Document:

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                                                                    EXHIBIT 10.1

                             SUBSCRIPTION AGREEMENT

Dear Subscriber:

         You (the "Subscriber") hereby agree to purchase, and Cambio, Inc., a
Delaware corporation (the "Company") hereby agrees to issue and to sell to the
Subscriber, 6% Convertible Notes (the "Notes") convertible in accordance with
the terms thereof into shares of the Company's $.01 par value Class A common
stock (the "Company Shares") for the aggregate consideration as set forth on the
signature page hereof ("Purchase Price"). The form of Convertible Note is
annexed hereto as Exhibit A. (The Company Shares included in the Securities (as
hereinafter defined) are sometimes referred to herein as the "Shares" or "Common
Stock"). (The Notes, the Company Shares, Common Stock Purchase Warrants
("Warrants") issuable to the recipients identified on Schedule B hereto, the
Common Stock issuable upon exercise of the Warrants, and the Put Securities (as
herein defined) are collectively referred to herein as, the "Securities"). Upon
acceptance of this Agreement by the Subscriber, the Company shall issue and
deliver to the Subscriber the Note against payment, by federal funds (U.S.) wire
transfer of the Purchase Price.

                  The following terms and conditions shall apply to this
subscription.

                  1. Subscriber's Representations and Warranties. The Subscriber
hereby represents and warrants to and agrees with the Company that:

                     (a) Information on Company. The Subscriber has been
furnished with the Company's Form 10-KSB for the year ended June 30, 1999 as
filed with the Securities and Exchange Commission (the "Commission") together
with all subsequently filed forms 10-Q (hereinafter referred to as the
"Reports"). In addition, the Subscriber has received from the Company such other
information concerning its operations, financial condition and other matters as
the Subscriber has requested, and considered all factors the Subscriber deems
material in deciding on the advisability of investing in the Securities (such
information in writing is collectively, the "Other Written Information").

                     (b) Information on Subscriber. The Subscriber is an
"accredited investor", as such term is defined in Regulation D promulgated by
the Commission under the Securities Act of 1933, as amended (the "1933 Act"), is
experienced in investments and business matters, has made investments of a
speculative nature and has purchased securities of United States publicly-owned
companies in private placements in the past and, with its representatives, has
such knowledge and experience in financial, tax and other business matters as to
enable the Subscriber to utilize the information made available by the Company
to evaluate the merits and risks of and to make an informed investment decision
with respect to the proposed purchase, which represents a speculative
investment. The Subscriber has the authority and is duly and legally qualified
to purchase and own the Securities. The Subscriber is able to bear the risk of
such investment for an indefinite period and to afford a complete loss thereof.
The information set forth on the signature page hereto regarding the Subscriber
is accurate.

                     (c) Purchase of Note. On the Closing Date, the Subscriber
will purchase the Note for its own account and not with a view to any
distribution thereof.

                     (d) Compliance with Securities Act. The Subscriber
understands and agrees that the Securities have not been registered under the
1933 Act, by reason of their issuance in a transaction that does not require
registration under the 1933 Act (based in part on the accuracy of the

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representations and warranties of Subscriber contained herein), and that such
Securities must be held unless a subsequent disposition is registered under the
1933 Act or is exempt from such registration.

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                     (e) Company Shares Legend. The Company Shares, and the
shares of Common Stock issuable upon the exercise of the Warrants, shall bear
the following legend:

                  "THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
                  REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR IF
                  APPLICABLE, STATE SECURITIES LAWS. THESE SHARES MAY NOT BE
                  SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE
                  OF AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH SECURITIES
                  ACT AND APPLICABLE STATE LAWS OR AN OPINION OF COUNSEL
                  REASONABLY SATISFACTORY TO CAMBIO, INC. THAT SUCH REGISTRATION
                  IS NOT REQUIRED."

                     (f) Warrants Legend. The Warrants shall bear the following
legend:

"THIS WARRANT AND THE COMMON SHARES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE
NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE
STATE SECURITIES LAWS. THIS WARRANT AND THE COMMON SHARES ISSUABLE UPON EXERCISE
OF THIS WARRANT MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN
THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THIS WARRANT UNDER SAID
ACT AND APPLICABLE STATE SECURITIES LAWS OR AN OPINION OF COUNSEL REASONABLY
SATISFACTORY TO CAMBIO, INC. THAT SUCH REGISTRATION IS NOT REQUIRED."

                     (g) Note Legend. The Note shall bear the following legend:

"THIS NOTE AND THE COMMON SHARES ISSUABLE UPON CONVERSION OF THIS NOTE HAVE NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE
STATE SECURITIES LAWS. THIS NOTE AND THE COMMON SHARES ISSUABLE UPON CONVERSION
OF THIS NOTE MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE
ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THIS NOTE UNDER SAID ACT
AND APPLICABLE STATE SECURITIES LAWS OR AN OPINION OF COUNSEL REASONABLY
SATISFACTORY TO CAMBIO, INC. THAT SUCH REGISTRATION IS NOT REQUIRED."

                     (h) Communication of Offer. The offer to sell the
Securities was directly communicated to the Subscriber. At no time was the
Subscriber presented with or solicited by any leaflet, newspaper or magazine
article, radio or television advertisement, or any other form of general
advertising or solicited or invited to attend a promotional meeting otherwise
than in connection and concurrently with such communicated offer.

                     (i) Correctness of Representations. The Subscriber
represents that the foregoing representations and warranties are true and
correct as of the date hereof and, unless the

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Subscriber otherwise notifies the Company prior to the Closing Date (as
hereinafter defined), shall be true and correct as of the Closing Date. The
foregoing representations and warranties shall survive the Closing Date.

                  2. Company Representations and Warranties. The Company
represents and warrants to and agrees with the Subscriber that, except as set
forth on the Schedule of Exceptions annexed hereto as Schedule 2:

                     (a) Due Incorporation. The Company and each of its
subsidiaries is a corporation duly organized, validly existing and in good
standing under the laws of the respective jurisdictions of their incorporation
and have the requisite corporate power to own their properties and to carry on
their business as now being conducted. The Company and each of its subsidiaries
is duly qualified as a foreign corporation to do business and is in good
standing in each jurisdiction where the nature of the business conducted or
property owned by it makes such qualification necessary, other than those
jurisdictions in which the failure to so qualify would not have a material
adverse effect on the business, operations or prospects or condition (financial
or otherwise) of the Company.

                     (b) Outstanding Stock. All issued and outstanding shares of
capital stock of the Company and each of its subsidiaries has been duly
authorized and validly issued and are fully paid and non-assessable.

                     (c) Authority; Enforceability. This Agreement has been duly
authorized, executed and delivered by the Company and is a valid and binding
agreement enforceable in accordance with its terms, subject to bankruptcy,
insolvency, fraudulent transfer, reorganization, moratorium and similar laws of
general applicability relating to or affecting creditors' rights generally and
to general principles of equity; and the Company has full corporate power and
authority necessary to enter into this Agreement and to perform its obligations
hereunder and all other agreements entered into by the Company relating hereto.

                     (d) Additional Issuances. There are no outstanding
agreements or preemptive or similar rights affecting the Company's common stock
or equity and no outstanding rights, warrants or options to acquire, or
instruments convertible into or exchangeable for, or agreements or
understandings with respect to the sale or issuance of any shares of common
stock or equity of the Company or other equity interest in any of the
subsidiaries of the Company, except as described in the Reports or Other Written
Information.

                     (e) Consents. No consent, approval, authorization or order
of any court, governmental agency or body or arbitrator having jurisdiction over
the Company, or any of its affiliates, the NASD, NASDAQ or the Company's
Shareholders is required for execution of this Agreement, and all other
agreements entered into by the Company relating thereto, including, without
limitation issuance and sale of the Securities, and the performance of the
Company's obligations hereunder.

                     (f) No Violation or Conflict. Assuming the representations
and warranties of the Subscriber in Paragraph 1 are true and correct and the
Subscriber complies with its obligations under this Agreement, neither the
issuance and sale of the Securities nor the performance of its obligations under
this Agreement and all other agreements entered into by the Company relating
thereto by the Company will:

                         (i) violate, conflict with, result in a breach of, or
constitute a default (or an event which with the giving of notice or the lapse
of time or both would be reasonably likely to constitute a default) under (A)
the articles of incorporation, charter or bylaws of the Company or any of

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its affiliates, (B) to the Company's knowledge, any decree, judgment, order,
law, treaty, rule, regulation or determination applicable to the Company or any
of its affiliates of any court, governmental agency or body, or arbitrator
having jurisdiction over the Company or any of its affiliates or over the
properties or assets of the Company or any of its affiliates, (C) the terms of
any bond, debenture, note or any other evidence of indebtedness, or any
agreement, stock option or other similar plan, indenture, lease, mortgage, deed
of trust or other instrument to which the Company or any of its affiliates is a
party, by which the Company or any of its affiliates is bound, or to which any
of the properties of the Company or any of its affiliates is subject, or (D) the
terms of any "lock-up" or similar provision of any underwriting or similar
agreement to which the Company, or any of its affiliates is a party; or

                         (ii) result in the creation or imposition of any lien,
charge or encumbrance upon the Securities or any of the assets of the Company,
or any of its affiliates.

                     (g) The Securities. The Securities upon issuance:

                         (i) are, or will be, free and clear of any security
interests, liens, claims or other encumbrances, subject to restrictions upon
transfer under the 1933 Act and State laws;

                         (ii) have been, or will be, duly and validly authorized
and on the date of issuance and on the Closing Date, as hereinafter defined, and
the date the Note is converted, and the Warrants are exercised, the Securities
will be duly and validly issued, fully paid and nonassessable (and if registered
pursuant to the 1933 Act, and resold pursuant to an effective registration
statement will be free trading and unrestricted, provided that the Subscriber
complies with the Prospectus delivery requirements);

                         (iii) will not have been issued or sold in violation of
any preemptive or other similar rights of the holders of any securities of the
Company; and

                         (iv) will not subject the holders thereof to personal
liability by reason of being such holders.

                     (h) Litigation. There is no pending or, to the best
knowledge of the Company, threatened action, suit, proceeding or investigation
before any court, governmental agency or body, or arbitrator having jurisdiction
over the Company, or any of its affiliates that would affect the execution by
the Company or the performance by the Company of its obligations under this
Agreement, and all other agreements entered into by the Company relating hereto.

                     (i) Reporting Company. The Company is a publicly-held
company whose common stock is registered pursuant to Section 12(g) of the
Securities Exchange Act of 1934, as amended (the "1934 Act"). The Company's
common stock is trading on the NASD OTC Bulletin Board. Pursuant to the
provisions of the 1934 Act, the Company has timely filed all reports and other
materials required to be filed thereunder with the Securities and Exchange
Commission during the preceding twelve months.

                     (j) No Market Manipulation. The Company has not taken, and
will not take, directly or indirectly, any action designed to, or that might
reasonably be expected to, cause or result in stabilization or manipulation of
the price of the common stock of the Company to facilitate the sale or resale of
the Securities or affect the price at which the Securities may be issued.

                     (k) Information Concerning Company. The Reports and Other
Written Information contain all material information relating to the Company and
its operations and financial

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condition as of their respective dates which information is required to be
disclosed therein. Since the date of the financial statements included in the
Reports, and except as modified in the Other Written Information, there has been
no material adverse change in the Company's business, financial condition or
affairs not disclosed in the Reports except as disclosed on Schedule 2 hereto.
The Reports and Other Written Information do not contain any untrue statement of
a material fact or omit to state a material fact required to be stated therein
or necessary to make the statements therein not misleading.

                     (l) Dilution. The number of Shares issuable upon conversion
of the Note may increase substantially in certain circumstances, including, but
not necessarily limited to, the circumstance wherein the trading price of the
Common Stock declines prior to conversion of the Note. The Company's executive
officers and directors have studied and fully understand the nature of the
Securities being sold hereby and recognize that they have a potential dilutive
effect. The board of directors of the Company has concluded, in its good faith
business judgment, that such issuance is in the best interests of the Company.
The Company specifically acknowledges that its obligation to issue the Shares
upon conversion of the Note and exercise of the Warrants is binding upon the
Company and enforceable, except as otherwise described in this Subscription
Agreement or the Note, regardless of the dilution such issuance may have on the
ownership interests of other shareholders of the Company.

                     (m) Stop Transfer. The Securities are restricted securities
as of the date of this Agreement. The Company will not issue any stop transfer
order or other order impeding the sale and delivery of the Securities at such
time as the Securities are registered for public sale or an exemption from
registration is available, except as may be agreed to by Subscriber, or required
by federal securities laws.

                     (n) Defaults. Neither the Company nor any of its
subsidiaries is in violation of its Articles of Incorporation or ByLaws. Neither
the Company nor any of its subsidiaries is (i) in default under or in violation
of any other material agreement or instrument to which it is a party or by which
it or any of its properties are bound or affected, which default or violation
would have a material adverse effect on the Company, (ii) in default with
respect to any order of any court, arbitrator or governmental body or subject to
or party to any order of any court or governmental authority arising out of any
action, suit or proceeding under any statute or other law respecting antitrust,
monopoly, restraint of trade, unfair competition or similar matters, or (iii) to
its knowledge in violation of any statute, rule or regulation of any
governmental authority which violation would have a material adverse effect on
the Company.

                     (o) 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 cause the offering of the
Securities pursuant to this Agreement to be integrated with prior offerings by
the Company for purposes of the 1933 Act which would prevent the Company from
selling the Securities pursuant to Rule 506 under the 1933 Act, or any
applicable exchange-related stockholder approval provisions. Nor will the
Company or any of its affiliates or subsidiaries take any action or steps that
would cause the offering of the Securities to be integrated with other
offerings.

                     (p) No General Solicitation. Neither the Company, nor any
of its affiliates, nor to its knowledge, 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 Act) in connection with the offer
or sale of the Securities.

                     (q) Listing. The Company's Common Stock is listed for
trading on the NASD OTC Bulletin Board and satisfies all requirements for the
continuation of such listing. The

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Company has not received any notice that its common stock will be delisted from
the NASD OTC Bulletin Board or that the Common Stock does not meet all
requirements for the continuation of such listing.

                     (r) Correctness of Representations. The Company represents
that the foregoing representations and warranties are true and correct as of the
date hereof in all material respects, will be true and correct as of the Closing
Date, and, unless the Company otherwise notifies the Subscriber prior to the
Closing Date, shall be true and correct in all material respects as of the
Closing Date. The foregoing representations and warranties shall survive the
Closing Date.

                  3. Regulation D Offering. This Offering is being made pursuant
to the exemption from the registration provisions of the Securities Act of 1933,
as amended, afforded by Rule 506 of Regulation D promulgated thereunder. On the
Closing Date, the Company will provide an opinion acceptable to Subscriber from
the Company's legal counsel opining on the availability of the Regulation D
exemption as it relates to the offer and issuance of the Securities. A form of
the legal opinion is annexed hereto as Exhibit C. The Company will provide, at
the Company's expense, such other legal opinions in the future as are reasonably
necessary for the conversion of the Note and exercise of the Warrants.

                  4. Reissuance of Securities. The Company agrees to reissue
certificates representing the Securities without the legends set forth in
Sections 1(e) and 1(f) above at such time as (a) the holder thereof is permitted
to dispose of such Securities pursuant to Rule 144(k) under the Act, or (b) upon
resale subject to an effective registration statement after the Securities are
registered under the Act. The Company agrees to cooperate with the Subscriber in
connection with all resales pursuant to Rule 144(d) and Rule 144(k) and provide
legal opinions necessary to allow such resales provided the Company and its
counsel receive reasonably requested representations from the Subscriber and
selling broker, if any.

                  5. Redemption. The Company may not redeem the Securities
without the consent of the holder of the Securities except as otherwise
described herein.

                  6. Fees/Warrants.

                     (a) The Company shall pay to counsel to the Subscriber its
fees, up to a maximum of $25,000 ($5,000 of which has already been paid) for
services rendered to Subscribers in connection with this Agreement and the other
Subscription Agreements for aggregate subscription amounts of up to $1,000,000
(the "Initial Offering") and the initial aggregate $1,000,000 of Section 11.2(e)
Put Amount set forth on the signature page hereto, and acting as escrow agent
for the Initial Offering and Section 11.2(e) Put Amount. The Company will pay a
cash fee in the amount of ten percent (10%) of the Purchase Price and Put
Purchase Price defined in Section 11.1(a) hereto, and set forth on the signature
page hereto ("Finder's Fee") and of the actual cash proceeds received by the
Company in connection with the exercise of the Warrants issued in connection
with the Initial Offering ("Initial Warrants"), and Warrants issuable in
connection with the balance of the Put ("Put Warrants") ("Warrant Exercise
Compensation") to the Finders identified on Schedule B hereto. Collectively, the
Initial Warrants, 11.2(e) Warrants and Put Warrants are referred to herein as
Warrants. The Finder's Fee must be paid each Closing Date and Put Closing Date
with respect to the Notes subscribed and sold on such date. The Warrant Exercise
Compensation must be paid within ten (10) days of Warrant exercise to the
Finders identified on Schedule B hereto. The Finder's Fee and legal fees will be
payable out of funds held pursuant to a Funds Escrow Agreement to be entered
into by the Company, Subscriber and an Escrow Agent.

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                     (b) The Company will also issue and deliver to the Warrant
Recipients identified on Schedule B hereto, Warrants in the amounts designated
on Schedule B hereto in connection with the Initial Offering and exercise of the
Put. A form of Warrant is annexed hereto as Exhibit D. The per share "Purchase
Price" of Common Stock as defined in the Warrant shall be equal to the lowest
closing price of the Common Stock for the ten (10) trading days preceding but
not including the Closing Date or Put Closing Date, as the case may be, as
reported on the NASD OTC Bulletin Board, NASDAQ SmallCap Market, NASDAQ National
Market System, American Stock Exchange, or New York Stock Exchange (whichever of
the foregoing is at the time the principal trading exchange or market for the
Common Stock, the "Principal Market"), or such other principal market or
exchange where the Common Stock is listed or traded. The Company shall issue
common stock purchase warrants in connection with the 11.2(e) Amount defined in
Section 11.2(e) and set forth on the signature page hereto. The aggregate number
of Common Shares purchasable upon exercise of the Initial Put Warrants is set
forth on Schedule B hereto. The aggregate number of Common Shares purchasable
upon exercise of the 11.2(e) Warrants is set forth on Schedule B hereto. The
number of Common Shares issuable upon exercise of the balance of the Put
Warrants is equal to 12% of the Common Shares to be issued upon conversion of
the final $15,000,000 of Put Notes, to the extent actually sold by the Company,
in the aggregate by all Subscribers to the Initial Offering. The Initial
Warrants must be delivered at the Closing Date. The Put Warrants must be
delivered no later than the Delivery Date (defined in Section 9.1(b) hereof) in
relation to the relevant Conversion Date. Failure to timely deliver the Warrant
Exercise Compensation or the Warrants shall be deemed an Event of Default as
defined in Article III of the Note and Put Note.

                     (c) The Finder's Fee and legal fees will be paid to the
Finders and attorneys only when, as, and if a corresponding subscription amount
is released from escrow to the Company and out of the escrow proceeds. All the
representations, covenants, warranties, undertakings, and indemnification, other
rights including but not limited to registration rights, and rights in Section 9
hereof, made or granted to or for the benefit of the Subscriber are hereby also
made and granted to the Warrant Recipients in respect of the Warrants and
Company Shares issuable upon exercise of the Warrants.

                  7.1. Covenants of the Company. The Company covenants and
agrees with the Subscriber as follows:

                       (a) The Company will advise the Subscriber, promptly
after it receives notice of issuance by the Securities and Exchange Commission,
any state securities commission or any other regulatory authority of any stop
order or of any order preventing or suspending any offering of any securities of
the Company, or of the suspension of the qualification of the Common Stock of
the Company for offering or sale in any jurisdiction, or the initiation of any
proceeding for any such purpose.

                       (b) The Company shall promptly secure the listing of the
Company Shares, and Common Stock issuable upon the exercise of the Warrants upon
each national securities exchange, or automated quotation system, if any, upon
which shares of Common Stock are then listed (subject to official notice of
issuance) and shall maintain such listing so long as any other shares of Common
Stock shall be so listed. The Company will maintain the listing of its Common
Stock on a Principal Market, and will comply in all respects with the Company's
reporting, filing and other obligations under the bylaws or rules of the
National Association of Securities Dealers ("NASD") and such exchanges, as
applicable. The Company will provide the Subscriber copies of all notices it
receives notifying the Company of the threatened and actual delisting of the
Common Stock from any Principal Market.

                       (c) The Company shall notify the SEC, NASD and applicable
state authorities, in accordance with their requirements, of the transactions
contemplated by this Agreement,

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and shall take all other necessary action and proceedings as may be required and
permitted by applicable law, rule and regulation, for the legal and valid
issuance of the Securities to the Subscriber and promptly provide copies thereof
to Subscriber.

                       (d) Until at least two (2) years after the effectiveness
of the Registration Statement on Form SB-2 or such other Registration Statement
described in Section 10.1(iv) hereof, the Company will (i) cause its Common
Stock to continue to be registered under Sections 12(b) or 12(g) of the Exchange
Act, (ii) comply in all respects with its reporting and filing obligations under
the Exchange Act, (iii) comply with all reporting requirements that is
applicable to an issuer with a class of Shares registered pursuant to Section
12(g) of the Exchange Act, and (iv) comply with all requirements related to any
registration statement filed pursuant to this Agreement. The Company will not
take any action or file any document (whether or not permitted by the Act or the
Exchange Act or the rules thereunder) to terminate or suspend such registration
or to terminate or suspend its reporting and filing obligations under said Acts
until the later of (y) two (2) years after the effective date of the
Registration Statement on Form SB-2 or such other Registration Statement
described in Section 10.1(iv) hereof, or (z) the sale by the Subscribers of all
the Company Shares issuable by the Company pursuant to this Agreement. Until at
least two (2) years after the Warrants have been exercised, the Company will use
its commercial best efforts to continue the listing of the Common Stock on the
NASD OTC Bulletin Board and will comply in all respects with the Company's
reporting, filing and other obligations under the bylaws or rules of the NASD
and NASDAQ.

                       (e) The Company undertakes to use the proceeds of the
Subscriber's funds for working capital purposes generally, and as may be
determined by the Company's Board of Directors, acting in their fiduciary
capacity on behalf of the Company, and expenses of this offering.

                  8.   Covenants of the Company and Subscriber Regarding
                       Idemnification.

                       (a) The Company agrees to indemnify, hold harmless,
reimburse and defend Subscriber, Subscriber's officers, directors, agents,
affiliates, control persons, and principal shareholders, against any claim,
cost, expense, liability, obligation, loss or damage (including reasonable legal
fees) of any nature, incurred by or imposed upon Subscriber or any such person
which results, arises out of or is based upon (i) any misrepresentation by
Company or breach of any warranty by Company in this Agreement or in any
Exhibits or Schedules attached hereto; or (ii) after any applicable notice
and/or cure periods, any breach or default in performance by the Company of any
covenant or undertaking to be performed by the Company hereunder, or any other
agreement entered into by the Company and Subscribers relating hereto.

                       (b) Subscriber agrees to indemnify, hold harmless,
reimburse and defend the Company at all times against any claim, cost, expense,
liability, obligation, loss or damage (including reasonable legal fees) of any
nature, incurred by or imposed upon the Company or any such person which
results, arises out of or is based upon (a) any misrepresentation by Subscriber
in this Agreement or in any Exhibits or Schedules attached hereto; or (b) after
any applicable notice and/or cure periods, any breach or default in performance
by Subscriber of any covenant or undertaking to be performed by Subscriber
hereunder, or any other agreement entered into by the Company and Subscribers
relating hereto.

                       (c) The procedures set forth in Section 10.6 shall apply
to the indemnifications set forth in Sections 8(a) and 8(b) above.

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                  9.1. Conversion of Note.

                       (a) Upon the conversion of the Note or part thereof, the
Company shall, at its own cost and expense, take all necessary action (including
the issuance of an opinion of counsel) to assure that the Company's transfer
agent shall issue stock certificates in the name of Subscriber (or its nominee)
or such other persons as designated by Subscriber and in such denominations to
be specified at conversion representing the number of shares of common stock
issuable upon such conversion. The Company warrants that no instructions other
than these instructions have been or will be given to the transfer agent of the
Company's Common Stock and that the Shares will be unlegended, free-trading, and
freely transferable, and will not contain a legend restricting the resale or
transferability of the Company Shares provided the Shares are being sold
pursuant to an effective registration statement covering the Shares to be sold
or are otherwise exempt from registration when sold.

                       (b) Subscriber will give notice of its decision to
exercise its right to convert the Note or part thereof by telecopying an
executed and completed Notice of Conversion (as defined in the Note) to the
Company. The Subscriber will not be required to surrender the Note until the
Note has been fully converted or satisfied. Each date on which a Notice of
Conversion is telecopied to the Company in accordance with the provisions hereof
shall be deemed a Conversion Date. The Company will or cause the transfer agent
to transmit the Company's Common Stock certificates representing the Shares
issuable upon conversion of the Note (and a Note representing the balance of the
Note not so converted, if requested by Subscriber) to the Subscriber via express
courier for receipt by such Subscriber within six business days after receipt by
the Company of the Notice of Conversion (the "Delivery Date"). To the extent
that a Subscriber elects not to surrender a Note for reissuance upon partial
payment or conversion, the Subscriber hereby indemnifies the Company against any
and all loss or damage attributable to a third-party claim in an amount in
excess of the actual amount then due under the Note.

                       (c) The Company understands that a delay in the delivery
of the Shares in the form required pursuant to Section 9 hereof, or the
Mandatory Redemption Amount described in Section 9.2 hereof, beyond the Delivery
Date or Mandatory Redemption Payment Date (as hereinafter defined) could result
in economic loss to the Subscriber. As compensation to the Subscriber for such
loss, the Company agrees to pay late payments to the Subscriber for late
issuance of Shares in the form required pursuant to Section 9 hereof upon
Conversion of the Note or late payment of the Mandatory Redemption Amount, in
the amount of $100 per business day after the Delivery Date or Mandatory
Redemption Payment Date, as the case may be, for each $10,000 of Note principal
amount being converted or redeemed. The Company shall pay any payments incurred
under this Section in immediately available funds upon demand. Furthermore, in
addition to any other remedies which may be available to the Subscriber, in the
event that the Company fails for any reason to effect delivery of the Shares by
the Delivery Date or make payment by the Mandatory Redemption Payment Date, the
Subscriber will be entitled to revoke all or part of the relevant Notice of
Conversion or rescind all or part of the notice of Mandatory Redemption by
delivery of a notice to such effect to the Company whereupon the Company and the
Subscriber shall each be restored to their respective positions immediately
prior to the delivery of such notice, except that late payment charges described
above shall be payable through the date notice of revocation or rescission is
given to the Company.

                       (d) Nothing contained herein or in any document referred
to herein or delivered in connection herewith shall be deemed to establish or
require the payment of a rate of interest or other charges in excess of the
maximum permitted by applicable law. In the event that the rate of

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<PAGE>   11

interest or dividends required to be paid or other charges hereunder exceed the
maximum permitted by such law, any payments in excess of such maximum shall be
credited against amounts owed by the Company to the Subscriber and thus refunded
to the Company.

                  9.2. Mandatory Redemption. In the event the Company is
prohibited from issuing Shares on a Delivery Date or at any time when the Note
is converted, for any reason other than pursuant to the limitations set forth in
Section 9.3 hereof, then at the Subscriber's election, the Company must pay to
the Subscriber five (5) business days after request by the Subscriber or on the
Delivery Date (if requested by the Subscriber) a sum of money determined by
multiplying the principal of the Note required to be converted and not so
converted by 130%, together with accrued but unpaid interest thereon ("Mandatory
Redemption Payment"). The Mandatory Redemption Payment must be received by the
Subscriber on the same date as the Company Shares otherwise deliverable or
within five (5) business days after request, whichever is sooner ("Mandatory
Redemption Payment Date"). Upon receipt of the Mandatory Redemption Payment, the
corresponding Note principal and interest will be deemed paid and no longer
outstanding.

                  9.3. Maximum Conversion. The Subscriber shall not be entitled
to convert on a Conversion Date that amount of the Note in connection with that
number of shares of Common Stock which would be in excess of the sum of (i) the
number of shares of Common Stock beneficially owned by the Subscriber and its
affiliates on a Conversion Date, and (ii) the number of shares of Common Stock
issuable upon the conversion of the Note with respect to which the determination
of this proviso is being made on a Conversion Date, which would result in
beneficial ownership by the Subscriber and its affiliates of more than 9.99% of
the outstanding shares of Common Stock of the Company on such Conversion Date.
For the purposes of the proviso to the immediately preceding sentence,
beneficial ownership shall be determined in accordance with Section 13(d) of the
Securities Exchange Act of 1934, as amended, and Regulation 13d-3 thereunder.
Subject to the foregoing, the Subscriber shall not be limited to aggregate
conversions of only 9.99%. The Subscriber may void the conversion limitation
described in this Section 9.3 upon 75 days prior notice to the Company. The
Subscriber may allocate which of the equity of the Company deemed beneficially
owned by the Subscriber shall be included in the 9.99% amount described above
and which shall be allocated to the excess above 9.99%.

                  9.4. Injunction - Posting of Bond. In the event a Subscriber
shall elect to convert a Note or part thereof, the Company may not refuse
conversion based on any claim that such Subscriber or any one associated or
affiliated with such Subscriber has been engaged in any violation of law,
unless, an injunction from a court, on notice, restraining and or enjoining
conversion of all or part of said Note shall have been sought and obtained and
the Company posts a surety bond for the benefit of such Subscriber in the amount
of 130% of the amount of the Note, which is subject to the injunction, which
bond shall remain in effect until the completion of arbitration/litigation of
the dispute and the proceeds of which shall be payable to such Subscriber to the
extent it obtains judgment.

                  9.5. Buy-In. In addition to any other rights available to the
Subscriber, if the Company fails to deliver to the Subscriber such shares
issuable upon conversion of a Note by the Delivery Date and if after the
Delivery Date the Subscriber purchases (in an open market transaction or
otherwise) shares of Common Stock to deliver in satisfaction of a sale by such
Subscriber of the Common Stock which the Subscriber anticipated receiving upon
such conversion (a "Buy-In"), then the Company shall pay in cash to the
Subscriber (in addition to any remedies available to or elected by the
Subscriber) the amount by which (A) the Subscriber's total purchase price
(including brokerage commissions, if any) for the shares of Common Stock so
purchased exceeds (B) the aggregate principal and/or interest amount of the Note
for which such conversion was not timely honored, together with interest thereon
at a rate of 15% per annum, accruing until such amount and any accrued interest
thereon is paid in full (which

                                       11
<PAGE>   12

amount shall be paid as liquidated damages and not as a penalty). For example,
if the Subscriber purchases shares of Common Stock having a total purchase price
of $11,000 to cover a Buy-In with respect to an attempted conversion of $10,000
of note principal and/or interest, the Company shall be required to pay the
Subscriber $1,000, plus interest. The Subscriber shall provide the Company
written notice indicating the amounts payable to the Subscriber in respect of
the Buy-In.

                  9.6. Optional Redemption. The Company will have the option of
redeeming the Note and Put Notes ("Optional Redemption") by paying to the
Subscriber a sum of money determined by multiplying the principal amount of the
Note or Put Note by 130% together with accrued but unpaid interest thereon
("Redemption Amount") outstanding on the day notice of redemption ("Notice of
Redemption) is given to a Subscriber ("Redemption Date"). A Notice of Redemption
may not be given in connection with any portion of Note or Put Note for which
notice of conversion has been given by the Subscriber at any time before receipt
of a Notice of Redemption. The Subscriber may elect within three (3) business
days after receipt of a Notice of Redemption to give the Company Notice of
Conversion in connection with some or all of the Note and Put Note principal and
interest which was the subject of the Notice of Redemption. A Notice of
Redemption must be accompanied by a certificate signed by the chief executive
officer or chief financial officer of the Company stating that the Company has
on deposit and segregated ready funds equal to the Redemption Amount. The
Redemption Amount must be paid in good funds to the Subscriber no later than the
sixth business day after the Redemption Date. In the event the Company fails to
pay the Redemption Amount by such date, then the Redemption Notice will be null
and void and the Company will thereafter have no further right to effect an
Optional Redemption. Such failure will also be deemed an Event of Default under
the Note and Put Note. Any Notice of Redemption must be given to all holders of
Notes and Put Notes issued in connection with the Initial Offering, in
proportion to their holdings of Note and Put Note principal on a Redemption
Date. A Notice of Redemption may be given by the Company, provided (i) no Event
of Default, as described in the Note shall have occurred or be continuing; and
(ii) the Company Shares issuable upon conversion of the full outstanding Note
and Put Note principal are included in a registration statement effective as of
the Redemption Date and the average closing price of the common stock on the
Principal Market for the twenty-two (22) consecutive trading days prior to the
Redemption Date is not less than 300% of the Conversion Price in effect on the
Redemption Date and the daily trading volume during such period is not less than
600,000 Common Shares per day. Only one Notice of Redemption may be given to the
Subscriber.

                  10.1. Registration Rights. The Company hereby grants the
following registration rights to holders of the Securities.

                        (i) On one occasion, for a period commencing 126 days
after the Closing Date, but not later than three years after the Closing Date
("Request Date"), the Company, upon a written request therefor from any record
holder or holders of more than 50% of the aggregate of the Company's Shares
issued and issuable upon Conversion of the Note and the Put Notes which are
actually issued (the Common Stock issued or issuable upon conversion or exercise
of the Securities, Put Securities and securities issued or issuable by virtue of
ownership of the Securities, and Put Securities, being, the "Registrable
Securities"), shall prepare and file with the SEC a registration statement under
the Act covering the Registrable Securities which are the subject of such
request, unless such Registrable Securities are the subject of an effective
registration statement. In addition, upon the receipt of such request, the
Company shall promptly give written notice to all other record holders of the
Registrable Securities that such registration statement is to be filed and shall
include in such registration statement Registrable Securities for which it has
received written requests within 10 days after the Company gives such written
notice. Such other requesting record holders shall be deemed to have exercised
their demand registration right under this Section 10.1(i). As a condition
precedent to the inclusion of Registrable

                                       12
<PAGE>   13

Securities, the holder thereof shall provide the Company with such information
as the Company reasonably requests. The obligation of the Company under this
Section 10.1(i) shall be limited to one registration statement.

                        (ii) If the Company at any time proposes to register any
of its securities under the Act for sale to the public, whether for its own
account or for the account of other security holders or both, except with
respect to registration statements on Forms S-4, S-8 or another form not
available for registering the Registrable Securities for sale to the public,
provided the Registrable Securities are not otherwise registered for resale by
the Subscriber or Holder pursuant to an effective registration statement, each
such time it will give at least 30 days' prior written notice to the record
holder of the Registrable Securities of its intention so to do. Upon the written
request of the holder, received by the Company within 30 days after the giving
of any such notice by the Company, to register any of the Registrable
Securities, the Company will cause such Registrable Securities as to which
registration shall have been so requested to be included with the securities to
be covered by the registration statement proposed to be filed by the Company,
all to the extent required to permit the sale or other disposition of the
Registrable Securities so registered by the holder of such Registrable
Securities (the "Seller"). In the event that any registration pursuant to this
Section 10.1(ii) shall be, in whole or in part, an underwritten public offering
of common stock of the Company, the number of shares of Registrable Securities
to be included in such an underwriting may be reduced by the managing
underwriter if and to the extent that the Company and the underwriter shall
reasonably be of the opinion that such inclusion would adversely affect the
marketing of the securities to be sold by the Company therein; provided,
however, that the Company shall notify the Seller in writing of any such
reduction. Notwithstanding the forgoing provisions, or Section 10.4 hereof, the
Company may withdraw or delay or suffer a delay of any registration statement
referred to in this Section 10.1(ii) without thereby incurring any liability to
the Seller.

                        (iii) If, at the time any written request for
registration is received by the Company pursuant to Section 10.1(i), the Company
has determined to proceed with the actual preparation and filing of a
registration statement under the 1933 Act in connection with the proposed offer
and sale for cash of any of its securities for the Company's own account, such
written request shall be deemed to have been given pursuant to Section 10.1(ii)
rather than Section 10.1(i), and the rights of the holders of Registrable
Securities covered by such written request shall be governed by Section
10.1(ii).

                        (iv) The Company shall file with the Commission within
90 days of the Closing Date (the "Filing Date"), and use its reasonable
commercial efforts to cause to be declared effective a Form SB-2 registration
statement (or such other form that it is eligible to use) within 125 days of the
Closing Date in order to register the Registrable Securities for resale and
distribution under the Act. The registration statement described in this
paragraph must be declared effective by the Commission within 125 days of the
Closing Date (as defined herein) ("Effective Date"). The Company will register
not less than a number of shares of Common Stock in the aforedescribed
registration statement that is equal to 200% of the Company Shares issuable at
the Conversion Price that would be in effect on the Closing Date or the date of
filing of such registration statement (employing the Conversion Price which
would result in the greater number of Shares), assuming the conversion of 100%
of the Notes and one-third of the Put Notes which are issuable, and one share of
common stock for each common share issuable upon exercise of the Initial
Warrants and Put Warrants which are issuable in connection with one-third of the
Put, employing the Conversion Price that would result in the greater number of
Shares. The Registrable Securities shall be reserved and set aside exclusively
for the benefit of the Subscriber and Warrant Recipients, as the case may be,
and not issued, employed or reserved for anyone other than the Subscriber and
Warrant Recipients. Such registration statement will be promptly amended or
additional registration statements will be promptly filed by the Company as
necessary to register additional Company Shares to allow the public resale of
all Common Stock included in and issuable by virtue of the

                                       13
<PAGE>   14

Registrable Securities. No securities of the Company other than the Registrable
Securities will be included in the registration statement described in this
Section 10.1(iv).

                  10.2. Registration Procedures. If and whenever the Company is
required by the provisions hereof to effect the registration of any shares of
Registrable Securities under the Act, the Company will, as expeditiously as
possible:

                        (a) prepare and file with the Commission a registration
statement with respect to such securities and use its best efforts to cause such
registration statement to become and remain effective for the period of the
distribution contemplated thereby (determined as herein provided), and promptly
provide to the holders of Registrable Securities copies of all filings and
Commission letters of comment;

                        (b) prepare and file with the Commission such amendments
and supplements to such registration statement and the prospectus used in
connection therewith as may be necessary to keep such registration statement
effective until the latest of: (i) six months after the latest exercise period
of the Warrants; (ii) twelve months after the Maturity Date of the Note or Put
Note; or (iii) two years after the Closing Date, but in no event beyond the date
upon which all Registrable Securities are sold and comply with the provisions of
the Act with respect to the disposition of all of the Registrable Securities
covered by such registration statement in accordance with the Seller's intended
method of disposition set forth in such registration statement for such period;

                        (c) furnish to the Seller, and to each underwriter if
any, such number of copies of the registration statement and the prospectus
included therein (including each preliminary prospectus) as such persons
reasonably may request in order to facilitate the public sale or their
disposition of the securities covered by such registration statement;

                        (d) use its best efforts to register or qualify the
Seller's Registrable Securities covered by such registration statement under the
securities or "blue sky" laws of such jurisdictions as the Seller and in the
case of an underwritten public offering, the managing underwriter shall
reasonably request, provided, however, that the Company shall not for any such
purpose be required to qualify generally to transact business as a foreign
corporation in any jurisdiction where it is not so qualified or to consent to
general service of process in any such jurisdiction or subject itself to
taxation;

                        (e) list the Registrable Securities covered by such
registration statement with any securities exchange on which the Common Stock of
the Company is then listed;

                        (f) immediately notify the Seller and each underwriter
under such registration statement at any time when a prospectus relating thereto
is required to be delivered under the Act, of the happening of any event of
which the Company has knowledge as a result of which the prospectus contained in
such registration statement, as then in effect, includes an untrue statement of
a material fact or omits to state a material fact required to be stated therein
or necessary to make the statements therein not misleading in light of the
circumstances then existing;

                        (g) make available for inspection by the Seller, any
underwriter participating in any distribution pursuant to such registration
statement, and any attorney, accountant or other agent retained by the Seller or
underwriter, all publicly available, non-confidential financial and other
records, pertinent corporate documents and properties of the Company, and cause
the Company's officers, directors and employees to supply all publicly
available, non-confidential information reasonably

                                       14
<PAGE>   15

requested by the seller, underwriter, attorney, accountant or agent in
connection with such registration statement.

                  10.3. Provision of Documents.

                        (a) At the request of the Seller, provided a demand for
registration has been made pursuant to Section 10.1(i) or a request for
registration has been made pursuant to Section 10.1(ii), the Registrable
Securities will be included in a registration statement filed pursuant to this
Section 10.

                        (b) In connection with each registration hereunder, the
Seller will furnish to the Company in writing such information and
representation letters with respect to itself and the proposed distribution by
it as reasonably shall be necessary in order to assure compliance with federal
and applicable state securities laws. In connection with each registration
pursuant to Section 10.1(i) or 10.1(ii) covering an underwritten public
offering, the Company and the Seller agree to enter into a written agreement
with the managing underwriter in such form and containing such provisions as are
customary in the securities business for such an arrangement between such
underwriter and companies of the Company's size and investment stature.

                  10.4. Non-Registration Events. The Company and the Subscriber
agree that the Seller will suffer damages if any registration statement required
under Section 10.1(i) or 10.1(ii) above is not filed within 60 days after
written request by the Holder and not declared effective by the Commission
within 120 days after such request [or the Filing Date and Effective Date,
respectively, in reference to the Registration Statement on Form SB-2 or such
other form described in Section 10.1(iv)], and maintained in the manner and
within the time periods contemplated by Section 10 hereof, and it would not be
feasible to ascertain the extent of such damages with precision. Accordingly, if
(i) the Registration Statement described in Sections 10.1(i) or 10.1(ii) is not
filed within 60 days of such written request, or is not declared effective by
the Commission on or prior to the date that is 120 days after such request, or
(ii) the registration statement on Form SB-2 or such other form described in
Section 10.1(iv) is not filed on or before the Filing Date or not declared
effective on or before the sooner of the Effective Date, or within five days of
receipt by the Company of a communication from the Commission that the
registration statement described in Section 10.1(iv) will not be reviewed, or
(iii) any registration statement described in Sections 10.1(i), 10.1(ii) or
10.1(iv) is filed and declared effective but shall thereafter cease to be
effective (without being succeeded immediately by an additional registration
statement filed and declared effective) for a period of time which shall exceed
30 days in the aggregate per year but not more than 20 consecutive calendar days
(defined as a period of 365 days commencing on the date the Registration
Statement is declared effective) (each such event referred to in clauses (i),
(ii) and (iii) of this Section 10.4 is referred to herein as a "Non-Registration
Event"), then, for so long as such Non-Registration Event shall continue, the
Company shall pay in cash as Liquidated Damages to each holder of any
Registrable Securities an amount equal to one (1%) percent for the initial
thirty days or part thereof and two (2%) percent per month or part thereof
thereafter during the pendency of such Non-Registration Event, of (i) the
principal of the Notes issued in connection with the Initial Offering, whether
or not converted; (ii) the principal amount of Put Notes actually issued,
whether or not converted, then owned of record by such holder or issuable as of
or subsequent to the occurrence of such Non-Registration Event. Payments to be
made pursuant to this Section 10.4 shall be due and payable immediately upon
demand in immediately available funds. In the event a Mandatory Redemption
Payment is demanded from the Company by the Holder pursuant to Section 9.2 of
this Subscription Agreement, then the Liquidated Damages described in this
Section 10.4 shall no longer accrue on the portion of the Purchase Price
underlying the Mandatory Redemption Payment, from and after the date the Holder
receives the Mandatory Redemption Payment. It shall be deemed a Non-Registration
Event to the extent that all the Common Stock underlying the

                                       15
<PAGE>   16

Registrable Securities is not included in an effective registration statement as
of and after the Effective Date at the Conversion Prices in effect from and
after the Effective Date.

                  10.5. Expenses. All expenses incurred by the Company in
complying with Section 10, including, without limitation, all registration and
filing fees, printing expenses, fees and disbursements of counsel and
independent public accountants for the Company, fees and expenses (including
reasonable counsel fees) incurred in connection with complying with state
securities or "blue sky" laws, fees of the National Association of Securities
Dealers, Inc., transfer taxes, fees of transfer agents and registrars, and costs
of insurance are called "Registration Expenses". All underwriting discounts and
selling commissions applicable to the sale of Registrable Securities, including
any fees and disbursements of any special counsel to the Seller, are called
"Selling Expenses". The Seller shall pay the fees of its own additional counsel,
if any.

                        The Company will pay all Registration Expenses in
connection with the registration statement under Section 10. All Selling
Expenses in connection with each registration statement under Section 10 shall
be borne by the Seller and may be apportioned among the Sellers in proportion to
the number of shares sold by the Seller relative to the number of shares sold
under such registration statement or as all Sellers thereunder may agree.

                  10.6. Indemnification and Contribution.

                        (a) In the event of a registration of any Registrable
Securities under the Act pursuant to Section 10, the Company will indemnify and
hold harmless the Seller, each officer of the Seller, each director of the
Seller, each underwriter of such Registrable Securities thereunder and each
other person, if any, who controls such Seller or underwriter within the meaning
of the 1933 Act, against any losses, claims, damages or liabilities, joint or
several, to which the Seller, or such underwriter or controlling person may
become subject under the Act or otherwise, insofar as such losses, claims,
damages or liabilities (or actions in respect thereof) arise out of or are based
upon any untrue statement or alleged untrue statement of any material fact
contained in any registration statement under which such Registrable Securities
was registered under the Act pursuant to Section 10, any preliminary prospectus
or final prospectus contained therein, or any amendment or supplement thereof,
or arise out of or are based upon the omission or alleged omission to state
therein a material fact required to be stated therein or necessary to make the
statements therein not misleading, and will reimburse the Seller, each such
underwriter and each such controlling person for any legal or other expenses
reasonably incurred by them in connection with investigating or defending any
such loss, claim, damage, liability or action; provided, however, that the
Company shall not be liable to the Seller to the extent that any such damages
arise out of or are based upon an untrue statement or omission made in any
preliminary prospectus if (i) the Seller failed to send or deliver a copy of the
final prospectus delivered by the Company to the Seller with or prior to the
delivery of written confirmation of the sale by the Seller to the person
asserting the claim from which such damages arise, (ii) the final prospectus
would have corrected such untrue statement or alleged untrue statement or such
omission or alleged omission, or (iii) to the extent that any such loss, claim,
damage or liability arises out of or is based upon an untrue statement or
alleged untrue statement or omission or alleged omission so made in conformity
with information furnished by any such Seller, or any such controlling person in
writing specifically for use in such registration statement or prospectus.

                        (b) In the event of a registration of any of the
Registrable Securities under the Act pursuant to Section 10, the Seller will
indemnify and hold harmless the Company, and each person, if any, who controls
the Company within the meaning of the Act, each officer of the Company who signs
the registration statement, each director of the Company, each underwriter and
each person who controls any underwriter within the meaning of the Act, against
all losses, claims, damages or liabilities, joint or several, to which the
Company or such officer, director, underwriter or controlling

                                       16
<PAGE>   17

person may become subject under the Act or otherwise, insofar as such losses,
claims, damages or liabilities (or actions in respect thereof) arise out of or
are based upon any untrue statement or alleged untrue statement of any material
fact contained in the registration statement under which such Registrable
Securities were registered under the Act pursuant to Section 10, any preliminary
prospectus or final prospectus contained therein, or any amendment or supplement
thereof, or arise out of or are based upon the omission or alleged omission to
state therein a material fact required to be stated therein or necessary to make
the statements therein not misleading, and will reimburse the Company and each
such officer, director, underwriter and controlling person for any legal or
other expenses reasonably incurred by them in connection with investigating or
defending any such loss, claim, damage, liability or action, provided, however,
that the Seller will be liable hereunder in any such case if and only to the
extent that any such loss, claim, damage or liability arises out of or is based
upon an untrue statement or alleged untrue statement or omission or alleged
omission made in reliance upon and in conformity with information pertaining to
such Seller, as such, furnished in writing to the Company by such Seller
specifically for use in such registration statement or prospectus, and provided,
further, however, that the liability of the Seller hereunder shall be limited to
the gross proceeds received by the Seller from the sale of Registrable
Securities covered by such registration statement.

                        (c) Promptly after receipt by an indemnified party
hereunder of notice of the commencement of any action, such indemnified party
shall, if a claim in respect thereof is to be made against the indemnifying
party hereunder, notify the indemnifying party in writing thereof, but the
omission so to notify the indemnifying party shall not relieve it from any
liability which it may have to such indemnified party other than under this
Section 10.6(c) and shall only relieve it from any liability which it may have
to such indemnified party under this Section 10.6(c), except and only if and to
the extent the indemnifying party is prejudiced by such omission. In case any
such action shall be brought against any indemnified party and it shall notify
the indemnifying party of the commencement thereof, the indemnifying party shall
be entitled to participate in and, to the extent it shall wish, to assume and
undertake the defense thereof with counsel satisfactory to such indemnified
party, and, after notice from the indemnifying party to such indemnified party
of its election so to assume and undertake the defense thereof, the indemnifying
party shall not be liable to such indemnified party under this Section 10.6(c)
for any legal expenses subsequently incurred by such indemnified party in
connection with the defense thereof other than reasonable costs of investigation
and of liaison with counsel so selected, provided, however, that, if the
defendants in any such action include both the indemnified party and the
indemnifying party and the indemnified party shall have reasonably concluded
that there may be reasonable defenses available to it which are different from
or additional to those available to the indemnifying party or if the interests
of the indemnified party reasonably may be deemed to conflict with the interests
of the indemnifying party, the indemnified parties shall have the right to
select one separate counsel and to assume such legal defenses and otherwise to
participate in the defense of such action, with the reasonable expenses and fees
of such separate counsel and other expenses related to such participation to be
reimbursed by the indemnifying party as incurred.

                        (d) In order to provide for just and equitable
contribution in the event of joint liability under the Act in any case in which
either (i) the Seller, or any controlling person of the Seller, makes a claim
for indemnification pursuant to this Section 10.6 but it is judicially
determined (by the entry of a final judgment or decree by a court of competent
jurisdiction and the expiration of time to appeal or the denial of the last
right of appeal) that such indemnification may not be enforced in such case
notwithstanding the fact that this Section 10.6 provides for indemnification in
such case, or (ii) contribution under the Act may be required on the part of the
Seller or controlling person of the Seller in circumstances for which
indemnification is provided under this Section 10.6; then, and in each such
case, the Company and the Seller will contribute to the aggregate losses,
claims, damages or liabilities to which they may be subject (after contribution
from others) in such proportion so that the Seller is responsible only for the
portion represented by the percentage that the public offering price of its
securities offered by

                                       17
<PAGE>   18

the registration statement bears to the public offering price of all securities
offered by such registration statement, provided, however, that, in any such
case, (A) the Seller will not be required to contribute any amount in excess of
the public offering price of all such securities offered by it pursuant to such
registration statement; and (B) no person or entity guilty of fraudulent
misrepresentation (within the meaning of Section 10(f) of the Act) will be
entitled to contribution from any person or entity who was not guilty of such
fraudulent misrepresentation.

                  11.1. Obligation To Purchase.

                        (a) The Subscriber agrees to purchase from the Company
convertible notes ("Put Notes") in up to the principal amount set forth on the
signature page hereto for up to the aggregate amount of Put Note principal ("Put
Purchase Price") designated on the signature page hereto (the "Put").
Collectively the Put Notes, Warrants issuable in connection with the Put, and
Common Stock issuable upon conversion of the Put Notes and exercise of the
Warrants are referred to as the "Put Securities".) The Warrants issuable in
connection with the Put Notes are referred to herein as Warrants or Put
Warrants. Except as described in Section 11.1(c) hereof, each Put Note will be
identical to the Note except that the Maturity Date will be three years from
each Put Closing Date (as hereinafter defined). The Holders of the Put
Securities are granted all the rights, undertakings, remedies, liquidated
damages and indemnification granted to the Subscriber in connection with the
Note, including but not limited to, the rights and procedures set forth in
Section 9 hereof and the registration rights described in Section 10 hereof.

                        (b) The agreement to purchase the Put Notes is
contingent on the following any, some or all of which may be waived by the
Subscriber:

                            (i) As of a Put Date and Put Closing Date (as
hereinafter defined), the Common Shares issuable upon conversion of a Put Note
and exercise of Put Warrants must be included in an effective registration
statement described in Section 10 hereof.

                            (ii) As of a Put Date and Put Closing Date, the
Company will be a reporting company with the class of Shares registered pursuant
to Section 12(g) of the Securities Exchange Act of 1934.

                            (iii) No material adverse change in the Company's
business or business prospects shall have occurred after the date of the most
recent financial statements included in the Reports. Material adverse change is
defined as any effect on the business, operations, properties, prospects, or
financial condition of the Company that is material and adverse to the Company
and its subsidiaries and affiliates, taken as a whole, and/or any condition,
circumstance, or situation that would prohibit or otherwise interfere with the
ability of the Company to enter into and perform any of its obligations under
this Agreement, or any other agreement entered into or to be entered into in
connection herewith, in any material respect. There shall not have been a
material negative restatement of the Company's financial statements included in
the Reports.

                                       18
<PAGE>   19

                            (iv) An Event of Default as described in Article III
of the Note shall not have occurred.

                            (v) The execution and delivery to the Subscriber of
a certificate signed by its chief executive officer representing the truth and
accuracy of all the Company's representations and warranties contained in this
Subscription Agreement as of the Put Date, and Put Closing Date and confirming
the undertakings contained herein, and representing the satisfaction of all
contingencies and conditions required for the exercise of the Put.

                            (vi) The Company's listing on, and compliance with
the listing requirements of the Principal Market.

                            (vii) The Company's not having received notice from
the OTC Bulletin Board, (or any Principal Market) that the Company is not in
compliance with the requirements for continued listing.

                            (viii) The execution by the Company and delivery to
the Subscriber of all required documents in relation to the Put set forth in
Section 11.2 below and such other documents which may be reasonably requested by
the Subscriber.

                        (c) Subject to the adjustments set forth in the Note,
the Conversion Price of the Put Note shall be as follows:

                            (i) The Conversion Price of the initial 6-1/4% of
the aggregate Put Note Purchase Price set forth on the signature page hereto
shall be the lesser of (i) 85% of the average of the three lowest closing prices
of the Common Stock on the Principal Market for the thirty (30) trading days
prior to the Closing Date, or (ii) 78% of the average of the three lowest
closing prices of the Common Stock on the Principal Market for the ninety (90)
trading days prior to the Conversion Date, as defined in the Note. The Maturity
Date of the Put Notes shall be three years from the respective Put Closing
Dates.

                            (ii) The Conversion Price of the balance of the Put
Note Purchase Price shall be 82% of the average of the three lowest closing
prices of the Common Stock on the Principal Market for the ten (10) trading days
prior to the Conversion Date.

                  11.2. Exercise of Put.

                        (a) The Company's right to exercise the Put commences on
the actual effective date of the registration statement described in Section
10.1(iv) hereof and expires three (3) years after the Effective Date ("Put
Exercise Period").

                        (b) The Put may be exercised by the Company by giving
the Subscriber written notice of exercise ("Put Notice") not more often than one
time each calendar month during the Put Exercise Period in relation to up to the
maximum principal amount of Put Note that the Subscriber has agreed to purchase
subject to the limits described in this Agreement. The date a Put Notice is
given is a Put Date. Each Put Notice must be accompanied by (i) the officer's
certificate described in Section 11.1(b)(v) above; (ii) a legal opinion relating
to the Put Securities in form reasonably acceptable to

                                       19
<PAGE>   20

Subscriber substantially similar to the opinion annexed hereto as Exhibit C; and
(iii) such other documents and certificates reasonably requested by the
Subscriber.

                        (c) Unless otherwise agreed to by the Subscribers, Put
Notices must be given to all Subscribers in proportion to the amounts agreed to
be purchased by all Subscribers undertaking to purchase Put Notes in the Initial
Offering.

                        (d) Payment by the Subscriber in relation to a Put
Notice relating to a Put must be made within fourteen (14) business days after
receipt of a Put Notice and the items set forth in Section 11.2(b) above.
Payment will be made against delivery to the Subscriber or an escrow agent to be
agreed upon by the Company and Subscriber, of the Put Securities, and delivery
to the Finders of the Put Commissions relating to the Put being exercised which
the Company may elect to be paid out of funds deposited with the escrow agent.

                        (e) Maximum Put Exercise. The Company may not give the
Subscriber a Put Notice in connection with that amount of Put Note which could
be converted as of the Put Date into a number of shares of Common Stock which
would be in excess of the sum of (i) the number of shares of Common Stock
beneficially owned by the Subscriber and its affiliates on such Put Date, and
(ii) the number of shares of Common Stock issuable upon the conversion of the
Put Note with respect to which the determination of this proviso is being made
on a Put Date, which would result in beneficial ownership by the Subscriber and
its affiliates of more than 9.99% of the outstanding shares of Common Stock of
the Company on such Put Date. For the purposes of the proviso to the immediately
preceding sentence, beneficial ownership shall be determined in accordance with
Section 13(d) of the Securities Exchange Act of 1934, as amended, and Regulation
13d-3 thereunder. Subject to the foregoing, the Subscriber shall not be limited
to aggregate conversions of only 9.99%. The Subscriber may revoke the
restriction described in this paragraph upon 75 days prior notice to the
Company. The Subscriber shall have the right to determine which of the equity of
the Company deemed beneficially owned by the Subscriber shall be included in the
9.99% described above and which shall be allocated to the excess above 9.99%.
The aggregate amount of all Put Notices to all Subscribers of the Initial
Offering may not exceed $16,000,000. The aggregate maximum principal amount of
Put Notes for which Put Notices may be given during any calendar month to all
Subscribers in the Initial Offering may not exceed twelve (12%) of the daily
closing prices of the Common Stock reported on a Principal Market, during the
calendar month prior to the giving of the Put Notice, multiplied by the
aggregate reported trading volume of the Company's Common Stock during such
prior month ("Trading Volume Limitation"). The foregoing Trading Volume
Limitation notwithstanding and provided all other preconditions to Put exercise
are satisfied, the Company may exercise the Put for up to the amount designated
on the signature page hereto as "Section 11.2(e) Put Amount" during the first
thirty (30) days following the actual effective date of the registration
statement described in Section 10.1(iv) hereof. In any event, the Conversion
Price of the initial Put Purchase Price amount equal to the Section 11.2(e)
amount shall be the same Conversion Price as for the Notes issued in the Initial
Offering.

                  11.3. Put Finders Fees. The Finders identified on Schedule B
hereto shall receive on each Put Closing Date aggregate Finder's Fees as
described in Section 6 hereof in connection with the closing of each Put as set
forth on Schedule B hereto. Put Finder's Fees shall be payable only in
connection with the Put Purchase Price actually paid by a Subscriber. The Put
Finder's Fees and reasonable legal fees for counsel to the Subscriber shall be
paid at each Put Closing. The maximum legal fee to be paid by the Company to one
counsel for the Subscribers to the Initial Offering is $2,500 per Put Closing.

                                       20
<PAGE>   21

                  11.4. Warrants.

                        (a) The Company shall issue Put Warrants to the Warrant
Recipients in the amounts designated on Schedule B hereto and as described in
Section 6 of this Subscription Agreement. The Put Warrants will be in the form
of Exhibit D hereto. The Put Warrants will be exercisable immediately upon
issuance and for five years thereafter.

                        (b) In the event, for any reason except for Subscriber's
unwillingness to purchase greater amounts of Put Notes because of the beneficial
ownership limitations of Section 11.2(e), the Put in the amount of at least 25%
of the Put Note Purchase Price set forth on the signature page ("One-Quarter Put
Amount") has not been exercised as of the first anniversary of the Effective
Date, then the Company will issue Put Warrants to the Warrant Recipients in an
amount determined by subtracting the actual amount of Put Note Principal for
which Put Notices have been validly given from the One-Quarter Put Amount (the
result being the "Unexercised Put") and issuing Put Warrants in connection with
such Unexercised Put as if the amount of Put Notes issuable in connection with
the Unexercised Put were actually issued and the first anniversary of the
Closing Date was the Conversion Date of such Put Notes.

                        (c) In the event, for any reason except for Subscriber's
unwillingness to purchase greater amounts of Put Notes because of the beneficial
ownership limitations of Section 11.2(e), the Put in the amount of 50% of the
Put Note Purchase Price set forth on the signature page hereto ("One-Half Put
Amount") has not been exercised as of the second anniversary of the Effective
Date, then the Company will issue Put Warrants to the Warrant Recipients in an
amount determined by subtracting the actual amount of Put Note Principal for
which Put Notices have been validly given and the amount of Put Note Principal
deemed converted pursuant to Section 11.4(b) above from the One-Half Put Amount
(the result being the "Interim Unexercised Put") and issuing Put Warrants in
connection with such Interim Unexercised Put as if the amount of Put Notes
issuable in connection with the Interim Unexercised Put were actually issued and
the second anniversary of the Closing Date was the Conversion Date of such Put
Notes.

                        (d) In the event, for any reason except for Subscriber's
unwillingness to purchase greater amounts of Put Notes because of the beneficial
ownership limitations of Section 11.2(e), the Put in the amount of 75% of the
Put Note Purchase Price set forth on the signature page hereto ("Three-Quarter
Put Amount") has not been exercised as of the third anniversary of the Effective
Date, then the Company will issue Put Warrants to the Warrant Recipients in an
amount determined by subtracting the actual amount of Put Note Principal for
which Put Notices have been validly given and the amount of Put Note Principal
deemed converted pursuant to Sections 11.4(b) and (c) above from the
Three-Quarter Put Amount (the result being the "Second Interim Unexercised Put")
and issuing Put Warrants in connection with such Second Interim Unexercised Put
as if the amount of Put Notes issuable in connection with the Second Interim
Unexercised Put were actually issued and the third anniversary of the Closing
Date was the Conversion Date of such Put Notes.

                        (e) In the event the Company has properly given a Put
Notice and the Subscriber has wrongfully failed to comply with the Put Notice
then the Put Warrants will not be issuable in connection with such defaulted
amounts.

                        (f) Failure to timely pay Finder's Fees, legal fees or
deliver any Warrants issuable in connection with the Initial Offering and Put
shall be deemed an Event of Default under the Note and a material breach of the
Company's obligations hereunder, for which no notice to cure is required.

                                       21
<PAGE>   22

                  11.5 Assignment of Put. Anything to the contrary herein
notwithstanding, the Subscriber may assign to another party, reasonably
acceptable to the Company, either before or after exercise of the Put by the
Company, the Subscriber's obligations and right to pay all or some of the Put
Purchase Price and receive the corresponding Put Securities. Such assignment
must be in writing. The assignment will be effective only if the assignee
consents in writing to be bound by all of the Subscriber's obligations to the
Company in connection with such assignment. Upon an effective assignment, the
assignee will succeed to all of the Subscriber's rights under this Subscription
Agreement, and all other agreements relating to the assigned portion of the Put.

                  11.6 Adjustments. The Conversion Price shall be adjusted
consistent with customary anti-dilution adjustments.

                  12. (a) Right of First Refusal. Until 120 days after the
effective date of the Registration Statement described in Section 10.1(iv)
hereof, the Subscriber shall be given not less than ten (10) business days prior
written notice of any proposed sale by the Company of its common stock or other
securities or debt obligations except as disclosed in the Reports or Other
Written Information or stock or stock options granted to employees or directors
of the Company; or equity or debt issued in connection with an acquisition of a
business or assets by the Company; or the issuance by the Company of stock in
connection with the establishment of a joint venture partnership or licensing
arrangement (these exceptions hereinafter referred to as the "Excepted
Issuances"). The Subscriber shall have the right during the ten (10) business
days following the notice to agree to purchase an amount of Company Shares in
the same proportion as being purchased in the Initial Offering of those
securities proposed to be issued and sold, in accordance with the terms and
conditions set forth in the notice of sale. In the event such terms and
conditions are modified during the notice period, the Subscriber shall be given
prompt notice of such modification and shall have the right during the original
notice period or for a period of ten (10) business days following the notice of
modification, whichever is longer, to exercise such right. In the event the
right of first refusal described in this Section is exercised by the Subscriber
and the Company thereby receives net proceeds from such exercise, then
commissions and fees will be paid by the Company to the Finders in the same
amounts as specified in the notice of sale.

                      (b) Offering Restrictions. Except with respect to
securities otherwise disclosed in the Reports or Other Written Information, the
Company will not issue any equity, convertible debt or other securities which
are or could be (by conversion or registration) free-trading securities prior to
the expiration of 180 days from the actual effective date of the registration
statement described in Section 10.1(iv) above (the "Exclusion Period"). This
restriction shall not prohibit the Company from issuing any equity, convertible
debt or other securities prior to the expiration of the Exclusion Period,
provided that such equity, convertible debt or other securities are restricted
securities when issued and remain restricted until the expiration of the
Exclusion Period.

                  13. Miscellaneous.

                      (a) Notices. All notices or other communications given or
made hereunder shall be in writing and shall be personally delivered or deemed
delivered the first business day after being telecopied (provided that a copy is
delivered by first class mail) to the party to receive the same at its address
set forth below or to such other address as either party shall hereafter give to
the other by notice duly made under this Section: (i) if to the Company, to
Cambio, Inc., 6006 North Mesa, Suite 515, El Paso, TX 79912, telecopier number:
(972) 991-4153, with a copy by telecopier only to Fulbright & Jaworski L.L.P.,
666 Fifth Avenue, New York, NY 10103, Attn: Sheldon Nussbaum, Esq., telecopier
number: (212) 318-3400, and (ii) if to the Subscriber, to the name, address and
telecopy number set forth

                                       22
<PAGE>   23

on the signature page hereto, with a copy by telecopier only to Grushko &
Mittman, P.C., 551 Fifth Avenue, Suite 1601, New York, New York 10176,
telecopier number: (212) 697-3575.

                      (b) Closing. The consummation of the transactions
contemplated herein shall take place at the offices of Grushko & Mittman, P.C.,
551 Fifth Avenue, Suite 1601, New York, New York 10176, upon the satisfaction of
all conditions to Closing set forth in this Agreement. The closing date shall be
the date that subscriber funds representing the net amount due the Company from
the Purchase Price are transmitted by wire transfer to the Company (the "Closing
Date"). The closing date for the Put shall be the date on which Subscriber funds
representing the net amount due the Company from the Put Purchase Price is
transmitted to or on behalf of the Company ("Put Closing Date").

                      (c) Entire Agreement; Assignment. This Agreement
represents the entire agreement between the parties hereto with respect to the
subject matter hereof and may be amended only by a writing executed by both
parties. No right or obligation of either party shall be assigned by that party
without prior notice to and the written consent of the other party.

                      (d) Execution. This Agreement may be executed by facsimile
transmission, and in counterparts, each of which will be deemed an original.

                      (e) Law Governing this Agreement. This Agreement shall be
governed by and construed in accordance with the laws of the State of New York
without regard to principles of conflicts of laws. Any action brought by either
party against the other concerning the transactions contemplated by this
Agreement shall be brought only in the state courts of New York or in the
federal courts located in the state of New York. Both parties and the
individuals executing this Agreement and other agreements on behalf of the
Company agree to submit to the jurisdiction of such courts and waive trial by
jury. The prevailing party shall be entitled to recover from the other party its
reasonable attorney's fees and costs. In the event that any provision of this
Agreement or any other agreement delivered in connection herewith is invalid or
unenforceable under any applicable statute or rule of law, then such provision
shall be deemed inoperative to the extent that it may conflict therewith and
shall be deemed modified to conform with such statute or rule of law. Any such
provision which may prove invalid or unenforceable under any law shall not
affect the validity or enforceability of any other provision of any agreement.

                      (f) Specific Enforcement, Consent to Jurisdiction. The
Company and Subscriber acknowledge and agree that irreparable damage would occur
in the event that any of the provisions of this Agreement were not performed in
accordance with their specific terms or were otherwise breached. It is
accordingly agreed that the parties shall be entitled to an injuction or
injunctions to prevent or cure breaches of the provisions of this Agreement and
to enforce specifically the terms and provisions hereof or thereof, this being
in addition to any other remedy to which any of them may be entitled by law or
equity. Subject to Section 13(e) hereof, each of the Company and Subscriber
hereby waives, and agrees not to assert in any such suit, action or proceeding,
any claim that it is not personally subject to the jurisdiction of such court,
that the suit, action or proceeding is brought in an inconvenient forum or that
the venue of the suit, action or proceeding is improper. Nothing in this Section
shall affect or limit any right to serve process in any other manner permitted
by law.

                      (g) Confidentiality. The Company agrees that it will not
disclose publicly or privately the identity of the Subscriber unless expressly
agreed to in writing by the Subscriber or only to the extent required by law.

                                       23
<PAGE>   24

                      (h) Automatic Termination. This Agreement shall
automatically terminate without any further action of either party hereto if the
Closing shall not have occurred by the tenth (10th) business day following the
date this Agreement is accepted by the Subscriber.

                      [THIS SPACE INTENTIONALLY LEFT BLANK]

                                       24
<PAGE>   25

         Please acknowledge your acceptance of the foregoing Subscription
Agreement by signing and returning a copy to the undersigned whereupon it shall
become a binding agreement between us.

                                       CAMBIO, INC.

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

                                       Dated:          , 2000
                                             ----------

Purchase Price: $170,000.00

PUT

Put Note Purchase Price (aggregate): $2,720,000.00

Section 11.2(e) Put Amount: $170,000.00

ACCEPTED: Dated as of              , 2000
                      -------------

THE KESHET FUND, L.P.
135 West 50th Street, Suite 1700
New York, New York 10020
Fax: 212-541-4434

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

                                       25
<PAGE>   26

         Please acknowledge your acceptance of the foregoing Subscription
Agreement by signing and returning a copy to the undersigned whereupon it shall
become a binding agreement between us.

                                       CAMBIO, INC.

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

                                       Dated:          , 2000
                                             ----------

Purchase Price: $215,000.00

PUT

Put Note Purchase Price (aggregate): $3,440,000.00

Section 11.2(e) Put Amount: $215,000.00

ACCEPTED: Dated as of              , 2000
                      ------------

KESHET L.P.
Ragnall House, 18 Peel Road
Douglas, Isle of Man
1M1 4L2, United Kingdom
Fax: 011-44-1624-661594

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

                                       26
<PAGE>   27

         Please acknowledge your acceptance of the foregoing Subscription
Agreement by signing and returning a copy to the undersigned whereupon it shall
become a binding agreement between us.

                                       CAMBIO, INC.

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

                                       Dated:          , 2000
                                             ----------

Purchase Price: $110,000.00

PUT

Put Note Purchase Price (aggregate): $1,760,000.00

Section 11.2(e) Put Amount: $110,000.00

ACCEPTED: Dated as of              , 2000
                      -------------

NESHER LTD.
Ragnall House, 18 Peel Road
Douglas, Isle of Man
1M1 4L2, United Kingdom
Fax: 011-44-1624-661594

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

                                       27
<PAGE>   28

         Please acknowledge your acceptance of the foregoing Subscription
Agreement by signing and returning a copy to the undersigned whereupon it shall
become a binding agreement between us.

                                       CAMBIO, INC.

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

                                       Dated:          , 2000
                                             ----------

Purchase Price: $105,000.00

PUT

Put Note Purchase Price (aggregate): $1,680,000.00

Section 11.2(e) Put Amount: $105,000.00

ACCEPTED: Dated as of              , 2000
                      -------------

TALBIYA B. INVESTMENTS LTD.
Ragnall House, 18 Peel Road
Douglas, Isle of Man
1M1 4L2, United Kingdom
Fax: 011-44-1624-661594

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

                                       28
<PAGE>   29

         Please acknowledge your acceptance of the foregoing Subscription
Agreement by signing and returning a copy to the undersigned whereupon it shall
become a binding agreement between us.

                                       CAMBIO, INC.

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

                                       Dated:          , 2000
                                             ----------

Purchase Price: $400,000.00

PUT

Put Note Purchase Price (aggregate): $6,400,000.00

Section 11.2(e) Put Amount: $400,000.00

ACCEPTED: Dated as of              , 2000
                      -------------

ESQUIRE TRADE & FINANCE INC.
Trident Chambers
P.O. Box 146
Road Town, Tortola, B.V.I.
Fax: 011-41-41-760-1031

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

                                       29
<PAGE>   30

SCHEDULE B TO SUBSCRIPTION AGREEMENT

<TABLE>
<CAPTION>

                                             INITIAL OFFERING - CASH
FINDERS                                      FINDER'S FEES                             PUT CASH FINDER'S FEES
-------                                      -----------------------                   ----------------------
<S>                                          <C>                                       <C>
ALON ENTERPRISES LTD.                        $64,000.00 (64%)                          $1,024,000.00 (64%)
THE BODIE INVESTMENT GROUP                   $20,000.00 (20%)                          $320,000.00 (20%)
LIBRA FINANCE, S.A.                          $16,000.00 (16%)                          $256,000 (16%)
                                             ---------------                           ------------------
TOTAL                                        $100,000 (100%)                           $1,600,000 (100%)
</TABLE>

PROPORTIONATE SHARE OF AGGREGATE WARRANTS ISSUABLE

<TABLE>
<CAPTION>
                                                                          PUT WARRANTS IN
                                                                          CONNECTION WITH INITIAL
                                                                          $1,000,000 OF AGGREGATE
                                                                          PUT FUNDS * ("11.2(e)
WARRANT RECIPIENTS                            INITIAL WARRANTS            WARRANTS")                PUT WARRANTS **
------------------                            ----------------            ------------------------  ---------------
<S>                                           <C>                         <C>                        <C>
TALBIYA B. INVESTMENTS LTD.                   750,000                     750,000                    60%
LIBRA FINANCE, S.A.                           500,000                     500,000                    40%
                                              ---------                   ---------                  ----
TOTAL                                         1,250,000                   1,250,000                  100%
</TABLE>

* Warrants to purchase 1,250,000 Common Shares will be issued pro rata in
connection with the initial $1,000,000 of Put Purchase Price payable in the
aggregate by all Subscribers to the Initial Offering.

** This column describes the Put Warrants issuable in connection with
$15,000,000 of Put Purchase Price.

WARRANT EXERCISE COMPENSATION

<TABLE>
<CAPTION>
                                         PROPORTIONATE SHARE OF 10% CASH
                                         COMMISSIONS PAYABLE ON
FINDERS                                  WARRANT EXERCISE
-------                                  -------------------------------
<S>                                      <C>
ALON ENTERPRISES LTD.                    80%
LIBRA FINANCE, S.A.                      20%
                                         ---
TOTAL                                    100%
</TABLE>

                                       30<PAGE>

                                                                    Exhibit 10.2

                            STOCK PURCHASE AGREEMENT

                                  by and among

                             Brokat Infosystems AG,

                    Transaction Software Technologies, Inc.,

                                       and

                               The Shareholders of
                     Transaction Software Technologies, Inc
<PAGE>

                                TABLE OF CONTENTS

<TABLE>

<S>                                                                                                             <C>
I. DEFINITIONS................................................................................................- 1 -

II. PURCHASE AND SALE OF SHARES...............................................................................- 6 -
         A.       Basic Transaction...........................................................................- 6 -
         B.       Payments to the Shareholders................................................................- 6 -
         C.       The Closing.................................................................................- 7 -
         D.       Deliveries at Closing.......................................................................- 7 -

III. REPRESENTATIONS AND WARRANTIES
         CONCERNING THE TRANSACTION...........................................................................- 8 -
         A. Representations and Warranties of the Shareholders
                   ...........................................................................................- 8 -
                  1. Authorization of Transaction.............................................................- 8 -
                  2. Non-contravention........................................................................- 8 -
                  3. Good Title...............................................................................- 8 -
                  4. Brokers' Fees............................................................................- 9 -
                  5. Capitalization...........................................................................- 9 -
         B. Representations and Warranties of Brokat.........................................................- 10 -
                  1. Authorization of Transaction............................................................- 10 -
                  2. Non-contravention.......................................................................- 10 -

IV. REPRESENTATIONS AND WARRANTIES
         CONCERNING TST AND ITS SUBSIDIARIES.................................................................- 11 -
         A. Shareholders and TST.............................................................................- 11 -
                  1. Organization, Qualification, and
                     Corporate Power.........................................................................- 11 -
                  2. Events Subsequent to the Most Recent
                     Fiscal Year End.........................................................................- 11 -
                  3. Undisclosed Liabilities.................................................................- 13 -
                  4. Intellectual Property...................................................................- 13 -
                  5. Certain Business Relationships With
                     TST and Its Subsidiaries................................................................- 15 -
                  6. Tax Matters.............................................................................- 16 -
                  7. Disclosure..............................................................................- 16 -
         B. TST.  ...........................................................................................- 16 -
                  1. Non-contravention.......................................................................- 16 -
                  2. Title to Assets.........................................................................- 17 -
                  3. Subsidiaries............................................................................- 17 -
                  4. Financial Statements....................................................................- 18 -
                  5. Legal Compliance........................................................................- 18 -
                  6. Tax Matters.............................................................................- 18 -
                  7. Tangible Assets.........................................................................- 20 -
                  8. Contracts...............................................................................- 20 -
                  9. Notes and Accounts Receivable...........................................................- 21 -
                  10. Powers of Attorney.....................................................................- 22 -
                  11. Insurance..............................................................................- 22 -
                  12. Litigation.............................................................................- 23 -
                  13. Product Warranty.......................................................................- 23 -
                  14. Product Liability......................................................................- 23 -
</TABLE>

                                      - a -
<PAGE>

<TABLE>
<S>               <C>                                                                                          <C>
                  15. Employees..............................................................................- 23 -
                  16. Year 2000..............................................................................- 24 -
                  17. Employee Benefits......................................................................- 24 -
                  18. Guaranties.............................................................................- 27 -
                  19. Environment, Health, and Safety Matters................................................- 27 -
                  20. Disclosure.............................................................................- 28 -

V. Pre-Closing Covenants.....................................................................................- 28 -
         A. General..........................................................................................- 29 -
         B. Notices and Consents.............................................................................- 29 -
         C. Operation of Business............................................................................- 29 -
         D. Preservation of Business.........................................................................- 29 -
         E. Full Access......................................................................................- 30 -
         F. Notice of Developments...........................................................................- 30 -
         G. Exclusivity......................................................................................- 30 -
         H. Confidentiality..................................................................................- 31 -
         I. Confidentiality Agreements.......................................................................- 31 -
         J. MASI Fee.........................................................................................- 31 -

VI. Post-Closing Covenants...................................................................................- 31 -
         A. General..........................................................................................- 32 -
         B. Covenant Not to Compete..........................................................................- 33 -

VII. Conditions to Obligation to Close.......................................................................- 34 -
         A. Conditions to Obligation of Brokat...............................................................- 34 -
         B. Conditions to Obligation of the Shareholders
            and TST..........................................................................................- 35 -

VIII. Remedies for Breaches of This Agreement................................................................- 36 -
         A. Survival of Representations and Warranties.......................................................- 36 -
         B. Indemnification Provisions for Benefit of Brokat.................................................- 37 -
         C. Matters Involving Third Parties..................................................................- 38 -

IX. Tax Matters..............................................................................................- 39 -
         A. Cooperation......................................................................................- 39 -
         B. Mitigation of Tax Liability......................................................................- 39 -
         C. Code (S)(S)6043..................................................................................- 39 -

X. Termination...............................................................................................- 40 -
         A. Termination of Agreement.........................................................................- 40 -
         B. Effect of Termination............................................................................- 40 -

XI. Miscellaneous............................................................................................- 41 -
         A. Press Releases and Public Announcements..........................................................- 41 -
         B. No Third-Party Beneficiaries.....................................................................- 41 -
         C. Entire Agreement.................................................................................- 41 -
         D. Succession and Assignment........................................................................- 41 -
         E. Counterparts.....................................................................................- 42 -
         F. Headings.........................................................................................- 42 -
         G. Notices..........................................................................................- 42 -
         H. Governing Law and Jurisdiction...................................................................- 43 -
</TABLE>

                                      - b -
<PAGE>

<TABLE>
<S>                                                                                                            <C>
         I. Amendments and Waivers...........................................................................- 43 -
         J. Severability.....................................................................................- 43 -
         K. Expenses.........................................................................................- 43 -
         L. Construction.....................................................................................- 44 -
         M. Incorporation of Exhibits, Annexes, and Schedules................................................- 44 -
</TABLE>

                                      -c-

<PAGE>

                            STOCK PURCHASE AGREEMENT

THIS AGREEMENT, made this seventh day of May, 1999, by and among BROKAT
INFOSYSTEMS AG, a corporation of Germany ("Brokat"); TRANSACTION SOFTWARE
TECHNOLOGIES, INC., a corporation of the State of Georgia, U.S.A. ("TST"); DR.
EDWARD J. GAINER III, an individual ("Gainer")(also sometimes referred to in
related documents as "Edward Joseph Gainer"); BILL D. DRAKE, an individual
("Drake"); DENNIS M. SATING, an individual ("Sating"); NEIL UNDERWOOD, an
individual ("Underwood"), (Gainer, Drake, Sating and Underwood are hereinafter
referred to collectively as "Individual Shareholders";  ELIZABETH ANDERSON
DWORSCHAK, AS SPECIAL INDEPENDENT TRUSTEE OF THE BILL D. AND ROSEMARY DRAKE
CHARITABLE REMAINDER TRUST, DATED APRIL 13, 1999, (the "Drake Trust"); MARGARET
ELIZABETH GAINER AND EDWARD J. GAINER IV, AS CO-TRUSTEES OF THE EDWARD JOSEPH
GAINER III IRREVOCABLE FAMILY TRUST, DATED APRIL 18, 1999 (the "Gainer Trust");
and  EDWARD JOSEPH GAINER AND JAMES A GAINER, AS CO-TRUSTEES OF THE MARGARET
ELIZABETH GAINER IRREVOCABLE FAMILY TRUST, DATED APRIL 18, 1999 (The "2/nd/
Gainer Trust") (The Drake Trust, the Gainer Trust and the 2/nd/ Gainer Trust"
are hereinafter referred to collectively as the "Trust Shareholders".) The
Individual Shareholders and the Trust Shareholders are referred to collectively
herein as the "Shareholders",  and Brokat, TST and the Shareholders are referred
to herein individually as a "Party" or collectively as the "Parties"),

WITNESSETH THAT:

WHEREAS, Brokat wishes to acquire 100% of the issued and outstanding capital
stock of TST; and

WHEREAS, The Shareholders own 100% of the issued and outstanding capital stock
of TST and are willing to sell the same to Brokat; and

WHEREAS, The parties desire that the Closing (hereinafter defined) of the sale
of TST take place, subject to the terms and conditions described herein, on or
before May 10, 1999;

NOW THEREFORE, in consideration of the mutual covenants described herein, and
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged by the parties, the parties have agreed as follows:

                                 I. DEFINITIONS

                                     - 1 -
<PAGE>

     "Adverse Consequences" means all actions, suits, proceedings, hearings,
investigations, charges, complaints, claims, demands, injunctions, judgments,
orders, decrees, rulings, damages, dues, penalties, fines, costs, reasonable
amounts paid in settlement, liabilities, obligations, taxes, liens, losses,
expenses, and fees, including court costs and reasonable attorneys' fees and
expenses.

     "Affiliate" has the meaning set forth in Rule 12b-2 of the regulations
promulgated under the Securities Exchange Act.

     "Affiliated Group" means any affiliated group within the meaning of Code
(S)1504(a).

     "Basis" means any past or present fact, situation, circumstance, status,
condition, activity, practice, plan, occurrence, event, incident, action,
failure to act, or transaction that forms or could form the basis for any
specified consequence.

     "Closing" has the meaning set forth in (S)II.C.,  below.

     "Closing Date" has the meaning set forth in (S)II.C., below.

     "COBRA" means the requirements of Part 6 of Subtitle B of Title I of ERISA
and Code (S)4980B.

     "Code" means the Internal Revenue Code of 1986, as amended.

     "Confidential Information" means any information without regard to form,
which is not commonly known by or available to the public and which information
derives economic value, actual or potential, from not being generally known to,
and not being readily ascertainable by proper means by, other Persons who can
obtain economic value from its disclosure or use.

     "Employee Benefit Plan" means any (a) non-qualified deferred compensation
or retirement plan or arrangement, (b) qualified defined contribution retirement
plan or arrangement which is an Employee Pension Benefit Plan, (c) qualified
defined benefit retirement plan or arrangement which is an Employee Pension
Benefit Plan (including any Multiemployer Plan), or (d) Employee Welfare Benefit
Plan.

     "Employee Pension Benefit Plan" has the meaning set forth in ERISA (S)3(2).

     "Employee Welfare Benefit Plan" has the meaning set forth in ERISA (S)3(1).

     "Environmental, Health, and Safety Requirements" shall mean all applicable
federal, state, local and foreign statutes, regulations, ordinances and similar
provisions having the force or

                                     - 2 -
<PAGE>

effect of law, and all judicial and administrative orders and determinations,
concerning public health and safety, worker health and safety, and pollution or
protection of the environment, including without limitation all those relating
to the presence, use, production, generation, handling, transportation,
treatment, storage, disposal, distribution, labeling, testing, processing,
discharge, release, threatened release, control, or cleanup of any hazardous
materials, substances or wastes, chemical substances or mixtures, pesticides,
pollutants, contaminants, toxic chemicals, petroleum products or byproducts,
asbestos, polychlorinated biphenyls, noise or radiation.

     "ERISA" means the Employee Retirement Income Security Act of 1974, as
amended.

     "ERISA Affiliate" means each entity which is treated as a single employer
with Seller for purposes of Code (S)414.

     "Fiduciary" has the meaning set forth in ERISA (S)3(21).

     "Financial Statement" has the meaning set forth in (S)IV.F., below.

     "GAAP" means United States generally accepted accounting principles as in
effect from time to time, consistently applied throughout the relevant period.

     "Hart-Scott-Rodino Act" means the Hart-Scott-Rodino Antitrust Improvements
Act of 1976, as amended.

     "Income Tax" means any federal, state, local, or foreign income tax,
including any interest, penalty, or addition thereto, whether disputed or not.

     "Income Tax Return" means any return, declaration, report, claim for
refund, or information return or statement relating to Income Taxes, including
any schedule or attachment thereto, and including any amendment thereof.

     "Indemnifying Party" has the meaning set forth in (S)VIII.B.1., below.

     "Intellectual Property" means (a) all inventions (whether patentable or
unpatentable and whether or not reduced to practice), all improvements thereto,
and all patents, patent applications, and patent disclosures, together with all
reissuances, continuations, continuations-in-part, revisions, extensions, and
reexaminations thereof; (b) all trademarks, service marks, trade dress, logos,
trade names, and corporate names, together with all translations, adaptations,
derivations, and combinations thereof and including all goodwill associated
therewith, and all applications,

                                     - 3 -
<PAGE>

registrations, and renewals in connection therewith; (c) all copyrightable
works, all copyrights, and all applications, registrations, and renewals in
connection therewith; (d) all mask works and all applications, registrations,
and renewals in connection therewith; (e) all trade secrets and confidential
business information (including ideas, research and development, know-how,
formulas, compositions, manufacturing and production processes and techniques,
technical data, designs, drawings, specifications, supplier lists, and cost
information; (f) customer lists, price lists, and business and marketing plans
and proposals; (g)all computer software (including data and related
documentation); and (h) all other proprietary rights therein, and (h) all copies
and tangible embodiments thereof (in whatever form or medium).

     "Knowledge" means actual knowledge.

     "Letter of Intent" means that certain Letter of Intent dated March 19,
1999, by and among Brokat, TST and the Individual Shareholders.

     "Most Recent Balance Sheet" means the balance sheet contained within the
Most Recent Financial Statements.

     "Most Recent Financial Statements" has the meaning set forth in (S)IV.G.,
below.

     "Most Recent Fiscal Month End" has the meaning set forth in (S)IV.B.4.,
below.

     "Most Recent Fiscal Year End" has the meaning set forth in (S)IV.G., below.

     "Multiemployer Plan" has the meaning set forth in ERISA (S)3(37).

     "Ordinary Course of Business" means the ordinary course of business
consistent with past custom and practice (including with respect to quantity and
frequency).

     "Party" has the meaning set forth in the preface above.

     "PBGC" means the Pension Benefit Guaranty Corporation.

     "Person" means an individual, a partnership, a corporation, a limited
liability company, an association, a joint stock company, a trust, a joint
venture, an unincorporated organization, or a governmental entity (or any
department, agency, or political subdivision thereof).

                                     - 4 -
<PAGE>

     "Prohibited Transaction" has the meaning set forth in ERISA (S)406 and Code
(S)4975.

     "Reportable Event" has the meaning set forth in ERISA (S)4043.

     "Representatives" means, collectively, any director(s), officer(s),
employee(s), agent(s), consultant(s), attorney(s), accountant(s),
representative(s) and adviser(s) of a Party.

     "Securities Act" means the Securities Act of 1933, as amended.

     "Securities Exchange Act" means the Securities Exchange Act of 1934, as
amended.

     "Security Interest" means any mortgage, pledge, lien, encumbrance, charge,
or other security interest, other than (a) mechanic's, materialmen's, and
similar liens, (b) liens for taxes not yet due and payable or for taxes that the
taxpayer is contesting in good faith through appropriate proceedings, (c)
purchase money liens and liens securing rental payments under capital lease
arrangements, and (d) other liens arising in the Ordinary Course of Business and
not incurred in connection with the borrowing of money.

     "Subsidiary(ies)" means TranSoft Services, Inc.,(a Georgia corporation) a
wholly-owned subsidiary of TST; and Internet Treasury Services, Inc., (a Georgia
corporation) a wholly-owned subsidiary of TST.

     "TST" has the meaning set forth in the preface above.

     "TST Share" means any issued and outstanding share (including treasury
stock) of the common capital stock (voting or non-voting) of TST.

     "Third Party Claim" has the meaning set forth in (S)VIII.C., below.

                        II. PURCHASE AND SALE OF SHARES

A.  Basic Transaction

The basic transaction consists of the acquisition by Brokat of 100% of the TST
Shares in  consideration of the payment by Brokat to the Shareholders of US$
18,674,000.00 (Eighteen Million Six Hundred Seventy-Four Thousand United States
Dollars).  TST Shares sold pursuant to this Stock Purchase Agreement will be
offered without registration with the U.S. Securities and Exchange Commission or
any U.S. State Securities Administrator.

                                     - 5 -
<PAGE>

B.  Payments to the Shareholders

1.   At Closing, an aggregate amount of $16,874,000.00 (Sixteen Million Eight
     Hundred Seventy-Four Thousand United States Dollars shall be paid to the
     order of each of the Shareholders in the following amounts:

     a. Gainer: $5,764,650.81

     b. Drake: $2,271,786.84

     c. Sating: $2,505,793.47

     d. Underwood: $168,710.17

     e. Drake Trust: $3,408,011.71

     f. Gainer Trust: $1,377,523.50

     g. 2nd Gainer Trust: $1,377,523.50

2.   Twelve months after Closing, the aggregate amount of $900,000.00 (Nine
     Hundred Thousand United States Dollars) shall be paid to the order of each
     of the Shareholders in the following amounts:

     a. Gainer: $307,466.26

     b. Drake: $121,169.14

     c. Sating: $133,650.24

     d. Underwood: $8,998.41

     e. Drake Trust: $181,771.40

     f. Gainer Trust: $73,472.27

     g. 2nd Gainer Trust: $73,472.27

3.   Twenty-four months after Closing, the aggregate amount of $900,000.00 (Nine
     Hundred Thousand United States Dollars) shall be paid to the order of each
     of the Shareholders in the following amounts:

     a. Gainer: $307,466.26

     b. Drake: $121,169.14

                                     - 6 -
<PAGE>

     c. Sating: $133,650.24

     d. Underwood: $8,998.41

     e. Drake Trust: $181,771.40

     f. Gainer Trust: $73,472.27

     g. 2nd Gainer Trust: $73,472.27

C.  The Closing

The closing of the transactions contemplated by this Agreement (the "Closing")
shall take place at the offices of Rooks, Pitts & Poust, Chicago, Illinois,
commencing at ____.m. local time on May ___, 1999, or such other date as Brokat
and the Shareholders may mutually determine (the "Closing Date"); provided,
however, that the Closing Date shall be no later than May 10, 1999.

D.  Deliveries at Closing

     1. Deliveries of the Shareholders and TST

          At the Closing a) the Shareholders and TST will deliver to Brokat the
          various certificates, instruments, and documents referred to in
          (S)VII.A., below, and b) each of the Shareholders will deliver to
          Brokat stock certificates representing all of his TST Shares, endorsed
          in blank or accompanied by duly executed assignment documents.

     2. Deliveries of Brokat

          At the Closing  Brokat will deliver to the Shareholders the various
          payments (by wire transfer of immediately available funds as
          instructed by the Shareholders), instruments, and documents referred
          to in (S)VII.B., below.

                      III. REPRESENTATIONS AND WARRANTIES
                           CONCERNING THE TRANSACTION

A.  Representations and Warranties of the Shareholders.  Each Shareholder
hereby represents and warrants to Brokat solely for himself (unless otherwise
specifically noted to the contrary) that the statements contained in this
(S)III.A. are correct and complete as of the date of this Agreement and will be
correct and complete as of the Closing Date (as though made then and as though
the Closing Date were substituted for the date of this Agreement throughout this
(S)III.A) subject only to the exceptions described in

                                     - 7 -
<PAGE>

the attached Disclosure Schedule. The representations and warranties made by
each Shareholder shall be deemed to be representations and warranties only as to
such Shareholder, unless specifically noted to the contrary.

1.   Authorization of Transaction.  The Shareholder has full power and authority
     to execute and deliver this Agreement and to perform his obligations
     hereunder.  This Agreement constitutes the valid and legally binding
     obligation of the Shareholder, enforceable in accordance with its terms and
     conditions.

2.   Non-contravention.  Neither the execution and the delivery of this
     Agreement, nor the consummation of the transactions contemplated hereby,
     will

      a. violate any constitution, statute, regulation, rule, injunction,
         judgment, order, decree, ruling, charge, or other restriction of any
         government, governmental agency, or court to which the Shareholder is
         subject, or

      b. conflict with, result in a breach of, constitute a default under,
         result in the acceleration of, create in any party the right to
         accelerate, terminate, modify, or cancel, or require any notice under
         any duty (fiduciary or otherwise), agreement, contract, lease, license,
         instrument, or arrangement to which the Shareholder is a party or by
         which he is bound or to which any of his assets is subject.

 3.  Good Title.  The Shareholders, in the aggregate, own 100% of the issued and
     outstanding stock of TST.  Each of the Shareholders has good and marketable
     title to and holds of record and owns beneficially the number of TST Shares
     set forth next to his or its name in Exhibit A, free and clear of any
     restrictions on transfer (other than any restrictions under the Securities
     Act and state securities laws), taxes, Security Interests, options,
     warrants, purchase rights, contracts, commitments, equities, claims,
     demands, or any other arrangement or duty (fiduciary or otherwise)
     restricting his right to sell, transfer and assign TST shares pursuant to
     this Agreement. None of the  Shareholders is a party to any option,
     warrant, purchase right, or other contract or commitment that could require
     the Shareholders to sell, transfer, or otherwise dispose of any capital
     stock of TST (other than pursuant to this Agreement).  None of the
     Shareholders is a party to any voting trust, proxy, or other agreement or
     understanding with respect to the voting of any capital stock of TST.  No
     Shareholder needs to give any notice to, make any filing with, or obtain
     any authorization, consent, or approval of any government or governmental
     agency the failure of which to do or obtain could restrict or prevent the
     Shareholder's right or ability to transfer and assign his TST Shares to
     Brokat

                                     - 8 -
<PAGE>

     pursuant to this Agreement. There are no outstanding or authorized options,
     warrants, purchase rights, subscription rights, conversion rights, or other
     contracts or commitments that could require TST to issue, sell, or
     otherwise cause to become outstanding any of its capital stock (other than
     pursuant to this Agreement) such that the TST Shares purchased under this
     Agreement might amount to less than 100% of the issued and outstanding
     capital stock of TST. The representations and warranties made in this
     (S)III.A.3. are made jointly and severally as to all Shareholders by the
     Individual Shareholders, and separately, for themselves only, by each of
     the Trust Shareholders.

4.   Brokers' Fees. The Shareholder does not have any liability or obligation to
     pay any fees or commissions to any broker, finder, or agent with respect to
     the transactions contemplated by this Agreement for which Brokat could
     become liable or obligated.

5.   Capitalization. The entire authorized capital stock of TST consists of
     100,000 voting TST Shares, of which 600 shares are issued and outstanding
     and no shares are held in treasury; and 900,000 non-voting shares, of which
     101,218 shares are issued and outstanding and no shares are held in
     treasury. All of the issued and outstanding TST Shares have been duly
     authorized, are validly issued, fully paid, and non-assessable. There are
     no voting trusts, proxies, or other agreements or understandings with
     respect to the voting of the capital stock of TST.

B. Representations and Warranties of Brokat.  Brokat represents and warrants
to the Shareholders that the statements contained in this (S)III.B. are correct
and complete as of the date of this Agreement and will be correct and complete
as of the Closing Date (as though made then and as though the Closing Date were
substituted for the date of this Agreement throughout (S)III.B.) Subject only to
the exceptions described in the attached Disclosure Schedule.

1.   Authorization of Transaction. Brokat has full power and authority
     (including full corporate power and authority) to execute and deliver this
     Agreement and has taken all required and appropriate corporate action,
     including approval of the execution, delivery and performance of this
     Agreement. This Agreement constitutes the valid and legally binding
     obligation of Brokat, enforceable in accordance with its terms and
     conditions. Brokat need not give any notice to, make any filing with, or
     obtain any authorization, consent, or approval of any government or
     governmental agency in order to consummate the transactions contemplated by
     this Agreement.

                                     - 9 -
<PAGE>

 2.  Non-contravention.  Neither the execution and the delivery of this
     Agreement, nor the consummation of the transactions contemplated hereby,
     will

     a. violate any constitution, statute, regulation, rule, injunction,
     judgment, order, decree, ruling, charge, or other restriction of any
     government, governmental agency, or court to which Brokat is subject, or

     b. conflict with, result in a breach of, constitute a default under, result
     in the acceleration of, create in any party the right to accelerate,
     terminate, modify, or cancel, or require any notice under any duty
     (fiduciary or otherwise), agreement, contract, lease, license, instrument,
     or arrangement to which Brokat is a party or by which it is bound or to
     which any of its assets is subject.

3.   Brokat does not have any liability or obligation to pay any fees or
     commissions to any broker, finder, or agent with respect to the
     transactions contemplated by this Agreement for which Shareholders could
     become liable or obligated.

                       IV. REPRESENTATIONS AND WARRANTIES
                      CONCERNING TST AND ITS SUBSIDIARIES

A.  Shareholders and TST.  The Shareholders, each for himself and not jointly
and severally,  and TST represent and warrant to Brokat that the following
statements are correct and complete as of the date of this Agreement and will be
correct and complete as of the Closing Date (as though made then and as though
the Closing Date were substituted for the date of this Agreement throughout this
Article IV.A.) subject only to the exceptions described in the attached
Disclosure Schedule:

1.   Organization, Qualification, and Corporate Power. Each of TST and its
     Subsidiaries is a corporation duly organized, validly existing, and in good
     standing under the laws of the jurisdiction of its incorporation. Each of
     TST and its Subsidiaries has full corporate power and authority to carry on
     the businesses in which it is engaged and to own and use the properties
     owned and used by it. Exhibit B lists the directors and officers of each of
     TST and its Subsidiaries, and the states in which each of TST and its
     Subsidiaries is authorized to conduct business and in good standing.

2.   Events Subsequent to the Most Recent Fiscal Year End. To the Knowledge of
     the Shareholders and TST, since the Most Recent Fiscal Year End, there has
     not been any material adverse change in the business, financial condition,
     operations, or results of operations of TST and its Subsidiaries taken as a

                                     - 10 -
<PAGE>

     whole, and, without limiting the generality of the foregoing, to the
     Knowledge of the Shareholders and TST, since that date:

     a.   neither TST nor any of its Subsidiaries has sold, leased, transferred,
          or assigned any material assets, tangible or intangible, except in the
          Ordinary Course of Business;

     b.   neither TST nor any of its Subsidiaries has entered into any material
          agreement, contract, lease, or license except in the Ordinary Course
          of Business, provided, however, that TST's broker's contract with
          MASI, Ltd., payments already made thereunder, and payment by TST to
          MASI, Ltd., of the remaining balance due thereunder in an amount not
          to exceed $326,000.00 (Three Hundred Twenty-Six Thousand United States
          Dollars) prior to Closing shall not be deemed a breach of this
          representation and warranty;

     c.   neither TST nor any of its Subsidiaries has accelerated, terminated,
          made material modifications to, or canceled any material agreement,
          contract, lease, or license to which either TST or any of its
          Subsidiaries is a party or by which either of them is bound;

     d.   neither TST nor any of its Subsidiaries has imposed any Security
          Interest upon any of its assets, tangible or intangible;

     e.   neither TST nor any of its Subsidiaries has made any material capital
          expenditures except in the Ordinary Course of Business;

     f.   neither TST nor any of its Subsidiaries has made any material capital
          investment in, or any material loan to, any other Person except in the
          Ordinary Course of Business;

     g.   TST and any of its Subsidiaries have not created, incurred, assumed,
          or guaranteed more than $200,000.00 in aggregate indebtedness for
          borrowed money and capitalized lease obligations;

     h.   neither TST nor any of its Subsidiaries has granted any license or
          sub- license of any material rights under or with respect to any
          Intellectual Property, except in the Ordinary Course of Business;

     i.   there has been no change made or authorized in the charter or bylaws
          of TST or any of its Subsidiaries;

                                     - 11 -
<PAGE>

     j.   neither TST nor any of its Subsidiaries has issued, sold, or otherwise
          disposed of any of its capital stock, or granted any options,
          warrants, or other rights to purchase or obtain (including upon
          conversion, exchange, or exercise) any of its capital stock, or
          otherwise amended or altered the rights of its voting stock;

     k.   neither TST nor any of its Subsidiaries has declared, set aside, or
          paid any dividend or made any distribution with respect to its capital
          stock (whether in cash or in kind) or redeemed, purchased, or
          otherwise acquired any of its capital stock;

     l.   neither TST nor any of its Subsidiaries has experienced any material
          damage, destruction, or loss (whether or not covered by insurance) to
          its property;

     m.   neither TST nor any of its Subsidiaries has made any loan to, or
          entered into any other transaction with, any of its directors,
          officers, and employees except in the Ordinary Course of Business;

     n.   neither TST nor any of its Subsidiaries has entered into employment
          contract or collective bargaining agreement, written or oral, or
          modified the terms of any existing such contract or agreement;

     o.   neither TST nor any of its Subsidiaries has granted any increase in
          the base compensation of any of its directors, officers, and employees
          except in the Ordinary Course of Business;

     p.   neither TST nor any of its Subsidiaries has adopted, amended,
          modified, or terminated any bonus, profit-sharing, incentive,
          severance, or other plan, contract, or commitment for the benefit of
          any of its directors, officers, and employees (or taken any such
          action with respect to any other Employee Benefit Plan);

     q.   neither TST nor any of its Subsidiaries has made any other material
          change in employment terms for any of its directors, officers, and
          employees except in the Ordinary Course of Business;

     r.   neither TST nor any of its Subsidiaries has reacquired shares of its
          voting common stock in anticipation of any transaction(s) contemplated
          in this Agreement;

     s.   neither TST nor any of its Subsidiaries has acquired any of the
          capital stock of Brokat; and

                                     - 12 -
<PAGE>

     t.   neither TST nor any of its Subsidiaries has committed to any of the
          foregoing.

 3.  Undisclosed Liabilities.  To the  Knowledge of Shareholders  and TST,
     neither TST nor any of its Subsidiaries has any material liability (whether
     asserted or unasserted, whether absolute or contingent, whether accrued or
     unaccrued, whether liquidated or unliquidated, and whether due or to become
     due, including any liability for taxes), except for (i) liabilities set
     forth on the face of the Most Recent Balance Sheet and (ii) liabilities
     which have arisen after the Most Recent Fiscal Month End in the Ordinary
     Course of Business.

 4.  Intellectual Property.

     a. To the  Knowledge of the Shareholders and TST neither TST nor any of its
     Subsidiaries has ever received any charge, complaint, claim, demand, or
     notice alleging any interference, infringement, misappropriation, or
     violation of any rights of Intellectual Property rights of third parties in
     any material respect(including any claim that any of TST and its
     Subsidiaries must license or refrain from using any Intellectual Property
     rights of any third party).  To the Knowledge of  the Shareholders, no
     third party has interfered with, infringed upon, misappropriated, or
     violated any material Intellectual Property rights of any of TST and its
     Subsidiaries in any material respect.

     b. To the Knowledge of Shareholders and TST, Exhibit C identifies each
     patent, copyright or registration which has been issued to either TST or
     any of its Subsidiaries with respect to any of its Intellectual Property;
     identifies each pending patent or copyright application or application for
     registration which either TST or any of its Subsidiaries has made with
     respect to any of its Intellectual Property; identifies each material
     license, agreement, or other permission which either TST or any of its
     Subsidiaries has granted to any third party with respect to any of its
     Intellectual Property (together with any exceptions); and identifies each
     and every other item of Intellectual Property, whether or not patented (or
     pending), copyrighted (or applied for), registered (or applied for)
     necessary or useful to the business of TST or any of its Subsidiaries as
     presently conducted or as planned or projected in projections delivered to
     Brokat.  TST has delivered to Brokat correct and complete copies of all
     such patents, registrations, applications, licenses, agreements, and
     permissions (as amended to date). Exhibit C also identifies each material
     trade or service name or mark, and unregistered trade or service name or
     mark used by TST or any of its Subsidiaries in connection with any of their
     businesses.  With respect to each item of Intellectual

                                     - 13 -
<PAGE>

     Property required to be identified in Exhibit C, to the Knowledge of the
     Shareholders and TST:

     i.   TST and its Subsidiaries possess all right, title, and interest in and
          to the item, free and clear of any Security Interest, license, or
          other restriction;

     ii.  the item is not subject to any outstanding injunction, judgment,
          order, decree, ruling, or charge;

     iii. no action, suit, proceeding, hearing, investigation, charge,
          complaint, claim, or demand is pending or is threatened which
          challenges the legality, validity, enforceability, use, or ownership
          of the item; and

     iv.  Except in the Ordinary Course of Business, neither TST nor any of its
          Subsidiaries has ever agreed to indemnify any Person for or against
          any interference, infringement, misappropriation, or other conflict
          with respect to the item.

c. To the Knowledge of Shareholders and TST, Exhibit D identifies each material
          item of Intellectual Property that any third party owns and that TST
          or any of its Subsidiaries uses pursuant to license, sublicense,
          agreement, or permission.  TST has delivered to Brokat correct and
          complete copies of all such licenses, sublicenses, agreements, and
          permissions (as amended to date).  With respect to each item of
          Intellectual Property required to be identified in Exhibit D, to the
          Knowledge of the Shareholders and TST:

     i.   the license, sublicense, agreement, or permission covering the item is
          legal, valid, binding, enforceable, and in full force and effect in
          all material respects;

     ii.  TST and its Subsidiaries are not and no other party to the license,
          sublicense, agreement, or permission is in material breach or default,
          and no event has occurred which with notice or lapse of time would
          constitute a material breach or default or permit termination,
          modification, or acceleration thereunder;

     iii. no party to the license, sublicense, agreement, or permission has
          repudiated any material provision thereof; and

     iv.  neither TST nor any of its Subsidiaries has granted any sublicense or
          similar right with respect to the license, sublicense, agreement, or
          permission, except to customers as necessary in the Ordinary Course of
          Business.

                                     - 14 -
<PAGE>

 5.  Certain Business Relationships With TST and Its Subsidiaries. None of the
     Shareholders and their Affiliates has been involved in any material
     business arrangement or relationship with TST or any of its Subsidiaries
     (other than as officer, director or employee) within the past 12 months,
     and none of the Shareholders and their Affiliates owns any material asset,
     tangible or intangible, which is used in the business of TST or any of its
     Subsidiaries.

 6.  Tax Matters.  To the  Knowledge of Shareholders and TST, the tax returns
     heretofore filed by TST and its Subsidiaries did not and do not materially
     understate TST's income or materially overstate expenses.

 7.  Disclosure.  The representations and warranties contained in this (S)IV.A.
     do not contain any untrue statement of a material fact or omit to state any
     material fact necessary in order to make the statements and information
     contained in this (S)IV.A. not misleading. This representation and warranty
     is limited to the Knowledge of the Shareholders with respect to any
     representations and warranties above which are made to the Knowledge of the
     Shareholders.

B.   TST.  TST represents and warrants to Brokat that the following statements
are correct and complete as of the date of this Agreement and will be correct
and complete as of the Closing Date (as though made then and as though the
Closing Date were substituted for the date of this Agreement throughout this
Article IV) subject only to the exceptions described in the attached Disclosure
Schedule:

 1.  Non-contravention.  Neither the execution and the delivery of this
     Agreement, nor the consummation of the transactions contemplated hereby,
     will (i) violate any constitution, statute, regulation, rule, injunction,
     judgment, order, decree, ruling, charge, or other restriction of any
     government, governmental agency, or court to which any of TST or any of its
     Subsidiaries is subject or any provision of the charter or bylaws of any of
     TST or any of its Subsidiaries or (ii) conflict with, result in a breach
     of, constitute a default under, result in the acceleration of, create in
     any party the right to accelerate, terminate, modify, or cancel, or require
     any notice under any agreement, contract, lease, license, instrument, or
     other arrangement to which any of TST or any of its Subsidiaries is a party
     or by which it is bound or to which any of its assets is subject (or result
     in the imposition of any Security Interest upon any of its assets), except
     where the violation, conflict, breach, default, acceleration, termination,
     modification, cancellation, failure to give notice, or Security Interest
     would not have a material adverse effect on the business, financial
     condition,

                                     - 15 -
<PAGE>

     operations, or results of operations of TST and its Subsidiaries or on the
     ability of the Parties to consummate the transactions contemplated by this
     Agreement. Neither TST nor any of its Subsidiaries needs to give any notice
     to, make any filing with, or obtain any authorization, consent, or approval
     of any government or governmental agency in order for the Parties to
     consummate the transactions contemplated by this Agreement, except where
     the failure to give notice, to file, or to obtain any authorization,
     consent, or approval would not have a material adverse effect on the
     business, financial condition, operations, or results of operations of TST
     or any of its Subsidiaries or on the ability of the Parties to consummate
     the transactions contemplated by this Agreement.

 2.  Title to Assets.  TST and its Subsidiaries have good and marketable title
     to, or a valid leasehold interest in, the properties and assets used by
     them, located on their premises, or shown on the Most Recent Balance Sheet
     or acquired after the date thereof, free and clear of all Security
     Interests, except for properties and assets disposed of in the Ordinary
     Course of Business since the date of the Most Recent Balance Sheet.

 3.  Subsidiaries. Exhibit E sets forth for each of its Subsidiaries (i) its
     name and jurisdiction of incorporation, (ii) the number of shares of
     authorized capital stock of each class of its capital stock, (iii) the
     number of issued and outstanding shares of each class of its capital stock,
     the names of the holders thereof, and the number of shares held by each
     such holder, and (iv) the number of shares of its capital stock held in
     treasury.  All of the issued and outstanding shares of capital stock of
     Subsidiaries of TST have been duly authorized and are validly issued, fully
     paid, and non-assessable.  TST holds of record and owns beneficially all of
     the outstanding shares of its Subsidiaries, free and clear of any
     restrictions on transfer (other than restrictions under the Securities Act
     and state securities laws), taxes, Security Interests, options, warrants,
     purchase rights, contracts, commitments, equities, claims, and demands.
     There are no outstanding or authorized options, warrants, purchase rights,
     subscription rights, conversion rights, exchange rights, or other contracts
     or commitments that could require any of TST and its Subsidiaries to sell,
     transfer, or otherwise dispose of any capital stock of its Subsidiaries or
     that could require any of its Subsidiaries to issue, sell, or otherwise
     cause to become outstanding any of its own capital stock.  There are no
     outstanding stock appreciation, phantom stock, profit participation, or
     similar rights with respect to any of its Subsidiaries.  There are no
     voting trusts, proxies, or other agreements or understandings with respect
     to the voting of any

                                     - 16 -
<PAGE>

     capital stock of any of its Subsidiaries. None of TST and its Subsidiaries
     controls directly or indirectly or has any direct or indirect equity
     participation in any corporation, partnership, trust, or other business
     association.

 4.  Financial Statements.  Attached hereto as Exhibit F are the following
     financial statements (collectively the "Financial Statements"): (i) audited
     consolidated balance sheets and statements of income, changes in
     stockholders' equity, and cash flow as of and for the fiscal year ended
     September 30, 1998 (the "Most Recent Fiscal Year End"), for TST and its
     Subsidiaries, and (ii) unaudited consolidated balance sheets and statements
     of income, changes in stockholders' equity, and cash flow as of and for the
     period ended March 31, 1999(the "Most Recent Fiscal Month End"),(the "Most
     Recent Financial Statements").

     The Financial Statements (including the notes thereto) have been prepared
     in accordance with GAAP applied on a consistent basis throughout the
     periods covered thereby and present fairly the financial condition and the
     results of operations of TST and its Subsidiaries on a consolidated basis
     for such periods; provided, however, that the Most Recent Financial
     Statements are subject to normal year-end adjustments (which will not be
     material individually or in the aggregate) and may be required to reflect a
     change of accounting method from "cash basis" accounting to "accrual
     method" accounting, and lack footnotes and other presentation items.

5.   Legal Compliance. Each of TST and its Subsidiaries has complied in all
     material respects with all applicable laws (including rules, regulations,
     codes, plans, injunctions, judgments, orders, decrees, rulings, and charges
     thereunder) of federal, state, local, and foreign governments (and all
     agencies thereof), and no action, suit, proceeding, hearing, investigation,
     charge, complaint, claim, demand, or notice has been filed or commenced
     against any of them alleging any failure so to comply, except where the
     failure to comply would not have a material adverse effect on the business,
     financial condition, operations, results of operations, or future prospects
     of TST and any of its Subsidiaries.

6.   Tax Matters.

     a.   Each of TST and any of its Subsidiaries has filed all Income Tax
          Returns and other tax returns that it was required to file. To TST's
          Knowledge such Income Tax Returns and other tax returns were correct
          and complete in all material respects. All taxes owed by either of TST
          and any of its Subsidiaries (shown on any Income Tax Return or other
          tax return) have been paid. Neither TST

                                     - 17 -
<PAGE>

          nor any of its Subsidiaries currently is the beneficiary of any
          extension of time within which to file any Income Tax Return or other
          tax return.

     b.   To TST's Knowledge there is no material dispute or claim concerning
          any tax liability of any of TST and any of its Subsidiaries claimed or
          raised by any authority in writing.

     c.   TST has delivered to Brokat correct and complete copies of all
          federal, state and local (if any) income tax returns, examination
          reports, and statements of deficiencies assessed against, or agreed to
          by either TST or any of its Subsidiaries since October 1, 1995.
          Neither TST nor any of its Subsidiaries has waived any statute of
          limitations in respect of income taxes or agreed to any extension of
          time with respect to an income tax assessment or deficiency.

     d.   Neither TST nor any of its Subsidiaries has filed a consent under Code
          (S)341(f) concerning collapsible corporations. Neither TST nor any of
          its Subsidiaries has made any material payments, is obligated to make
          any material payments, or is a party to any agreement that under
          certain circumstances could obligate it to make any material payments
          that will not be deductible under Code (S)280G. Neither TST nor any of
          its Subsidiaries has been a United States real property holding
          corporation within the meaning of Code (S)897(c)(2) during the
          applicable period specified in Code (S)897(c)(1)(A)(ii). Neither TST
          nor any of its Subsidiaries is a party to any tax allocation or
          sharing agreement. Neither TST nor any of its Subsidiaries

          i.   has been a member of an Affiliated Group filing a consolidated
               federal income tax return (other than a group the common parent
               of which was TST) or

          ii.  has any liability for the taxes of any Person (other than TST and
               its Subsidiaries) under Reg. (S)1.1502-6 (or any similar
               provision of state, local, or foreign law), as a transferee or
               successor, by contract, or otherwise.

     e.   The unpaid income taxes of TST and its Subsidiaries (A) did not, as of
          the Most Recent Fiscal Month End, exceed by any material amount the
          reserve for income tax liability (rather than any reserve for deferred
          taxes established to reflect timing differences between book and tax
          income) set forth on the face of the Most Recent Balance Sheet and (B)
          will not exceed by any material amount that reserve as adjusted for
          operations and transactions

                                     - 18 -
<PAGE>

          through the Closing Date in accordance with the past custom and
          practice of TST and its Subsidiaries in filing their income tax
          returns.

7.   Tangible Assets. To TST's Knowledge the machinery, equipment, and other
     tangible assets that TST and its Subsidiaries own and lease are free from
     material defects (patent and latent), have been maintained in accordance
     with normal industry practice, and are in good operating condition and
     repair (subject to normal wear and tear).

8.   Contracts. Exhibit G lists the following contracts and other agreements to
     which any of TST and any of its Subsidiaries is a party:

     a.   any agreement (or group of related agreements) for the lease of
          personal property to or from any Person providing for lease payments
          in excess of $200,000.00 per annum;

     b.   any agreement (or group of related agreements) for the purchase or
          sale of raw materials, commodities, supplies, products, or other
          personal property, or for the furnishing or receipt of services, the
          performance of which will extend over a period of more than one year
          or involve consideration in excess of $500,000.00;

     c.   any agreement concerning a partnership or joint venture;

     d.   any agreement (or group of related agreements) under which it has
          created, incurred, assumed, or guaranteed any indebtedness for
          borrowed money, or any capitalized lease obligation, in excess of
          $200,000.00 or under which it has imposed a Security Interest on any
          of its assets, tangible or intangible;

     e.   any material agreement concerning confidentiality or noncompetition;

     f.   any material agreement with any of the Shareholders and their
          Affiliates (other than TST and its Subsidiaries);

     g.   any profit sharing, stock option, stock purchase, stock appreciation,
          deferred compensation, severance, or other material plan or
          arrangement for the benefit of its current or former directors,
          officers, and employees;

     h.   any collective bargaining agreement;

     i.   any agreement for the employment of any individual on a full-time,
          part-time, consulting, or other basis

                                     - 19 -
<PAGE>

          providing annual compensation in excess of $150,000.00 or providing
          material severance benefits;

     j.   any agreement under which it has advanced or loaned any amount to any
          of its directors, officers, and employees except in the Ordinary
          Course of Business;

     k.   any agreement under which the consequences of a default or termination
          could have a material adverse effect on the business, financial
          condition, operations, results of operations, or future prospects of
          TST and any of its Subsidiaries; or

     l.   any other agreement (or group of related agreements) the performance
          of which involves consideration in excess of $500,000.00.

TST has delivered to Brokat a correct and complete copy of each written
agreement(as amended to date)listed in Exhibit G and a written summary setting
forth the material terms and conditions of each oral agreement referred to in
Exhibit G.  With respect to each such agreement:

     aa.  the agreement is legal, valid, binding, enforceable, and in full force
          and effect in all material respects;

     bb.  TST and its Subsidiaries are not, and to the Knowledge of TST no party
          is in material breach or default, and no event has occurred which with
          notice or lapse of time would constitute a material breach or default,
          or permit termination, modification, or acceleration, under the
          agreement; and

     cc.  no party has repudiated any material provision of the agreement.

 9.  Notes and Accounts Receivable.  All notes and accounts receivable of TST
     and its Subsidiaries are reflected properly on their books and records, and
     to TST's Knowledge, are valid receivables subject to no set-offs or
     counterclaims, are current and collectible, and will be collected in
     accordance with their terms at their recorded amounts, subject only to the
     reserve for bad debts set forth in the Most Recent Balance Sheet as
     adjusted for operations and transactions through the Closing Date in
     accordance with the past custom and practice of TST and its Subsidiaries.

 10. Powers of Attorney.  To the Knowledge of TST and any of its Subsidiaries,
     there are no material outstanding powers of attorney executed on behalf of
     any of TST and any of its Subsidiaries.

                                     - 20 -
<PAGE>

 11. Insurance.  Exhibit H sets forth the following information with respect to
     each material insurance policy (including policies providing property,
     casualty, liability, and workers compensation coverage and bond and surety
     arrangements) with respect to which TST or any of its Subsidiaries is a
     party, a named insured, or otherwise the beneficiary of coverage:

     a.   the name, address, and telephone number of the agent;

     b.   the name of the insurer, the name of the policyholder, and the name of
          each covered insured;

     c.   the policy number and the period of coverage;

     d.   the coverage (including an indication of whether the coverage is on a
          claims made, occurrence, or other basis) and amount (including a
          description of how deductibles and ceilings are calculated and
          operate) of coverage; and

     e.   a description of any retroactive premium adjustments or other material
          loss- sharing arrangements.

     With respect to each such insurance policy: to TST's Knowledge, the policy
     is legal, valid, binding, enforceable, and in full force and effect in all
     material respects; neither TST nor any of its Subsidiaries nor any other
     party to the policy is in material breach or default (including with
     respect to the payment of premiums or the giving of notices), and no event
     has occurred which, with notice or the lapse of time, would constitute such
     a material breach or default, or permit termination, modification, or
     acceleration, under the policy; and no party to the policy has repudiated
     any material provision thereof.  Exhibit H describes any material self-
     insurance arrangements affecting TST or any of its Subsidiaries.

12.  Litigation. Exhibit I sets forth each instance in which either TST or any
     of its Subsidiaries is subject to any outstanding injunction, judgment,
     order, decree, ruling, or charge, or is a party or, to the Knowledge of TST
     and any of its Subsidiaries, is threatened to be made a party to any
     action, suit, proceeding, hearing, or investigation of, in, or before any
     court or quasi-judicial or administrative agency of any federal, state,
     local, or foreign jurisdiction or before any arbitrator.

13.  Product Warranty. TST and its Subsidiaries do not sell or lease software
     products to customers, but rather licenses software products to their
     customers. To the Knowledge of TST, substantially all of the products
     licensed and delivered by TST and its Subsidiaries have conformed in all
     material

                                     - 21 -
<PAGE>

     respects with all applicable contractual commitments and any express and
     implied warranties offered, or such products have been corrected to conform
     to such warranties, and neither TST nor any of its Subsidiaries has any
     material liability (, whether asserted or unasserted, whether absolute or
     contingent, whether accrued or unaccrued, whether liquidated or
     unliquidated, and whether due or to become due) for replacement or repair
     thereof or other damages in connection therewith, other than the obligation
     to revise any software programs to conform to warranties under licenses or
     applicable maintenance agreements. Exhibit J includes copies of the
     standard terms and conditions of license for TST and any of its
     Subsidiaries (containing applicable guaranty, warranty, and indemnity
     provisions). Notwithstanding that most licenses of products by TST and its
     Subsidiaries are pursuant to individually negotiated variations on the
     standard terms and conditions, all of them exclude any liability of TST or
     its Subsidiaries for incidental and consequential damages.

14.  Product Liability Neither TST nor any of its Subsidiaries has any material
     liability (whether asserted or unasserted, whether absolute or contingent,
     whether accrued or unaccrued, whether liquidated or unliquidated, and
     whether due or to become due) arising out of any injury to individuals or
     property as a result of the ownership, possession, or use of any product
     manufactured, sold, leased, or delivered by any of TST or any of its
     Subsidiaries.

15.  Employees. To the Knowledge of TST and its Subsidiaries, no executive, key
     employee, or significant group of employees plans to terminate employment
     with any of TST or any of its Subsidiaries during the 12 months following
     the date hereof. Neither TST nor any of its Subsidiaries is a party to or
     bound by any collective bargaining agreement, nor has any of them
     experienced any strike or material grievance, claim of unfair labor
     practices, or other collective bargaining dispute within the past three
     years. To the Knowledge of TST neither TST nor any of its Subsidiaries has
     committed any material unfair labor practice. Neither TST nor any of its
     Subsidiaries has any Knowledge of any organizational effort presently being
     made or threatened by or on behalf of any labor union with respect to
     employees of any of TST or any of its Subsidiaries.

16.  Year 2000. To TST's Knowledge, each software product sold, licensed or
     otherwise assigned by TST and any of its Subsidiaries in its business
     (collectively, the "Software") will accurately process date data
     (including, but not limited to, calculating, comparing and sequencing)
     from, into and between the twentieth and twenty-first centuries, including,
     without limitation, leap year calculations, without a decrease in the
     functionality of the Software. To TST's Knowledge,

                                     - 22 -
<PAGE>

     after substantial and prudent testing, the Software is designed to
     correctly process dates that are in the range from January 1, 1980 through
     December 31, 2079, and will operate while processing such dates without
     error relating to date data, specifically including any error relating to,
     or the product of, date data which represents or references different
     centuries or more than one century. Without limiting the generality of the
     foregoing, the Software (a) will not abnormally end or provide invalid or
     incorrect results as a result of date data, specifically including date
     data which represents or references different centuries or more than one
     century; (b) has been designed to ensure year 2000 compatibility,
     including, but not limited to, date data century recognition, calculations
     which accommodate same century and multi- century formulas and date values,
     and date data interface values that reflect the century; (c) will manage
     and manipulate data involving dates, including single century formulas and
     multi-century formulas, and will not cause an abnormally ending scenario
     within the application or generate incorrect values or invalid results
     involving such dates; and (d) provides that all date-related data interface
     functionalities include the indication of century.

17.  Employee Benefits.

     a.   Exhibit K lists each Employee Benefit Plan that either TST or any of
          its Subsidiaries maintains or to which either TST or any of its
          Subsidiaries contributes or has any obligation to contribute.

          i. To TST's Knowledge, each such Employee Benefit Plan (and each
          related trust, insurance contract, or fund) complies in form and in
          operation in all material respects with the applicable requirements of
          ERISA, the Code, and other applicable laws.

          ii. All required reports and descriptions (including Form 5500 Annual
          Reports, summary annual reports, PBGC-l's, and summary plan
          descriptions) have been timely filed and distributed appropriately
          with respect to each such Employee Benefit Plan.  The requirements of
          COBRA have been met in all material respects with respect to each such
          Employee Benefit Plan which is an Employee Welfare Benefit Plan.

          iii. All contributions (including all employer contributions and
          employee salary reduction contributions) which are due have been paid
          to each such Employee Benefit Plan which is an Employee Pension
          Benefit Plan and all contributions for any period ending on or before
          the Closing Date which are not yet due have

                                     - 23 -
<PAGE>

          been paid to each such Employee Pension Benefit Plan or accrued in
          accordance with the past custom and practice of TST and its
          Subsidiaries. All premiums or other payments for all periods ending on
          or before the Closing Date have been paid with respect to each such
          Employee Benefit Plan which is an Employee Welfare Benefit Plan.

          iv. Each such Employee Benefit Plan which is an Employee Pension
          Benefit Plan meets the requirements of a "qualified plan" under Code
          (S)401(a), has received, within the last two years, a favorable
          determination letter from the Internal Revenue Service that it is a
          "qualified plan," and to TST's Knowledge there are no facts or
          circumstances that could result in the revocation of such
          determination letter.

          v. The market value of assets under each such Employee Benefit Plan
          which is an Employee Pension Benefit Plan (other than any
          Multiemployer Plan) equals or exceeds the present value of all vested
          and nonvested liabilities thereunder determined in accordance with
          PBGC methods, factors, and assumptions applicable to an Employee
          Pension Benefit Plan terminating on the date for determination.

          vi. TST has delivered to Brokat correct and complete copies of the
          plan documents and summary plan descriptions, the most recent
          determination letter received from the Internal Revenue Service, the
          most recent Form 5500 Annual Report, and all related trust agreements,
          insurance contracts, and other funding agreements which implement each
          such Employee Benefit Plan.

     b.   With respect to each Employee Benefit Plan that any of TST, any of its
          Subsidiaries, and any ERISA Affiliate maintains or ever has maintained
          or to which any of them contributes, ever has contributed, or ever has
          been required to contribute:

          i. No such Employee Benefit Plan which is an Employee Pension Benefit
          Plan (other than any Multiemployer Plan) has been completely or
          partially terminated or been the subject of a Reportable Event as to
          which notices would be required to be filed with the PBGC.  No
          proceeding by the PBGC to terminate any such Employee Pension Benefit
          Plan (other than any Multiemployer Plan) has been instituted or, to
          the Knowledge of TST, threatened.

          ii. There have been no Prohibited Transactions with respect to any
          such Employee Benefit Plan.  No Fiduciary

                                     - 24 -
<PAGE>

          has any liability for material breach of fiduciary duty or any other
          material failure to act or comply in connection with the
          administration or investment of the assets of any such Employee
          Benefit Plan. No action, suit, proceeding, hearing, or investigation
          with respect to the administration or the investment of the assets of
          any such Employee Benefit Plan (other than routine claims for
          benefits) is pending or, to the Knowledge of TST, threatened.

          iii. To TST's Knowledge, neither TST nor any of its Subsidiaries has
          incurred any material liability (whether asserted or unasserted,
          whether absolute or contingent, whether accrued or unaccrued, whether
          liquidated or unliquidated, and whether due or to become due) to the
          PBGC (other than PBGC premium payments) or otherwise under Title IV of
          ERISA (including any withdrawal liability as defined in ERISA (S)4201)
          or under the Code with respect to any such Employee Benefit Plan which
          is an Employee Pension Benefit Plan.

     c.   Neither TST, nor any of its Subsidiaries, nor the other members of any
          Controlled Group that includes TST and any of its Subsidiaries
          contributes to, ever has contributed to, or, to TST's Knowledge, ever
          has been required to contribute to any Multiemployer Plan or has any
          material liability whether asserted or unasserted, whether absolute or
          contingent, whether accrued or unaccrued, whether liquidated or
          unliquidated, and whether due or to become due), including any
          withdrawal liability (as defined in ERISA (S)4201), under any
          Multiemployer Plan.

     d.   Neither TST nor any of its Subsidiaries maintains or ever has
          maintained or contributes, ever has contributed, or, to TST's
          Knowledge, ever has been required to contribute to any Employee
          Welfare Benefit Plan providing medical, health, or life insurance or
          other welfare-type benefits for current or future retired or
          terminated employees, their spouses, or their dependents (other than
          in accordance with COBRA).

 18. Guaranties. Neither TST nor any of its Subsidiaries is a guarantor or
     otherwise is responsible for any liability or obligation (including
     indebtedness) of any other Person.

 19. Environment, Health, and Safety Matters.

     a. To TST's Knowledge, each of TST, its Subsidiaries, and their respective
     predecessors and Affiliates has complied and is in compliance, in each case
     in all material respects, with all Environmental, Health, and Safety
     Requirements.

                                     - 25 -
<PAGE>

     b. To TST's Knowledge, without limiting the generality of the foregoing,
     each of TST, any of its Subsidiaries, and their respective Affiliates, has
     obtained, has complied, and is in compliance with, in each case in all
     material respects, all material permits, licenses and other authorizations
     that are required pursuant to Environmental, Health, and Safety
     Requirements for the occupation of its facilities and the operation of its
     business; a list of all such material permits, licenses and other
     authorizations is set forth on the attached "Environmental and Safety
     Permits Schedule."

     c. To TST's Knowledge, none of TST, any of its Subsidiaries, or their
     respective Affiliates has received any written or oral notice, report or
     other information regarding any actual or alleged material violation of
     Environmental, Health, and Safety Requirements, or any material liabilities
     or potential material liabilities (whether accrued, absolute, contingent,
     unliquidated or otherwise), including any material investigatory, remedial
     or corrective obligations, relating to any of them or its facilities
     arising under Environmental, Health, and Safety Requirements.

     d. Except as set forth on the attached "Environmental and Safety Matters
     Schedule", to TST's Knowledge, none of the following exists at any property
     or facility operated by TST or any of its Subsidiaries: (1) underground
     storage tanks, (2) asbestos-containing material in any friable and damaged
     form or condition, (3) materials or equipment containing polychlorinated
     biphenyls, or (4) landfills, surface impoundments, or disposal areas.

     e. To TST' Knowledge, none of TST, any of its Subsidiaries, or any of their
     respective predecessors or Affiliates has treated, stored, disposed of,
     arranged for or permitted the disposal of, transported, handled, or
     released any substance, including without limitation any hazardous
     substance, or owned or operated any property or facility (and no such
     property or facility is contaminated by any such substance) in a manner
     that has given or would give rise to material liabilities, including any
     material liability for response costs, corrective action costs, personal
     injury, property damage, natural resources damages or attorney fees,
     pursuant to the Comprehensive Environmental Response, Compensation and
     Liability Act of 1980, as amended ("CERCLA") or the Solid Waste Disposal
     Act, as amended ("SWDA") or any other Environmental, Health, and Safety
     Requirements.

     f. Neither this Agreement nor the consummation of the transaction that is
     the subject of this Agreement will result in any material obligations for
     site investigation or cleanup, or notification to or consent of government
     agencies or third

                                     - 26 -
<PAGE>

     parties, pursuant to any of the so-called "transaction- triggered" or
     "responsible property transfer" Environmental, Health, and Safety
     Requirements.

 20. Disclosure.  To TST's Knowledge the representations and warranties
     contained in this (S)IV.B. do not contain any untrue statement of a
     material fact or omit to state any material fact necessary in order to make
     the statements and information contained in this (S)IV.B. not misleading.

                            V. Pre-Closing Covenants

The Parties agree as follows with respect to the period between the execution of
this Agreement and the Closing.

A. General. Each of the Parties will use his or its reasonable best efforts to
take all action and to do all things necessary, proper, or advisable in order to
consummate and make effective the transactions contemplated by this Agreement
(including satisfaction, but not waiver, of the closing conditions set forth in
Article VII below).

B. Notices and Consents. TST shall give any notices to third parties, and shall
obtain any third party consents that Brokat reasonably may request in connection
with any exceptions (noted in the Disclosure Schedule attached hereto) to the
representations and warranties described in Article IV., above. Each of the
Parties will (and the Shareholders will cause TST and its Subsidiaries to) give
any notices to, make any filings with, and use its reasonable best efforts to
obtain any authorizations, consents, and approvals of governments and
governmental agencies in connection with the matters referred to in (S)III.A.2.,
(S)III.B.2., and (S)IV.C. above. Without limiting the generality of the
foregoing, each of the Parties will file (and the Shareholders will cause each
of TST and its Subsidiaries to file) any Notification and Report Forms and
related material that he or it may be required to file with the Federal Trade
Commission and the Antitrust Division of the United States Department of Justice
under the Hart-Scott-Rodino Act, will use his or its reasonable best efforts to
obtain a waiver from the applicable waiting period, and will make any further
filings pursuant thereto that may be necessary, proper, or advisable in
connection therewith.

C. Operation of Business. TST and any of its Subsidiaries shall not engage in
any practice, take any action, or enter into any transaction except in the
Ordinary Course of Business. Without limiting the generality of the foregoing,
TST and any of its Subsidiaries shall not, except in the Ordinary Course of
Business

1.   declare, set aside, or pay any dividend or make any distribution with
     respect to its capital stock, or

                                     - 27 -
<PAGE>

2.   redeem, purchase, or otherwise acquire any of its capital stock, or

3.   otherwise engage in any practice, take any action, or enter into any
     transaction of the sort described in (S)IV.G., above.

D. Preservation of Business. TST and its Subsidiaries shall use reasonable best
efforts to keep their business and properties substantially intact, including
present operations, physical facilities, working conditions, and relationships
with lessors, licensors, suppliers, customers, and employees.

E. Full Access. Each of the Shareholders shall permit, and TST and its
Subsidiaries shall permit, representatives of Brokat to have full access at all
reasonable times, and in a manner so as not to interfere with the normal
business operations of TST and its Subsidiaries, to all premises, properties,
personnel, books, records (including tax records), contracts, and documents of
or pertaining to TST and its Subsidiaries. Brokat will treat and hold as such
any Confidential Information it receives from any of the Shareholders, TST, and
its Subsidiaries in the course of the reviews contemplated by this (S)V.E., will
not use any of the Confidential Information except in connection with this
Agreement, and, if this Agreement is terminated for any reason whatsoever, will
return to the Shareholders, TST, and its Subsidiaries all tangible embodiments
(and all copies) of the Confidential Information which are in its possession.

F. Notice of Developments. TST will give prompt written notice to Brokat of any
material adverse development causing a breach of any of the representations and
warranties in Article IV., above. Each Party will give prompt written notice to
the others of any material adverse development causing a breach of any of his or
its own representations and warranties in Article III above. No disclosure by
any Party pursuant to this (S)V.F., however, shall be deemed to amend or
supplement the Exhibits to this Agreement or to prevent or cure any
misrepresentation, breach of warranty, or breach of covenant.

G. Exclusivity.  None of the Shareholders will (and the Shareholders will not
cause or permit TST or any of its Subsidiaries to) (i) solicit, initiate, or
encourage the submission of any proposal or offer from any Person relating to
the acquisition of any capital stock or other voting securities, or any
substantial portion of the assets, of any of TST and any of its Subsidiaries
(including any acquisition structured as a merger, consolidation, or share
exchange) or (ii) participate in any discussions or negotiations regarding,
furnish any information with respect to, assist or participate in, or facilitate
in any other manner any effort or attempt by any Person to do or seek any of the
foregoing.  None of the Shareholders will vote their TST Shares in

                                     - 28 -
<PAGE>

favor of any such acquisition structured as a merger, consolidation, or share
exchange. The Shareholders shall promptly notify Brokat of any inquiry or
proposal received by the Shareholders or TST with respect to any such
acquisition and shall furnish Brokat with a copy of any written information
relating thereto. In the event that Shareholders or TST breach the provisions of
this (P)V.G. and subsequently close(s) a transaction for the sale of a majority
of the capital stock of TST, or all or substantially all of the material assets
of TST (whether through direct purchase, merger, consolidation or otherwise)
with a person or entity (or an affiliate of such person or entity) that was
involved in said breach of this (S)V.G. then, upon the closing of such
transaction, the Shareholders shall on a pro rata basis pay to Brokat a fee
equal to 3.5% of the value of the shares or assets (as the case may be) to be
exchanged in this transaction. The foregoing shall be the exclusive remedy, and
in lieu of all other remedies at law or in equity, of Brokat for breach of the
provisions of this (S)V.G.

H. Confidentiality. Each Party agrees that all Confidential Information
pertaining to the other Party or parties and furnished, or to be furnished, by
or on behalf of such other Party or parties (i) will be kept in strict
confidence by each Party and its Representatives, (ii) if the transactions
contemplated in this Agreement are not consummated, such Confidential
Information shall not be used in competition with either Party or for any
purpose other than evaluating the transaction, and (iii) such information shall
not be disclosed to any person other than each Party's Representatives who need
to know such information for the purpose of evaluating the transaction or for
other relationships between the parties and their subsidiaries. If such
information is disclosed to any Representative of either Party, that person or
entity shall be informed at the time of such disclosure of the confidential
nature of the information and of his or its obligations with respect thereto. If
for any reason the transaction is not consummated, each Party will return to the
other Party all documents and materials containing or reflecting Confidential
Information and will not retain any copies, summaries, extracts, or other
reproductions thereof, except information relating the ongoing business
relationship of the Parties.

I. Confidentiality Agreements. Brokat shall provide to TST and its Subsidiaries
samples of the confidentiality agreements for officers and employees presently
used by Brokat in its own organization. TST and its Subsidiaries shall confer
with Brokat regarding the best approach to be made to officers and employees of
TST and its Subsidiaries for the purpose of securing their execution of
confidentiality agreements. Brokat, TST and TST's Subsidiaries recognize that
this endeavor shall be made in such a way as to minimize disruption to the
business of TST and its Subsidiaries.

                                     - 29 -
<PAGE>

J. MASI Fee. TST shall pay the broker fee owed to MASI in the amount of
$326,000.

                          VI. Post-Closing Covenants.

With respect to the period following the Closing:

A.   General.

1.   In case at any time after the Closing any further action is necessary to
     carry out the purposes of this Agreement, each of the Parties will take
     such further action (including the execution and delivery of such further
     instruments and documents) as any other Party reasonably may request, all
     at the sole cost and expense of the requesting Party (unless the requesting
     Party is entitled to indemnification therefor under Article VIII, below).

2.   The Shareholders acknowledge and agree that from and after the Closing
     Brokat will be entitled to possession of all documents, books, records
     (including tax records), agreements, and financial data of any sort
     relating to TST and its Subsidiaries.

3.   None of the Shareholders will take any action that is designed or intended
     to have the effect of discouraging any lessor, licensor, customer,
     supplier, or other business associate of TST and any of its Subsidiaries
     from maintaining the same business relationships with TST and any of its
     Subsidiaries after the Closing as it maintained with TST and any of its
     Subsidiaries prior to the Closing.

4.   Each of the Shareholders will treat and hold as such all of the information
     deemed confidential under this Agreement ("Confidential Information"),
     refrain from using any of the Confidential Information except in connection
     with this Agreement or future employment with TST, Brokat or an affiliate
     of either of them, and deliver promptly to Brokat or destroy, at the
     request and option of Brokat, all tangible embodiments (and all copies) of
     the Confidential Information which are in his possession.  In the event
     that any of the Shareholders is requested or required (by oral question or
     request for information or documents in any legal proceeding,
     interrogatory, subpoena, civil investigative demand, or similar process) to
     disclose any Confidential Information, that Shareholder will notify Brokat
     promptly of the request or requirement so that Brokat may seek an
     appropriate protective order or waive compliance with the provisions of
     this subsection.  If, in the absence of a protective order or the receipt
     of a waiver hereunder, any of the Shareholders is, on the advice of
     counsel, compelled to disclose any Confidential

                                     - 30 -
<PAGE>

     Information to any tribunal or else stand liable for contempt, that
     Shareholder may disclose the Confidential Information to the tribunal;
     provided, however, that the disclosing Shareholder shall use his or its
     reasonable best efforts to obtain, at the reasonable request of Brokat, an
     order or other assurance that confidential treatment will be accorded to
     such portion of the Confidential Information required to be disclosed as
     Brokat shall designate.

B.   Covenant Not to Compete.  For a period of two years from and after the
Closing Date, Gainer, Drake or Sating (hereinafter in this (S)VI.B. referred to
as "Sellers:) will not,  (except with the express written consent of TST or
Brokat) directly or indirectly, whether for the Seller's own behalf or on behalf
of any person, firm, partnership, association, corporation or business
organization, entity or enterprise, in any way do or attempt to do any of the
following:

1.   solicit, contact, call upon, communicate with, or attempt to communicate
     with, in any way directly or indirectly, for the purpose of attempting to
     provide services or goods competitive with those of TST or Brokat, any
     client or prospective client of TST or Brokat, with whom the Seller has had
     personal contact within a period of two years prior to the Closing.  A
     client, for the purposes of this (S)VI.B., means any person, corporation,
     or other enterprise with whom TST or Brokat has entered into an agreement
     for services or goods within the two-year period prior to the Closing.  A
     prospective client, for purposes of this (S)VI.B., means any one to whom a
     proposal for services or goods was made within the two year period prior to
     the Closing.  The Seller understands and agrees that the market for TST's
     and Brokat's products and services is worldwide, that TST and Brokat
     conducts their business in competition with enterprises located throughout
     the world and that the geographical scope of this provision is fair and
     reasonable;

2.   contact, hire or attempt to persuade any agents, employees, or officers of
     TST or Brokat to terminate their relationship with TST or Brokat or do any
     act that may result in the impairment of the relationship between TST or
     Brokat or any of their respective agents, employees or officers; or

3.   dissuade any client from seeking services or goods from TST.

If the final judgment of a court of competent jurisdiction declares that any
term or provision of this (S)VI.B. is invalid or unenforceable, the Parties
agree that the court making the determination of invalidity or unenforceability
shall have the power to reduce the scope, duration, or area of the term or
provision, to delete specific words or phrases, or to replace any

                                     - 31 -
<PAGE>

invalid or unenforceable term or provision with a term or provision that is
valid and enforceable and that comes closest to expressing the intention of the
invalid or unenforceable term or provision, and this Agreement shall be
enforceable as so modified after the expiration of the time within which the
judgment may be appealed.

C. Personal Guaranties.  Within 10 business days after the Closing, TST and
Brokat shall have taken the necessary steps to relieve the Individual
Shareholders of personal guaranties  on a TST line of credit and other
liabilities of TST with a present aggregate outstanding balance of approximately
$60,000.00 (Sixty Thousand United States Dollars) which they have made on behalf
of TST as principal debtor.  The Individual Shareholders shall deliver to
Brokat, at or before the Closing, documentation evidencing such guaranties and
the amount thereof. From and after the Closing, Brokat agrees to indemnify and
hold the Individual Shareholders from and against any and all liability under
the mentioned guaranties.

                     VII. Conditions to Obligation to Close

A.   Conditions to Obligation of Brokat.  The obligation of Brokat to consummate
the transactions to be performed by it in connection with the Closing is subject
to satisfaction of the following conditions:

1.   the representations and warranties set forth in (S)III.A. and Article IV.,
     above shall be true and correct in all material respects at and as of the
     Closing Date;

2.   the Shareholders and TST shall have performed and complied with all of
     their covenants hereunder in all material respects through the Closing;

3.   TST and its Subsidiaries shall have procured all of the material third
     party consents specified in (S)V.B. above;

4.   no action, suit, or proceeding shall be pending before any court or quasi-
     judicial or administrative agency of any federal, state, local, or foreign
     jurisdiction or before any arbitrator wherein an unfavorable injunction,
     judgment, order, decree, ruling, or charge would (A) prevent consummation
     of any of the transactions contemplated by this Agreement, (B) cause any of
     the transactions contemplated by this Agreement to be rescinded following
     consummation, (C) affect adversely the right of Brokat to own TST Shares
     and to control TST and its Subsidiaries, or (D) affect materially and
     adversely the right of any of TST and its Subsidiaries to own its assets
     and to operate its businesses (and no such injunction, judgment, order,
     decree, ruling, or charge shall be in effect);

                                     - 32 -
<PAGE>

5.   the Shareholders shall have delivered to Brokat a certificate to the effect
     that each of the conditions specified above in (S)VII.A.1.-4. is satisfied
     in all respects;

6.   all applicable waiting periods (and any extensions thereof) under the Hart-
     Scott-Rodino Act shall have expired or otherwise been terminated and the
     Parties, TST, and its Subsidiaries shall have received all other material
     authorizations, consents, and approvals of governments and governmental
     agencies referred to in (S)III.A.2., (S)III.B.1., and (S)IV.B.1., above;

7.   all actions to be taken by the Shareholders, TST and any of its
     Subsidiaries in connection with consummation of the transactions
     contemplated herein and all certificates, opinions, instruments, and other
     documents required to effect the transactions contemplated hereby will be
     reasonably satisfactory in form and substance to Brokat;

8.   all U.S. federal and state securities law requirements have been satisfied;
     and

9.   receipt by Brokat of written resignations of all directors and officers of
TST and its Subsidiaries who are Shareholders.

Brokat may waive any condition specified in this (S)VII.A. if it executes a
writing so stating at or prior to the Closing.

B. Conditions to Obligation of the Shareholders and TST. The obligation of the
Shareholders and TST to consummate the transactions to be performed by them in
connection with the Closing is subject to satisfaction of the following
conditions:

1.   the representations and warranties set forth in (S)III.B. above shall be
     true and correct in all material respects at and as of the Closing Date;

2.   Brokat shall have performed and complied with all of its covenants
     hereunder in all material respects through the Closing;

3.   no action, suit, or proceeding shall be pending before any court or quasi-
     judicial or administrative agency of any federal, state, local, or foreign
     jurisdiction or before any arbitrator wherein an unfavorable injunction,
     judgment, order, decree, ruling, or charge would (A) prevent consummation
     of any of the transactions contemplated by this Agreement or (B) cause any
     of the transactions contemplated by this Agreement to be rescinded
     following consummation (and no such injunction, judgment, order, decree,
     ruling, or charge shall be in effect);

                                     - 33 -
<PAGE>

4.   Brokat shall have delivered to the Shareholders a certificate to the effect
     that each of the conditions specified above in (S)VII.B. 1.-  3. is
     satisfied in all respects;

5.   all applicable waiting periods (and any extensions thereof) under the Hart-
     Scott-Rodino Act shall have expired or otherwise been terminated and
     Brokat, TST, and  Subsidiaries shall have received all other material
     authorizations, consents, and approvals of governments and governmental
     agencies referred to in (S)III.B.1., above;

6.   employment agreements shall have been executed between Brokat and certain
     key executives of TST, namely, Edward J. Gainer III, Bill D. Drake, Dennis
     M. Sating, and Neil Underwood, to be employed with TST, Brokat or an
     affiliate of them.

7.   all actions to be taken by Brokat in connection with consummation of the
     transactions contemplated hereby will be reasonably satisfactory in form
     and substance to the Shareholders.

The Shareholders may waive any condition specified in this (S)VII.B. if they
execute a writing so stating at or prior to the Closing.

      VIII. Remedies for Breaches of This Agreement.

A. Survival of Representations and Warranties.

1.   The representations and warranties of the Shareholders, TST, and Brokat
     contained in (S)III. (other than (S)III.A.3. above) shall not survive the
     Closing hereunder; excepting, however, that the representations and
     warranties contained in (S)III.A.3., above, shall survive the Closing
     hereunder (even if Brokat knew or had reason to know of any
     misrepresentation or breach of warranty at the time of Closing) and
     continue in full force and effect for a period of one year thereafter.

2.   The representations and warranties contained in (S)IV.A. shall survive the
     Closing hereunder (even if Brokat knew or had reason to know of any
     misrepresentation or breach of warranty at the time of Closing) as follows:

     a. (S)IV.A.2. shall survive for 6 months after the Closing; and

     b. the remaining representations and warranties in (S)IV.A. shall survive
     for 12 months after the Closing.

B.   Indemnification Provisions for Benefit of Brokat.

1.   In the event any of the Shareholders breaches any of their representations,
     warranties, and covenants contained in (S)III.A.3., above, and, provided
     that Brokat makes a written

                                     - 34 -
<PAGE>

     claim for indemnification against any of the Shareholders within the
     applicable survival period, then (a) each of the Individual Shareholders
     agrees, jointly and severally, and (b) each of the Trust Shareholders
     agrees, separately for itself, to indemnify Brokat from and against the
     entirety of any Adverse Consequences Brokat may suffer through and after
     the date of the claim for indemnification (including any Adverse
     Consequences Brokat may suffer after the end the applicable survival
     period) resulting from, arising out of, relating to, in the nature of, or
     caused by the breach, but not more than the total consideration paid to the
     Shareholders pursuant to this Agreement. Brokat's remedies shall include,
     without limitation thereto, rescission and restitution. The Parties shall
     make appropriate adjustments for tax consequences and insurance coverage
     and take into account the time cost of money in determining Adverse
     Consequences for purposes of this Article VIII. Brokat shall have a right
     of offset for any amount due it hereunder by reason of indemnification
     against any sums, if any, owed and not yet due by Brokat to the
     Shareholders pursuant to Sections (S)(S)II.B.2. & 3. The amount of offset
     with respect to each Trustee Shareholder shall be limited to the amount, if
     any, still payable by Brokat to such Trustee Shareholder.

2.   In the event any of the Shareholders breaches any of their representations,
     warranties, and covenants contained in (S)IV.A. above, and, provided that
     Brokat makes a written claim for indemnification against any of the
     Shareholders within the applicable survival period, then each of the
     Shareholders agrees, separately for himself only, to indemnify Brokat from
     and against any Adverse Consequences Brokat may suffer through and after
     the date of the claim for indemnification (including any Adverse
     Consequences Brokat may suffer after the end the applicable survival
     period) resulting from, arising out of, relating to, in the nature of, or
     caused by the breach.  The indemnification in this (S)VIII.B.2. shall cover
     Adverse Consequences only after they shall have aggregated $750,000.00, and
     shall be limited to a total indemnification of $1,450,000.00. Brokat shall
     have a right of offset for any amount due it hereunder by reason of
     indemnification against any sums, if any, owed and not yet due by Brokat to
     the Shareholders pursuant to Sections (S)(S)II.B.2. & 3. The amount of
     offset with respect to each Trustee Shareholder shall be limited to the
     amount, if any, still payable by Brokat to such Trustee Shareholder. The
     Parties shall make appropriate adjustments for tax consequences and
     insurance coverage and take into account the time cost of money in
     determining Adverse Consequences for purposes of this Article VIII.

C.   Matters Involving Third Parties.

                                     - 35 -
<PAGE>

1.   If any third party shall notify Brokat with respect to any matter (a "Third
     Party Claim") which may give rise to a claim for indemnification against
     any other Party (the "Indemnifying Party") under this Article VIII, then
     Brokat shall promptly notify each Indemnifying Party thereof in writing;
     provided, however, that no delay on the part of Brokat in notifying any
     Indemnifying Party shall relieve the Indemnifying Party from any obligation
     hereunder unless (and then solely to the extent) the Indemnifying Party is
     thereby materially prejudiced.

2.   Any Indemnifying Party will have the right to assume the defense of the
     Third Party Claim with counsel of his choice reasonably satisfactory to
     Brokat at any time within 15 days after Brokat has been given notice of the
     Third Party Claim; provided, however, that the Indemnifying Party must
     conduct the defense of the Third Party Claim actively and diligently
     thereafter in order to preserve his rights in this regard; and provided
     further that Brokat may retain separate co-counsel at its sole cost and
     expense and observe, consul and cooperate in the defense of the Third Party
     Claim.

3.   So long as the Indemnifying Party has assumed and is conducting the defense
     of the Third Party Claim in accordance with (S)VIII.B.2., above, (A) the
     Indemnifying Party will not consent to the entry of any judgment or enter
     into any settlement with respect to the Third Party Claim without the prior
     written consent of Brokat (not to be withheld unreasonably) unless the
     judgment or proposed settlement involves only the payment of money damages
     by one or more of the Indemnifying Parties and does not impose an
     injunction or other equitable relief upon the Brokat and (B) Brokat will
     not consent to the entry of any judgment or enter into any settlement with
     respect to the Third Party Claim without the prior written consent of the
     Indemnifying Party (not to be withheld unreasonably).

4.   In the event the Indemnifying Parties do not assume and conduct the defense
     of the Third Party Claim in accordance with (S)VIII.B.2., (A) Brokat may
     defend against, and consent to the entry of any judgment or enter into any
     settlement with respect to, the Third Party Claim in any manner Brokat
     reasonably may deem appropriate (and Brokat need not consult with, or
     obtain any consent from, any Indemnifying Party in connection therewith)
     and (B) the Indemnifying Parties will remain responsible for any Adverse
     Consequences Brokat may suffer resulting from, arising out of, relating to,
     in the nature of, or caused by the Third Party Claim to the fullest extent
     provided in this Article VIII.

                                IX. Tax Matters.

                                     - 36 -
<PAGE>

A. Cooperation. Brokat, TST, Subsidiaries and Shareholders shall cooperate
fully, as and to the extent reasonably requested by the other Party, in
connection with the filing of tax returns pursuant to this Section and any
audit, litigation or other proceeding with respect to taxes. Such cooperation
shall include the retention and (upon the other Party's request) the provision
of records and information which are reasonably relevant to any such audit,
litigation or other proceeding and making employees available on a mutually
convenient basis to provide additional information and explanation of any
material provided hereunder. TST and its Subsidiaries and Shareholders agree (A)
to retain all of its or his respective books and records with respect to tax
matters pertinent to TST and any of its Subsidiaries relating to any taxable
period beginning before the Closing Date until the expiration of the statute of
limitations (and, to the extent notified by Brokat or Shareholders, any
extensions thereof) of the respective taxable periods, and to abide by all
record retention agreements entered into with any taxing authority, and (B) to
give the other Party reasonable written notice prior to transferring, destroying
or discarding any such books and records and, if the other Party so requests,
TST and its Subsidiaries or Shareholders, as the case may be, shall allow the
other Party to take possession of such books and records.

B. Mitigation of Tax Liability. Brokat and Shareholders further agree, upon
request, to use their best efforts to obtain any certificate or other document
from any governmental authority or any other Person as may be necessary to
mitigate, reduce or eliminate any tax that could be imposed (including, but not
limited to, with respect to the transactions contemplated hereby).

C. Code (S)6043. Brokat and Shareholders further agree, upon request, to provide
the other Party with all information that either Party may be required to report
pursuant to (S)6043 of the Code and all Treasury Department Regulations
promulgated thereunder.

                                X. Termination.

A. Termination of Agreement. Certain of the Parties may terminate this Agreement
as provided below:

1.   Brokat and the Shareholders may terminate this Agreement by mutual written
     consent at any time prior to the Closing;

2.   Brokat may terminate this Agreement by giving written notice to the
     Shareholders at any time prior to the Closing (A) in the event any of the
     Shareholders or TST has breached any material representation, warranty, or
     covenant contained in this Agreement in any material respect, the Buyer has
     notified the Requisite Shareholders of the breach, and the breach has

                                     - 37 -
<PAGE>

     continued without cure for a period of 15 after the notice of breach or (B)
     if the Closing shall not have occurred on or before May 10, 1999, by reason
     of the failure of any condition precedent under (S)VII.A. hereof (unless
     the failure results primarily from Brokat itself breaching any
     representation, warranty, or covenant contained in this Agreement); and

3.   The representative designated by the Shareholders may terminate this
     Agreement by giving written notice to Brokat at any time prior to the
     Closing (A) in the event Brokat has breached any material representation,
     warranty, or covenant contained in this Agreement in any material respect,
     any of the Shareholders has notified Brokat of the breach, and the breach
     has continued without cure for a period of 15 days after the notice of
     breach or (B) if the Closing shall not have occurred on or before April 30,
     l999, by reason of the failure of any condition precedent under (S)VII.B.
     hereof (unless the failure results primarily from any of the Shareholders
     themselves or TST breaching any representation, warranty, or covenant
     contained in this Agreement).

B. Effect of Termination. If any Party terminates this Agreement pursuant to
(S)X.A., above, all rights and obligations of the Parties hereunder shall
terminate without any liability of any Party to any other Party (except for any
liability of any Party then in breach); provided, however, that the
confidentiality provisions contained in (S)V.H. above, shall survive
termination.

Additionally, if the parties fail to achieve Closing under this Agreement,
except in the event failure to achieve the Closing shall have been caused by any
of the Shareholders or of TST, Brokat and TST shall execute and deliver:

1.   That certain Minority Equity Investment Agreement attached to the Letter of
     Intent as Exhibit A thereto;

2.   That certain inventory Finance Loan Agreement attached to the Letter of
     Intent as Exhibit B thereto; and

3.   That certain Promissory Note attached to the Letter of Intent as Exhibit C
     thereto.

                               XI. Miscellaneous.

A. Press Releases and Public Announcements. No Party shall issue any press
release or make any public announcement relating to the subject matter without
the prior written approval of Brokat and Gainer; provided, however, that any
Party may make any public disclosure it believes in good faith is required by
applicable law or any listing or trading agreement concerning its publicly-
traded securities (in which case the disclosing Party will use its

                                     - 38 -
<PAGE>

reasonable efforts to advise the other Parties prior to making the disclosure).

B. No Third-Party Beneficiaries. This Agreement shall not confer any rights or
remedies upon any Person other than the Parties and their respective successors
and permitted assigns.

C. Entire Agreement. This Agreement (including the documents referred to herein)
constitutes the entire agreement among the Parties and supersedes any prior
understandings, agreements, or representations by or among the Parties, written
or oral, to the extent they related in any way to the subject matter hereof.

D. Succession and Assignment. This Agreement shall be binding upon and inure to
the benefit of the Parties named herein and their respective successors and
permitted assigns. No Party may assign either this Agreement or any of his or
its rights, interests, or obligations hereunder without the prior written
approval of Brokat and the Shareholders; provided, however, that Brokat may (i)
assign any or all of its rights and interests hereunder to one or more of its
Affiliates and (ii) designate one or more of its Affiliates to perform its
obligations hereunder (in any or all of which cases Brokat nonetheless shall
remain responsible for the performance of all of its obligations hereunder).

E. Counterparts. This Agreement may be executed in one or more counterparts,
each of which shall be deemed an original but all of which together will
constitute one and the same instrument.

F. Headings. The section headings contained in this Agreement are inserted for
convenience only and shall not affect in any way the meaning or interpretation
of this Agreement.

G. Notices. All notices, requests, demands, claims, and other communications
hereunder will be in writing. Any notice, request, demand, claim, or other
communication hereunder shall be deemed duly given if (and then two business
days after) it is sent by registered or certified mail, return receipt
requested, postage prepaid, and addressed to the intended recipient as set forth
below:

     If to the Shareholders:  Edward Gainer
                              5268 Wyntercreek Way
                              Dunwoody, GA 30338

               Copy to:       Kathleen A. Finefrock, Esq.
                              Schwartz & Freeman
                              401 N. Michigan Avenue, Suite 1900
                              Chicago, IL 60611

                                     - 39 -
<PAGE>

     If to TST:               Transaction Software Technologies, Inc.
                              600 Pinnacle Court, Suite 655
                              Norcross, GA 30071

     If to Brokat:  Brokat Infosystems, Inc.
                    3480 Preston Ridge Road, Suite 200
                    Alpharetta, GA 30005-8891
                    Attn: ________________

               Copy to:  Harry N. Arger
                         Jeffrey M. Dalebroux
                         Rooks, Pitts and Poust
                         10 S. Wacker Drive, Suite 2300
                         Chicago, IL 60606

Any Party may send any notice, request, demand, claim, or other communication
hereunder to the intended recipient at the address set forth above using any
other means (including personal delivery, expedited courier, messenger service,
telecopy, telex, ordinary mail, or electronic mail), but no such notice,
request, demand, claim, or other communication shall be deemed to have been duly
given unless and until it actually is received by the intended recipient.  Any
Party may change the address to which notices, requests, demands, claims, and
other communications hereunder are to be delivered by giving the other Parties
notice in the manner herein set forth.

H. Governing Law and Jurisdiction. This Agreement shall be governed by and
construed in accordance with the domestic laws of the State of Georgia without
giving effect to any choice or conflict of law provision or rule (whether of the
State of Georgia or any other jurisdiction) that would cause the application of
the laws of any jurisdiction other than the State of Georgia. The Parties
consent to the non-exclusive jurisdiction of any federal or state court sitting
in Atlanta, Georgia. Each Party hereby waives to the extent permitted by law
personal service of any and all process and consents that all such service of
process shall be made by certified or registered mail directed to the party at
the address designated in this Agreement for notices, and service so made shall
be deemed to be completed upon actual receipt thereof. Each party hereby waives
any objection which such Party may have based on improper venue or forum non
conveniens to the conduct of any proceeding instituted hereunder and waives any
right it may have to transfer or change the venue of any litigation brought in
accordance with this (S)XI.H.

I. Amendments and Waivers. No amendment of any provision of this Agreement shall
be valid unless the same shall be in writing and signed by Brokat and the
Shareholders. No waiver by any Party of any default, misrepresentation, or
breach of warranty or covenant

                                     - 40 -
<PAGE>

hereunder, whether intentional or not, shall be deemed to extend to any prior or
subsequent default, misrepresentation, or breach of warranty or covenant
hereunder or affect in any way any rights arising by virtue of any prior or
subsequent such occurrence.

J. Severability. Any term or provision of this Agreement that is invalid or
unenforceable in any situation in any jurisdiction shall not affect the validity
or enforceability of the remaining terms and provisions hereof or the validity
or enforceability of the offending term or provision in any other situation or
in any other jurisdiction.

K. Expenses. Each of the Parties, TST, and its Subsidiaries will bear his or its
own costs and expenses (including legal fees and expenses) incurred in
connection with this Agreement and the transactions contemplated hereby. Brokat
agrees that TST will bear the Shareholders' reasonable costs, fees and expenses,
including any of their legal, accounting, and business and financial consultant
fees and expenses, in connection with the transactions contemplated by this
Agreement.

L. Construction. The Parties have participated jointly in the negotiation and
drafting of this Agreement. In the event an ambiguity or question of intent or
interpretation arises, this Agreement shall be construed as if drafted jointly
by the Parties and no presumption or burden of proof shall arise favoring or
disfavoring any Party by virtue of the authorship of any of the provisions of
this Agreement. Any reference to any federal, state, local, or foreign statute
or law shall be deemed also to refer to all rules and regulations promulgated
thereunder, unless the context requires otherwise. The word "including" shall
mean including without limitation.

M. Incorporation of Exhibits, Annexes, and Schedules. The Exhibits, Annexes, and
Schedules identified in this Agreement are incorporated herein by reference and
made a part hereof.

                                     *****

                             SIGNATURE PAGES FOLLOW

                                     - 41 -
<PAGE>

     IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of
the date first above written.

BROKAT INFOSYSTEMS AG

By:    __________________________
Name:  __________________________
Title: __________________________

By:    __________________________
Name:  __________________________
Title: __________________________

TRANSACTION SOFTWARE TECHNOLOGIES, INC.

By:    __________________________
Name:  __________________________
Title: __________________________

SHAREHOLDERS

_______________________________
Dr. Edward J. Gainer III, individually

_______________________________
Bill D. Drake, individually

_______________________________
Dennis M. Sating, individually

_______________________________
Neil Underwood, individually

_______________________________
ELIZABETH ANDERSON DWORSCHAK,
AS SPECIAL INDEPENDENT TRUSTEE OF THE BILL D. AND ROSEMARY DRAKE CHARITABLE
REMAINDER TRUST, DATED APRIL 13, 1999

                                     - 42 -
<PAGE>

_____________________________________________________________
MARGARET ELIZABETH GAINER AND EDWARD J. GAINER IV, AS CO-TRUSTEES
OF THE EDWARD JOSEPH GAINER III IRREVOCABLE FAMILY TRUST
DATED APRIL 18, 1999

____________________________________________________________
EDWARD JOSEPH GAINER AND JAMES A GAINER, AS CO-TRUSTEES OF THE MARGARET
ELIZABETH GAINER IRREVOCABLE FAMILY TRUST, DATED APRIL 18, 1999

                                     - 43 -
<PAGE>

                                   EXHIBIT A
                                   ---------

            NAMES OF SHAREHOLDERS AND NUMBER OF SHARES HELD BY EACH

                    TRANSACTION SOFTWARE TECHNOLOGIES, INC.
                    ---------------------------------------

NAME OF SHAREHOLDER                      VOTING                     NON-VOTING
-------------------                      ------                     ----------

Dr. Edward J. Gainer III                   306                         34,478

Bill D. Drake                              204                         13,504

Dennis M. Sating                            90                         15,030

Neil Underwood                               0                          1,018

Edward Joseph Gainer III
Irrevocable Family Trust                     0                          8,312

Margaret Elizabeth Gainer
Irrevocable Family Trust                     0                          8,312

Bill D. and Rosemary Drake
Charitable Remainder Trust                   0                         20,564

<PAGE>

                                   EXHIBIT B
                                   ---------

                            DIRECTORS AND OFFICERS

                    TRANSACTION SOFTWARE TECHNOLOGIES, INC.
                    ---------------------------------------

DIRECTORS                        OFFICERS

Dr. Edward J. Gainer III         Dr. Edward J. Gainer III (Chairman of the
                                 Board, Secretary)

Bill D. Drake                    Bill D. Drake (President)

Dennis M. Sating                 Dennis M. Sating (Vice President)

 . Company has good standing in Georgia.

                            TRANSOFT SERVICES, INC.
                            -----------------------

DIRECTORS                        OFFICERS

Dr. Edward J. Gainer III         Dr. Edward J. Gainer III (Chairman of the
                                 Board, Chief Executive Officer)

Bill D. Drake                    Bill D. Drake (President)

Dennis M. Sating                 Dennis M. Sating (Vice President)

 . Company has good standing in Georgia and Texas.

                       INTERNET TREASURY SERVICES, INC.
                       --------------------------------

DIRECTORS                        OFFICERS

Dr. Edward J. Gainer III         Bill D. Drake (President, Treasurer)

Bill D. Drake                    Dr. Edward J. Gainer III (Secretary)

Dennis M. Sating

 . Company has good standing in Georgia.

<PAGE>

                                   EXHIBIT C
                                   ---------

                             INTELLECTUAL PROPERTY

See list of agreements under Exhibit G. TST grants licenses in the software
systems listed below to certain of the financial institutions identified in the
contracts listed under Exhibit G. Some of the licenses permit the financial
institutions to sub-license the software systems to the financial institutions'
customers as end-users. In addition, TST places a "Copyright" designation upon
the source code and upon the documentation associated with the software.

NETS Software System
     Web Based Version
     Terminal Entry Version

GMTS-Global Money Transfer System
     Terminal Entry Version
     Web Version (in development)

Total Consulting Group
     PC Rec.
     PC FILE

Stop Payment Program
     Terminal Entry Version
     Web Version

ACH-Automated Clearing House System
     Terminal Entry Version
     Web Version

MMIS-Money Market Investment System
     Terminal Entry Version

AAS-Cash Management Accounting System
     Terminal Entry Version

Account Transfer System
     Terminal Entry Version
     Web Version

AIM-Application Interface Monitor

<PAGE>

P.C. Based Systems:
------------------

     Positive Pay
     Money Transfer
     Stop Payments
     Scheduler
     Account Transfer
     Account Reconciliation
     Balance Reporting

Custom Electronic Interface to Intranet

Interface to CAL/Money Net Money Transfer System

Electronic Interface to Back Office - Stop Payment Systems

COBOL Subroutine Library for Cash Management

C++ Library for Cash Management
     Java Library for Cash Management

INTPDATA (TST Proprietary Transaction Database Structure). This constitutes a
trade secret embodied in some TST Software.

     "AIM" Trademark (unregistered)

     "TST" Logo (unregistered)

     "On-Target" (unregistered)

TST may have other common-law trademarks, common law copyrights, or common-law
service marks in any and all of the above listed computer system names.

<PAGE>

                                   EXHIBIT D
                                   ---------

          INTELLECTUAL PROPERTY LICENSED BY TST AND ITS SUBSIDIARIES

 . TST entered into an Agreement with Global Payment Systems, LLC ("GPS"), dated
  October 3, 1997 whereby GPS transferred, conveyed and assigned to TST full and
  equal joint ownership in and to any and all rights of GPS and its affiliate
  National Data Corporation in and to the NETS computer program. The transfer
  and assignment was made subject to a number of existing licenses granted by
  GPS and National Data Corporation to certain banks, bank service companies,
  service bureaus, and other users. The Agreement also assigned certain existing
  agreements to TST, including all rights, income and other benefits thereunder.
  In consideration of the transfer and assignment of the rights to the NETS
  computer program, TST agrees to pay to GPS a transfer fee for each license
  which TST may grant to banks, bank service companies, service bureaus, and
  other users.

 . Under a Software Distribution Agreement between TST and Total Consulting Group
  ("TCG"), dated April 5, 1991, TST has the right to distribute the following
  software programs owned by TCG: T6530 Terminal Emulator; T6530 File Transfer;
  T6530 Utilities; T6530 LAN Driver; PCREC; TCG Program Trace Facility; TCG
  Testing Utilities. Under the Agreement, TST may grant licenses of the programs
  to end users for a license fee, and must remit one-half of the TCG recommended
  price to TCG for each license granted.

 . TST incorporates a software program called BETRIEVE into certain TST software.
  BETRIEVE is developed and owned by Pervasive Software and TST uses it on a
  royalty fee basis.

 . TST incorporates a software program called ZAP into certain TST software. ZAP
  is developed and owned by Inmark Development Corporation and TST uses it on a
  royalty free basis.

 . TST plans to enter into a License Purchase Agreement with Phi-Tech, Inc. for
  purchase of license for file transfer software.

 . TST plans to enter into a Licensing Agreement with International Business
  Machines Corporation ("IBM") for development license of MQ Series Software for
  Tandem platform.

 . TST uses the system application software supplied with Tandem micro-computers
  and IBM personal computers, including but not limited to Microsoft Operating
  Systems and Applications Software and Novell Networking Software. TST also
  uses generally available commercial software.

<PAGE>

                                   EXHIBIT E
                                   ---------

                                 SUBSIDIARIES

                            TRANSOFT SERVICES, INC.
                            -----------------------

(i)     jurisdiction of incorporation:

        Georgia, USA.

(ii)    number of shares of authorized capital stock of each class of its
        capital stock:

        1,000 shares of common stock.

(iii)   number of issued and outstanding shares of each class of its capital
        stock, the names of the holders thereof, and the number of shares held
        by each such holder:

        1,000 shares of common stock held by Transaction Software Technologies,
        Inc.

(iv)    the number of shares of its capital stock held in treasury:

        Zero.

                       INTERNET TREASURY SERVICES, INC.
                       --------------------------------

(i)     jurisdiction of incorporation:

        Georgia, USA.

(ii)    number of shares of authorized capital stock of each class of its
        capital stock:

        100 shares of common stock.

(iii)   number of issued and outstanding shares of each class of its capital
        stock, the names of the holders thereof, and the number of shares held
        by each such holder:

        100 shares of common stock held by Transaction Software Technologies,
        Inc.

(iv)    the number of shares of its capital stock held in treasury:

        Zero.

<PAGE>

                                   EXHIBIT I

                                  LITIGATION

                                     None

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