PURCHASE AGREEMENT NO. __
[ISSUANCE DATE]                                      AVAILABLE AMOUNT $6,000,000

         ADAM.COM, INC., a Georgia corporation (the "COMPANY"), hereby grants to
FUSION CAPITAL FUND II, LLC or its permitted assigns ("HOLDER") purchase rights
with respect to the aggregate Available Amount (as defined below) of Six Million
Dollars ($6,000,000) in accordance with the terms hereof.

         1. PAYMENTS. The Holder agrees to make payments to the Company as
described in Section 2(b) hereof. All payments made under this Equity Purchase
Agreement shall be made in lawful money of the United States of America by check
or wire transfer of immediately available funds to such account as the Company
may from time to time designate by written notice in accordance with the
provisions of this Equity Purchase Agreement. Whenever any amount expressed to
be due by the terms of this Equity Purchase Agreement is due on any day which is
not a Trading Day (as defined below), the same shall instead be due on the next
succeeding day which is a Trading Day. For purposes of this Equity Purchase
Agreement, "TRADING DAY" shall mean any day on which the Principal Market (as
defined below) is open for customary trading. Capitalized terms used herein, and
not otherwise defined herein, shall have the meaning ascribed thereto in the
Master Facility Agreement, dated ________, 2000, pursuant to which this Equity
Purchase Agreement was originally entered into (as amended, restated,
supplemented or otherwise modified from time to time, the "MASTER FACILITY
AGREEMENT"). This Equity Purchase Agreement is entered into by the Company and
the Holder on the date hereof (the "ISSUANCE DATE") pursuant to the Master
Facility Agreement.

                                       1
<PAGE>

                                       2
<PAGE>

         2. PURCHASE OF AVAILABLE AMOUNT. The Holder shall purchase shares of
the Company's common stock, par value $___ per share (the "COMMON STOCK"), on
the terms and conditions set forth in this Section up to the Available Amount.

                           (a) CERTAIN DEFINED TERMS. For purposes of this
                  Equity Purchase Agreement, the following terms shall have the
                  following meanings:

                           (i) "AVAILABLE AMOUNT" means initially $6,000,000 in
                  the aggregate which amount shall be reduced by the Purchase
                  Amount as the Holder purchases shares of Common Stock pursuant
                  to Section 2 hereof.

                           (ii) "CLOSING BID PRICE" means, for any security as
                  of any date, the last closing bid price for such security on
                  the Principal Market as reported by Bloomberg Financial
                  Markets ("BLOOMBERG"), or, if the Principal Market is not the
                  principal securities exchange or trading market for such
                  security, the last closing bid price of such security on the
                  principal securities exchange or trading market where such
                  security is listed or traded as reported by Bloomberg.

                           (iii) "CLOSING SALE PRICE" means, for any security as
                  of any date, the last closing trade price for such security on
                  the Principal Market as reported by Bloomberg, or, if the
                  Principal Market is not the principal securities exchange or
                  trading market for such security, the last closing trade price
                  of such security on the principal securities exchange or
                  trading market where such security is listed or traded as
                  reported by Bloomberg.

                           (iv) "FIXED PURCHASE PRICE" means $16.50
                  appropriately adjusted for any reorganization,
                  recapitalization, non-cash dividend, stock split or other
                  similar transaction.

                           (v) "MANDATORY PURCHASE RIGHTS" means the mandatory
                  purchase rights of the Company pursuant to Section 2(d)(iii).

                           (vi) "MATURITY DATE" means _____________, [INSERT
                  DATE THAT IS SIX MONTHS FROM THE CLOSING DATE]WHICH SUCH DATE
                  MAY BE EXTENDED BY UP TO AN ADDITIONAL SIX MONTHS BY THE
                  COMPANY, IN ITS SOLE DISCRETION, BY WRITTEN NOTICE TO THE
                  HOLDER.

                           (vii) "MONTHLY BASE AMOUNT" means One Million Dollars
                  ($1,000,000) per Monthly Period.

                           (viii) "MONTHLY PURCHASE AMOUNT" means a portion of
                  the Available Amount equal to the Monthly Base Amount for such
                  Monthly Period plus the Monthly Base Amount for any prior
                  Monthly Periods which has not been previously used to purchase
                  Common Stock pursuant to Section 2 hereof; PROVIDED, HOWEVER,

                                       3
<PAGE>

                  that to the extent that the Company exercises its Mandatory
                  Purchase Rights, the Monthly Purchase Amount for any remaining
                  Monthly Periods shall be reduced by any amount subject to the
                  Mandatory Purchase Rights in reverse chronological order
                  (I.E., the Monthly Purchase Amount for the last remaining
                  Monthly Period shall be reduced first); PROVIDED FURTHER, on
                  or after the _____________, [INSERT DATE THAT IS SIX MONTHS
                  FROM THE CLOSING DATE], the Monthly Purchase Amount shall
                  thereafter be the entire remaining Available Amount.

                           (ix) "MONTHLY PERIOD" means each of the following
periods of time:

                          Issuance Date to __________;
                           ___________ to __________;
                           ___________ to __________;
                           ___________ to __________;
                           ___________ to __________;

                         and ___________ to __________;

                  [SIX PERIODS EACH HAVING APPROXIMATELY 30 CALENDAR DAYS.
                  SPECIFIC DATES TO BE ENTERED AT CLOSING.]

                           (x) "PERSON" means an individual or entity including
                  any a limited liability company, a partnership, a joint
                  venture, a corporation, a trust, an unincorporated
                  organization and a government or any department or agency
                  thereof.

                           (xi) "PRINCIPAL MARKET" means The Nasdaq National
                  Market.

                           (xii) "PURCHASE AMOUNT" means the portion of the
                  Available Amount submitted in a Purchase Notice to be used to
                  purchase Common Stock pursuant to Section 2 hereof.

                           (xiii) "PURCHASE DATE" means the actual date that the
                  Holder submits a Purchase Notice to the Company to purchase
                  Common Stock hereunder so long as the Holder shall transmit by
                  facsimile (or otherwise deliver) to the Company on or prior to
                  11:59 p.m., Central Time on such date.

                           (xiv) "PURCHASE PRICE" means, as of any Purchase Date
                  or other date of determination, the lower of the (A) Fixed
                  Purchase Price and the (B) Variable Purchase Price, each in
                  effect as of such date.

                           (xv) "SALE PRICE" means, for any security as of any
                  date, the trade price for such security on the Principal
                  Market as reported by Bloomberg, or, if the Principal Market
                  is not the principal securities exchange or trading market for
                  such security, the trade price of such security on the
                  principal securities exchange or trading market where such
                  security is listed or traded as reported by Bloomberg.

                                       4
<PAGE>

                           (xvi) "VARIABLE PURCHASE PRICE" means, as of any
                  Purchase Date or other date of determination, the lower of:
                  (A) the lowest Sale Price of the Common Stock on the Purchase
                  Date or such other date of determination and (B) the
                  arithmetic average of any two (2) Closing Bid Prices for the
                  Common Stock, selected by the Holder, during the ten (10)
                  consecutive Trading Days ending on the Trading Day immediately
                  preceding such Purchase Date or other date of determination
                  (to be appropriately adjusted for any reorganization,
                  recapitalization, non-cash dividend, stock split or other
                  similar transaction occurring during such ten (10) Trading
                  Days).

                  (b) HOLDER'S PURCHASE RIGHTS AND OBLIGATIONS. Subject to the
         provisions of Sections 2(d) and 7 below, during each Monthly Period,
         the Holder shall have the right to purchase shares of Common Stock up
         to the Monthly Purchase Amount for such Monthly Period in accordance
         with Section 2(e), at the Purchase Rate (as defined below). Subject to
         the provisions of Sections 2(d) and 7 below, at any time on or after
         the Maturity Date, the Holder shall have the right to purchase shares
         of Common Stock up to the entire remaining Available Amount in
         accordance with Section 2(e), at the Purchase Rate. Within three (3)
         Trading Days of receipt of Purchase Shares, the Holder shall pay to the
         Company an amount equal to the Purchase Amount with respect to such
         Purchase Shares as full payment for the Purchase Shares so received.
         The Company shall not issue any fraction of a share of Common Stock
         upon any purchase. All shares of Common Stock (including fractions
         thereof) issuable upon a purchase under this Equity Purchase Agreement
         shall be aggregated for purposes of determining whether the purchase
         would result in the issuance of a fraction of a share of Common Stock.
         If, after the aforementioned aggregation, the issuance would result in
         the issuance of a fraction of a share of Common Stock, the Company
         shall round such fraction of a share of Common Stock up or down to the
         nearest whole share.

                  (c) PURCHASE RATE. The number of shares of Common Stock
         issuable upon purchase of a Purchase Amount of this Equity Purchase
         Agreement pursuant to Section 2(b) shall be determined according to the
         following formula (the "PURCHASE RATE"):

                                 PURCHASE AMOUNT

                                 Purchase Price

                  (d)      LIMITATIONS ON PURCHASE.

                           (i) LIMITATION ON BENEFICIAL OWNERSHIP. The Company
                  shall not effect any purchase under this Equity Purchase
                  Agreement and the Holder shall not have the right to purchase
                  shares of Common Stock under this Equity Purchase Agreement
                  pursuant to Section 2(b) to the extent that after giving
                  effect to such purchase such Person (together with such
                  Person's affiliates) would beneficially own in excess of 4.99%
                  of the outstanding shares of the Common Stock following such
                  purchase. For purposes of the foregoing sentence, the number
                  of shares of Common Stock beneficially owned by a Person and
                  its affiliates or acquired by a Person and its affiliates, as
                  the case may be, shall include the number of shares of Common
                  Stock issuable upon a purchase under this Equity Purchase
                  Agreement with respect to

                                       5
<PAGE>

                  which the determination is being made, but shall exclude
                  the number of shares of Common Stock which would be
                  issuable upon (i) a purchase of the remaining Available
                  Amount which has not been submitted for purchase, and (ii)
                  exercise or conversion of the unexercised or unconverted
                  portion of any other securities of the Company (including,
                  without limitation, any warrants) subject to a limitation
                  on conversion or exercise analogous to the limitation
                  contained herein beneficially owned by such Person and its
                  affiliates. For purposes of this Section, in determining
                  the number of outstanding shares of Common Stock the Holder
                  may rely on the number of outstanding shares of Common
                  Stock as reflected in (1) the Company's most recent Form
                  10-Q or Form 10-K, as the case may be, (2) a more recent
                  public announcement by the Company or (3) any other written
                  communication by the Company or its transfer agent setting
                  forth the number of shares of Common Stock outstanding.
                  Upon the reasonable written or oral request of the Holder,
                  the Company shall promptly confirm orally and in writing to
                  the Holder the number of shares Common Stock then
                  outstanding. In any case, the number of outstanding shares
                  of Common Stock shall be determined after giving effect to
                  any purchases under this Equity Purchase Agreement by the
                  Holder since the date as of which such number of
                  outstanding shares of Common Stock was reported. Except as
                  otherwise set forth herein, for purposes of this Section
                  2(d)(i), beneficial ownership shall be determined in
                  accordance with Section 13(d) of the Securities Exchange
                  Act of 1934, as amended.

                           (ii) COMPANY'S RIGHT TO BLOCK PURCHASES. The right of
                  the Holder to purchase shares of Common Stock under this
                  Equity Purchase Agreement pursuant to this Section 2 shall be
                  limited as set forth below. If on any Trading Day the Closing
                  Sale Price of the Common Stock is below the Fixed Purchase
                  Price, the Company shall have three (3) Trading Days to give
                  written notice (a "PURCHASE SUSPENSION NOTICE") to the Holder
                  suspending any and all purchases. The Purchase Suspension
                  Notice shall be effective only for purchases which have a
                  Purchase Date later than three (3) Trading Days after receipt
                  of the Purchase Suspension Notice by the Holder. Any purchases
                  submitted by the Holder which have a Purchase Date not later
                  than three (3) Trading Days after receipt by the Holder of the
                  Company's Purchase Suspension Notice must be honored by the
                  Company as otherwise provided herein. Such purchase suspension
                  shall continue in effect until the earlier of: (A) revocation
                  in writing by the Company, at its sole discretion; or (B) such
                  time as the Sale Price of the Common Stock is above the Fixed
                  Purchase Price.

                           (iii) COMPANY'S MANDATORY PURCHASE RIGHTS. If (A) the
                  Closing Sale Price of the Common Stock on each of the five (5)
                  Trading Days immediately prior to the first Trading Day of any
                  Monthly Period is at least twenty-five percent (25%) of the
                  Fixed Purchase Price and (B) no Event of Default has occurred,
                  then the Company shall have the right, by delivering written
                  notice (a "MANDATORY PURCHASE NOTICE") to the Holder that, so
                  long as no Event of Default has occurred and so long as the
                  Sale Price of the Common Stock remains at least twenty-five
                  percent (25%) of the Fixed Purchase Price, on or prior to the
                  first Trading Day of such Monthly Period,

                                       6
<PAGE>

                  to require that the Holder purchase at the Purchase Rate
                  such Available Amount as specified by the Company in the
                  Mandatory Purchase Notice during the next two Monthly
                  Periods on such Trading Days during such Monthly Periods as
                  the Holder shall determine. The Company acknowledges and
                  agrees that the Company's mandatory purchase rights
                  represent an agreement by the Holder to extend financial
                  accommodations to the Company. Accordingly, it shall be a
                  condition to the exercise of the Company's mandatory
                  purchase rights that no Event of Default shall have
                  occurred, and the Company's delivery of a Mandatory
                  Purchase Notice shall be deemed a representation to the
                  Holder that no Event of Default has occurred. The Company
                  may revoke a Mandatory Purchase Notice, in whole or in
                  part, by delivering written notice thereof to the Holder (a
                  "REVOCATION OF MANDATORY PURCHASE NOTICE"). A Revocation of
                  Mandatory Purchase Notice shall be effective only as to
                  purchases which are in excess of the Monthly Purchase
                  Amount and which have a Purchase Date later than three (3)
                  Trading Days after receipt by the Holder of the Revocation
                  of Mandatory Purchase Notice. Any purchases submitted by
                  the Holder which have a Purchase Date not later than three
                  (3) Trading Days after receipt by the Holder of the
                  Revocation of Mandatory Purchase Notice must be honored by
                  the Company as otherwise provided herein.

                  (e) MECHANICS OF PURCHASING. The purchase of shares of Common
         Stock under this Equity Purchase Agreement shall be conducted in the
         following manner:

                           (i) HOLDER'S DELIVERY REQUIREMENTS. To purchase
                  shares of Common Stock under this Equity Purchase Agreement on
                  any date, the Holder hereof shall transmit by facsimile (or
                  otherwise deliver) on or prior to 11:59 p.m., Central Time on
                  such date, a copy of a fully executed notice of purchase in
                  the form attached hereto as Exhibit I (the "PURCHASE NOTICE")
                  to the Company.

                           (ii) COMPANY'S RESPONSE. Upon receipt by the Company
                  of a copy of a Purchase Notice, the Company shall as soon as
                  practicable, but in no event later than one (1) Trading Day
                  after receipt of such Purchase Notice, send via facsimile (or
                  otherwise deliver), a confirmation of receipt of such Purchase
                  Notice in the form attached hereto as Exhibit II (a "COMPANY
                  CONFIRMATION OF PURCHASE NOTICE") to (1) the Holder and (2)
                  along with a copy of the Purchase Notice, the Company's
                  designated transfer agent (the "TRANSFER AGENT"), which
                  confirmation shall constitute an irrevocable instruction to
                  the Transfer Agent to process such Purchase Notice in
                  accordance with the terms herein. Upon receipt by the Transfer
                  Agent of a copy of the executed Purchase Notice and a copy of
                  the applicable Company Confirmation of Purchase Notice, the
                  Transfer Agent shall, on the first (1st) Trading Day following
                  the date of receipt of the Company Confirmation of Purchase
                  Notice, (A) use its best efforts to issue and surrender to a
                  common carrier for overnight delivery to the address as
                  specified in the Purchase Notice, a certificate, registered in
                  the name of the Holder or its designee, for the number of
                  shares of Common Stock to which the Holder shall be entitled
                  or (B) provided the Transfer Agent is participating in The
                  Depository Trust Company ("DTC") Fast Automated Securities

                                      7
<PAGE>

                  Transfer Program, upon the request of the Holder, credit such
                  aggregate number of shares of Common Stock to which the Holder
                  shall be entitled to the Holder's or its designee's balance
                  account with DTC through its Deposit Withdrawal Agent
                  Commission system.

                           (iii) DISPUTE RESOLUTION. In the case of a dispute as
                  to the determination of the Purchase Price or the arithmetic
                  calculation of the Purchase Rate, the Company shall instruct
                  the Transfer Agent to issue to the Holder the number of shares
                  of Common Stock that is not disputed and shall submit the
                  disputed determinations or arithmetic calculations to the
                  Holder via facsimile within one (1) Trading Day of receipt of
                  the Holder's Purchase Notice. If the Holder and the Company
                  are unable to agree upon the determination of the Purchase
                  Price or arithmetic calculation of the Purchase Rate within
                  one (1) Trading Day of such disputed determination or
                  arithmetic calculation being submitted to the Holder, then the
                  Company shall within one (1) Trading Day submit via facsimile
                  (A) the disputed determination of the Purchase Price to an
                  independent, reputable investment bank selected by the Company
                  and approved by the Holder or (B) the disputed arithmetic
                  calculation of the Purchase Rate to the Company's independent,
                  outside accountant. The Company shall cause the investment
                  bank or the accountant, as the case may be, to perform the
                  determinations or calculations and notify the Company and the
                  Holder of the results no later than the fifth (5th) day after
                  the date it receives the disputed determinations or
                  calculations. Such investment bank's or accountant's
                  determination or calculation, as the case may be, shall be
                  binding upon all parties absent manifest error.

                           (iv) RECORD HOLDER. The person or persons entitled to
                  receive the shares of Common Stock issuable upon a purchase of
                  this Equity Purchase Agreement shall be treated for all
                  purposes as the record holder or holders of such shares of
                  Common Stock on the Purchase Date.

                           (v) COMPANY'S FAILURE TO TIMELY DELIVER SHARES. If
                  within five (5) Trading Days after the Company's receipt of a
                  copy of the Purchase Notice (subject to extension in
                  accordance with Section 2(e)(iii) for a good faith dispute
                  made in accordance with the terms of Section 2(e)(iii)) (the
                  "SHARE DELIVERY PERIOD") the Transfer Agent shall fail to
                  issue a certificate to the Holder or credit the Holder's
                  balance account with DTC for the number of shares of Common
                  Stock to which such Holder is entitled upon such Holder's
                  purchase of the Available Amount (a "PURCHASE FAILURE"), in
                  addition to all other available remedies which such Holder may
                  pursue hereunder and under the Master Facility Agreement
                  (including indemnification obligations of the Company
                  therein), the Company shall pay additional damages to the
                  Holder on each day after such fifth (5th) Trading Day such
                  purchase is not timely effected in an amount equal to 1.0% of
                  the product of (I) the number of shares of Common Stock not
                  issued to the Holder on a timely basis pursuant to Section
                  2(e)(ii) and to which such Holder is entitled and (II) the
                  Closing Sale Price of the Common Stock on the last possible
                  date which the Company could have issued such Common Stock to
                  the Holder without violating Section 2(e)(ii).

                                       8
<PAGE>

                           (vi) BOOK-ENTRY. Notwithstanding anything to the
                  contrary set forth herein, upon purchase of any portion of the
                  Available Amount in accordance with the terms hereof, the
                  Holder shall not be required to physically surrender this
                  Equity Purchase Agreement to the Company. The Holder and the
                  Company shall each maintain records showing the remaining
                  Available Amount and the dates and Purchase Amounts for each
                  purchase or shall use such other method, reasonably
                  satisfactory to the Holder and the Company, so as not to
                  require physical surrender of this Equity Purchase Agreement
                  upon each purchase. The Holder and any assignee, by acceptance
                  of this Equity Purchase Agreement, acknowledge and agree that,
                  by reason of the provisions of this paragraph, following
                  purchase of any portion of the Available Amount, the remaining
                  Available Amount under this Equity Purchase Agreement shall be
                  less than the aggregate Available Amount set forth on the face
                  hereof.

                  (f) TAXES. The Company shall pay any and all taxes that may be
         payable with respect to the issuance and delivery of Common Stock upon
         the purchase of this Equity Purchase Agreement.

         3. COMPANY'S TERMINATION RIGHTS. Subject to the terms and conditions of
this Section, at any time after the Issuance Date, and so long as the Company
has provided appropriate notice as described below, if during any ten (10)
consecutive Trading Days the Closing Sale Price of the Common Stock is below the
Fixed Purchase Price for each of such ten (10) Trading Days, the Company shall
have three (3) Trading Days to give written notice (a "COMPANY TERMINATION
NOTICE") to the Holder electing to terminate this Agreement without any
liability or payment to the Holder (a "COMPANY TERMINATION"). Any purchases
submitted by the Holder which have a Purchase Date which is not later than three
(3) Trading Days after receipt by the Holder of the Company Termination Notice,
must be honored by the Company as otherwise provided herein. No such termination
of this Agreement shall effect the Company's or the Holder's obligations under
this Agreement with respect to pending purchases and the Company and the Holder
shall complete their respective obligations with respect to any pending
purchases under this Agreement.

         4.       DEFAULTS AND REMEDIES.

                  (a) EVENTS OF DEFAULT. An "EVENT OF DEFAULT" shall be deemed
         to have occurred at such time as any of the following events:

                           (i) while any Registration Statement is required to
                  be maintained effective pursuant to the terms of the
                  Registration Rights Agreement entered into by the Company and
                  the Holder as of the Issuance Date (the "REGISTRATION RIGHTS
                  AGREEMENT"), the effectiveness of such Registration Statement
                  lapses for any reason (including, without limitation, the
                  issuance of a stop order) or is unavailable to the Holder for
                  resale of all of the Registrable Securities (as defined in the
                  Registration Rights Agreement) in accordance with the terms of
                  the Registration Rights Agreement, and such lapse or
                  unavailability continues for a period of ten (10)

                                       9
<PAGE>

                  consecutive Trading Days or for more than an aggregate of
                  thirty (30) Trading Days in any 365-day period;

                           (ii) the suspension from trading or failure of the
                  Common Stock to be listed on the Principal Market for a period
                  of ten (10) consecutive Trading Days or for more than an
                  aggregate of thirty (30) Trading Days in any 365-day period;

                           (iii) the failure of the Company or the Common Stock
                  to fully meet the requirements for continued listing on the
                  Principal Market for a period of ten (10) consecutive Trading
                  Days or for more than an aggregate of thirty (30) Trading Days
                  in any 365-day period;

                           (iv) the Company's or the Transfer Agent's notice to
                  the Holder, including by way of public announcement, at any
                  time, of its intention not to comply with a proper request for
                  purchase of the Available Amount under this Equity Purchase
                  Agreement into shares of Common Stock that is tendered in
                  accordance with the provisions of this Equity Purchase
                  Agreement, the failure of the Company to deliver a Company
                  Confirmation of Purchase Notice to the Holder and to the
                  Transfer Agent in accordance with the provisions of this
                  Equity Purchase Agreement within two (2) Trading Days after
                  the receipt by the Company of a Purchase Notice (subject to
                  extension in accordance with Section 2(e)(iii) for a good
                  faith dispute made in accordance with the terms of Section
                  2(e)(iii)); or the failure of the Transfer Agent to comply
                  with a Company Confirmation of Purchase Notice tendered in
                  accordance with the provisions of this Equity Purchase
                  Agreement within five (5) Trading Days after the receipt by
                  the Company of the Purchase Notice;

                           (v) if at any time after the Issuance Date, the
                  Exchange Cap (as defined in Section 7) is reached;

                           (vi) the Company breaches any representation,
                  warranty, covenant or other term or condition of the Master
                  Facility Agreement, the Registration Rights Agreement, this
                  Equity Purchase Agreement or any other agreement, document,
                  certificate or other instrument delivered in connection with
                  the transactions contemplated thereby and hereby if such
                  breach could have a Material Adverse Effect (as defined in the
                  Master Facility Agreement) and except, in the case of a breach
                  of a covenant which is reasonably curable, only if such breach
                  continues for a period of at least ten (10) Trading Days;

                           (vii) any payment default under or acceleration prior
                  to maturity of any mortgage, indenture or instrument under
                  which there may be issued or by which there may be secured or
                  evidenced any indebtedness for money borrowed by the Company
                  or for money borrowed the repayment of which is guaranteed by
                  the Company, whether such indebtedness or guarantee now exists
                  or shall be created hereafter which is in excess of
                  $1,000,000;

                                      10
<PAGE>

                           (viii) if any Person commences a proceeding against
                  the Company pursuant to or within the meaning of any
                  Bankruptcy Law (as defined below);

                           (ix) if the Company pursuant to or within the meaning
                  of any Bankruptcy Law; (A) commences a voluntary case, (B)
                  consents to the entry of an order for relief against it in an
                  involuntary case, (C) consents to the appointment of a
                  Custodian of it or for all or substantially all of its
                  property, (D) makes a general assignment for the benefit of
                  its creditors, (E) becomes insolvent, or (F) is generally
                  unable to pay its debts as the same become due; or

                           (x) a court of competent jurisdiction enters an order
                  or decree under any Bankruptcy Law that; (A) is for relief
                  against the Company in an involuntary case, (B) appoints a
                  Custodian of the Company or for all or substantially all of
                  its property, or (C) orders the liquidation of the Company or
                  any subsidiary.

                  The term "BANKRUPTCY LAW" means Title 11, U.S. Code, or any
                  similar federal or state law for the relief of debtors. The
                  term "CUSTODIAN" means any receiver, trustee, assignee,
                  liquidator or similar official under any Bankruptcy Law.

         (b) REMEDIES. If an Event of Default occurs from events described in
clauses (i) through and (ix) of Section 4(a), the Holder may terminate this
Agreement without any liability or payment to the Company. In the case of an
Event of Default arising from events described in clause (x) of Section 4(a),
this Equity Purchase Agreement shall automatically terminate with out any
liability or payment to any party without further action or notice. However,
notwithstanding the forgoing, in case of any such termination, no such
termination of this Agreement shall effect the Company's or the Holder's
obligations under this Agreement with respect to pending purchases and the
Company and the Holder shall complete their respective obligations with respect
to any pending purchases under this Agreement.

         5. HOLDER'S RIGHT TO TERMINATE AGREEMENT. If by the Maturity Date, for
any reason or for no reason the full Available Amount under this Agreement has
not been used to purchase shares of Common Stock as provided for in Section 2 of
this Agreement, the Holder shall have the right to terminate this Agreement
without any liability or payment to the Company. No such termination of this
Agreement shall effect the Company's or the Holder's obligations under this
Agreement with respect to pending purchases and the Company and the Holder shall
complete their respective obligations with respect to any pending purchases
under this Agreement.

         6. RESERVATION OF SHARES. The Company shall, so long as any Available
Amount of the Equity Purchase Agreement is outstanding, reserve and keep
available out of its authorized and unissued Common Stock, solely for the
purpose of effecting the purchase of the Equity Purchase Agreement, such number
of shares of Common Stock as shall from time to time be sufficient to effect the
purchase of the entire remaining Available Amount of the Equity Purchase
Agreement without regard to any restrictions or limitations on purchases.

                                      11
<PAGE>

         7. EXCHANGE CAP; LIMITATION ON NUMBER OF PURCHASE SHARES. The "Exchange
Cap" shall be deemed to be reached at such time if, upon any Purchase Notice
submitted under this Equity Purchase Agreement, the issuance of such shares of
Common Stock would exceed that number of shares of Common Stock which the
Company may issue under this Equity Purchase Agreement without breaching the
Company's obligations under the rules or regulations of the Principal Market, in
which case, the Company shall not be obligated to issue any such shares of
Common Stock.

         8. CHANGES TO THE TERMS OF THIS EQUITY PURCHASE AGREEMENT. This Equity
Purchase Agreement and any provision hereof may only be amended by an instrument
in writing signed by the Company and the Holder. The term "Equity Purchase
Agreement" and all reference thereto, as used throughout this instrument, shall
mean this instrument as originally executed, or if later amended or
supplemented, then as so amended or supplemented.

         9. ENFORCEMENT AND OTHER COSTS. If: (i) this Equity Purchase Agreement
is placed in the hands of an attorney for enforcement or is enforced through any
legal proceeding; or (ii) an attorney is retained to represent the Holder in any
bankruptcy, reorganization, receivership or other proceedings affecting
creditors' rights and involving a claim under this Equity Purchase Agreement; or
(iii) an attorney is retained to represent the Holder in any other proceedings
whatsoever in connection with this Equity Purchase Agreement, then the Company
shall pay to the Holder all reasonable cost and expenses including attorneys'
fees incurred in connection therewith, in addition to all other amounts due
hereunder.

         10. GOVERNING LAW; JURISDICTION; JURY TRIAL. The corporate laws of the
State of Georgia shall govern all issues concerning the relative rights of the
Company and its shareholders. All other questions concerning the construction,
validity, enforcement and interpretation of this Equity Purchase Agreement and
the other Transaction Documents shall be governed by the internal laws of the
State of Illinois, without giving effect to any choice of law or conflict of law
provision or rule (whether of the State of Illinois or any other jurisdictions)
that would cause the application of the laws of any jurisdictions other than the
State of Illinois. Each party hereby irrevocably submits to the exclusive
jurisdiction of the state and federal courts sitting in the City of Chicago, for
the adjudication of any dispute hereunder or under the other Transaction
Documents or in connection herewith or therewith, or with any transaction
contemplated hereby or discussed herein, and hereby irrevocably waives, and
agrees not to assert in any suit, action or proceeding, any claim that it is not
personally subject to the jurisdiction of any such court, that such suit, action
or proceeding is brought in an inconvenient forum or that the venue of such
suit, action or proceeding is improper. Each party hereby irrevocably waives
personal service of process and consents to process being served in any such
suit, action or proceeding by mailing a copy thereof to such party at the
address for such notices to it under this Agreement and agrees that such service
shall constitute good and sufficient service of process and notice thereof.
Nothing contained herein shall be deemed to limit in any way any right to serve
process in any manner permitted by law. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY
RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION
OF ANY DISPUTE HEREUNDER OR IN CONNECTION HEREWITH OR ARISING OUT OF THIS EQUITY
PURCHASE AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.

                                      12
<PAGE>

         11. REMEDIES, OTHER OBLIGATIONS, BREACHES AND INJUNCTIVE RELIEF. The
remedies provided in this Equity Purchase Agreement shall be cumulative and in
addition to all other remedies available under this Equity Purchase Agreement,
at law or in equity (including a decree of specific performance and/or other
injunctive relief), no remedy contained herein shall be deemed a waiver of
compliance with the provisions giving rise to such remedy and nothing herein
shall limit the Holder's right to pursue actual damages for any failure by the
Company to comply with the terms of this Equity Purchase Agreement. The Company
acknowledges that a breach by it of its obligations hereunder will cause
irreparable harm to the Holder and that the remedy at law for any such breach
may be inadequate. The Company therefore agrees that, in the event of any such
breach or threatened breach, the Holder shall be entitled, in addition to all
other available remedies, to an injunction restraining any breach, without the
necessity of showing economic loss and without any bond or other security being
required.

         12. CONSTRUCTION. This Equity Purchase Agreement shall be deemed to be
jointly drafted by the Company and the Holder and shall not be construed against
any person as the drafter hereof.

         13. FAILURE OR INDULGENCE NOT WAIVER. No failure or delay on the part
of this Equity Purchase Agreement in the exercise of any power, right or
privilege hereunder shall operate as a waiver thereof, nor shall any single or
partial exercise of any such power, right or privilege preclude other or further
exercise thereof or of any other right, power or privilege.

         14. SUCCESSORS AND ASSIGNS. This Agreement shall be binding upon and
inure to the benefit of the parties and their respective successors and assigns.
The Company shall not assign this Agreement or any rights or obligations
hereunder without the prior written consent of the Buyer, including by merger or
consolidation. The Buyer may not assign its rights under this Agreement without
the consent of the Company, other than to an affiliate of the Buyer controlled
by Steven G. Martin or Joshua B. Scheinfeld.

         15. NOTICES. Any notices, consents, waivers or other communications
required or permitted to be given under the terms of this Agreement must be in
writing and will be deemed to have been delivered: (i) upon receipt, when
delivered personally; (ii) upon receipt, when sent by facsimile (provided
confirmation of transmission is mechanically or electronically generated and
kept on file by the sending party); or (iii) one Trading Day after deposit with
a nationally recognized overnight delivery service, in each case properly
addressed to the party to receive the same. The addresses and facsimile numbers
for such communications shall be:

         If to the Company:

                  adam.com, Inc
                  1600 RiverEdge Parkway, Suite 800
                  Atlanta, Georgia  30328
                  Telephone: 770-980-0888
                  Facsimile:  770-989-4970
                  Attention:  Robert S. Cramer Jr.

                                       13
<PAGE>

                  With a copy to:

                  King & Spalding
                  191 Peachtree Street
                  Atlanta, Georgia   30303
                  Telephone:         404-572-4600
                  Facsimile:         404-572-5100
                  Attention:         Stacey K. Geer

         If to the Holder:

                  Fusion Capital Fund II, LLC
                  222 Merchandise Mart Plaza, Suite 9-112
                  Chicago, Illinois 60654
                  Telephone:        312-644-6644
                  Facsimile:        312-644-6244
                  Attention:        Steven G. Martin

                  with a copy to:

                  Ungaretti & Harris
                  3500 Three First National Plaza
                  Chicago, Illinois  60602
                  Telephone:        312-977-4400
                  Facsimile:        312-977-4405
                  Attention:        James T. Easterling

         If to the Company's Transfer Agent:

                  American Stock Transfer
                  6201 15th Avenue, Third Floor
                  Brooklyn, NY  11219
                  Telephone:        718-921-8261
                  Facsimile:        718-765-8701
                  Attention:        Donna Ansbro

or at such other address and/or facsimile number and/or to the attention of such
other person as the recipient party has specified by written notice given to
each other party three (3) Trading Days prior to the effectiveness of such
change. Written confirmation of receipt (A) given by the recipient of such
notice, consent, waiver or other communication, (B) mechanically or
electronically generated by the sender's facsimile machine containing the time,
date, recipient facsimile number and an image of the first page of such
transmission or (C) provided by a nationally recognized overnight delivery
service, shall be rebuttable evidence of personal service, receipt by facsimile
or receipt from a

                                       14
<PAGE>

nationally recognized overnight delivery service in accordance
with clause (i), (ii) or (iii) above, respectively.

                                     * * * *

                                       15
<PAGE>

         IN WITNESS WHEREOF, the Holder and the Company have caused this Equity
Purchase Agreement to be duly executed as of the date first written above.

                                  THE COMPANY:

                                  ADAM.COM, INC.

                                  By:_______________________________________

                                  Name:

                                  Its:

                                             HOLDER:

                                             FUSION CAPITAL FUND II, LLC
                                             BY: FUSION CAPITAL PARTNERS II, LLC
                                             BY: SGM HOLDINGS CORP.

                                                    By:_______________________

                                                    Name: Steven G. Martin

                                                    Title: President

                                       16
<PAGE>

                                    EXHIBIT I

                                 ADAM.COM, INC.

                             FORM OF PURCHASE NOTICE

         Reference is made to the Equity Purchase Agreement (the "EQUITY
PURCHASE AGREEMENT") between ADAM.COM, INC. (the "COMPANY") and FUSION CAPITAL
FUND II, LLC dated __________. In accordance with and pursuant to the Equity
Purchase Agreement, the undersigned hereby elects to purchase shares of Common
Stock, par value $____ per share (the "COMMON STOCK"), of the Company for the
Available Amount indicated below of as of the date specified below.

         Purchase Date: __________________________________________________

         Remaining Available Amount
         PRIOR TO this purchase: _________________________________________

         Available Amount to be purchased: _______________________________

         Remaining Available Amount
         AFTER this purchase: ____________________________________________

Please confirm the following information:

         Purchase Price per share: _______________________________________

          / / Fixed Purchase Price of $_____
          / / Low Sale Price on Date Hereof
          / / Average of 2/10 Closing Bid Prices for _________($_____) and
              __________($_____)

         Number of shares of Common Stock to be issued:

Please issue the shares of Common Stock in the following name and to the
following address:

         Issue to: _______________________________________________________

                   _______________________________________________________

                   _______________________________________________________

         Authorized Signature: ___________________________________________

                                                 Name: ___________________

                                                 Title: __________________

                                                 Phone #: ________________

         Broker DTC Participant Code:            ________________
         Account Number *:                       ________________

         *NOTE THAT RECEIVING BROKER MUST INITIATE TRANSACTION ON DWAC SYSTEM.

<PAGE>

                                   EXHIBIT II

                                 ADAM.COM, INC.

                 FORM OF COMPANY CONFIRMATION OF PURCHASE NOTICE

         Reference is made to the Equity Purchase Agreement (the "EQUITY
PURCHASE AGREEMENT") between ADAM.COM, INC. (the "COMPANY") and FUSION CAPITAL
FUND II, LLC dated __________. In accordance with and pursuant to the Equity
Purchase Agreement, the undersigned hereby confirms and authorizes the issuance
of shares of Common Stock, par value $___ per share (the "COMMON STOCK") of the
Company, in connection with the Purchase Notice (as defined in the Equity
Purchase Agreement) attached hereto. Specifically, the Company hereby confirms
the following information:

         Purchase Date: ______________________________________

         Remaining Available Amount
         PRIOR TO this purchase: _____________________________

         Available Amount to be purchased: ___________________

         Remaining Available Amount
         AFTER this purchase: ________________________________

         Purchase Price per share: ___________________________

         Number of shares of Common
         Stock to be issued: _________________________________

The shares of Common Stock shall be issued in the name and to the address as set
forth in the applicable Purchase Notice.

         Authorized Signature _______________________________

                              Name: _________________________

                              Title: ________________________

                              Phone #: ______________________

                              Fax #: ________________________

                                      18<PAGE>

                                                                    Exhibit 10.1

                                                                  EXECUTION COPY

                            MASTER FACILITY AGREEMENT

     MASTER FACILITY AGREEMENT (the "AGREEMENT"), dated as of June 6, 2000, by
and between ADAM.COM, INC., a Georgia corporation (the "COMPANY"), and FUSION
CAPITAL FUND II, LLC (together with its permitted assigns, the "BUYER").

                                    WHEREAS:

     Subject to the terms and conditions set forth herein, the Company has
authorized the entering into with the Buyer of up to two Equity Purchase
Agreements (each an "EQUITY PURCHASE AGREEMENT" and collectively the "EQUITY
PURCHASE AGREEMENTS"), substantially in the form attached hereto as EXHIBIT A,
with each Equity Purchase Agreement having an aggregate available amount of Six
Million Dollars ($6,000,000). The available amount of each Equity Purchase
Agreement shall be settled into shares of the Company's common stock, par value
$.01 per share (the "COMMON STOCK") (as settled, the "PURCHASE SHARES"), in
accordance with the terms of each Equity Purchase Agreement.

     NOW THEREFORE, the Company and the Buyer hereby agree as follows:

     1.   ENTRY INTO EQUITY PURCHASE AGREEMENTS.

         a. EXECUTION AND DELIVERY OF THE EQUITY PURCHASE AGREEMENTS. Subject to
the satisfaction (or waiver) of the conditions set forth in Sections 6 and 7
below, the Company and the Buyer agree as follows: (i) the execution and
delivery of the first Equity Purchase Agreement to be entered into under this
Agreement (the "FIRST EQUITY PURCHASE AGREEMENT") shall take place within five
(5) Trading Days (as defined in the last sentence of this Section 1(a)) of the
date that the Registration Statement referred to in the first sentence of
Section 4(a) hereof is declared effective under the Securities Act of 1933, as
amended (the "1933 ACT") by the United States Securities and Exchange Commission
(the "SEC") (the "FIRST CLOSING"); and (ii) the execution and delivery of the
second Equity Purchase Agreement to be entered into under this Agreement (the
"SECOND EQUITY PURCHASE AGREEMENT") shall take place within five (5) Trading
Days of the date that the Registration Statement referred to in the second
sentence of Section 4(a) hereof is declared effective under the 1933 Act by the
SEC (the "SECOND CLOSING"), (each such execution and delivery of an Equity
Purchase Agreement, a "CLOSING"). It is agreed and acknowledged by the parties
hereto that entering into the Second Equity Purchase Agreement shall be at the
option of the Company in its sole discretion until such time as the Company
shall have delivered an irrevocable written notice (the "SECOND CLOSING NOTICE")
to the Buyer stating that the Company elects to enter into the Second Equity
Purchase Agreement under the terms and conditions provided herein. The Second
Equity Purchase Agreement may not be entered into until the aggregate amount of
the First Equity Purchase Agreement is fully converted into Common Stock. The
Buyer is not obligated to enter into the Second Equity Purchase Agreement unless
the Company has delivered the Second Closing Notice prior to the date that is
ten (10) Trading Days following the date on which the aggregate amount of

<PAGE>

the First Equity Purchase Agreement is fully converted into Common Stock.
Upon delivery of the Second Closing Notice to the Buyer, subject to the
satisfaction (or waiver) of the conditions set forth in Sections 6 and 7
below, the Company and the Buyer shall be obligated to enter into the Second
Equity Purchase Agreement. For purposes of this Agreement, "TRADING DAY"
shall mean any day on which the Principal Market (as defined in Section 4(d)
hereof) is open for customary trading.

         b. CLOSING DATES. The date of each Closing (each a "CLOSING DATE")
shall be within five (5) Trading Days following the date of satisfaction (or
waiver) of the conditions to the Closing set forth in Sections 6 and 7 below (or
such later date as is mutually agreed to by the Company and the Buyer) with
respect to the Closing of each Equity Purchase Agreement.

     2.   BUYER'S REPRESENTATIONS AND WARRANTIES.

         The Buyer represents and warrants to the Company that:

         a. INVESTMENT PURPOSE. The Buyer is entering into the Equity Purchase
Agreements and acquiring the Commitment Shares (as defined in Section 7(b)
hereof) (collectively referred to herein as the "Securities"), for its own
account for investment only and not with a view towards, or for resale in
connection with, the public sale or distribution thereof; provided however, by
making the representations herein, the Buyer does not agree to hold any of the
Securities for any minimum or other specific term.

         b. ACCREDITED INVESTOR STATUS. The Buyer is an "accredited investor" as
that term is defined in Rule 501(a)(3) of Regulation D.

         c. RELIANCE ON EXEMPTIONS. The Buyer understands that the Securities
are being offered and sold to it in reliance on specific exemptions from the
registration requirements of United States federal and state securities laws and
that the Company is relying in part upon the truth and accuracy of, and the
Buyer's compliance with, the representations, warranties, agreements,
acknowledgments and understandings of the Buyer set forth herein in order to
determine the availability of such exemptions and the eligibility of the Buyer
to acquire the Securities.

         d. INFORMATION. The Buyer has been furnished with all materials
relating to the business, finances and operations of the Company and materials
relating to the offer and sale of the Securities that have been reasonably
requested by the Buyer, including, without limitation, the SEC Documents (as
defined in Section 3(f) hereof). The Buyer understands that its investment in
the Securities involves a high degree of risk. The Buyer (i) is able to bear the
economic risk of an investment in the Securities including a total loss, (ii)
has such knowledge and experience in financial and business matters that it is
capable of evaluating the merits and risks of the proposed investment in the
Securities and (iii) has had an opportunity to ask questions of and receive
answers from the officers of the Company concerning the financial condition and
business of the Company and others matters related to an investment in the
Securities. Neither such inquiries nor any other due diligence investigations
conducted by the Buyer or its representatives shall modify, amend or affect the
Buyer's right to rely on the Company's representations and warranties contained
in Section

                                       2

<PAGE>

3 below. The Buyer has sought such accounting, legal and tax advice
as it has considered necessary to make an informed investment decision with
respect to its acquisition of the Securities.

         e. NO GOVERNMENTAL REVIEW. The Buyer understands that no United States
federal or state agency or any other government or governmental agency has
passed on or made any recommendation or endorsement of the Securities or the
fairness or suitability of the investment in the Securities nor have such
authorities passed upon or endorsed the merits of the offering of the
Securities.

         f. TRANSFER OR RESALE. The Buyer understands that except as provided in
the Registration Rights Agreement (as defined in Section 6(a) hereof): (i) the
Securities have not been and are not being registered under the 1933 Act or any
state securities laws, and may not be offered for sale, sold, assigned or
transferred unless (A) subsequently registered thereunder or (B) an exemption
exists permitting such Securities to be sold, assigned or transferred without
such registration; (ii) any sale of the Securities made in reliance on Rule 144
may be made only in accordance with the terms of Rule 144 and further, if Rule
144 is not applicable, any resale of the Securities under circumstances in which
the seller (or the person through whom the sale is made) may be deemed to be an
underwriter (as that term is defined in the 1933 Act) may require compliance
with some other exemption under the 1933 Act or the rules and regulations of the
SEC thereunder; and (iii) neither the Company nor any other person is under any
obligation to register such securities under the 1933 Act or any state
securities laws or to comply with the terms and conditions of any exemption
thereunder.

         g. VALIDITY; ENFORCEMENT. This Agreement has been duly and validly
authorized, executed and delivered on behalf of the Buyer and is a valid and
binding agreement of the Buyer enforceable against the Buyer in accordance with
its terms, subject as to enforceability to general principles of equity and to
applicable bankruptcy, insolvency, reorganization, moratorium, liquidation and
other similar laws relating to, or affecting generally, the enforcement of
applicable creditors' rights and remedies.

         h. RESIDENCY. The Buyer is a resident of the State of Illinois.

     3.  REPRESENTATIONS AND WARRANTIES OF THE COMPANY.

         The Company represents and warrants to the Buyer that:

         a. ORGANIZATION AND QUALIFICATION. The Company and its "SUBSIDIARIES"
(which for purposes of this Agreement means any entity in which the Company,
directly or indirectly, owns 50% or more of the voting stock or capital stock or
other similar equity interests other than ThePort.com, Inc.) are corporations
duly organized and validly existing in good standing under the laws of the
jurisdiction in which they are incorporated, and have the requisite corporate
power and authority to own their properties and to carry on their business as
now being conducted. Each of the Company and its Subsidiaries is duly qualified
as a foreign corporation to do business and is in good standing in every
jurisdiction in which its ownership of property or the nature of the business
conducted by it makes such qualification necessary, except to the extent that
the failure to

                                       3

<PAGE>

be so qualified or be in good standing could not reasonably be expected to have
a Material Adverse Effect. As used in this Agreement, "MATERIAL ADVERSE EFFECT"
means any material adverse effect on any of: (i) the business, properties,
assets, operations, results of operations or financial condition of the Company
and its Subsidiaries, if any, taken as a whole, (ii) the value of the Common
Stock or the value of the Equity Purchase Agreement, (iii) the transactions
contemplated hereby or by the agreements and instruments to be entered into in
connection herewith or (iv) the authority or ability of the Company to perform
its obligations under the Transaction Documents (as defined in Section 2(b)
hereof). The Company has no Subsidiaries except as set forth on SCHEDULE 3(a).

         b. AUTHORIZATION; ENFORCEMENT; VALIDITY. (i) The Company has the
requisite corporate power and authority to enter into and perform its
obligations under this Agreement, the Equity Purchase Agreement, the
Registration Rights Agreement (as defined in Section 6(a) hereof) and each of
the other agreements entered into by the parties hereto in connection with the
transactions contemplated by this Agreement (collectively, the "TRANSACTION
DOCUMENTS"), and to issue the Securities in accordance with the terms hereof and
thereof, (ii) the execution and delivery of the Transaction Documents by the
Company and the consummation by it of the transactions contemplated hereby and
thereby, including without limitation, the issuance of the Commitment Shares and
the reservation for issuance and the issuance of the Purchase Shares issuable
under the Equity Purchase Agreement, have been duly authorized by the Company's
Board of Directors and no further consent or authorization is required by the
Company, its Board of Directors or its shareholders, (iii) this Agreement has
been, and each other Transaction Document shall be at its respective Closing,
duly executed and delivered by the Company and (iv) this Agreement constitutes,
and each other Transaction Document shall constitute as of its respective
Closing, the valid and binding obligations of the Company enforceable against
the Company in accordance with their terms, except as such enforceability may be
limited by general principles of equity or applicable bankruptcy, insolvency,
reorganization, moratorium, liquidation or similar laws relating to, or
affecting generally, the enforcement of creditors' rights and remedies.

         c. CAPITALIZATION. As of the date hereof, the authorized capital stock
of the Company consists of (i) 20,000,000 shares of Common Stock, of which as of
the date hereof, 5,414,627 shares are issued and outstanding, none are held as
treasury shares, 3,000,000 shares are reserved for issuance pursuant to the
Company's stock option plan of which only approximately 1,000,000 shares remain
available and 52,500 warrants shares are issuable and reserved for issuance
pursuant to securities (other than the Equity Purchase Agreement or stock
options issued pursuant to the Company's stock option plan) exercisable or
exchangeable for, or convertible into, shares of Common Stock and (ii)
10,000,000 shares of preferred stock, no par value, of which as of the date
hereof no shares are issued and outstanding. All of such outstanding shares have
been, or upon issuance will be, validly issued and are fully paid and
nonassessable. Except in connection with the transaction with Fusion Capital
Fund I, LLC pursuant to that certain securities purchase agreement dated as of
November 15, 1999 and as disclosed in SCHEDULE 3(c), (i) no shares of the
Company's capital stock are subject to preemptive rights or any other similar
rights or any liens or encumbrances suffered or permitted by the Company, (ii)
there are no outstanding debt securities, (iii) there are no outstanding
options, warrants, scrip, rights to subscribe to, calls or commitments of any
character whatsoever relating to, or securities or rights convertible into, any
shares of capital stock of the Company or any of its Subsidiaries, or contracts,
commitments, understandings or arrangements by

                                       4

<PAGE>

which the Company or any of its Subsidiaries is or may become bound to issue
additional shares of capital stock of the Company or any of its Subsidiaries or
options, warrants, scrip, rights to subscribe to, calls or commitments of any
character whatsoever relating to, or securities or rights convertible into, any
shares of capital stock of the Company or any of its Subsidiaries, (iv) there
are no agreements or arrangements under which the Company or any of its
Subsidiaries is obligated to register the sale of any of their securities under
the 1933 Act (except the Registration Rights Agreement), (v) there are no
outstanding securities or instruments of the Company or any of its Subsidiaries
which contain any redemption or similar provisions, and there are no contracts,
commitments, understandings or arrangements by which the Company or any of its
Subsidiaries is or may become bound to redeem a security of the Company or any
of its Subsidiaries, (vi) there are no securities or instruments containing
anti-dilution or similar provisions that will be triggered by the issuance of
the Securities as described in this Agreement and (vii) the Company does not
have any stock appreciation rights or "phantom stock" plans or agreements or any
similar plan or agreement. The Company has furnished to the Buyer true and
correct copies of the Company's Articles of Incorporation, as amended and as in
effect on the date hereof (the "ARTICLES OF INCORPORATION"), and the Company's
By-laws, as amended and as in effect on the date hereof (the "BY-LAWS"), and
summaries of the terms of all securities convertible into or exercisable for
Common Stock, if any, and copies of any documents containing the material rights
of the holders thereof in respect thereto.

         d. ISSUANCE OF SECURITIES. The Commitment Shares have been duly
authorized and, upon issuance in accordance with the terms hereof, shall be
(i) validly issued, fully paid and non-assessable and (ii) free from all taxes,
liens and charges with respect to the issue thereof. 1,500,000 shares of Common
Stock have been duly authorized and reserved for issuance upon purchase under
each Equity Purchase Agreement. Upon issuance and payment therefore in
accordance with the terms and conditions of the Equity Purchase Agreement, the
Purchase Shares shall be validly issued, fully paid and nonassessable and free
from all taxes, liens and charges with respect to the issue thereof, with the
holders being entitled to all rights accorded to a holder of Common Stock.

         e. NO CONFLICTS. Except as disclosed in SCHEDULE 3(e), the execution,
delivery and performance of the Transaction Documents by the Company and the
consummation by the Company of the transactions contemplated hereby and thereby
(including, without limitation, the reservation for issuance and issuance of the
Purchase Shares) will not (i) result in a violation of the Articles of
Incorporation, any Certificate of Designations, Preferences and Rights of any
outstanding series of preferred stock of the Company or the By-laws or
(ii) conflict with, or constitute a default (or an event which with notice or
lapse of time or both would become a default) under, or give to others any
rights of termination, amendment, acceleration or cancellation of, any
agreement, indenture or instrument to which the Company or any of its
Subsidiaries is a party, or result in a violation of any law, rule, regulation,
order, judgment or decree (including federal and state securities laws and
regulations and the rules and regulations of the Principal Market applicable to
the Company or any of its Subsidiaries) or by which any property or asset of the
Company or any of its Subsidiaries is bound or affected which, in the case of
(ii), could not reasonably be expected to result in a Material Adverse Effect.
Except as disclosed in SCHEDULE 3(e), neither the Company nor its Subsidiaries
is in violation of any term of or in default under its Articles of
Incorporation, any

                                       5

<PAGE>

Certificate of Designation, Preferences and Rights of any outstanding series
of preferred stock of the Company or By-laws or their organizational charter
or by-laws, respectively. Except as disclosed in SCHEDULE 3(e), neither the
Company nor any of its Subsidiaries is in violation of any term of or in
default under any material contract, agreement, mortgage, indebtedness,
indenture, instrument, judgment, decree or order or any statute, rule or
regulation applicable to the Company or its Subsidiaries, except for possible
conflicts, defaults, terminations or amendments which could not reasonably be
expected to have a Material Adverse Effect. The business of the Company and
its Subsidiaries is not being conducted, and shall not be conducted, in
violation of any law, ordinance, regulation of any governmental entity,
except for possible violations, the sanctions for which either individually
or in the aggregate could not reasonably be expected to have a Material
Adverse Effect. Except as specifically contemplated by this Agreement and as
required under the 1933 Act, the Company is not required to obtain any
consent, authorization or order of, or make any filing or registration with,
any court or governmental agency or any regulatory or self-regulatory agency
in order for it to execute, deliver or perform any of its obligations under
or contemplated by the Transaction Documents in accordance with the terms
hereof or thereof. Except as disclosed in SCHEDULE 3(e), all consents,
authorizations, orders, filings and registrations which the Company is
required to obtain pursuant to the preceding sentence have been obtained or
effected on or prior to the date hereof. Except as disclosed in
SCHEDULE 3(e), the Company is not and has not been since January 1, 1998,
in violation of the listing requirements of the Principal Market.

         f. SEC DOCUMENTS; FINANCIAL STATEMENTS. Except as disclosed in
SCHEDULE 3(f), since January 1, 1999, the Company has timely filed all reports,
schedules, forms, statements and other documents required to be filed by it with
the SEC pursuant to the reporting requirements of the Securities Exchange Act of
1934, as amended (the "1934 ACT") (all of the foregoing filed prior to the date
hereof and all exhibits included therein and financial statements and schedules
thereto and documents incorporated by reference therein being hereinafter
referred to as the "SEC DOCUMENTS"). As of their respective dates, the SEC
Documents complied in all material respects with the requirements of the 1934
Act and the rules and regulations of the SEC promulgated thereunder applicable
to the SEC Documents, and none of the SEC Documents, at the time they were filed
with the SEC (except as they may have been correctly amended), contained any
untrue statement of a material fact or omitted to state a material fact required
to be stated therein or necessary in order to make the statements therein, in
light of the circumstances under which they were made, not misleading. As of
their respective dates, the financial statements of the Company included in the
SEC Documents complied as to form in all material respects with applicable
accounting requirements and the published rules and regulations of the SEC with
respect thereto. Such financial statements have been prepared in accordance with
generally accepted accounting principles, consistently applied, during the
periods involved (except (i) as may be otherwise indicated in such financial
statements or the notes thereto or (ii) in the case of unaudited interim
statements, to the extent they may 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 its
operations and cash flows for the periods then ended (subject, in the case of
unaudited statements, to normal year-end audit adjustments).

         g. ABSENCE OF CERTAIN CHANGES. Except as disclosed in SCHEDULE 3(g),
since March 31, 2000, there has been no material adverse change in the business,
properties, operations,

                                       6

<PAGE>

financial condition or results of operations of the Company or its Subsidiaries.
The Company has not taken any steps, and does not currently expect to take any
steps, to seek protection pursuant to any bankruptcy law nor does the Company or
any of its Subsidiaries have any knowledge or reason to believe that its
creditors intend to initiate involuntary bankruptcy proceedings.

         h. ABSENCE OF LITIGATION. There is no action, suit, proceeding, inquiry
or investigation before or by any court, public board, government agency,
self-regulatory organization or body pending or, to the knowledge of the Company
or any of its Subsidiaries, threatened against or affecting the Company, the
Common Stock or any of the Company's Subsidiaries or any of the Company's or the
Company's Subsidiaries' officers or directors in their capacities as such, which
could reasonably be expected to have a Material Adverse Effect. A description of
each action, suit, proceeding, inquiry or investigation before or by any court,
public board, government agency, self-regulatory organization or body which, as
of the date of this Agreement, is pending or threatened in writing against or
affecting the Company, the Common Stock or any of the Company's Subsidiaries or
any of the Company's or the Company's Subsidiaries' officers or directors in
their capacities as such, is set forth in SCHEDULE 3(h).

         i. ACKNOWLEDGMENT REGARDING BUYER'S PURCHASE OF THE SECURITIES. The
Company acknowledges and agrees that the Buyer is acting solely in the capacity
of arm's length purchaser with respect to the Transaction Documents and the
transactions contemplated hereby and thereby. The Company further acknowledges
that the Buyer is not acting as a financial advisor or fiduciary of the Company
(or in any similar capacity) with respect to the Transaction Documents and the
transactions contemplated hereby and thereby and any advice given by the Buyer
or any of its representatives or agents in connection with the Transaction
Documents and the transactions contemplated hereby and thereby is merely
incidental to the Buyer's purchase of the Securities. The Company further
represents to the Buyer that the Company's decision to enter into the
Transaction Documents has been based solely on the independent evaluation by the
Company and its representatives and advisors.

         j. NO GENERAL SOLICITATION. Neither the Company, nor any of its
affiliates, nor any person acting on its or their behalf, has engaged in any
form of general solicitation or general advertising (within the meaning of
Regulation D under the 1933 Act) in connection with the offer or sale of the
Securities.

         k. NO INTEGRATED OFFERING. Neither the Company, nor any of its
affiliates, nor any person acting on its or their behalf has, directly or
indirectly, made any offers or sales of any security or solicited any offers to
buy any security, under circumstances that would require registration of any of
the Securities under the 1933 Act or cause this offering of the Securities to be
integrated with prior offerings by the Company for purposes of the 1933 Act or
any applicable shareholder approval provisions, including, without limitation,
under the rules and regulations of any exchange or automated quotation system on
which any of the securities of the Company are listed or designated, nor will
the Company or any of its Subsidiaries take any action or steps that would
require registration of any of the Securities under the 1933 Act or cause the
offering of the Securities to be integrated with other offerings.

                                       7

<PAGE>

         l. DILUTIVE EFFECT. The Company understands and acknowledges that the
number of Purchase Shares issuable upon settlement of the Equity Purchase
Agreement will increase in certain circumstances. The Company further
acknowledges that its obligation to issue Purchase Shares under the Equity
Purchase Agreement in accordance with the term and conditions of the Equity
Purchase Agreement is absolute and unconditional regardless of the dilutive
effect that such issuance may have on the ownership interests of other
shareholders of the Company.

         m. INTELLECTUAL PROPERTY RIGHTS. The Company and its Subsidiaries own
or possess adequate rights or licenses to use all material trademarks, trade
names, service marks, service mark registrations, service names, patents, patent
rights, copyrights, inventions, licenses, approvals, governmental
authorizations, trade secrets and rights necessary to conduct their respective
businesses as now conducted. Except as set forth on SCHEDULE 3(m), none of the
Company's material trademarks, trade names, service marks, service mark
registrations, service names, patents, patent rights, copyrights, inventions,
licenses, approvals, government authorizations, trade secrets or other
intellectual property rights have expired or terminated, or, by the terms and
conditions thereof, could expire or terminate within two years from the date of
this Agreement. The Company and its Subsidiaries do not have any knowledge of
any infringement by the Company or its Subsidiaries of any material trademark,
trade name rights, patents, patent rights, copyrights, inventions, licenses,
service names, service marks, service mark registrations, trade secret or other
similar rights of others, or of any such development of similar or identical
trade secrets or technical information by others and, except as set forth on
SCHEDULE 3(m), there is no claim, action or proceeding being made or brought
against, or to the Company's knowledge, being threatened against, the Company or
its Subsidiaries regarding trademark, trade name, patents, patent rights,
invention, copyright, license, service names, service marks, service mark
registrations, trade secret or other infringement, which could reasonably be
expected to have a Material Adverse Effect.

         n. ENVIRONMENTAL LAWS. The Company and its Subsidiaries (i) are in
compliance with any and all applicable foreign, federal, state and local laws
and regulations relating to the protection of human health and safety, the
environment or hazardous or toxic substances or wastes, pollutants or
contaminants ("ENVIRONMENTAL LAWS"), (ii) have received all permits, licenses or
other approvals required of them under applicable Environmental Laws to conduct
their respective businesses and (iii) are in compliance with all terms and
conditions of any such permit, license or approval, except where, in each of the
three foregoing clauses, the failure to so comply could not reasonably be
expected to have, individually or in the aggregate, a Material Adverse Effect.

         o. TITLE. The Company and its Subsidiaries have good and marketable
title in fee simple to all real property and good and marketable title to all
personal property owned by them which is material to the business of the Company
and its Subsidiaries, in each case free and clear of all liens, encumbrances and
defects except such as are described in SCHEDULE 3(o) or such as do not
materially affect the value of such property and do not interfere with the use
made and proposed to be made of such property by the Company and any of its
Subsidiaries. Any real property and facilities held under lease by the Company
and any of its Subsidiaries are held by them under valid, subsisting and
enforceable leases with such exceptions as are not material and do not interfere
with the use made and proposed to be made of such property and buildings by the
Company and its Subsidiaries.

                                       8

<PAGE>

         p. INSURANCE. The Company and each of its Subsidiaries are insured by
insurers of recognized financial responsibility against such losses and risks
and in such amounts as management of the Company believes to be prudent and
customary in the businesses in which the Company and its Subsidiaries are
engaged. Neither the Company nor any such Subsidiary has been refused any
insurance coverage sought or applied for and neither the Company nor any such
Subsidiary has any reason to believe that it will not be able to renew its
existing insurance coverage as and when such coverage expires or to obtain
similar coverage from similar insurers as may be necessary to continue its
business at a cost that would not materially and adversely affect the condition,
financial or otherwise, or the earnings, business or operations of the Company
and its Subsidiaries, taken as a whole.

         q. REGULATORY PERMITS. The Company and its Subsidiaries possess all
material certificates, authorizations and permits issued by the appropriate
federal, state or foreign regulatory authorities necessary to conduct their
respective businesses, and neither the Company nor any such Subsidiary has
received any notice of proceedings relating to the revocation or modification of
any such certificate, authorization or permit.

         r. TAX STATUS. The Company and each of its Subsidiaries has made or
filed all federal and state income and all other material tax returns, reports
and declarations required by any jurisdiction to which it is subject (unless and
only to the extent that the Company and each of its Subsidiaries has set aside
on its books provisions reasonably adequate for the payment of all unpaid and
unreported taxes) and has paid all taxes and other governmental assessments and
charges that are material in amount, shown or determined to be due on such
returns, reports and declarations, except those being contested in good faith
and has set aside on its books provision reasonably adequate for the payment of
all taxes for periods subsequent to the periods to which such returns, reports
or declarations apply. There are no unpaid taxes in any material amount claimed
to be due by the taxing authority of any jurisdiction, and the officers of the
Company know of no basis for any such claim.

         s. TRANSACTIONS WITH AFFILIATES. Except as set forth on
SCHEDULE 3(s) and other than the grant or exercise of stock options disclosed on
SCHEDULE 3(c), none of the officers, directors, or employees of the Company is
presently a party to any transaction with the Company or any of its Subsidiaries
(other than for services as employees, officers and directors), including any
contract, agreement or other arrangement providing for the furnishing of
services to or by, providing for rental of real or personal property to or from,
or otherwise requiring payments to or from any officer, director or such
employee or, to the knowledge of the Company, any corporation, partnership,
trust or other entity in which any officer, director, or any such employee has
an interest or is an officer, director, trustee or partner.

         t. APPLICATION OF TAKEOVER PROTECTIONS. The Company and its board of
directors have taken all necessary action, if any, in order to render
inapplicable any control share acquisition, business combination, poison pill
(including any distribution under a rights agreement) or other similar
anti-takeover provision under the Articles of Incorporation or the laws of the
state of its incorporation which is or could become applicable to the Buyer as a
result of the transactions

                                       9

<PAGE>

contemplated by this Agreement, including, without limitation, the Company's
issuance of the Securities and the Buyer's ownership of the Securities.

         u. RIGHTS AGREEMENT. The Company has not adopted a shareholder rights
plan or similar arrangement relating to accumulations of beneficial ownership of
Common Stock or a change in control of the Company.

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

     4.  COVENANTS.

         a. FILING REGISTRATION STATEMENT. The Company shall within five (5)
Trading Days from the date hereof file a new Registration Statement covering the
sale of at least 1,500,000 Purchase Shares underlying the First Equity Purchase
Agreement and the sale of 154,286 First Closing Commitment Shares (as defined in
Section 7(b)). The Company shall also within ten (10) Trading Days from the date
of the delivery to the Buyer of the Second Closing Notice: (i) file a new
Registration Statement covering the sale of a reasonable estimate of the number
of Purchase Shares underlying the Second Equity Purchase Agreement and a
reasonable estimate of the number of Second Closing Commitment Shares (as
defined in Section 7(b)). The Buyer and its counsel shall have a reasonable
opportunity to review and comment upon each such registration statement or
amendment to such registration statement and any related prospectus prior to its
filing with the SEC. The Company shall use its reasonable best efforts to have
such registration statements or amendments declared effective by the SEC at the
earliest possible date.

         b. BLUE SKY. The Company shall, on or before the Closing Date, take
such action, if any, as the Company shall reasonably determine is necessary in
order to obtain an exemption for or to qualify the Commitment Shares and the
Purchase Shares for sale to the Buyer pursuant to this Agreement or the Equity
Purchase Agreement under applicable securities or "Blue Sky" laws of the states
of the United States, and shall provide evidence of any such action so taken to
the Buyer on or prior to the Closing Date. The Company shall make all filings
and reports relating to the offer and sale of the Commitment Shares and the
Purchase Shares required under applicable securities or "Blue Sky" laws of the
states of the United States following the Closing Date.

         c. NO VARIABLE PRICED FINANCING. Other than in connection with the
transaction with Fusion Capital Fund I, LLC and pursuant to this Agreement, the
Company agrees that beginning on the date of this Agreement and ending on the
date of termination of this Agreement (as provided in Section 9(k) hereof),
neither the Company nor any of its Subsidiaries shall, without the prior

                                       10

<PAGE>

written consent of the Buyer, contract for any equity financing (including any
debt financing with an equity component) or issue any equity securities of the
Company or any Subsidiary or securities convertible or exchangeable into or for
equity securities of the Company or any Subsidiary (including debt securities
with an equity component) which, in any case (i) are convertible into or
exchangeable for an indeterminate number of shares of common stock, (ii) are
convertible into or exchangeable for Common Stock at a price which varies with
the market price of the Common Stock, (iii) directly or indirectly provide for
any "re-set" or adjustment of the purchase price, conversion rate or exercise
price or (iv) contain any "make-whole" provision based upon, directly or
indirectly, the market price of the Common Stock, in each case, other than
reasonable and customary anti-dilution adjustments for issuance of shares of
Common Stock at a price which is below the market price of the Common Stock.

         d. LISTING. The Company shall promptly secure the listing of all of the
Purchase Shares and Commitment Shares upon each national securities exchange and
automated quotation system, if any, upon which shares of Common Stock are then
listed (subject to official notice of issuance) and shall maintain, so long as
any other shares of Common Stock shall be so listed, such listing of all such
securities from time to time issuable under the terms of the Transaction
Documents. The Company shall maintain the Common Stock's authorization for
quotation on The Nasdaq National Market (the "PRINCIPAL MARKET"). Neither the
Company nor any of its Subsidiaries shall take any action that would be
reasonably expected to result in the delisting or suspension of the Common Stock
on the Principal Market. The Company shall promptly, and in no event later than
the following Trading Day, provide to the Buyer copies of any notices it
receives from the Principal Market regarding the continued eligibility of the
Common Stock for listing on such automated quotation system or securities
exchange. The Company shall pay all fees and expenses in connection with
satisfying its obligations under this Section.

         e. LIMITATION ON SHORT SALES AND HEDGING TRANSACTIONS. The Buyer agrees
that beginning on the date of this Agreement and ending on the date of
termination of this Agreement as provided in Section 9(k), the Buyer and its
agents, representatives and affiliates shall not in any manner whatsoever enter
into or effect, directly or indirectly, any (i) "short sale" (as such term is
defined in Rule 3b-3 of the 1934 Act) of the Common Stock or (ii) hedging
transaction, which establishes a net short position with respect to the Common
Stock; provided, however, that such restrictions shall not apply (i) if the
Buyer promptly submits after a sale of shares of Common Stock a Purchase Notice
(as defined in the Equity Purchase Agreement) entitling the Buyer to receive a
number of shares of Common Stock at least equal to the number of shares so sold
or (ii) if an Event of Default (as defined the Equity Purchase Agreement) has
occurred under the Equity Purchase Agreement including any failure by the
Company to timely issue any Purchase Shares pursuant to the Equity Purchase
Agreement.

         f. LIMITATION ON SALES OF COMMITMENT SHARES. The Buyer agrees that
beginning on the date of this Agreement and ending on the date of termination of
this Agreement as provided in Section 9(k), the Buyer shall not transfer or sell
(i) the First Closing Commitment Shares (as defined in Section 7(b) hereof)
until the Maturity Date (as defined in the First Equity Purchase Agreement
notwithstanding any extension of the Maturity Date by the Company) or such date
as the First Equity Purchase Agreement has been terminated or has been fully
performed and (ii) the

                                       11

<PAGE>

Second Closing Commitment Shares (as defined in Section 7(b) hereof) until the
Maturity Date (as defined in the Second Equity Purchase Agreement
notwithstanding any extension of the Maturity Date by the Company) or such date
as the Second Equity Purchase Agreement has been terminated or has been fully
performed; provided, however, that such restrictions shall not apply: (i) in
connection with any transfers to or among affiliates (as defined in the
Securities Exchange Act of 1934, as amended), (ii) in connection with any pledge
in connection with a bona fide loan or margin account, or (iii) if an Event of
Default has occurred, or any event which, after notice and/or lapse of time,
would become an Event of Default, under the Equity Purchase Agreements including
any failure by the Company to timely issue Purchase Shares under an Equity
Purchase Agreement. Notwithstanding the forgoing, the Buyer may transfer
Commitment Shares to a third party in order to settle a sale made by the Buyer
where the Buyer reasonably expects the Company to deliver Purchase Shares to
Buyer under the Equity Purchase Agreement so long as the Buyer maintains
ownership of the same overall number of shares of Common Stock by "replacing"
the Commitment Shares so transferred with Purchase Shares when the Purchase
Shares are actually issued by the Company to the Buyer.

         h. DUE DILIGENCE. The Buyer shall have the right, from time to time as
the Buyer may reasonably deem appropriate, to perform reasonable due diligence
on the Company during normal business hours. The Company and its officers and
employees shall reasonably cooperate with the Buyer in connection with any
reasonable request by the Buyer related to the Buyer's due diligence of the
Company.

     5.  TRANSFER AGENT INSTRUCTIONS.

         The Company shall issue irrevocable instructions to its transfer agent,
and any subsequent transfer agent, to issue certificates, registered in the name
of the Buyer or its respective nominee(s), for the Purchase Shares (the
"IRREVOCABLE TRANSFER AGENT INSTRUCTIONS"). The Company warrants to the Buyer
that no instruction other than the Irrevocable Transfer Agent Instructions
referred to in this Section 5, will be given by the Company to its transfer
agent with respect to the Purchase Shares and that the Commitment Shares and the
Purchase Shares shall otherwise be freely transferable on the books and records
of the Company as and to the extent provided in this Agreement and the
Registration Rights Agreement subject to the provisions of Section 4(f) in the
case of the Commitment Shares. So long as a Registration Statement is available
for the sale of Commitment Shares and the Purchase Shares or if the Buyer
provides the Company with an opinion of counsel, in a generally acceptable form,
to the effect that a public sale, assignment or transfer of the Commitment
Shares or the Purchase Shares may be made without registration under the 1933
Act, the Company shall promptly instruct its transfer agent to issue one or more
certificates representing such shares in such name and in such denominations as
specified by the Buyer and without any restrictive legend. The Buyer hereby
confirms it shall comply with all securities laws and regulations applicable to
it including applicable prospectus delivery requirements upon sale of the
Commitment Shares or the Purchase Shares.

                                       12

<PAGE>

     6.  CONDITIONS TO THE COMPANY'S OBLIGATION TO ENTER INTO THE EQUITY
         PURCHASE AGREEMENTS.

         The obligation of the Company hereunder to enter into each Equity
Purchase Agreement with the Buyer at the respective Closing is subject to the
satisfaction, at or before the respective Closing Date, of each of the following
conditions, provided that these conditions are for the Company's sole benefit
and may be waived by the Company at any time in its sole discretion by providing
the Buyer with prior written notice thereof:

         a. The Buyer shall have executed each of the Transaction Documents to
which it is a party and delivered the same to the Company applicable to the
respective closing including: (i) the Equity Purchase Agreement substantially in
the form of EXHIBIT A hereto and (ii) the Registration Rights Agreement
substantially in the form of EXHIBIT B hereto (the "REGISTRATION RIGHTS
AGREEMENT").

         b. Subject to the Company's compliance with Section 4(a), a
Registration Statement covering the sale of the respective Commitment Shares and
the Purchase Shares underlying the Equity Purchase Agreement shall have been
declared effective under the 1933 Act by the SEC and no stop order with respect
to the Registration Statement shall be pending or threatened by the SEC.

         c. The representations and warranties of the Buyer shall be true and
correct in all material respects as of the date when made and as of each Closing
Date as though made at that time (except for representations and warranties that
speak as of a specific date), and the Buyer shall have performed, satisfied and
complied in all material respects with the covenants, agreements and conditions
required by this Agreement to be performed, satisfied or complied with by the
Buyer at or prior to the Closing Date.

     7.  CONDITIONS TO THE BUYER'S OBLIGATION TO ENTER INTO THE EQUITY PURCHASE
         AGREEMENTS.

         The obligation of the Buyer hereunder to enter into each Equity
Purchase Agreement at the respective Closing is subject to the satisfaction, at
or before the respective Closing Date, of each of the following conditions,
provided that these conditions are for the Buyer's sole benefit and may be
waived by the Buyer at any time in its sole discretion by providing the Company
with prior written notice thereof:

         a. The Company shall have executed each of the Transaction Documents
and delivered the same to the Buyer applicable to the respective closing
including: (i) the Equity Purchase Agreement and (ii) the Registration Rights
Agreement substantially in the form of EXHIBIT B hereto.

         b. On the Closing Date for the First Closing the Company shall have
delivered to the Buyer 154,286 shares of Common Stock (the "FIRST CLOSING
COMMITMENT Shares"). On the Closing Date for the Second Closing the Company
shall have delivered to the Buyer a number

                                       13

<PAGE>

of shares of Common Stock (the "SECOND CLOSING COMMITMENT SHARES" and together
with the First Closing Commitment Shares, the "COMMITMENT SHARES") equal to 8%
of $6,000,000 divided by the lower of (A) the arithmetic average of the Closing
Bid Prices (as defined in the Equity Purchase Agreement) of the Common Stock for
the five (5) consecutive Trading Days immediately preceding the Trading Day
which is two (2) Trading Days prior to the Second Closing and (B) the arithmetic
average of the Closing Bid Prices of the Common Stock for the five (5)
consecutive Trading Days immediately preceding the date of the Second Closing
Notice. The number of Commitment Shares shall be appropriately adjusted for any
reorganization, recapitalization, non-cash dividend, stock split or other
similar transaction.

         c. The Common Stock shall be authorized for quotation on the Principal
Market, trading in the Common Stock shall not have been within the last 365 days
suspended by the SEC or the Principal Market and the Purchase Shares and the
Commitment Shares shall be approved for listing upon the Principal Market.

         d. The Buyer shall have received the opinions of the Company's legal
counsel dated as of the Closing Date in the form of EXHIBIT C attached hereto.

         e. The representations and warranties of the Company shall be true and
correct in all material respects (except to the extent that any of such
representations and warranties is already qualified as to materiality in Section
3 above, in which case, such representations and warranties shall be true and
correct without further qualification) as of the date when made and as of the
respective Closing Date as though made at that time (except for representations
and warranties that speak as of a specific date) and the Company shall have
performed, satisfied and complied with the covenants, agreements and conditions
required by the Transaction Documents to be performed, satisfied or complied
with by the Company at or prior to the Closing Date. The Buyer shall have
received a certificate, executed by the CEO, President or CFO of the Company,
dated as of the Closing Date, to the foregoing effect in the form attached
hereto as EXHIBIT D.

         f. The Board of Directors of the Company shall have adopted resolutions
in the form attached hereto as EXHIBIT E which shall be in full force and effect
without any amendment or supplement thereto as of the Closing Date.

         g. As of the Closing Date, the Company shall have reserved out of its
authorized and unissued Common Stock, solely for the purpose of effecting
issuances under the Equity Purchase Agreement, at least 1,500,000 shares of
Common Stock.

         h. The Irrevocable Transfer Agent Instructions, in the form of
EXHIBIT F attached hereto, shall have been delivered to and acknowledged in
writing by the Company and the Company's transfer agent.

         i. The Company shall have delivered to the Buyer a certificate
evidencing the incorporation and good standing of the Company in the State of
Georgia issued by the Secretary of State of the State of Georgia as of a date
within ten (10) Trading Days of the Closing Date.

                                       14

<PAGE>

         j. The Company shall have delivered to the Buyer a certified copy of
the Articles of Incorporation as certified by the Secretary of State of the
State of Georgia within ten (10) Trading Days of the Closing Date.

         k. The Company shall have delivered to the Buyer a secretary's
certificate executed by the Secretary of the Company, dated as of the respective
Closing Date, in the form attached hereto as EXHIBIT G.

         l. A Registration Statement covering the sale of all of the respective
Commitment Shares and Purchase Shares underlying the Equity Purchase Agreement
shall have been declared effective under the 1933 Act by the SEC and no stop
order with respect to the Registration Statement shall be pending or threatened
by the SEC. The Company shall have prepared and delivered to the Buyer a final
form of Prospectus to be used by the Buyer in connection with any sales of any
Commitment Shares or any Purchase Shares. The Company shall have made all
filings under all applicable federal and state securities laws necessary to
consummate the issuance of the Commitment Shares and the Purchase Shares
pursuant to this Agreement and the Equity Purchase Agreement in compliance with
such laws.

         m. No Event of Default (as defined in the Equity Purchase Agreement)
has occurred, or any event which, after notice and/or lapse of time, would
become an Event of Default under the Equity Purchase Agreement has occurred.

     8. INDEMNIFICATION. In consideration of the Buyer's execution and delivery
of the Transaction Documents and acquiring the Securities thereunder and in
addition to all of the Company's other obligations under the Transaction
Documents, the Company shall defend, protect, indemnify and hold harmless the
Buyer and each other holder of the Securities and all of their shareholders,
officers, directors, employees and direct or indirect investors and any of the
foregoing person's agents or other representatives (including, without
limitation, those retained in connection with the transactions contemplated by
this Agreement) (collectively, the "INDEMNITEES") from and against any and all
actions, causes of action, suits, claims, losses, costs, penalties, fees,
liabilities and damages, and expenses in connection therewith (irrespective of
whether any such Indemnitee is a party to the action for which indemnification
hereunder is sought), and including reasonable attorneys' fees and disbursements
(the "INDEMNIFIED LIABILITIES"), incurred by any Indemnitee as a result of, or
arising out of, or relating to (a) any misrepresentation or breach of any
representation or warranty made by the Company in the Transaction Documents or
any other certificate, instrument or document contemplated hereby or thereby,
(b) any breach of any covenant, agreement or obligation of the Company contained
in the Transaction Documents or any other certificate, instrument or document
contemplated hereby or thereby, or (c) any cause of action, suit or claim
brought or made against such Indemnitee and arising out of or resulting from the
execution, delivery, performance or enforcement of the Transaction Documents or
any other certificate, instrument or document contemplated hereby or thereby. To
the extent that the foregoing undertaking by the Company may be unenforceable
for any reason, the Company shall make the maximum contribution to the payment
and satisfaction of each of the Indemnified Liabilities which is permissible
under applicable law.

                                       15

<PAGE>

     9.  GOVERNING LAW; MISCELLANEOUS.

         a. GOVERNING LAW; JURISDICTION; JURY TRIAL. The corporate laws of the
State of Georgia shall govern all issues concerning the relative rights of the
Company and its shareholders. All other questions concerning the construction,
validity, enforcement and interpretation of this Agreement and the other
Transaction Documents shall be governed by the internal laws of the State of
Illinois, without giving effect to any choice of law or conflict of law
provision or rule (whether of the State of Illinois or any other jurisdictions)
that would cause the application of the laws of any jurisdictions other than the
State of Illinois. Each party hereby irrevocably submits to the exclusive
jurisdiction of the state and federal courts sitting in the City of Chicago, for
the adjudication of any dispute hereunder or under the other Transaction
Documents or in connection herewith or therewith, or with any transaction
contemplated hereby or discussed herein, and hereby irrevocably waives, and
agrees not to assert in any suit, action or proceeding, any claim that it is not
personally subject to the jurisdiction of any such court, that such suit, action
or proceeding is brought in an inconvenient forum or that the venue of such
suit, action or proceeding is improper. Each party hereby irrevocably waives
personal service of process and consents to process being served in any such
suit, action or proceeding by mailing a copy thereof to such party at the
address for such notices to it under this Agreement and agrees that such service
shall constitute good and sufficient service of process and notice thereof.
Nothing contained herein shall be deemed to limit in any way any right to serve
process in any manner permitted by law. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY
RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION
OF ANY DISPUTE HEREUNDER OR IN CONNECTION HEREWITH OR ARISING OUT OF THIS
AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.

         b. COUNTERPARTS. This Agreement may be executed in two or more
identical counterparts, all of which shall be considered one and the same
agreement and shall become effective when counterparts have been signed by each
party and delivered to the other party; provided that a facsimile signature
shall be considered due execution and shall be binding upon the signatory
thereto with the same force and effect as if the signature were an original, not
a facsimile signature.

         c. HEADINGS. The headings of this Agreement are for convenience of
reference and shall not form part of, or affect the interpretation of, this
Agreement.

         d. SEVERABILITY. If any provision of this Agreement shall be invalid or
unenforceable in any jurisdiction, such invalidity or unenforceability shall not
affect the validity or enforceability of the remainder of this Agreement in that
jurisdiction or the validity or enforceability of any provision of this
Agreement in any other jurisdiction.

         e. ENTIRE AGREEMENT; AMENDMENTS. This Agreement supersedes all other
prior oral or written agreements between the Buyer, the Company, their
affiliates and persons acting on their behalf with respect to the matters
discussed herein, and this Agreement, the Other Transaction Documents and the
instruments referenced herein contain the entire understanding of the parties
with respect to the matters covered herein and therein and, except as
specifically set forth herein or

                                       16

<PAGE>

therein, neither the Company nor the Buyer makes any representation, warranty,
covenant or undertaking with respect to such matters. No provision of this
Agreement may be amended other than by an instrument in writing signed by the
Company and the Buyer, and no provision hereof may be waived other than by an
instrument in writing signed by the party against whom enforcement is sought.

         f. NOTICES. Any notices, consents, waivers or other communications
required or permitted to be given under the terms of this Agreement must be in
writing and will be deemed to have been delivered: (i) upon receipt, when
delivered personally; (ii) upon receipt, when sent by facsimile (provided
confirmation of transmission is mechanically or electronically generated and
kept on file by the sending party); or (iii) one Trading Day after deposit with
a nationally recognized overnight delivery service, in each case properly
addressed to the party to receive the same. The addresses and facsimile numbers
for such communications shall be:

     If to the Company:

          adam.com, Inc
          1600 RiverEdge Parkway, Suite 800
          Atlanta, Georgia 30328
          Telephone: 770-980-0888
          Facsimile: 770-989-4970
          Attention: Robert S. Cramer Jr.

          With a copy to:

          King & Spalding
          191 Peachtree Street
          Atlanta, Georgia 30303
          Telephone: 404-572-4600
          Facsimile: 404-572-5100
          Attention: Stacey K. Geer

     If to the Buyer:

          Fusion Capital Fund II, LLC
          222 Merchandise Mart Plaza, Suite 9-112
          Chicago, Illinois 60654
          Telephone: 312-644-6644
          Facsimile: 312-644-6244
          Attention: Steven G. Martin

          with a copy to:

          Ungaretti & Harris
          3500 Three First National Plaza

                                       17

<PAGE>

          Chicago, Illinois 60602
          Telephone: 312-977-4400
          Facsimile: 312-977-4405
          Attention: James T. Easterling

     If to the Transfer Agent:

          American Stock Transfer
          6201 15th Avenue, Third Floor
          Brooklyn, NY 11219
          Telephone: 718-921-8261
          Facsimile: 718-765-8701
          Attention: Donna Ansbro

or at such other address and/or facsimile number and/or to the attention of such
other person as the recipient party has specified by written notice given to
each other party three (3) Trading Days prior to the effectiveness of such
change. Written confirmation of receipt (A) given by the recipient of such
notice, consent, waiver or other communication, (B) mechanically or
electronically generated by the sender's facsimile machine containing the time,
date, recipient facsimile number and an image of the first page of such
transmission or (C) provided by a nationally recognized overnight delivery
service, shall be rebuttable evidence of personal service, receipt by facsimile
or receipt from a nationally recognized overnight delivery service in accordance
with clause (i), (ii) or (iii) above, respectively.

         g. SUCCESSORS AND ASSIGNS. This Agreement shall be binding upon and
inure to the benefit of the parties and their respective successors and assigns,
including any transferee of an Equity Purchase Agreement. The Company shall not
assign this Agreement or any rights or obligations hereunder without the prior
written consent of the Buyer, including by merger or consolidation. The Buyer
may not assign its rights under this Agreement without the consent of the
Company, other than to an affiliate of the Buyer controlled by Steven G. Martin
or Joshua B. Scheinfeld. Notwithstanding anything to the contrary contained in
the Transaction Documents, the Buyer shall be entitled to pledge the Commitment
Shares and the Purchase Shares in connection with a bona fide loan or margin
account.

         h. NO THIRD PARTY BENEFICIARIES. This Agreement is intended for the
benefit of the parties hereto and their respective permitted successors and
assigns, and is not for the benefit of, nor may any provision hereof be enforced
by, any other person.

         i. PUBLICITY. The Company and the Buyer shall have the right to approve
before issuance any press releases or any other public disclosure (including any
filings with the SEC) with respect to the transactions contemplated hereby;
provided, however, that the Company shall be entitled, without the prior
approval of any Buyer, to make any press release or other public disclosure
(including any filings with the SEC) with respect to such transactions as is
required by applicable law and regulations (although the Buyer shall be
consulted by the Company in connection with any

                                       18

<PAGE>

such press release or other public disclosure prior to its release and shall be
provided with a copy thereof).

         j. FURTHER ASSURANCES. Each party shall do and perform, or cause to be
done and performed, all such further acts and things, and shall execute and
deliver all such other agreements, certificates, instruments and documents, as
the other party may reasonably request in order to carry out the intent and
accomplish the purposes of this Agreement and the consummation of the
transactions contemplated hereby.

         k. TERMINATION; SURVIVAL. This Agreement may be terminated only as
follows:

         (i) By the Buyer any time after an Event of Default (as defined in the
     Equity Purchase Agreement) has occurred.

         (ii) In the event that the First Closing shall not have occurred, the
     Company shall have the option to terminate this Agreement for any reason or
     for no reason without liability of any party to any other party. If this
     Agreement is terminated pursuant to this Section 9(k)(ii), the Company
     shall issue to the Buyer the First Closing Commitment Shares immediately
     prior to the termination hereof. The number of First Closing Commitment
     Shares shall be appropriately adjusted for any reorganization,
     recapitalization, non-cash dividend, stock split or other similar
     transaction.

         (iii) In the event that the First Closing shall not have occurred on
     or before August 31, 2000, due to the failure to satisfy the conditions set
     forth in Sections 6 and 7 above with respect to the Closing (and the
     nonbreaching party's failure to waive such unsatisfied condition(s)), the
     nonbreaching party shall have the option to terminate this Agreement at the
     close of business on such date without liability of any party to any other
     party. If this Agreement is terminated pursuant to this Section 9(k)(iii)
     prior to the Closing other than solely as a result of any material breach
     of the Buyer's obligation hereunder, the Company shall issue to the Buyer
     the First Closing Commitment Shares immediately upon the termination
     hereof. The number of First Closing Commitment Shares shall be
     appropriately adjusted for any reorganization, recapitalization, non-cash
     dividend, stock split or other similar transaction.

         (iv) If the First Equity Purchase Agreement has been entered into as
     provided herein, by the Company any time after the date the First Equity
     Purchase Agreement has been fully performed but prior to the delivery to
     the Buyer of the Second Closing Notice.

         (v) If the First Equity Purchase Agreement has been entered into as
     provided herein, by either the Company or the Buyer if the First Equity
     Purchase Agreement has been fully performed and the Company has not
     delivered a Second Closing Notice to the Buyer on or prior to the tenth
     (10th) Trading Day after the First Equity Purchase Agreement has been fully
     performed.

                                       19

<PAGE>

         (vi) If the First Equity Purchase Agreement has been entered into as
     provided herein, the First Equity Purchase Agreement has been fully
     performed and the Company has delivered a Second Closing Notice to the
     Buyer, in the event that the Second Closing shall not have occurred on or
     before twenty (20) Trading Days from the date of the Second Closing Notice
     due to the failure to satisfy the conditions set forth in Sections 6 and 7
     above with respect to the Second Closing (and the nonbreaching party's
     failure to waive such unsatisfied condition(s)), the nonbreaching party
     shall have the option to terminate this Agreement at the close of business
     on such date without liability of any party to any other party. If this
     Agreement is terminated pursuant to this Section 9(k)(vi) prior to the
     Second Closing other than solely as a result of a material breach of the
     Buyer=s obligation hereunder, the Company shall issue to the Buyer the
     Second Closing Commitment Shares immediately upon the termination hereof.
     In the such case, the number of Second Closing Commitment Shares shall be
     equal to 8% of $6,000,000 divided by the lower of (A) the arithmetic
     average of the Closing Bid Prices of the Common Stock for the five (5)
     consecutive Trading Days immediately preceding the Trading Day which is
     two (2) Trading Days prior to the date of termination of this Agreement and
     (B) the arithmetic average of the Closing Bid Prices of the Common Stock
     for the five (5) consecutive Trading Days immediately preceding the date
     of the Second Closing Notice. The number of Commitment Shares shall be
     appropriately adjusted for any reorganization, recapitalization, non-cash
     dividend, stock split or other similar transaction.

         (vii) If either Equity Purchase Agreement is terminated by either
     party pursuant to its terms without using the full available amount to
     purchase Common Stock, this Agreement shall automatically terminate at such
     time or this Agreement shall automatically terminate on the date the
     available amount under the Second Equity Purchase Agreement has been fully
     converted into Common Stock.

Except for termination of this Agreement under Section 9(k)(vii), any
termination of this Agreement pursuant to this Section 9(k) shall be effected by
written notice from the Company to the Buyer, or the Buyer to the Company, as
the case may be, setting forth the basis for the termination hereof. A
termination of this Agreement under Section 9(k)(vii) shall automatically occur
on such date as the Equity Purchase Agreement has been terminated by either
party pursuant to its terms without fully using the available amount to purchase
shares of Common Stock or on such date as the aggregate available amount of the
Second Equity Purchase Agreement has been fully used to purchase shares of
Common Stock, in each case, without any action or notice on the part of any
party. Except as expressly set forth in this Agreement, the representations and
warranties of the Company and the Buyer contained in Sections 2 and 3 hereof,
the indemnification provisions set forth in Section 8 hereof and the agreements
and covenants set forth in Section 9, shall survive the Closing and any
termination hereof.

         l. FINANCIAL ADVISOR. The Company acknowledges that it has not engaged
any financial advisor, placement agent, broker or finder in connection with the
transactions contemplated hereby. The Company shall be responsible for the
payment of any fees or commissions, if any, of any financial advisor, placement
agent, broker or finder relating to or arising out of the transactions
contemplated hereby. The Company shall pay, and hold the Buyer harmless against,
any liability,

                                       20

<PAGE>

loss or expense (including, without limitation, attorneys' fees and out of
pocket expenses) arising in connection with any such claim.

         m. NO STRICT CONSTRUCTION. The language used in this Agreement will be
deemed to be the language chosen by the parties to express their mutual intent,
and no rules of strict construction will be applied
against any party.

         n. REMEDIES. The Buyer shall have all rights and remedies set forth in
the Transaction Documents and all of the rights and remedies available under
applicable laws. Any person having any rights under any provision of the
Transaction Documents shall be entitled to enforce such rights specifically
(without posting a bond or other security), to recover damages by reason of any
breach of any provision of the Transaction Documents and to exercise all other
rights granted by law.

                                   * * * * * *

                                       21

<PAGE>

         IN WITNESS WHEREOF, the Buyer and the Company have caused this Master
Facility Agreement to be duly executed as of the date first written above.

                                  THE COMPANY:

                                  ADAM.COM, INC.

                                  By:         /s/ Robert S. Cramer, Jr.
                                      ------------------------------------------
                                      Name:   Robert S. Cramer, Jr.
                                      Title:  Chairman of the Board and
                                              Chief Executive Officer

                                  BUYER:

                                  FUSION CAPITAL FUND II, LLC
                                  BY: FUSION CAPITAL PARTNERS II, LLC
                                  BY: SGM HOLDINGS CORP.

                                  By:              /s/ Steven Martin
                                      ------------------------------------------
                                      Name: Steven G. Martin
                                      Title: President

                                       22

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00010-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00010-of-00352.parquet"}]]