Document:

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                                                                    Exhibit 10.6

                               KOLTER HOMES, INC.

                            SUBCONTRACTOR AGREEMENT

THIS AGREEMENT, made this 5th day of October, 1998, by and between KOLTER HOMES,
INC., hereinafter called the Contractor, and INTEGRATED HOMES, hereinafter
called the Subcontractor, Address: 7301-A W. Palmetto Park Road, Boca Raton,
FL 33433, Telephone Number: (561) 395-7424, and Fax Number: (561) 338-6401.

                                  WITNESSETH:

         WHEREAS, copies of this Prime Contract are on file in the office of the
         Contractor and are available for examination by the Subcontractor; and
         WHEREAS, the Subcontractor desires to provide materials and/or labor to
         Contractor to facilitate construction of residences,
         NOW THEREFORE, it is agreed as follows:

Section 1.        CONTRACT DOCUMENTS.

(a)      The term "Prime Contract" as used herein refers to all the general
terms and conditions that govern the procedures, conduct and performance of the
parties to this contract.

(b)      Subcontractor, by signing this Agreement, acknowledges that it has
independently assured itself that all of the Prime Contract documents have been
available to it and confirms that it has examined all such documents and agrees
that all of the aforesaid Prime Contract documents shall be considered a part of
this Subcontract by reference thereto and the Subcontractor agrees to be bound
to the Contractor by the terms and provisions thereof so far as they apply to
the Work hereinafter described, unless otherwise provided herein. Attached as
Exhibits to this Prime Contract will be executed documents establishing the
Scope of Work for each residence including, but not limited to, specifications,
unit pricing (if applicable), total pricing per residence, etc.

(c)      Also attached to this Prime Contract shall be Subcontractor's Insurance
Certificates as provided for in Section 8 of this Agreement.

Section 2.        THE WORK.

The Subcontractor agrees to furnish all supervision, labor, tools, equipment,
materials and supplies necessary to perform, and to perform, the following
described work (hereinafter called the Work in accordance with the terms and
conditions of the Prime Contract and this Subcontract:

                     SECURITY/LOW VOLTAGE/CENTRAL VACUUM

Materials furnished but not installed by Subcontractor shall be delivered F.O.B.
jobsite unless otherwise provided the Additional Provisions of the Subcontract.

Section 3.        PAYMENT.

(a)      The Contractor agrees to pay the Subcontractor for the performance of
the Subcontract as specified in the attached addendum for the work specified
therein and shall be adjusted as required by differences between estimated and
actual quantities for unit price Work items and subject to additions and
deductions for changes agreed upon or determined, as hereinafter provided. Such
changes to the Scope of Work or changes to the quantity of units estimated must
be approved by Contractor prior to installation. Failure to do so may release
Contractor from payment obligations.

(b)      All invoices for work completed, approved and received in the business
office by the first (1st) day of the month shall be paid on the fifteenth (15th)
day of the same month; all invoices for work completed, approved and received in
the business office by the fifteenth (15th) day of the month shall be paid on
the first (1st) day of the following month. If the first (1st) or fifteenth
(15th) day of the month falls on a holiday or weekend, all invoices must be
received by the preceding business day. If the first (1st) or fifteenth (15th)
day of the month falls on holiday or weekend, all payments shall be made on the
following business day.

(c)      Upon complete performance of this Subcontract by the Subcontractor and
final approval and acceptance of the Subcontractor's Work by the Owner, the
Contractor will make final payment to the Subcontractor of the balance due to it
under this Subcontract.

(d)      The Contractor may deduct from any amounts due or to become due to the
Subcontractor any sum or sums owed by the Subcontractor or Subcontractor's
affiliated entities to the Contractor or Contractor's affiliated entities; and
in the event of any breach by the Subcontractor of any breach by the
Subcontractor of any provision or obligation of this Subcontract, or in the
event of the assertion by other parties of any claim or lien against the
Contractor or the premises arising out of the Subcontractor's performance of
this Subcontract, the Contractor shall have the right to retain out of any
payments due or to become due to the Subcontractor

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an amount sufficient to completely protect the Contractor from any and all loss,
damage or expense therefrom, until the situation has been satisfactorily
remedied or resolved by the Subcontractor.

Section 4.        CHANGES.

(a)      The Contractor may at any time by written order of Contractor's
authorized representative, and without notice to the Subcontractor's sureties,
make changes in, additions to and omission from the Work to be performed under
this Subcontract, and the Subcontractor shall promptly proceed with the
performance of this Subcontract as so changed.

(b)      For changes directed by the Contractor, Subcontractor shall be
entitled to equitable adjustment in the Subcontract price, provided
Subcontractor gives Contractor written notice of its intent to claim such an
adjustment prior to performing such changed Work. Failure to provide such notice
shall be deemed to prejudice the Contractor and constitute a waiver of such
claims by Subcontractor.

Section 5.        PROSECUTION OF WORK.

(a)      The Subcontractor shall furnish all labor, supervision, tools,
equipment, materials and supplies necessary for the performance of this
Subcontract in a proper, efficient and workmanlike manner. The Subcontractor
shall prosecute the Work undertaken in a prompt and diligent manner whenever
such Work, or any part of it, becomes available, or at such other time or times
as the Contractor may direct, and so as to promote the general progress of the
entire construction, and shall not, by delay or otherwise, interfere with or
hinder the Work of the Contractor or any other Subcontractor. Any materials that
are to be furnished by the Subcontractor hereunder shall be furnished in
sufficient time to enable the Subcontractor to perform and complete its Work
within the time or times provided for herein. The time of performance of the
Work by the Subcontractor is of the essence and Subcontractor agrees to
reimburse the Contractor for any and all liquidated or actual damages that may
be assessed by the Owner against and collected from the Contractor which are
attributable to or caused by the Subcontractor's failure to perform the Work
required by this Subcontract within the time fixed or in the manner provided for
herein. Subcontractor also agrees to pay to the Contractor any increased costs
or other damages the Contractor may sustain by reason of such delay by the
Subcontractor whether or not liquidated or actual damages are assessed and
collected by the Owner. The payment of such damages shall not release the
Subcontractor from its obligation to otherwise fully perform this Subcontract.
Upon written request by the Contractor, the Subcontractor shall furnish to the
Contractor such evidence as the Contractor may require relating to the
Subcontractor's ability to fully perform this Subcontract in the manner and
within the time specified herein.

(b)      In the event the Subcontractor fails to comply or becomes disabled from
complying with the provisions herein as to character or time of performance,
including, but not limited to, job safety, payment for all materials furnished
and Work and labor performed under this Subcontractor, and the failure is not
corrected within five (5) days after written request by the Contractor to the
Subcontractor, the Contractor, by Subcontract or otherwise, may without
prejudice to any other right or remedy, terminate this Subcontract for default
and take over and complete the performance of this Subcontract at the expense of
the Subcontractor, or without terminating the Subcontract, take over the Work or
any portion thereof and furnish such materials and employ such workers as may be
necessary to remedy the situation at the expense of the Subcontractor. If the
Contractor takes over the Work or terminates the Subcontract pursuant to this
paragraph, it is specifically agreed that the Contractor may, in addition to any
other rights it may have, take possession of the premises and of all materials,
tools and equipment of the Subcontractor at the Project site for the purpose of
completing the Work covered by this Subcontract.

(c)      The Subcontractor shall keep, on the Project site during the progress
of the Work, a competent superintendent who shall be the authorized
representative of the Subcontractor. Directions and communications to the
superintendent from the Contractor in connection with the Work shall be treated
as directions and communications from the Subcontractor.

(d)      It is recognized that if Subcontractor becomes insolvent, or institutes
or has instituted against it bankruptcy proceedings, or makes a general
assignment for the benefit of creditors, or if a receiver is appointed for the
benefit of its creditors, or if a receiver is appointed on account of its
insolvency, such event or events could impair or frustrate Subcontractor's
performance of the Subcontract. Accordingly, it is agreed that upon the
occurrence of any such event, Contractor shall be entitled to request of
Subcontractor or its receiver or court-appointed successor adequate assurances
of future performance. Pending receipt of adequate assurances of performance and
actual performance in accordance therewith, Contractor shall be entitled to take
over the Work pursuant to the provisions of Subsection 6(b) above without notice
to Subcontractor.

(e)      The Subcontractor agrees that the Contractor may, on five (5) days
written notice to the Subcontractor, terminate this Subcontract in whole or in
part for the Contractor's convenience. Subcontractor's remedy for termination
for convenience is limited to the following: (1) Subcontractor shall be entitled
to be paid pursuant to the prices set forth in Section 2 hereof for all Work
properly performed prior to termination, (2) Partial payment shall be made for
lump sum items of Work on the basis of the percent complete of such items at the
time of termination, (3) The Subcontractor shall be reimbursed for reasonable
close-out costs, and (4) Subcontractor shall not be entitled to any compensation
for loss of anticipated profits or unallocated overhead.

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(f)      Upon a determination by a court of competent jurisdiction that
termination of Subcontractor or its successor in interest pursuant to any
provision of this Subcontract was wrongful, such termination will be deemed
converted to a termination for convenience and the Subcontractor's remedies
shall be limited to those set forth in Subsection 6(e).

Section 6.        DELAYS.

In the event the Subcontractor's performance of this Subcontract is delayed or
interfered with by acts of the Contractor or other subcontractors, it may
request an extension of the time for the performance of same, as hereinafter
provided, but shall not be entitled to any increase in the Subcontract price or
to damages or additional compensation as a consequence of such delays or
interference.

Section 7.        APPROVALS.

All drawings, specifications and samples of the Subcontractor shall be submitted
through the Contractor for approval of the Owner or Owner's Representative and
all other communications between the Subcontractor and the Owner or Owner's
Representative with respect to the Work shall be transmitted through the
Contractor.

Section 8.        INSURANCE.

Prior to commencement of Work, Subcontractor shall procure and at all times
thereafter maintain with insurers acceptable to Contractor the following minimum
insurance protecting the Subcontractor, Owner, and Contractor against liability
from damages because of injuries, including death, suffered by persons,
including employees of the Subcontractor, and liability from damages to property
arising from and growing out of the Subcontractor's operations, including its
sub-subcontractors' and suppliers' operations, in connection with the
performance of this Subcontract.

(a)      Comprehensive General Liability
          Bodily Injury including personal injury
           (Limits - $500,000/Occurrence - $500,000 aggregate)
         Property Damage
           (Limits - $500,000/Occurrence - $500,000 aggregate or $1,000,000
           combined single limit)
         Premises Operations, "X.C.U." where applicable, Products/Completed
         Operations, Contractual Liability, Broad Form Property Damage and
         Independent Contractors.

(b)      Comprehensive Automobile Liability (including Owned, Hired and
         Non-Owned Vehicles)
          Bodily Injury
           (Limits - $250,000/person - $500,000/accident)
         Property Damage
           (Limits - $500,000/accident or $1,000,000 combined single limit)

Subcontractor shall provide Contractor with certificates evidencing such
insurance as outlined above prior to beginning any Work under this agreement.
Such certificates shall provide for thirty (30) days advance written notice to
Contractor of cancellation, material change, reduction of coverage or
non-renewal. Subcontractor shall name Kolter Homes, Inc. as additionally
insured. Failure to do so may cause any and all payment to be held until
requirements are met. Subcontractor shall also cause its subcontractor(s) to
procure insurance as outlined above. Subcontractor shall obtain policies or
certificates for its sub-subcontractor(s) and deliver them to Contractor, if
requested to do so.

Section 9.        INDEMNIFICATION.

The Subcontractor further specifically obligates itself to the Contractor and
any other party required to be indemnified under this Prime Contract, jointly
and separately, in the following respects, to-wit:

(a)      to defend and indemnify them against and save them harmless from any
and all claims, suits, liability, expense or damage for any alleged or actual
infringement or violation of any patent or patented right, arising in connection
with this Subcontract and anything done thereunder;

(b)      to defend and indemnify them against and save them harmless from any
and all claims, suits or liability for damages to property including loss of use
thereof, injuries to persons, including death, and from any other claims, suits
or liability on account of acts or omissions of Subcontractor, or any of its
sub-subcontractors, suppliers, officers, agents, employees or servants, whether
or not caused in part by the active or passive negligence or other fault of a
party indemnified hereunder; provided, however, Subcontractor's duty hereunder
shall not arise if such claims, suits or liability, injuries or death or other
claims or suits are caused by the sole negligence of a party indemnified
hereunder unless otherwise provided in the Prime Contract. Subcontractor's
obligations hereunder shall not be limited by the provisions of any Workers'
Compensation at or similar;

(c)      to pay for all materials furnished and Work and labor performed under
this Subcontract, and to satisfy the Contractor thereupon whenever demand is
made, and to defend and indemnify the Contractor, Owner and other indemnified
parties against and save them and premises harmless from any and all claims,
suits or liens therefor by others than the Subcontractor;

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(d)      to obtain and pay for all permits, licenses and official inspections
necessary for its Work, and to comply with all laws, ordinances and regulations
bearing on the Work and the conduct hereof;

(e)      the Subcontractor warrants and guarantees the Work covered by this
Subcontract and agrees to make good, at its own expense, any defect in materials
or workmanship which may occur or develop prior to the Contractor's release from
responsibility to the Owner therefor;

The Subcontractor shall defend and indemnify the Contractor, Owner and other
indemnified parties against, and save them harmless from, any and all loss,
damage, costs, expenses and attorneys' fees suffered or incurred on account of
any breach of the aforesaid obligations and covenants, and any other provision
or covenant of this Subcontract. Notwithstanding the above, Contractor, at its
sole discretion, reserves the right to defend any one or all of the following:
the Owner, other indemnified parties, Contractor's surety and itself. Such
election to defend by Contractor shall not in any way limit Subcontractor's
responsibility to indemnify and hold harmless as provided herein.

Section 10.       LIENS AND CLAIMS.

Subcontractor shall, as and when requested, furnish evidence satisfactory to the
Contractor, Owner and Owner's Representative that all amounts due for labor and
material furnished the Subcontractor in connection with performance of this
Subcontract have been paid, including union health, welfare and pension fund
payments and payroll taxes. Such evidence shall be furnished in such form and
manner as requested by Contractor, and all statements relative thereto shall, if
called for by Contractor, be made by sworn affidavit. Subcontractor shall
furnish to Contractor releases of bond rights and lien rights by persons who
have furnished labor, material or other things in the performance of this
Subcontract, it being agreed that payment of money otherwise due Subcontractor
need not be made by Contractor until such releases are furnished. Subcontractor
shall deliver its Work free from all claims, encumbrances and liens.

Section 11.       POSSESSION PRIOR TO COMPLETION.

Whenever it may be useful or necessary for the Contractor to do so, the
Contractor shall be permitted to occupy and/or use any portion of the Work which
has been either partially or fully completed by the Subcontractor before final
inspection and acceptance thereof by the ultimate owner, but such use and/or
occupation shall not relieve the Subcontractor of its guarantee of said Work nor
of its obligation to make good at its own expense any defect in materials and/or
workmanship which may occur or develop prior to Contractor's release from
responsibility to the Owner.

Section 12.       OTHER CONTRACTS.

It is understood and agreed that the Work provided for in this Subcontract
constitutes only a part of the work being performed by the Contractor and other
subcontractors. The Subcontractor, therefore, agrees to perform the Work called
for in this Subcontract in such a manner that it will not injure, damage or
delay any supplier, and further agrees to pay or reimburse the Contractor for
any additional costs, damage or delay that may be caused to such other work of
the Contractor, subcontractors or suppliers, by the Subcontractor or by its
agents or employees.

Section 13.       INDEPENDENT CONTRACTOR.

The Subcontractor specifically agrees that it is, or prior to the start of the
Work will become, and will remain during the performance of this Subcontract, an
independent contractor.

Section 14.       COMPLIANCE WITH LAW.

The Subcontractor agrees to fully comply with all applicable laws, building
codes, ordinances and regulation including, but not limited to, any and all
details as outlined in Exhibit A, "Job Site Conditions/Restrictions" attached
hereto.

Section 15.       SAFETY.

The Subcontractor shall take all reasonable safety precautions pertaining to its
Work and the conduct thereof. Without limiting the generality of the foregoing,
it shall comply with all applicable laws, ordinances, rules, regulations and
orders issued by any public or governmental body or authority, whether federal
or otherwise, including, but not limited to, occupational safety and health
legislation and, in addition, the safety measures called for by the Contractor.

Subcontractor shall be required to:

(a)      conduct regularly scheduled safety meetings.
(b)      conduct on-the-job safety inspections and reviews to determine
         compliance with all applicable safety standards.
(c)      inform Contractor immediately of any injuries incurred during the
         performance of any work specified in this agreement.
(d)      inform all employees as to the dangers, penalties and consequences of
         drugs and alcohol.

It should also be stated that this Contract may be terminated by Contractor as
specified in Section 5, Paragraph (b) and for the following reasons:

(1)      repeated safety violations.

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(2)      Subcontractor's employees have been found to be under the influence of
         drugs and/or alcohol or are found to be in possession of same.

(3)      theft of materials.

Section 16.       PROTECTION OF WORK.

The Subcontractor specifically agrees that it is responsible for the protection
of its Work until final completion and acceptance thereof by the Owner and that
the Subcontractor will make good or replace, at no expense to the Contractor or
the Owner, any damage to its Work which occurs prior to said final acceptance.

Section 17.      DISPUTES.

(a)      In case of any disputes between the Subcontractor and the Contractor,
Subcontractor agrees to be bound by the terms of this Contract and by any and
all decisions or determinations made thereunder by the party or board as
authorized in this Contract. It is agreed that in the event this Contract
contains a provision, hereinafter called "Disputes" clause, whereby claims may
be resolved under an administrative procedure or by arbitration, then as to any
claims of Subcontractor for or on account of acts or omissions of Owner or
Owner's Representative which are not disposed of by agreement, the Contractor
agrees to present to the Owner, in Contractor's name, all of Subcontractor's
claims for additional monetary compensation or time extension, and to further
invoke, on behalf of the Subcontractor, those provisions in the Prime Contract
for determining disputes. Contractor shall have the option to present such
claims on Subcontractor's behalf, in advance of and even without Subcontractor's
written request. Subcontractor shall have full responsibility for preparation
and presentation of such claims and shall bear all expenses thereof, including
attorneys' fees. Subcontractor agrees to be bound by the procedure and final
determinations as specified in any such Disputes clause, and agrees that it will
not take, or will suspend, any action or actions with respect to any such claims
and will pursue no independent litigation with respect thereto, pending final
determination under such Disputes clause. Subcontractor shall not be entitled to
receive any greater amount from Contractor than Contractor is entitled to and
actually does receive from the Owner on account of Subcontractor's Work, less
any markups or costs incurred by the Contractor and to which Contractor is
otherwise entitled, and Subcontractor agrees that it will accept such amount, if
any, received by Contractor from Owner as full satisfaction and discharge of all
claims for or on account of acts or omissions of the Owner or Owner's
Representative.

(b)      Subcontractor shall be bound by Contractor's determination, made in
good faith, as to apportionment of any amounts received from Owner for claimants
including Contractor and other subcontractors, whose work is affected by any act
or omissions of the Owner or Owner's Representative.

(c)      Should a dispute as to the proper interpretation of this Subcontract or
Work or material performed or finished hereunder, arise which concerns the
parties hereto only, or Subcontractor and other subcontractors and suppliers,
the same shall be decided by Contractor whose decision thereon shall be final
and conclusive.

(d)      The Subcontractor shall proceed diligently with the Work, pending final
determination pursuant to any Disputes clause or pursuant to any other action
taken with respect to a claim or claims.

Section 18.       ATTORNEY FEES.

In the event either party institutes suit in court against the other party or
against the surety of such party, in connection with any dispute or matter
arising under this Subcontract, the prevailing party shall be entitled to
recover reasonable attorney fees in addition to any other relief granted by the
court.

Section 19.       TAXES.

Subcontractor shall pay all taxes, licenses and fees of every nature which may
be imposed or charged by any governmental authority upon the labor, material, or
other things used in the performance of the Work or upon the transaction between
Contractor and Subcontractor.

Section 20.       CONTRACTOR'S EQUIPMENT.

In the event that Subcontractor by rental, loan or otherwise, makes use of any
of Contractor's equipment, scaffolding, or other appliances, Subcontractor
agrees to accept such "as is" and that such use shall be at the sole risk of
Subcontractor and Subcontractor agrees to defend, hold-harmless and indemnify
Contractor against all claims of every nature arising from its use thereof.

Section 21.       FURNISHED MATERIAL.

In the event that the Contractor or Owner, or their suppliers or subcontractors,
elect to furnish material to the Subcontractor for use in connection with this
Subcontract, then the cost of handling, storing and installing such material
shall be considered as included in the Subcontract price. The Subcontractor
shall be and become responsible for all such materials upon delivery to it,
whether delivered F.O.B. point of origin or F.O.B. - jobsite (except that any
transportation charges paid by the Subcontractor, in the event of delivery
F.O.B. point of origin, shall be reimbursed to Subcontractor). Furnished
material lost or damaged from any cause whatsoever, shall be replaced by or at
the expense of the Subcontractor. Subcontractor shall, within forty-eight
(48) hours after delivery of furnished material, inspect the same and
immediately report, in writing, to the Contractor any shortages, damages or

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defects therein which are reasonable by proper inspection. Failure to inspect
and report as specified shall be treated as unqualified acceptance by
Subcontractor of the material involved.

Section 22.       EQUAL OPPORTUNITY.

Although this Contract does not contain any specific provision which prohibits
discrimination on the basis of race, color, religion, sex, or national origin,
if any law, regulation or order applicable is applicable to this Subcontract,
then Subcontractor hereby agrees to comply with such law, regulation or order.
In the event that any such law, regulation or order requires the physical
attachment of specific wording to this Subcontract, then such attachments shall
be furnished by the Contractor and shall be considered a part of this
Subcontract by reference thereto or shall be physically attached thereto as
called for by the Contractor.

Section 23.       CONTRACTOR'S REPRESENTATIVE.

The words "Contractor's Representative" as used herein include the Contractor's
design engineer, field superintendent, architect or any person or entity
appointed by the Contractor to supervise the work of the Contractor.

Section 24.       ASSIGNMENT.

The Subcontractor shall obtain the written consent of the Contractor prior to
assigning or subletting any of the Work, in whole or in part. Subcontractor may
assign the proceeds of the Work after providing adequate assurances to
Contractor that all of its labor, suppliers and other creditors for the Work
will be paid and upon obtaining the consent of Subcontractor's surety and the
acknowledgment of the assignee on forms provided by the Contractor.

Section 25.       PRIOR UNDERSTANDINGS OR REPRESENTATIONS.

The Contractor assumes no responsibility for any understandings or
representations made by any of its officers or agents prior to the execution of
this Subcontract, unless such understandings or representations by the
Contractor are expressly stated in this Subcontract.

Section 26.       SEVERABILITY AND WAIVER.

The partial or complete invalidity of any one or more provisions of this
Subcontract shall not affect the validity or continuing force and effect of any
other provision. The failure of either party to insist, in any one or more
instances, upon the performance of any of the terms, covenants or conditions of
this Subcontract or to exercise any right herein, shall not be construed as a
waiver or relinquishment of such term, covenant, condition or right as respects
further performance.

Section 27.       CAPTIONS.

The captions at the beginning of each Section of this Subcontract are for
convenience only and are to be given no weight in construing the provisions of
this Subcontract.

Section 28.       NOTICES.

All notices shall be in writing addressed to the parties at the addresses set
out in this Subcontract unless subsequently changed in conformance with this
notice provision and shall be considered as delivered on the third business day
after the date of mailing if sent certified mail or when received in all other
cases, including telecopy or other printed electronic medium or personal
delivery.

Section 29.       ADDITIONAL PROVISIONS.

See attached addendum(s).

IN WITNESS WHEREOF, the parties hereto have executed this Subcontract by their
proper officers or duly authorized agents.

                  BY: KOLTER SIGNATURE HOMES, INC.

                         By:/s/ ROBERT VAIL
                            ---------------------------------------------------
                            Robert Vail, Director of Construction & Development

                            Date:
                                 ----------------------------------------------

                  BY: INTEGRATED HOMES

                         By: /s/                                      President
                            ---------------------------------------------------
                            Name, Title

                            Date: 10/5/98
                                 ----------------------------------------------

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                               KOLTER HOMES, INC.

                                   EXHIBIT A

Page 1 of 1
SCOPE OF WORK - SECURITY / LOW VOLTAGE / CENTRAL VACUUM

1.   Subcontractor shall provide the necessary labor, materials, and equipment
     to furnish and install a complete security system on all operating windows,
     doors and sliding glass doors as shown on the plans and specifications,
     wire the house for low voltage items as specified, and install a complete
     central vacuum system (option). System(s) shall have the following items
     (number of items will vary depending on plan type):

         SECURITY SYSTEM

         a. Coreact #1632 Security Panel with transformer
         b. Telephone interface module
         c. Battery back-up feature
         d. Two (2) digital security keypads
         e. One (1) inside siren as required
         f. Magnetic contacts - all exterior, moveable doors and windows
         g. Complete wiring of all components mentioned above
         h. Security installation permit as required

         LOW VOLTAGE

         a. Wall mounted service center
         b. Customized cover for service center
         c. Two (2) 4-way cable splitters
         d. Television/telephone jacks standard in each location
         e. Modular dual television/telephone jacks for media center and master
            bedroom
         f. Telephone punch down block
         g. Category 5 telephone wire
         h. Quad shielded RG-6 television/video cable

         CENTRAL VACUUM SYSTEM

         a. M&S #AV2500 Central Vacuum System
         b. Complete rou-in plastic piping for central system
         c. Three (3) hose connection outlets
         d. One (1) standard hose and one (1) standard nozzle
         e. Central Vacuum installation permit as required.

2.   System(s) to be tested with Contractor before acceptance. All work shall be
     done in accordance with good construction practices and industry norm, and
     shall be in conformance with all codes, local and state, and ordinances
     having jurisdiction.

3.   Bid prices shall include SALES TAX, DELIVERY, PERMITS and INSTALLATION.

4.   When Subcontractor is contacted by Contractor's Customer Service
     Department with regard to a warranty item (within one year of closing), it
     shall be Subcontractor's responsibility to pick up the written service
     ticket, complete the work and return the signed off service ticket within
     seven (7) days.

5.   Upon execution of this Contract, Subcontractor agrees to furnish a
     complete list of his sub-subcontractors and material suppliers that will
     be used during the execution of the work and agrees to furnish a Final
     Waiver of Lien to Contractor for their work before final payment is made.

6.   Subcontractor acknowledges that he has reviewed all plans and
     specifications.

7.   Subcontractor shall be responsible for clean up of all debris generated by
     his work on a daily basis and to remove it to an area designated by
     Contractor's Field Superintendent.

8.   When Subcontractor is contacted by Contractor's Field Superintendent with
     regard to a homeowners's walk-thru punch list, Subcontractor has seven (7)
     days to complete the work and have it signed off by the homeowner.

9.   Subcontractor shall designate a quality coordinator to inspect all work
     prior to submitting any invoices for payment.

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                               KOLTER HOMES, INC.

                                   EXHIBIT B

JOB SITE CONDITIONS/RESTRICTIONS
Page 1 of 1

1.       Work hours, including delivery of materials/supplies shall be Monday
         through Friday during the hours of 7:00 a.m. to 6:00 p.m., and on
         Saturday from 8:00 a.m. to 5:00 p.m.

2.       Work is prohibited on Sundays and the following national holidays: New
         Year's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving and
         Christmas.

3.       No signs shall be allowed on site without prior written approval of
         Contractor. All signs must be removed when the Certificate of Occupancy
         is received.

4.       Construction site shall be maintained in a clean and orderly condition
         throughout the construction process. Subcontractor shall be responsible
         for clearing all construction debris generated by his work and
         depositing it in the dumpster provided by Contractor.

5.       Loud radios or unnecessary noise are not permitted.

6.       No alcoholic beverages or drugs of any kind are to be consumed by the
         Subcontractor or any of his employees, sub-subcontractors, suppliers in
         The Reserve.

7.       No pets, animals of any kind, or small children shall be allowed on the
         job site by Subcontractor or any of his employees, sub-subcontractors,
         suppliers, etc.

8.       Abusive language is not permitted on the job site.

9.       Construction procedures and/or processes and equipment must not cause
         damage or be a nuisance to neighboring property.

10.      Any and all damage to common areas or roadways resulting from
         construction activity will be the responsibility of the Subcontractor.

11.      Subcontractor shall report any and all damage to existing work caused
         by his employees, sub-subcontractors, suppliers, etc., to Contractor
         or Contractor's Field Superintendent immediately.

12.      Subcontractor may be backcharged by Contractor for failure to comply
         with any and all of the above-stated conditions/restrictions and
         backcharge shall be an amount set solely at Contractor's discretion.

                                       8

<PAGE>   9

                               KOLTER HOMES, INC.

                                   EXHIBIT C
PAYMENT SCHEDULE
Page 1 of 1

<TABLE>
<CAPTION>
                               LOW
MODEL                        VOLTAGE          SECURITY           VACUUM
-----------------------------------------------------------------------
<S>                          <C>              <C>                <C>
Mid Ocean                    550.00            495.00            625.00
Riviera                      600.00            545.00            625.00
Castlerock                   625.00            625.00            640.00
Wentworth                    625.00            625.00            640.00
Pebble Beach                 625.00            625.00            640.00
Birkdale                     655.00            675.00            655.00
Troon                        660.00            675.00            655.00
Augusta                      670.00            680.00            670.00
Brookline                    690.00            695.00            670.00
Torrey Pines "A"             370.00            435.00            590.00
Torrey Pines "B"             425.00            455.00            610.00
Torrey Pines "C"             425.00            400.00            610.00
Torrey Pines "D"             425.00            455.00            610.00
</TABLE>

Totals include all applicable Federal, State and Local taxes.

This is a lump sum contract. Full payment shall be made upon 100% complete and
satisfactory performance of the work.

                     KOLTER HOMES, INC.

                     By: /s/ ROBERT J. VAIL
                        --------------------------------------------------------
                        Robert J. Vail, Director of Construction and Development

                        Date: 10/9/98
                             ---------------------------------------------------

                     INTEGRATED HOMES

                       By: /s/                                         President
                          ------------------------------------------------------
                          Name, Title

                          Date: 10/5/98
                               -------------------------------------------------<PAGE>   1

                                                                    EXHIBIT 4.1

                          SECURITIES PURCHASE AGREEMENT

         This SECURITIES PURCHASE AGREEMENT (the "AGREEMENT"), dated as of
September 5, 2000 (the "CLOSING DATE") is entered into by and among North
American DataCom, Inc., a Delaware corporation, with headquarters located at
Tri-State Commerce Park, Building 1000, 751 CR 989, Iuka, Mississippi 38852 (the
"COMPANY"), and the investors listed on Schedule 1 attached hereto
(individually, a "BUYER" and collectively, the "BUYERS").

         WHEREAS:

         A. The Company and the Buyers are executing and delivering this
Agreement in reliance upon the exemption from securities registration afforded
by Rule 506 of Regulation D ("REGULATION D") as promulgated by the United States
Securities and Exchange Commission (the "SEC") under the Securities Act of 1933,
as amended (the "1933 ACT");

         B. The Company desires to sell and the Buyers desire to purchase, upon
the terms and conditions stated in this Agreement, 150,000 shares of the
Company's common stock, par value $.0001 per share (the "COMMON STOCK") as set
forth on Schedule 1 attached hereto; and

         C. Contemporaneously with the execution and delivery of this Agreement,
the parties hereto are executing and delivering a Registration Rights Agreement
substantially in the form attached hereto as Exhibit A (the "REGISTRATION RIGHTS
AGREEMENT") pursuant to which the Company has agreed to provide certain
registration rights under the 1933 Act and the rules and regulations promulgated
thereunder, and applicable state securities laws.

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

         1. PURCHASE AND SALE OF COMMON STOCK.

            a. Purchase of Common Stock. In connection with the offering (the
"OFFERING") by the Company of the Common Stock to the Buyers, and subject to the
satisfaction (or waiver) of the conditions set forth in Sections 6 and 7 below,
the Company shall issue and sell to each Buyer and each Buyer severally agrees
to purchase from the Company the respective number of shares of Common Stock set
forth opposite such Buyer's name on Schedule 1 (the "CLOSING"). The aggregate
purchase price (the "PURCHASE PRICE") of the shares of Common Stock at the
Closing shall be $442,125.00. The purchase price per share of Company Common
Stock shall be $2.9475 which shall be determined by multiplying (i) sixty
percent (60%) by (ii) the average of the closing bid prices for the Company's
Common Stock (as quoted on the Principal Market (defined in Section 4(f) below))
for the five (5) Business Days (defined in Section 1(c) below) immediately
preceding the Closing Date.

            b. Closing Date. The date and time of the Closing (the "CLOSING
DATE") shall be 10:00 a.m. Central Time on the Closing Date, subject to
notification of satisfaction (or waiver)

<PAGE>   2

of the conditions to the Closing set forth in Sections 6 and 7 below (or such
later date as is mutually agreed to by the Company and the Buyers). The Closing
shall occur on the Closing Date at the offices of Strategic Investment Counsel,
LLC, 666 Dundee Road, Suite 1901, Chicago, Illinois 60062, or at such other
location mutually acceptable to the parties.

            c. Form of Payment. On the Closing Date, (i) subject to the
satisfaction (or waiver) of the conditions set forth in Section 7 below, each
Buyer shall pay its portion of the Purchase Price to the Company, for the Common
Stock to be issued and sold to such Buyer at the Closing, by wire transfer of
immediately available funds in accordance with the Company's written wire
instructions, and (ii) subject to the satisfaction (or waiver) of the conditions
set forth in Section 6 below, the Company shall deliver, within seven (7)
Business Days of the Closing Date, to Strategic Investment Counsel, LLC, c/o
Anthony J. Ribaudo, Esq., located at 666 Dundee Road, Suite 1901, Northbrook,
Illinois 60062, as the escrow agent for Buyers (the "ESCROW AGENT"), on behalf
of each Buyer, stock certificates (in the denominations as such Buyer shall
request) (the "COMMON STOCK CERTIFICATES") representing such number of the
shares of Common Stock which such Buyer is then purchasing (as indicated
opposite such Buyer's name on Schedule 1). Upon the completion of the conditions
contained in Sections 6 and 7 of this Agreement, the Escrow Agent shall deliver
the certificates representing the shares of Common Stock to the Buyers via
overnight courier after the Buyers have wired the Purchase Price to the Company.
For purposes of this Agreement "BUSINESS DAY" means any day in which the
Principal Market is open for business.

         2. BUYER'S REPRESENTATIONS AND WARRANTIES.

            Each Buyer represents and warrants with respect to only itself
that:

            a. Investment Purpose. Such Buyer is acquiring the Common Stock (the
Common Stock may also be referred to herein as the "SECURITIES"), for its own
account for investment only and not with a view towards, or for resale in
connection with, the public sale or distribution thereof, except pursuant to
sales registered or exempted under the 1933 Act; provided, however, that by
making the representations herein, such Buyer does not agree to hold any of the
Securities for any minimum or other specific term and reserves the right to
dispose of the Securities at any time in accordance with or pursuant to a
registration statement or an exemption under the 1933 Act.

            b. Accredited Investor Status. Such Buyer is an "accredited
investor" as that term is defined in Rule 501(a) of Regulation D.

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

                                       2
<PAGE>   3

determine the availability of such exemptions and the eligibility of such Buyer
to acquire such Securities.

            d. Information. Such Buyer and its advisors, if any, have been
furnished with all materials relating to the business, finances and operations
of the Company and materials relating to the offer and sale of the Securities
which have been requested by such Buyer. Such Buyer and its advisors, if any,
have been afforded the opportunity to ask questions of the Company. Neither such
inquiries nor any other due diligence investigations conducted by such Buyer or
its advisors, if any, or its representatives shall modify, amend or affect such
Buyer's right to rely on the Company's representations and warranties contained
in Section 3 below. Such Buyer understands that its investment in the Securities
involves a high degree of risk. Such Buyer has sought such accounting, legal and
tax advice as it has considered necessary to make an informed investment
decision with respect to its acquisition of the Securities.

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

            f. Transfer or Resale. Such Buyer understands that except as
provided in the Registration Rights Agreement: (i) the Securities have not been
and are not being registered under the 1933 Act or any state securities laws,
and may not be offered for sale, sold, assigned or transferred unless (A)
subsequently registered thereunder, (B) such Buyer shall have delivered to the
Company an opinion of counsel, in a generally acceptable form, to the effect
that such Securities to be sold, assigned or transferred may be sold, assigned
or transferred pursuant to an exemption from such registration, or (C) such
Buyer provides the Company with reasonable assurance that such Securities can be
sold, assigned or transferred pursuant to Rule 144 promulgated under the 1933
Act, as amended, (or a successor rule thereto) ("RULE 144"); and (ii) any sale
of the Securities made in reliance on Rule 144 may be made only in accordance
with the terms of Rule 144 and further, and if Seller intends to utilize Rule
144 but Rule 144 is not applicable to such resale, any resale of the Securities
under circumstances in which the Seller (or the person through whom the sale is
made) may be deemed to be an underwriter (as that term is defined in the 1933
Act) may require compliance with some other exemption under the 1933 Act or the
rules and regulations of the SEC thereunder.

            g. Legends. Such Buyer understands that the Common Stock
Certificates, until such time as the sale of the Common Stock has been
registered under the 1933 Act as contemplated by the Registration Rights
Agreement, shall bear a restrictive legend in substantially the following form
(and a stop-transfer order may be placed against transfer of such stock
certificates):

      THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
      UNDER THE SECURITIES ACT OF 1933, AS

                                       3
<PAGE>   4

      AMENDED (THE "1933 ACT"), OR APPLICABLE STATE SECURITIES LAWS. THE
      SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE OFFERED FOR
      SALE, SOLD, TRANSFERRED OR ASSIGNED (1) IN THE ABSENCE OF AN EFFECTIVE
      REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE 1933 ACT OR APPLICABLE
      STATE SECURITIES LAWS, OR (2) IN THE ABSENCE OF AN OPINION OF COUNSEL, IN
      A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER THE
      1933 ACT OR (3) UNLESS SOLD, TRANSFERRED OR ASSIGNED PURSUANT TO RULE 144
      UNDER SAID ACT.

The legend set forth above shall be removed and the Company shall issue a
certificate without such legend to the holder of the Securities upon which it is
stamped, if, unless otherwise required by state securities laws, (i) such
Securities are registered for sale under the 1933 Act, (ii) in connection with a
sale transaction, such holder provides the Company with an opinion of counsel,
in a generally acceptable form, to the effect that a public sale, assignment or
transfer of the Securities may be made without registration under the 1933 Act,
or (iii) such holder provides the Company with reasonable assurances that the
Securities can be sold pursuant to Rule 144.

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

            i. Residency. Such Buyer is a resident of that country and state, if
applicable, specified in its address on Schedule 1.

3. REPRESENTATIONS AND WARRANTIES OF THE COMPANY.

            The Company represents and warrants to each of the Buyers
that:

            a. Organization and Qualification. The Company and its
"SUBSIDIARIES" (which for purposes of this Agreement means any entity in which
the Company, directly or indirectly, owns a controlling position of capital
stock or holds a controlling position of an equity or similar interest) are
corporations duly organized and validly existing in good standing under the laws
of the jurisdiction in which they are incorporated, and have the requisite
corporate power and authorization to own their properties and to carry on their
business as now being conducted. Each of the Company and its Subsidiaries is
duly qualified as a foreign corporation to do business and is in good standing
in every jurisdiction in which its ownership of property or the nature of the
business conducted by it makes such qualification necessary, except to the
extent that the failure to be so qualified or be in good standing would not have
a Material Adverse Effect. As used in this Agreement, "MATERIAL ADVERSE EFFECT"
means any material adverse effect on the business,

                                       4
<PAGE>   5

properties, assets, operations, results or operations, financial condition or
prospects of the Company and its Subsidiaries, if any, taken as a whole, or on
the transactions contemplated hereby or by the agreements and instruments to be
entered into in connection herewith, or on the authority or ability of the
Company to perform its obligations under the Transaction Documents (as defined
below in Section 3(b)).

            b. Authorization; Enforcement; Validity. (i) The Company has the
requisite corporate power and authority to enter into and perform this
Agreement, the Registration Rights Agreement, the Transfer Agent Instructions
(as defined in Section 5) and each of the other agreements entered into by the
parties hereto in connection with the transactions contemplated by this
Agreement (collectively, the "TRANSACTION DOCUMENTS"), and to issue the
Securities in accordance with the terms hereof and thereof, (ii) the execution
and delivery of the Transaction Documents by the Company and the consummation by
it of the transactions contemplated hereby and thereby, including without
limitation the issuance of the Common Stock, have been duly authorized by the
Company's Board of Directors and no further consent or authorization is required
by the Company, its Board of Directors or its stockholders, (iii) the
Transaction Documents have been duly executed and delivered by the Company, and
(iv) the Transaction Documents constitute the valid and binding obligations of
the Company enforceable against the Company in accordance with their terms,
except as such enforceability may be limited by general principles of equity or
applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or
similar laws relating to, or affecting generally, the enforcement of creditors'
rights and remedies.

            c. Issuance of Securities. The Securities are duly authorized and,
upon issuance in accordance with the terms hereof, shall be (i) validly issued,
fully paid and non-assessable and (ii) free from all taxes, liens and charges
with respect to the issue thereof. Assuming the accuracy of Buyers'
representations and warranties set forth in Section 2 above, the issuance by the
Company of the Securities is exempt from registration under the 1933 Act.

            d. No Conflicts. The execution, delivery and performance of the
Transaction Documents by the Company and the consummation by the Company of the
transactions contemplated hereby and thereby (including, without limitation, the
Company's issuance of the Securities) will not (i) result in a violation of the
Company's Certificate of Incorporation, as amended and as in effect on the date
hereof (the "CERTIFICATE OF INCORPORATION") or the Company's By-laws, as amended
and as in effect on the date hereof (the "BY-LAWS") or any Certificate of
Designations, Preferences and Rights of any outstanding series of preferred
stock of the Company or (ii) conflict with, or constitute a default (or an event
which with notice or lapse of time or both would become a default) under, or
give to others any rights of termination, amendment, acceleration or
cancellation of, any material agreement, indenture or instrument to which the
Company or any of its Subsidiaries is a party, or result in a violation of any
law, rule, regulation, order, judgment or decree (including federal and state
securities laws and regulations and the rules and regulations of the Principal
Market (as defined in Section 4(f) below)) applicable to the Company or any of
its Subsidiaries or by which any property or asset of the Company or any of its
Subsidiaries is bound or affected. Neither the Company nor its Subsidiaries is
in violation of any term of or in default under its Certificate of
Incorporation, any Certificate of Designations, Preferences and Rights of any
outstanding series of preferred stock of the Company or By-laws or their
organizational charter or by-laws, respectively. Neither the Company or any of
its Subsidiaries is in

                                       5
<PAGE>   6

violation or any term of or in default under any contract, agreement, mortgage,
indebtedness, indenture, instrument, judgment, decree or order or any statute,
rule or regulation applicable to the Company or its Subsidiaries, except for
possible conflicts, defaults, terminations, amendments which would not have a
Material Adverse Effect. The business of the Company and its Subsidiaries is not
being conducted, and shall not be conducted, in violation of any law, ordinance,
regulation of any governmental entity, except for possible violations the
sanctions for which either individually or in the aggregate would not have a
Material Adverse Effect. Except as specifically contemplated by the Transaction
Documents and as required under the 1933 Act, the Company is not required to
obtain any consent, authorization or order of, or make any filing or
registration with, any court or governmental agency or any regulatory or
self-regulatory agency in order for it to execute, deliver or perform any of its
obligations under or contemplated by the Transaction Documents in accordance
with the terms hereof or thereof. All consents, authorizations, orders, filings
and registrations which the Company is required to obtain prior to Closing
pursuant to the preceding sentence have been obtained or effected on or prior to
the date hereof. The Company and its Subsidiaries are unaware of any facts or
circumstances which might give rise to any of the foregoing. The Company is not
in violation of the listing requirements of the Principal Market (as defined in
Section 4(f) below).

            e. SEC Documents; Financial Statements. As of the Closing, the
Company has filed all reports, schedules, forms, statements and other documents
required to be filed by it with the SEC pursuant to the reporting requirements
of the Securities Exchange Act of 1934, as amended (the "1934 ACT") (all of the
foregoing filed prior to the date hereof and all exhibits included therein and
financial statements and schedules thereto and documents incorporated by
reference therein being hereinafter referred to as the "SEC DOCUMENTS"). As of
their respective dates, the SEC Documents complied in all material respects with
the requirements of the 1934 Act and the rules and regulations of the SEC
promulgated thereunder applicable to the SEC Documents, and none of the SEC
Documents, at the time they were filed with the SEC, contained any untrue
statement of a material fact or omitted to state a material fact required to be
stated therein or necessary in order to make the statements therein, in light of
the circumstances under which they were made, not misleading. As of their
respective dates, the financial statements of the Company included in the SEC
Documents complied as to form in all material respects with applicable
accounting requirements and the published rules and regulations of the SEC with
respect thereto. Such financial statements have been prepared in accordance with
generally accepted accounting principles, consistently applied, during the
periods involved (except (i) as may be otherwise indicated in such financial
statements or the notes thereto, or (ii) in the case of unaudited interim
statements, to the extent they may exclude footnotes or may be condensed or
summary statements) and fairly present in all material respects the financial
position of the Company as of the dates thereof and the results of its
operations and cash flows for the periods then ended (subject, in the case of
unaudited statements, to normal year-end audit adjustments). No other
information provided by or on behalf of the Company to the Buyers which is not
included in the SEC Documents, including, without limitation contains any untrue
statement of a material fact or

                                       6
<PAGE>   7

omits to state any material fact necessary in order to make the statements
therein, in the light of the circumstance under which they are or were made, not
misleading. Neither the Company nor any of its Subsidiaries or any of their
officers, directors, employees or agents have provided the Buyers with any
material, nonpublic information.

            f. Absence of Certain Changes. Since the most recent filing by
the Company with the SEC, there has been no material adverse change and no
material adverse development in the business, properties, operations, financial
condition, results of operations or prospects of the Company or its
Subsidiaries. The Company has not taken any steps, and does not currently expect
to take any steps, to seek protection pursuant to any bankruptcy law nor does
the Company or any of its Subsidiaries have any knowledge or reason to believe
that its creditors intend to initiate involuntary bankruptcy proceedings.

            g. Absence of Litigation. Except as set forth in the SEC Documents,
there is no action, suit, proceeding, inquiry or investigation before or by any
court, public board, government agency, self-regulatory organization or body
pending or, to the knowledge of the Company or any of its Subsidiaries,
threatened against or affecting the Company, the Company's common stock, the
Common Shares or any of the Company's Subsidiaries or any of the Company's or
the Company's Subsidiaries' officers or directors in their capacities as such.

            h. Acknowledgment Regarding Buyers' Purchase of Common Stock. The
Company acknowledges and agrees that each of the Buyers is acting solely in the
capacity of arm's length purchaser with respect to the Transaction Documents and
the transactions contemplated hereby and thereby. The Company further
acknowledges that each Buyer is not acting as a financial advisor or fiduciary
of the Company (or in any similar capacity) with respect to the Transaction
Documents and the transactions contemplated hereby and thereby and any advice
given by any of the Buyers or any of their respective representatives or agents
in connection with the Transaction Documents and the transactions contemplated
hereby and thereby is merely incidental to such Buyer's purchase of the
Securities. The Company further represents to each Buyer that the Company's
decision to enter into the Transaction Documents has been based solely on the
independent evaluation by the Company and its representatives.

            i. No Undisclosed Events, Liabilities, Developments or
Circumstances. No event, liability, development or circumstance has occurred or
exists, or is contemplated to occur, with respect to the Company or its
Subsidiaries or their respective business, properties, prospects, operations or
financial condition, that would be required to be disclosed by the Company under
applicable securities laws on a registration statement filed with the SEC
relating to an issuance and sale by the Company of its common stock and which
has not been publicly announced.

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

                                       7
<PAGE>   8

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

            l. Employee Relations. Neither the Company nor any of its
Subsidiaries is involved in any union labor dispute nor, to the knowledge of the
Company or any of its Subsidiaries, is any such dispute threatened.

            m. Intellectual Property Rights. The Company and its Subsidiaries
own or possess adequate rights or licenses to use all trademarks, trade names,
service marks, service mark registrations, service names, patents, patent
rights, copyrights, inventions, licenses, approvals, governmental
authorizations, trade secrets and rights necessary to conduct their respective
businesses as now conducted. None of the Company's trademarks, trade names,
service marks, service mark registrations, service names, patents, patent
rights, copyrights, inventions, licenses, approvals, government authorizations,
trade secrets or other intellectual property rights have expired or terminated,
or are expected to expire or terminate within two years from the date of this
Agreement. The Company and its Subsidiaries do not have any knowledge of any
infringement by the Company or its Subsidiaries of trademark, trade name rights,
patents, patent rights, copyrights, inventions, licenses, service names, service
marks, service mark registrations, trade secret or other similar rights of
others, or of any such development of similar or identical trade secrets or
technical information by others and the Company and its Subsidiaries are unaware
of any facts or circumstances which might give rise to any of the foregoing. The
Company and its Subsidiaries have taken reasonable security measures to protect
the secrecy, confidentiality and value of all of their intellectual properties.

            n. Environmental Laws. The Company and its Subsidiaries (i) are in
compliance with any and all applicable foreign, federal, state and local laws
and regulations relating to the protection of human health and safety, the
environment or hazardous or toxic substances or wastes, pollutants or
contaminants ("ENVIRONMENTAL LAWS"), (ii) have received all permits, licenses or
other approvals required of them under applicable Environmental Laws to conduct
their respective businesses and (iii) are in compliance with all terms and
conditions of any such permit, license or approval.

            o. Title. The Company and its Subsidiaries have good and marketable
title in fee simple to all real property and good and marketable title to all
personal property owned by them which is material to the business of the Company
and its Subsidiaries, in each case free and clear of all liens, encumbrances and
defects except such as are described in the SEC Documents

                                       8
<PAGE>   9

or such as do not materially affect the value of such property and do not
interfere with the use made and proposed to be made of such property by the
Company and any of its Subsidiaries. Any real property and facilities held under
lease by the Company and any of its Subsidiaries are held by them under valid,
subsisting and enforceable leases with such exceptions as are not material and
do not interfere with the use made and proposed to be made of such property and
buildings by the Company and its Subsidiaries.

            p. Insurance. The Company and each of its Subsidiaries are insured
by insurers of recognized financial responsibility against such losses and risks
and in such amounts as management of the Company believes to be prudent and
customary in the businesses in which the Company and its Subsidiaries are
engaged and the Company does not have any reason to believe it will not be able
to renew its existing insurance coverage under substantially similar terms for
the next two (2) years.

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

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

            s. Transactions With Affiliates. Except as set forth in the SEC
Documents filed at least ten days prior to the date hereof, none of the
officers, control parties, control entities, directors, or employees of the
Company is presently a party to any transaction with the Company or any of its
Subsidiaries (other than for services as employees, officers and directors),
including any contract, agreement or other arrangement providing for the
furnishing of services to or by, providing for rental of real or personal
property to or from, or otherwise requiring payments to or from any officer,
director or such employee or, to the knowledge of the Company, any corporation,
partnership, trust or other entity in which any officer, director, or any such
employee has a substantial interest or is an officer, director, trustee or
partner.

            t. Eligibility. The Company is currently eligible to register the
resale of the Common Stock on a registration statement on Form SB-2 under the
1933 Act.

                                       9
<PAGE>   10

            u. Dilutive Effect. The Company understands and acknowledges that
additional Common Stock may be issuable in certain circumstances. The Company
further acknowledges that its obligation to issue the Common Stock being
purchased hereunder and any additional Common Stock issuable pursuant to the
terms of the Transaction Documents is absolute and unconditional regardless of
the dilutive effect that such issuance may have on the ownership interests of
other stockholders of the Company.

         4. COVENANTS.

            a. Best Efforts. Each party shall use its best efforts timely to
satisfy each of the conditions to be satisfied by it as provided in Sections 6
and 7 of this Agreement.

            b. Form D and Blue Sky. The Company agrees to file a Form D
with respect to the Securities as required under Regulation D and to provide a
copy thereof to each Buyer promptly after such filing. The Company shall, on or
before the Closing Date, take such action as the Company shall reasonably
determine is necessary in order to obtain an exemption for or to qualify the
Securities for sale to the Buyers at the Closing pursuant to this Agreement
under applicable securities or "Blue Sky" laws of the states of the United
States, and shall provide evidence of any such action so taken to the Buyers on
or prior to the Closing Date. The Company shall make all filings and reports
relating the offer and sale of the Securities required under applicable
securities or "Blue Sky" laws of the states of the United States following the
Closing Date.

            c. Reporting Status. Until the earlier of (i) the date which is one
year after the date as of which the Investors (as that term is defined in the
Registration Rights Agreement) may sell all of the Common Stock without
restriction pursuant to Rule 144(k) promulgated under the 1933 Act (or successor
thereto), or (ii) the date on which the Investors shall have sold all the Common
Stock (the "REGISTRATION PERIOD"), the Company shall file all reports required
to be filed with the SEC pursuant to the 1934 Act, and the Company shall not
terminate its status as an issuer required to file reports under the 1934 Act
even if the 1934 Act or the rules and regulations thereunder would otherwise
permit such termination.

            d. Use of Proceeds. The Company will use the proceeds from the
sale of the Common Stock for substantially the same purposes and in
substantially the same amounts as indicated as follows: to pay certain accounts
payable and to use for working capital purposes.

            e. [Reserved.]

            f. Listing. The Company shall promptly secure the listing of all of
the Registrable Securities (as that term is defined in the Registration Rights
Agreement) upon each national securities exchange, automated quotation system or
bulletin board system, if any, upon which shares of the Company's common stock
are then listed (subject to official notice of issuance)

                                       10
<PAGE>   11

and shall maintain, so long as any other shares of common stock shall be so
listed, such listing of all Registrable Securities from time to time issuable
under the terms of the Transaction Documents. The Company shall maintain the
Common Stock's authorization for quotation on the Nasdaq National Market, Nasdaq
Small-Cap Market, Nasdaq OTC Bulletin Board, The New York Stock Exchange, Inc.
or The American Stock Exchange, Inc., as applicable (the "PRINCIPAL MARKET").
Neither the Company nor any of its Subsidiaries shall take any action which
would be reasonably expected to result in the delisting or suspension of Company
common stock on the Principal Market. The Company shall promptly, and in no
event later than the following Business Day, provide to each Buyer copies of any
notices it receives from the Principal Market regarding the continued
eligibility of Company common stock for listing on such automated quotation
system or securities exchange. The Company shall pay all fees and expenses in
connection with satisfying its obligations under this Section 4(f).

            g. [Reserved.]

            h. [Reserved.]

            i. [Reserved.]

            j. Independent Auditors. The Company shall, until at least three (3)
years after the Closing Date, maintain as its independent auditors an accounting
firm authorized to practice before the SEC.

             k. Corporate Existence and Taxes. The Company shall, until the
date that is three (3) years after the Closing Date, maintain its corporate
existence in good standing (provided, however, that the foregoing covenant shall
not prevent the Company from entering into any merger or corporate
reorganization as long as the surviving entity in such transaction, if not the
Company, has common stock listed for trading on the Principal Market and shall
pay all its taxes when due except for taxes which the Company disputes).

             l. Filing of Form 8-K. To the extent required by the 1934 Act,
on or before the first (1st) Business Day following the Closing Date, the
Company shall file a Form 8-K with the SEC describing the terms of the
transactions contemplated by the Transaction Documents in the form required by
the 1934 Act.

         5. TRANSFER AGENT INSTRUCTIONS.

         The Company shall issue irrevocable instructions to its transfer agent
(the "TRANSFER AGENT"), and any subsequent transfer agent, substantially in the
form of Exhibit B hereto (the "TRANSFER AGENT INSTRUCTIONS"). Prior to
registration of the Common Stock under the 1933 Act, all Common Stock
Certificates shall bear the restrictive legend specified in Section 2(g) of this
Agreement. The Company warrants that no instruction other than the Transfer
Agent Instructions

                                       11
<PAGE>   12

referred to in this Section 5, and stop transfer instructions to give effect to
Section 2(f) hereof will be given by the Company to its Transfer Agent and that
the Securities shall otherwise be freely transferable on the books and records
of the Company as and to the extent provided in this Agreement and the
Registration Rights Agreement. Nothing in this Section 5 shall affect in any way
each Buyer's obligations and agreements set forth in Section 2(g) to comply with
all applicable prospectus delivery requirements, if any, upon resale of the
Securities. If a Buyer provides the Company with an opinion of counsel, in a
generally acceptable form, to the effect that a public sale, assignment or
transfer of the Securities may be made without registration under the 1933 Act
or the Buyer provides the Company with reasonable assurances that the Securities
can be sold pursuant to Rule 144 without any restriction as to the number of
securities acquired as of a particular date that can then be immediately sold,
the Company shall permit the transfer. The Company acknowledges that a breach by
it of its obligations hereunder will cause irreparable harm to the Buyers by
vitiating the intent and purpose of the transaction contemplated hereby.
Accordingly, the Company acknowledges that the remedy at law for a breach of its
obligations under this Section 5 will be inadequate and agrees, in the event of
a breach or threatened breach by the Company of the provisions of this Section
5, that the Buyers shall be entitled, in addition to all other available
remedies, to an order and/or injunction restraining any breach and requiring
immediate issuance and transfer, without the necessity of showing economic loss
and without any bond or other security being required.

         6. CONDITIONS TO THE COMPANY'S OBLIGATION TO SELL.

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

            a. Such Buyer shall have executed each of the Transaction Documents,
where appropriate, to which it is a party and delivered the same to the Escrow
Agent for the transactions contemplated by this Agreement;

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

                                       12
<PAGE>   13

            c. Such Buyer shall have delivered to the Escrow Agent such other
documents relating to the transactions contemplated by this Agreement as the
Escrow Agent may reasonable request.

         7. CONDITIONS TO EACH BUYER'S OBLIGATION TO PURCHASE.

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

            a. The Company shall have executed each of the Transaction Documents
and delivered the same to the Escrow Agent;

            b. The Company's common stock shall be authorized for quotation on
the Principal Market and trading in Company common stock shall not have been
suspended by the SEC or the Principal Market;

            c. The representations and warranties of the Company shall be true
and correct as of the date when made and as of the Closing Date as though made
at that time (except for representations and warranties that speak as of a
specific date) and the Company shall have performed, satisfied and complied with
the covenants, agreements and conditions required by the Transaction Documents
to be performed, satisfied or complied with by the Company at or prior to the
Closing Date;

            d. The Company shall have delivered to the Escrow Agent the opinions
of the Company's outside legal counsel and general counsel dated as of the
Closing Date, in form, scope and substance reasonably satisfactory to such
Buyer, and such opinions shall collectively provide the opinions set forth in
Exhibit C attached hereto;

            e. [Reserved];

            f. The Transfer Agent Instructions shall have been delivered to and
acknowledged in writing by the Company's transfer agent and a copy of the
executed Transfer Agent Instructions shall have been delivered to the Escrow
Agent;

            g. The Company shall have made all filings under all applicable
federal and state securities laws necessary to consummate the issuance of the
Securities pursuant to this Agreement in compliance with such laws;

            h. [Reserved];

            i. The Company shall have delivered to the Escrow Agent the
following:

                                       13
<PAGE>   14

               i. A certificate, executed by the Chief Executive Officer of the
Company, dated as of the Closing Date, confirming that the representations and
warranties described in Section 7(c) above are true and correct as of the date
when made and as of the Closing Date and as to such other matters as may be
reasonably requested by such Buyer;

               ii. The Board of Directors of the Company shall have adopted
resolutions consistent with Section 3(b)(ii) above and in a form reasonably
acceptable to such Buyer;

               iii. The Company shall have delivered to such Buyer a certificate
evidencing the incorporation and good standing of the Company and each
Subsidiary in such corporation's state of incorporation issued by the Secretary
of State of such state of incorporation as of a date within 10 days of the
Closing Date;

               iv. The Company shall have delivered to such Buyer a certified
copy of the Articles of Incorporation as certified by the Secretary of State of
the State of Delaware within 10 days of the Closing Date; and

               v. The Company shall have delivered to such Buyer a secretary's
certificate, dated as the Closing Date, as to (A) the resolutions described in
Section 7(i)(ii) above, (B) the Certificate of Incorporation and (C) the Bylaws,
each as in effect at the Closing.

            j. The Company shall have delivered to the Escrow Agent such other
documents relating to the transactions contemplated by this Agreement as the
Escrow Agent may reasonably request; and

            k. Subject to Section 11(l) below, at Closing the Company shall
reimburse the Buyers for the Buyers' costs and expenses, including without
limitation Buyers' attorneys' fees and expenses (in an amount not to exceed
$5,000.00) incurred by the Buyers concerning the due diligence review of the
contemplated transactions and the Company, and the negotiation and preparation
of the Transaction Documents and the consummation of the transactions
contemplated thereby.

         8. INDEMNIFICATION.

            In consideration of each Buyer's execution and delivery of the
Transaction Documents and acquiring the Securities thereunder and in addition to
all of the Company's other obligations under the Transaction Documents, the
Company shall defend, protect, indemnify and hold harmless each Buyer and each
other holder of the Securities and all of their stockholders, officers,
directors, employees and direct or indirect investors and any of the foregoing
person's agents or other representatives (including, without limitation, those
retained in connection with the transactions contemplated by this Agreement)
(collectively, the "INDEMNITEES") from and against any and all actions, causes
of action, suits, claims, losses, costs, penalties, fees, liabilities

                                       14
<PAGE>   15

and damages, and expenses in connection therewith (irrespective of whether any
such Indemnitee is a party to the action for which indemnification hereunder is
sought), and including reasonable attorneys' fees and disbursements (the
"INDEMNIFIED LIABILITIES"), incurred by any Indemnitee as a result of, or
arising out of, or relating to (a) any misrepresentation or breach of any
representation or warranty made by the Company in the Transaction Documents or
any other certificate, instrument or document contemplated hereby or thereby,
(b) any breach of any covenant, agreement or obligation of the Company contained
in the Transaction Documents or any other certificate, instrument or document
contemplated hereby or thereby and (c) any cause of action, suit or claim
brought or made against such Indemnitee and arising out of or resulting from the
execution, delivery, performance or enforcement of the Transaction Documents or
any other certificate, instrument or document contemplated hereby or thereby.

            9. [Reserved.]

            10. ANTI-DILUTION ADJUSTMENTS.

            a. Dividend, Subdivision, Combination or Reclassification of Company
Common Stock. If the Corporation shall, at any time or from time to time, (a)
declare a dividend on the Company common stock payable in shares of its capital
stock (including Company common stock) or, (b) subdivide the outstanding Company
common stock or, (c) combine the outstanding Company common stock into a smaller
number of shares, or (d) issue any shares of its capital stock in a
reclassification of the Company common stock (excluding any such
reclassification in connection with a consolidation or merger in which the
Corporation is the continuing corporation), then in each such case, the number
of shares of Company common stock constituting the Common Shares at the time of
the record date for such dividend or of the effective date of such subdivision,
combination or reclassification and the number and kind of Common Shares on such
date shall be proportionately adjusted by virtue of such dividend, subdivision,
combination or reclassification. Any such adjustment to the Common Shares shall
become effective immediately after the record date of such dividend or the
effective date of such subdivision, combination or reclassification. Such
adjustment to the Common Shares shall be made successively whenever any event
listed above shall occur.

        11. GOVERNING LAW; MISCELLANEOUS.

            a. Governing Law; Jurisdiction; Jury Trial. This Agreement shall be
governed by and construed in all respects by the internal laws of the State of
Illinois (except for the proper application of the United States federal
securities laws), without giving effect to any choice of law or conflict of law
provision or rule (whether of the State of Illinois or any other jurisdictions)
that would cause the application of the laws of any jurisdictions other than the
State of Illinois. Each party hereby irrevocably submits to the non-exclusive
jurisdiction of the state and federal courts sitting in the City of Chicago.
EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO
REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN
CONNECTION

                                       15
<PAGE>   16

HEREWITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED
HEREBY.

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

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

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

            e. Entire Agreement; Amendments. This Agreement supersedes all
other prior oral or written agreements between the Buyers, the Company, their
affiliates and persons acting on their behalf with respect to the matters
discussed herein, and this Agreement and the instruments referenced herein
contain the entire understanding of the parties with respect to the matters
covered herein and therein and, except as specifically set forth herein or
therein, neither the Company nor any Buyer makes any representation, warranty,
covenant or undertaking with respect to such matters. No provision of this
Agreement may be amended other than by an instrument in writing signed by the
Company and holders of at least two-thirds (2/3) of the shares of Common Stock
held by the Buyers then outstanding, and no provision hereof may be waived other
than by an instrument in writing signed by the party against whom enforcement is
sought.

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

         If to the Company:

            North American DataCom, Inc.
            Tri-State Commerce Park
            Building 1000
            751 CR 989
            Iuka, Mississippi 38852
            Telephone: (662) 424-5050

                                       16
<PAGE>   17

            Facsimile: (662) 424-5059
            Attention: David Cray

         With a copy to:

            Boult Cummings Connors & Berry
            414 Union Street
            Suite 1600
            P.O. Box 198062
            Nashville, TN 37219
            Telephone: (615) 252-2319
            Facsimile: (615) 252-2380
            Attention:  Davis H. Carr, Esq.

         If to the Transfer Agent:

            Florida Atlantic Stock Transfer
            7130 Nob Hill Road
            Tamarak, FL 3321
            Telephone: (954) 726-4954
            Facsimile: (954) 726-6305
            Attention:  Renee Garcia

If to a Buyer, to it at the address and facsimile number set forth on Schedule 1
with copies to such Buyer's representatives as set forth on Schedule 1, or at
such other address and/or facsimile number and/or to the attention of such other
person as the recipient party has specified by written notice given to each
other party five days prior to the effectiveness of such change.

            g. Successors and Assigns. This Agreement shall be binding upon and
inure to the benefit of the parties and their respective successors and assigns,
including any purchasers of the Common Stock. The Company shall not assign this
Agreement or any rights or obligations hereunder without the prior written
consent of holders of at least two-thirds (2/3) of the shares of Common Stock
held by the Buyers. A Buyer may assign some or all of its rights hereunder
without the consent of the Company, provided, however, that any such assignment
shall not release such Buyer from its obligations hereunder unless such
obligations are assumed by such assignee and the Company has consented to such
assignment and assumption.

            h. No Third Party Beneficiaries. This Agreement is intended for the
benefit of the parties hereto and their respective permitted successors and
assigns, and is not for the benefit of, nor may any provision hereof be enforced
by, any other person.

            i. Survival. Unless this Agreement is terminated under Section
11(l), the agreements and covenants set forth in Sections 4, 5, 10 and 11, the
indemnification provisions set forth in Section 8 and the liquidated damages
provisions set forth in Section 9 shall survive the

                                       17
<PAGE>   18

Closing. Each Buyer shall be responsible only for its own representations,
warranties, agreements and covenants hereunder.

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

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

            l. Termination. In the event that the Closing shall not have
occurred with respect to a Buyer on or before three (3) Business Days from the
date hereof due to the Company's or such Buyer's failure to satisfy the
conditions set forth in Sections 6 and 7 above (and the nonbreaching party's
failure to waive such unsatisfied condition(s)), the nonbreaching party shall
have the option to terminate this Agreement with respect to such breaching party
at the close of business on such date without liability of any party to any
other party; provided, however, that if this Agreement is terminated pursuant to
this Section 11(l), the Company shall remain obligated to reimburse the
nonbreaching Buyers for the expenses described in Section 7(k) above.

            m. Placement Agent. The Company acknowledges that it has engaged
MJM Capital, Inc. as placement agent in connection with the sale of the Common
Stock, which placement agent may have formally or informally engaged other
agents on its behalf. The Company shall be responsible for the payment of any
placement agent's fees or broker's commissions relating to or arising out of the
transactions contemplated hereby of any placement agent or broker engaged by the
Company. The Company shall pay, and hold each Buyer harmless against, any
liability, loss or expense (including, without limitation, attorneys' fees and
out of pocket expenses) arising in connection with any such claim.

            n. No Strict Construction. The language used in this Agreement
will be deemed to be the language chosen by the parties to express their mutual
intent, and no rules of strict construction will be applied against any party.

            o. Remedies. Each Buyer and each holder of the Securities shall
have all rights and remedies set forth in the Transaction Documents and all
rights and remedies which such holders have been granted at any time under any
other agreement or contract and all of the rights which such holders have under
any law. Any Person having any rights under any provision of this Agreement
shall be entitled to enforce such rights specifically (without posting a bond or
other

                                       18
<PAGE>   19

security), to recover damages by reason of any breach of any provision of this
Agreement and to exercise all other rights granted by law.

            p. Payment Set Aside. To the extent that the Company makes a payment
or payments to the Buyers hereunder or pursuant to the Transaction Documents or
the Buyers enforce or exercise their rights hereunder or thereunder, and such
payment or payments or the proceeds of such enforcement or exercise or any part
thereof are subsequently invalidated, declared to be fraudulent or preferential,
set aside, recovered from, disgorged by or are required to be refunded, repaid
or otherwise restored to the Company, a trustee, receiver or any other person
under any law (including, without limitation, any bankruptcy law, state or
federal law, common law or equitable cause of action), then to the extent of any
such restoration the obligation or part thereof originally intended to be
satisfied shall be revived and continued in full force and effect as if such
payment had not been made or such enforcement or setoff had not occurred.

                            [Signature Page Follows]

                                       19
<PAGE>   20

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

COMPANY:                                 BUYERS:

North American DataCom, Inc.             CRANSHIRE CAPITAL, L.P.

                                         By:  Downsview Capital, Inc.,
                                              the General Partner

By:
   ----------------------------
Name:                                         By:
     --------------------------                  -------------------------------
Title:                                        Name:  Mitchell P. Kopin
      -------------------------               Title: President

                                         EURAM CAP STRAT. "A" FUND LIMITED

                                         By:  JMJ Capital, Inc.,
                                              the Investment Manager

                                              By:
                                                 -------------------------------
                                              Name:  Mitchell P. Kopin
                                              Title: President

<PAGE>   21

                           SCHEDULE 1: LIST OF BUYERS

<TABLE>
<CAPTION>

<S>                         <C>                           <C>            <C>              <C>
------------------------------------------------------------------------------------------------------------------------------
          BUYER              CONTACT INFORMATION          PURCHASE        NUMBER OF         LEGAL REPRESENTATIVE
                                                            PRICE        COMMON STOCK
                                                                            SHARES
-----------------------------------------------------------------------------------------------------------------------------
Cranshire Capital, L.P.    c/o Downsview Capital, Inc.    $353,700          120,000       Strategic Investment Counsel, LLC
                           666 Dundee Rd., Ste. 1901                                      666 Dundee Rd., Ste. 1901
                           Northbrook, IL 60062                                           Northbrook, IL 60062
                           Attn: Mitchell P. Kopin                                        Attn: Anthony J.Ribaudo, Esq.
                           (p)847/562-9030                                                (p)847/564-9293
                           (f)847/562-9031                                                (f)847/564-5497
------------------------------------------------------------------------------------------------------------------------------
Euram Cap Strat. "A"       c/o JMJ Capital, Inc.          $ 88,425           30,000
Fund Limited               666 Dundee Rd., Ste. 1901
                           Northbrook, IL 60062
                           Attn: Mitchell P. Kopin
                           (p)847/562-9030
                           (f)847/562-9031
------------------------------------------------------------------------------------------------------------------------------
TOTAL                                                     $442,125          150,000
------------------------------------------------------------------------------------------------------------------------------

</TABLE>

<PAGE>   22

                                    EXHIBITS

Exhibit A     Form of Registration Rights Agreement
Exhibit B     Form of Transfer Agent Instructions
Exhibit C     Form of Company Counsel Opinion

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