Document:

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EXHIBIT 10.1
                              STOCK PURCHASE AGREEMENT
Puma Technology, Inc.
2550 North First Street, Suite 500
San Jose, CA 95131

Ladies & Gentlemen:

      The undersigned, _________________________________(the "Investor"),
hereby confirms its agreement with you as follows:

1.    This Stock Purchase Agreement (the "Agreement") is made as of _______ __,
2000 between Puma Technology, Inc., a Delaware corporation (the "Company"),
and the Investor.

2.    The Company has authorized the sale and issuance of up to ________
shares (the "Shares") of common stock of the Company, $0.001 par value per
share (the "Common Stock"), subject to adjustment by the Company's Board of
Directors, to certain investors in a private placement (the "Offering").

3.    The Company and the Investor agree that the Investor will purchase from
the Company and the Company will issue and sell to the Investor ___________
Shares, for a purchase price of $_______ per share, or an aggregate purchase
price of $_______________ (the foregoing Share amounts are on a pre- 2-for-1
stock split basis; the number of Shares to be delivered to the Investor for
purposes of Section 3 of Annex I will be post-split), pursuant to the Terms
and Conditions for Purchase of Shares attached hereto as Annex I and
incorporated herein by reference as if fully set forth herein.  Unless
otherwise requested by the Investor, certificates representing the Shares
purchased by the Investor will be registered in the Investor's name and
address as set forth below.

4.    The Investor represents that, except as set forth below, (a) it has had
no position, office or other material relationship within the past three
years with the Company or persons known to it to be affiliates of the
Company, (b) neither it, nor any group of which it is a member or to which it
is related, beneficially owns (including the right to acquire or vote) any
securities of the Company and (c) it has no direct or indirect affiliation or
association with any member of the National Association of Securities Dealers
as of the date hereof. Exceptions:
________________________________________________________________________________
_______________________________________________________________________________.
(If no exceptions, write "none."  If left blank, response will be deemed to
be "none.")

      Please confirm that the foregoing correctly sets forth the agreement
between us by signing in the space provided below for that purpose.  By
executing this Agreement, you acknowledge that the Company may use the
information in paragraph 4 above and the name and address information below
in preparation of the Registration Statement (as defined in Annex I).

AGREED AND ACCEPTED:
--------------------
PUMA TECHNOLOGY, INC.                 "INVESTOR"

---------------------------------     -----------------------------------------
By:                                   By:
Title:                                Print Name:
                                                  -----------------------------
                                      Title:
                                              ---------------------------------
                                      Address:
                                               --------------------------------

                                      -----------------------------------------
                                      Tax ID No.:
                                                  -----------------------------
                                      Contact name:
                                                    ---------------------------
                                      Telephone:
                                      Name in which shares should be registered
                                      (if different):
                                                      -------------------------

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                                      ANNEX I

                    TERMS AND CONDITIONS FOR PURCHASE OF SHARES

      1.    AUTHORIZATION AND SALE OF THE SHARES.  Subject to the terms and
conditions of this Agreement, the Company has authorized the sale of up to
________ Shares.  The Company reserves the right to increase or decrease this
number.

      2.    AGREEMENT TO SELL AND PURCHASE THE SHARES; SUBSCRIPTION DATE.

            2.1   At the Closing (as defined in Section 3), the Company will
sell to the Investor, and the Investor will purchase from the Company, upon
the terms and conditions hereinafter set forth, the number of Shares set
forth on the signature page hereto at the purchase price set forth on such
signature page.

            2.2   The Company may enter into this same form of Stock Purchase
Agreement with certain other investors (the "Other Investors") and expects to
complete sales of Shares to them.  (The Investor and the Other Investors are
hereinafter sometimes collectively referred to as the "Investors," and this
Agreement and the Stock Purchase Agreements executed by the Other Investors
are hereinafter sometimes collectively referred to as the "Agreements.")  The
Company may accept executed Agreements from Investors for the purchase of
Shares commencing upon the date on which the Company provides the Investors
with the proposed purchase price per Share and concluding upon the date (the
"Subscription Date") on which the Company has (i) executed Agreements with
Investors for the purchase of at least _______ Shares, and (ii) notified the
Investors in writing that it is no longer accepting Agreements from Investors
for the purchase of Shares.  The Company may not enter into any Agreements
after the Subscription Date.

      3.    DELIVERY OF THE SHARES AT CLOSING.  The completion of the
purchase and sale of the Shares (the "Closing") shall occur (the "Closing
Date") on ________ __, 2000, at the offices of the Company's counsel.  At the
Closing, the Company shall deliver to the Investor one or more stock
certificates representing the number of Shares set forth on the signature
page hereto, PROVIDED THAT if the Closing Date is after March 8, 2000 but on
or before March 22, 2000, the Company shall deliver to the Investor one or
more stock certificates representing one-half of the number of Shares set
forth on the signature page hereto, and in any event, each such certificate
to be registered in the name of the Investor or, if so indicated on the
signature page hereto, in the name of a nominee designated by the Investor.
If the Closing Date is after March 8, 2000 but on or before March 22, 2000,
the Company will deliver one or more stock certificates representing the
other half of the number of Shares set forth on the signature page hereto on
or promptly after March 22, 2000, each such certificate registered in
accordance with the preceding sentence.

      The Company's obligation to issue the Shares to the Investor shall be
subject to the following conditions, any one or more of which may be waived
by the Company: (a) receipt by the Company of a certified or official bank
check or wire transfer of funds in the full amount of the purchase price for
the Shares being purchased hereunder as set forth on the signature page
hereto; (b) completion of the purchases and sales under the Agreements with
the Other Investors; and (c) the accuracy of the representations and
warranties made by the Investors and the fulfillment of those undertakings of
the Investors to be fulfilled prior to the Closing.

      The Investor's obligation to purchase the Shares shall be subject to
the following conditions, any one or more of which may be waived by the
Investor: (a) Investors shall have executed Agreements for the purchase of at
least _______ Shares, (b) the representations and warranties of the Company
set forth herein shall be true and correct as of the Closing Date in all
material respects and (c) the Investor shall have received (i) such documents
as such Investor shall reasonably have requested prior to execution of this
Agreement and delivery of the purchase price for its Shares purchased
hereunder and (ii) a standard opinion of Company counsel as to the matters
set forth in Section 4.2 and as to exemption from the registration
requirements of the Securities Act of 1933, as amended, of the sale of the
Shares.

      4.    REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE COMPANY.  The
Company hereby represents and warrants to, and covenants with, the Investor,
as follows:

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            4.1   ORGANIZATION.  The Company is duly organized and validly
existing in good standing under the laws of the jurisdiction of its
organization.  Each of the Company and its Subsidiaries (as defined in Rule
405 under the Securities Act of 1933, as amended (the "Securities Act")) has
full power and authority to own, operate and occupy its properties and to
conduct its business as presently conducted and as described in the
confidential offering memorandum, dated March 3, 2000 distributed in
connection with the sale of the Shares (including the documents incorporated
by reference therein, the "Placement Memorandum") and is registered or
qualified to do business and in good standing in each jurisdiction in which
it owns or leases property or transacts business and where the failure to be
so qualified would have a material adverse effect upon the business,
financial condition, properties or operations of the Company and its
Subsidiaries, considered as one enterprise, and no proceeding has been
instituted in any such jurisdiction, revoking, limiting or curtailing, or
seeking to revoke, limit or curtail, such power and authority or
qualification.

            4.2   DUE AUTHORIZATION AND VALID ISSUANCE.  The Company has all
requisite power and authority to execute, deliver and perform its obligations
under the Agreements, and the Agreements have been duly authorized and
validly executed and delivered by the Company and constitute legal, valid and
binding agreements of the Company enforceable against the Company in
accordance with their terms, except as rights to indemnity and contribution
may be limited by state or federal securities laws or the public policy
underlying such laws, except as enforceability may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium or similar laws affecting
creditors' and contracting parties' rights generally and except as
enforceability may be subject to general principles of equity (regardless of
whether such enforceability is considered in a proceeding in equity or at
law).  The Shares being purchased by the Investor hereunder will, upon
issuance pursuant to the terms hereof, be duly authorized, validly issued,
fully-paid and nonassessable.

            4.3   NON-CONTRAVENTION.  The execution and delivery of the
Agreements, the issuance and sale of the Shares to be sold by the Company
under the Agreements, the fulfillment of the terms of the Agreements and the
consummation of the transactions contemplated thereby will not (A) conflict
with or constitute a violation of, or default (with the passage of time or
otherwise) under, (i) any material bond, debenture, note or other evidence of
indebtedness, lease, contract, indenture, mortgage, deed of trust, loan
agreement, joint venture or other agreement or instrument to which the
Company or any Subsidiary is a party or by which it or any of its
Subsidiaries or their respective properties are bound, (ii) the charter,
by-laws or other organizational documents of the Company or any Subsidiary,
or (iii) any law, administrative regulation, ordinance or order of any court
or governmental agency, arbitration panel or authority applicable to the
Company or any Subsidiary or their respective properties, or (B) result in
the creation or imposition of any lien, encumbrance, claim, security interest
or restriction whatsoever upon any of the material properties or assets of
the Company or any Subsidiary or an acceleration of indebtedness pursuant to
any obligation, agreement or condition contained in any material bond,
debenture, note or any other evidence of indebtedness or any material
indenture, mortgage, deed of trust or any other agreement or instrument to
which the Company or any Subsidiary is a party or by which any of them is
bound or to which any of the property or assets of the Company or any
Subsidiary is subject.  No consent, approval, authorization or other order
of, or registration, qualification or filing with, any regulatory body,
administrative agency, or other governmental body in the United States or any
other person is required to be made or received by the Company for the
execution and delivery of the Agreements and the valid issuance and sale of
the Shares to be sold pursuant to the Agreements, other than such as have
been made or obtained, or as may be required by securities laws of foreign
countries, and except for any post-closing securities filings or
notifications required to be made under federal or state securities laws.

            4.4   CAPITALIZATION.  The capitalization of the Company as of
February 25, 2000 is as set forth in the Placement Memorandum (excluding
unvested options and treasury shares).  The Company has not issued any
capital stock since that date other than pursuant to (i) employee benefit
plans disclosed in the Placement Memorandum, or (ii) outstanding warrants or
options disclosed in the Placement Memorandum.  The Shares to be sold
pursuant to the Agreements have been duly authorized, and when issued and
paid for in accordance with the terms of the Agreements will be duly and
validly issued, fully paid and nonassessable.  The outstanding shares of
capital stock of the Company have been duly and validly issued and are fully
paid and nonassessable, have been issued in compliance with all federal and
state securities laws, and were not issued in violation of any preemptive
rights or similar rights to subscribe for or purchase securities.  Except as
set forth in or contemplated by the Placement Memorandum, there are no
outstanding rights (including, without limitation, preemptive rights),
warrants or options to acquire, or instruments convertible into or
exchangeable for, any unissued shares of capital stock or

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other equity interest in the Company or any Subsidiary, or any contract,
commitment, agreement, understanding or arrangement of any kind to which the
Company is a party or of which the Company has knowledge and relating to the
issuance or sale of any capital stock of the Company or any Subsidiary, any
such convertible or exchangeable securities or any such rights, warrants or
options.  Without limiting the foregoing, no preemptive right, co-sale right,
right of first refusal, registration right, or other similar right exists
with respect to the Shares or the issuance and sale thereof.  No further
approval or authorization of any stockholder, the Board of Directors of the
Company or others is required for the issuance and sale of the Shares.  The
Company owns the entire equity interest in each of its Subsidiaries, free and
clear of any pledge, lien, security interest, encumbrance, claim or equitable
interest, other than as described in the Placement Memorandum.  Except as
disclosed in the Placement Memorandum, there are no stockholders agreements,
voting agreements or other similar agreements with respect to the Common
Stock to which the Company is a party or, to the knowledge of the Company,
between or among any of the Company's stockholders.

            4.5   LEGAL PROCEEDINGS.  There is no material legal or
governmental proceeding pending or, to the knowledge of the Company,
threatened to which the Company or any Subsidiary is or may be a party or of
which the business or property of the Company or any Subsidiary is subject
that is not disclosed in the Placement Memorandum.

            4.6   NO VIOLATIONS.  Neither the Company nor any Subsidiary is
in violation of its charter, bylaws, or other organizational document, or in
violation of any law, administrative regulation, ordinance or order of any
court or governmental agency, arbitration panel or authority applicable to
the Company or any Subsidiary, which violation, individually or in the
aggregate, would be reasonably likely to have a material adverse effect on
the business or financial condition of the Company and its Subsidiaries,
considered as one enterprise, or is in default (and there exists no condition
which, with the passage of time or otherwise, would constitute a default) in
any material respect in the performance of any bond, debenture, note or any
other evidence of indebtedness in any indenture, mortgage, deed of trust or
any other material agreement or instrument to which the Company or any
Subsidiary is a party or by which the Company or any Subsidiary is bound or
by which the properties of the Company or any Subsidiary are bound, which
would be reasonably likely to have a material adverse effect upon the
business or financial condition of the Company and its Subsidiaries,
considered as one enterprise.

            4.7   GOVERNMENTAL PERMITS, ETC.  With the exception of the
matters which are dealt with separately in Section 4.1, 4.12, 4.13, and 4.14,
each of the Company and its Subsidiaries has all necessary franchises,
licenses, certificates and other authorizations from any foreign, federal,
state or local government or governmental agency, department, or body that
are currently necessary for the operation of the business of the Company and
its Subsidiaries as currently conducted and as described in the Placement
Memorandum except where the failure to currently possess could not reasonably
be expected to have a material adverse effect.

            4.8   INTELLECTUAL PROPERTY.  Except as specifically disclosed
under "Risk Factors" in the Placement Memorandum (i) each of the Company and
its Subsidiaries owns or possesses sufficient rights to use all material
patents, patent rights, trademarks, copyrights, licenses, inventions, trade
secrets, trade names and know-how (collectively, "Intellectual Property")
described or referred to in the Placement Memorandum as owned or possessed by
it or that are necessary for the conduct of its business as now conducted or
as proposed to be conducted as described in the Placement Memorandum except
where the failure to currently own or possess would not have a material
adverse effect on the condition (financial or otherwise), earnings,
operations, business or business prospects of the Company and its
Subsidiaries considered as one enterprise, (ii) neither the Company nor any
of its Subsidiaries has received any notice of, or has any knowledge of, any
infringement of asserted rights of a third party with respect to any
Intellectual Property that, individually or in the aggregate, would have a
material adverse effect on the financial condition or business of the Company
and its Subsidiaries considered as one enterprise and  (iii) neither the
Company nor any of its Subsidiaries has received any notice of any
infringement of rights of a third party with respect to any Intellectual
Property that, individually or in the aggregate, would have a material
adverse effect upon the business or financial condition of the Company and
its Subsidiaries, considered as one enterprise.

            4.9   FINANCIAL STATEMENTS.  The financial statements of the
Company and the related notes contained in the Placement Memorandum present
fairly, in accordance with generally accepted accounting principles, the
financial position of the Company and its Subsidiaries as of the dates
indicated, and the results of its operations and cash flows for the periods
therein specified.  Such financial statements (including the related notes)

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have been prepared in accordance with generally accepted accounting
principles applied on a consistent basis throughout the periods therein
specified, except as disclosed in the Placement Memorandum.  The other
financial information contained in the Placement Memorandum has been prepared
on a basis consistent with the financial statements of the Company.

            4.10  NO MATERIAL ADVERSE CHANGE.  Except as disclosed in the
Placement Memorandum, since October 31, 1999, there has not been (i) any
material adverse change in the financial condition or earnings of the Company
and its Subsidiaries considered as one enterprise nor has any material
adverse event occurred to the Company or its Subsidiaries, (ii) any material
adverse event affecting the Company, (iii) any obligation, direct or
contingent, that is material to the Company and its Subsidiaries considered
as one enterprise, incurred by the Company, except obligations incurred in
the ordinary course of business, (iv) any dividend or distribution of any
kind declared, paid or made on the capital stock of the Company or any of its
Subsidiaries, or (v) any loss or damage (whether or not insured) to the
physical property of the Company or any of its Subsidiaries which has been
sustained which has a material adverse effect on the condition (financial or
otherwise), earnings, operations, business or business prospects of the
Company and its Subsidiaries considered as one enterprise.

            4.11  DISCLOSURE.  The information contained in the Placement
Memorandum as of the date hereof and as of the Closing Date, did not and
shall not contain an untrue statement of a material fact or omit to state a
material fact required to be stated therein or necessary to make the
statements therein, in light of the circumstances under which they were made,
not misleading.

            4.12  NASDAQ COMPLIANCE.  The Company's Common Stock is
registered pursuant to Section 12(g) of the Exchange Act and is listed on The
Nasdaq Stock Market, Inc. National Market (the "Nasdaq National Market"), and
the Company has taken no action designed to, or likely to have the effect of,
terminating the registration of the Common Stock under the Exchange Act or
de-listing the Common Stock from the Nasdaq National Market, nor has the
Company received any notification that the Securities and Exchange Commission
(the "SEC") or the National Association of Securities Dealers, Inc. ("NASD")
is contemplating terminating such registration or listing.

            4.13  REPORTING STATUS.  The Company has filed in a timely manner
all documents that the Company was required to file under the Securities
Exchange Act of 1934, as amended (the "Exchange Act") during the 12 months
preceding the date of this Agreement.  The following documents complied in
all material respects with the SEC's requirements as of their respective
filing dates, and the information contained therein as of the date thereof
did not contain an untrue statement of a material fact or omit to state a
material fact required to be stated therein or necessary to make the
statements therein in light of the circumstances under where they were made
not misleading:

            (a)   The Company's Annual Report on Form 10-K for the fiscal
                  year ended July 31, 1999, containing audited financial
                  statements for the fiscal year ended July 31, 1999.

            (b)   The Company's Definitive Proxy Statement Filed with the SEC
                  on November 22, 1999 in connection with the 1999 Annual
                  Meeting of Stockholders.

            (c)   The Company's Quarterly Report on Form 10-Q for the quarter
                  ended October 31, 1999.

            (d)   The Company's Current Report on Form 8-K filed with the SEC
                  on February 25, 2000.

            (e)   All other documents, if any, filed by the Company with the
                  SEC since March 3, 2000 pursuant to the reporting
                  requirements of the Exchange Act.

            4.14  LISTING.  The Company shall comply with all requirements of
the National Association of Securities Dealers, Inc. with respect to the
issuance of the Shares and the listing thereof on the Nasdaq National Market.

            4.15  NO MANIPULATION OF STOCK.  The Company has not taken and
will not, in violation of applicable law, take, any action designed to or
that might reasonably be expected to cause or result in stabilization or

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manipulation of the price of the Common Stock to facilitate the sale or
resale of the Shares.

      5.    REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE INVESTOR.

            5.1   The Investor represents and warrants to, and covenants
with, the Company that: (i) the Investor is an "accredited investor" as
defined in Regulation D under the Securities Act and the Investor is also
knowledgeable, sophisticated and experienced in making, and is qualified to
make decisions with respect to investments in shares presenting an investment
decision like that involved in the purchase of the Shares, including
investments in securities issued by the Company and investments in comparable
companies, and has requested, received, reviewed and considered all
information it deemed relevant in making an informed decision to purchase the
Shares; (ii) the Investor is acquiring the number of Shares set forth on the
signature page hereto in the ordinary course of its business and for its own
account for investment only and with no present intention of distributing any
of such Shares or any arrangement or understanding with any other persons
regarding the distribution of such Shares; (iii) the Investor will not,
directly or indirectly, offer, sell, pledge, transfer or otherwise dispose of
(or solicit any offers to buy, purchase or otherwise acquire or take a pledge
of) any of the Shares except in compliance with the Securities Act,
applicable state securities laws and the respective rules and regulations
promulgated thereunder; (iv) the Investor has answered all questions on the
signature page hereto for use in preparation of the Registration Statement
and the answers thereto are true and correct as of the date hereof and will
be true and correct as of the Closing Date; (v) the Investor will notify the
Company immediately of any change in any information provided to the Company,
to the extent the Company requires any such changed information in order to
comply with any law or any regulation or rule of any government agency, the
National Association of Securities Dealers or the Nasdaq National Market
applicable to the Company, until such time as the Investor has sold all of
its Shares or until the Company is no longer required to keep the
Registration Statement effective; and (vi) the Investor has, in connection
with its decision to purchase the number of Shares set forth on the signature
page hereto, relied only upon the Placement Memorandum and the
representations and warranties of the Company contained herein.  Investor
understands that its acquisition of the Shares has not been registered under
the Securities Act or registered or qualified under any state securities law
in reliance on specific exemptions therefrom, which exemptions may depend
upon, among other things, the bona fide nature of the Investor's investment
intent as expressed herein. Investor has completed or caused to be completed
and delivered to the Company the Investor Questionnaire attached to the
Placement Memorandum, which questionnaire is true and correct in all material
respects.  Investor agrees to furnish promptly to the Company such
information regarding such Investor and the distribution proposed by such
Investor as the Company may reasonably request in order to prepare the
Registration Statement and to the extent the Company requires any such
information in order to comply with any law or any regulation or rule of any
government agency, the National Association of Securities Dealers or the
Nasdaq National Market applicable to the Company.

            5.2   The Investor acknowledges, represents and agrees that no
action has been or will be taken in any jurisdiction outside the United
States by the Company that would permit an offering of the Shares, or
possession or distribution of offering materials in connection with the issue
of the Shares, in any jurisdiction outside the United States where legal
action by the Company for that purpose is required.  Each Investor outside
the United States will comply with all applicable laws and regulations in
each foreign jurisdiction in which it purchases, offers, sells or delivers
Shares or has in its possession or distributes any offering material, in all
cases at its own expense.

            5.3   The Investor hereby covenants with the Company not to make
any sale of the Shares without complying with the provisions of this
Agreement and without causing the prospectus delivery requirement under the
Securities Act to be satisfied, and the Investor acknowledges that the
certificates evidencing the Shares will be imprinted with a legend that
prohibits their transfer except in accordance therewith.  The Investor
acknowledges that there may occasionally be times when the Company determines
that it must suspend the use of the Prospectus forming a part of the
Registration Statement, as set forth in Section 7.2(c).

            5.4   The Investor further represents and warrants to, and
covenants with, the Company that (i) the Investor has full right, power,
authority and capacity to enter into this Agreement and to consummate the
transactions contemplated hereby and has taken all necessary action to
authorize the execution, delivery and performance of this Agreement, and (ii)
this Agreement constitutes a valid and binding obligation of the Investor
enforceable against the Investor in accordance with its terms, except as
enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or similar laws affecting creditors' and
contracting parties'

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rights generally and except as enforceability may be subject to general
principles of equity (regardless of whether such enforceability is considered
in a proceeding in equity or at law) and except as the indemnification
agreements of the Investors herein may be legally unenforceable.

            5.5   Investor will not use any of the restricted Shares acquired
pursuant to this Agreement to cover any short position in the Common Stock of
the Company if doing so would be in violation of applicable securities laws.

            5.6   The Investor understands that nothing in the Placement
Memorandum, this Agreement or any other materials presented to the Investor
in connection with the purchase and sale of the Shares constitutes legal, tax
or investment advice.  The Investor has consulted such legal, tax and
investment advisors as it, in its sole discretion, has deemed necessary or
appropriate in connection with its purchase of Shares.

      6.    SURVIVAL OF REPRESENTATIONS, WARRANTIES AND AGREEMENTS.
Notwithstanding any investigation made by any party to this Agreement, all
covenants, agreements, representations and warranties made by the Company and
the Investor herein shall survive the execution of this Agreement, the
delivery to the Investor of the Shares being purchased and the payment
therefor.

      7.    REGISTRATION OF THE SHARES; COMPLIANCE WITH THE SECURITIES ACT.

            7.1   REGISTRATION PROCEDURES AND OTHER MATTERS.  The Company
                  shall:

                  (a)   subject to receipt of necessary information from the
Investors after prompt request from the Company to the Investors to provide
such information, use its reasonable best efforts to prepare and file with
the SEC, within 35 days after the Closing Date, a registration statement (the
"Registration Statement") to enable the resale of the Shares by the Investors
from time to time through the automated quotation system of the Nasdaq
National Market or in privately-negotiated transactions;

                  (b)   will use its reasonable best efforts to file with the
SEC on or prior to 30 days from the Closing a Current Report on Form 8-K
which includes the financial statements required by Regulation S-X for such
Registration Statement reflecting the acquisition of NetMind Technologies,
Inc. in a pooling of interests transactions;

                  (c)   use its reasonable best efforts, subject to receipt
of necessary information from the Investors after prompt request from the
Company to the Investors to provide such information, to cause the
Registration Statement to become effective within 30 days after the
Registration Statement is filed by the Company such efforts to include,
without limiting the generality of the foregoing, preparing and filing with
the SEC in such 30-day period any financial statements that are required to
be filed prior to the effectiveness of such Registration Statement;

                  (d)   use its reasonable efforts to prepare and file with
the SEC such amendments and supplements to the Registration Statement and the
Prospectus used in connection therewith as may be necessary to keep the
Registration Statement current and effective for a period not exceeding, with
respect to each Investor's Shares purchased hereunder, the earlier of (i) the
second anniversary of the Closing Date, (ii) the date on which the Investor
may sell all Shares then held by the Investor without restriction by the
volume limitations of Rule 144(e) of the Securities Act, or (iii) such time
as all Shares purchased by such Investor in this Offering have been sold
pursuant to a registration statement.

                  (e)   furnish to the Investor with respect to the Shares
registered under the Registration Statement such number of copies of the
Registration Statement, Prospectuses and Preliminary Prospectuses in
conformity with the requirements of the Securities Act and such other
documents as the Investor may reasonably request, in order to facilitate the
public sale or other disposition of all or any of the Shares by the Investor;
provided, however, that the obligation of the Company to deliver copies of
Prospectuses or Preliminary Prospectuses to the Investor shall be subject to
the receipt by the Company of reasonable assurances from the Investor that
the Investor will comply with the applicable provisions of the Securities Act
and of such other securities or blue sky laws as may be applicable in
connection with any use of such Prospectuses or Preliminary

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Prospectuses;

                  (f)   file documents required of the Company for normal
blue sky clearance in states specified in writing by the Investor; provided,
however, that the Company shall not be required to qualify to do business or
consent to service of process in any jurisdiction in which it is not now so
qualified or has not so consented;

                  (g)   bear all expenses in connection with the procedures
in paragraph (a) through (f) of this Section 7.1 and the registration of the
Shares pursuant to the Registration Statement; and

                  (h)   advise the Investor, promptly after it shall receive
notice or obtain knowledge of the issuance of any stop order by the SEC
delaying or suspending the effectiveness of the Registration Statement or of
the initiation or threat of any proceeding for that purpose; and it will
promptly use its reasonable efforts to prevent the issuance of any stop order
or to obtain its withdrawal at the earliest possible moment if such stop
order should be issued.

      Notwithstanding anything to the contrary herein, the Registration
Statement shall cover only the Shares.

      The Company understands that the Investor disclaims being an
underwriter, but the Investor being deemed an underwriter by the SEC shall
not relieve the Company of any obligations it has hereunder; PROVIDED,
HOWEVER that if the Company receives notification from the SEC that the
Investor is deemed an underwriter, then the period by which the Company is
obligated to submit an acceleration request to the SEC shall be extended to
the earlier of (i) the 90th day after such SEC notification, or (ii) 120 days
after the initial filing of the Registration Statement with the SEC.

            7.2   TRANSFER OF SHARES AFTER REGISTRATION; SUSPENSION.

                  (a)   The Investor agrees that it will not effect any
disposition of the Shares or its right to purchase the Shares that would
constitute a sale within the meaning of the Securities Act except as
contemplated in the Registration Statement referred to in Section 7.1 and as
described below or as otherwise permitted by law, and that it will promptly
notify the Company of any changes in the information set forth in the
Registration Statement regarding the Investor or its plan of distribution to
the extent such changes would be required to be reflected in such
Registration Statement or an amendment thereto.

                  (b)   Except in the event that paragraph (c) below applies,
the Company shall (i) if deemed necessary by the Company, prepare and file
from time to time with the SEC a post-effective amendment to the Registration
Statement or a supplement to the related Prospectus or a supplement or
amendment to any document incorporated therein by reference or file any other
required document so that such Registration Statement will not contain an
untrue statement of a material fact or omit to state a material fact required
to be stated therein or necessary to make the statements therein not
misleading, and so that, as thereafter delivered to purchasers of the Shares
being sold thereunder, such Prospectus will not contain an untrue statement
of a material fact or omit to state a material fact required to be stated
therein or necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading; (ii) provide the
Investor copies of any documents filed pursuant to Section 7.2(b)(i); and
(iii) inform each Investor that the Company has complied with its obligations
in Section 7.2(b)(i) (or that, if the Company has filed a post-effective
amendment to the Registration Statement which has not yet been declared
effective, the Company will notify the Investor to that effect, will use its
reasonable efforts to secure the effectiveness of such post-effective
amendment as promptly as possible and will promptly notify the Investor
pursuant to Section 7.2(b)(i) hereof when the amendment has become effective).

                  (c)   Subject to paragraph (d) below, in the event (i) of
any request by the SEC or any other federal or state governmental authority
during the period of effectiveness of the Registration Statement for
amendments or supplements to a Registration Statement or related Prospectus
or for additional information; (ii) of the issuance by the SEC or any other
federal or state governmental authority of any stop order suspending the
effectiveness of a Registration Statement or the initiation of any
proceedings for that purpose; or (iii) of the receipt by the Company of any
notification with respect to the suspension of the qualification or exemption
from qualification of any of the Shares for sale in any jurisdiction or the
initiation or threatening of any proceeding for

                                      7

<PAGE>

such purpose; or (iv) of any event or circumstance which, upon the advice of
its counsel, necessitates the making of any changes in the Registration
Statement or Prospectus, or any document incorporated or deemed to be
incorporated therein by reference, so that, in the case of the Registration
Statement, it will not contain any untrue statement of a material fact or any
omission to state a material fact required to be stated therein or necessary
to make the statements therein not misleading, and that in the case of the
Prospectus, it will not contain any untrue statement of a material fact or
any omission to state a material fact required to be stated therein or
necessary to make the statements therein, in the light of the circumstances
under which they were made, not misleading; then the Company shall, deliver a
certificate in writing to the Investor (the "Suspension Notice") to the
effect of the foregoing and, upon receipt of such Suspension Notice, the
Investor will refrain from selling any Shares not already sold pursuant to
the Registration Statement (a "Suspension") until the Investor's receipt of
copies of a supplemented or amended Prospectus prepared and filed by the
Company, or until it is advised in writing by the Company that the current
Prospectus may be used, and has received copies of any additional or
supplemental filings that are incorporated or deemed incorporated by
reference in any such Prospectus.  In the event of any Suspension, the
Company will use its reasonable efforts to cause the use of the Prospectus so
suspended to be resumed as soon as reasonably practicable within 20 business
days after the delivery of a Suspension Notice to the Investor.  In addition
to and without limiting any other remedies (including, without limitation, at
law or at equity) available to the Investor, the Investor shall be entitled
to specific performance in the event that the Company fails to comply with
the provisions of this Section 7.2(c).

                  (d)   Notwithstanding the foregoing paragraphs of this
Section 7.2, the Investor shall not be prohibited from selling Shares under
the Registration Statement as a result of Suspensions on more than three
occasions of not more than 30 days each in any twelve month period, unless,
in the good faith judgment of the Company's Board of Directors, upon advice
of counsel, the sale of Shares under the Registration Statement in reliance
on this paragraph 7.2(d) would be reasonably likely to cause a violation of
the Securities Act or the Exchange Act and result in liability to the Company.

                  (e)   Provided that a Suspension is not then in effect the
Investor may sell Shares under the Registration Statement, provided that it
arranges for delivery of a current Prospectus to the transferee of such
Shares. Upon receipt of a request therefor, the Company has agreed to provide
an adequate number of current Prospectuses to the Investor and to supply
copies to any other parties requiring such Prospectuses.

                  (f)   In the event of a sale of Shares by the Investor
pursuant to the Registration Statement, the Investor must also deliver to the
Company's transfer agent, with a copy to the Company, a Certificate of
Subsequent Sale substantially in the form attached hereto, so that the Shares
may be properly transferred.

            7.3   INDEMNIFICATION.  For the purpose of this Section 7.3:

            (i)   the term "Selling Stockholder" shall include the Investor
and any affiliate of such Investor;

            (ii)  the term "Registration Statement" shall include any final
Prospectus, exhibit, supplement or amendment included in or relating to the
Registration Statement referred to in Section 7.1; and

            (iii) the term "untrue statement" shall include any untrue
statement or alleged untrue statement, or any omission or alleged omission to
state in the Registration Statement a material fact required to be stated
therein or necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading.

                  (a)   The Company agrees to indemnify and hold harmless
each Selling Stockholder from and against any losses, claims, damages or
liabilities to which such Selling Stockholder may become subject (under the
Securities Act or otherwise) insofar as such losses, claims, damages or
liabilities (or actions or proceedings in respect thereof) arise out of, or
are based upon (i) any untrue statement of a material fact contained in the
Registration Statement, or (ii) any failure by the Company to fulfill any
undertaking included in the Registration Statement, and the Company will
reimburse such Selling Stockholder for any reasonable legal or other expenses
reasonably incurred in investigating, defending or preparing to defend any
such action, proceeding or claim, or preparing to defend any such action,
proceeding or claim, PROVIDED, HOWEVER, that the Company shall not be liable
in

                                      8

<PAGE>

any such case to the extent that such loss, claim, damage or liability arises
out of, or is based upon, an untrue statement made in such Registration
Statement in reliance upon and in conformity with written information
furnished to the Company by or on behalf of such Selling Stockholder
specifically for use in preparation of the Registration Statement or the
failure of such Selling Stockholder to comply with its covenants and
agreements contained in Section 7.2 hereof respecting sale of the Shares or
any statement or omission in any Prospectus that is corrected in any
subsequent Prospectus that was delivered to the Investor prior to the
pertinent sale or sales by the Investor.  The Company shall reimburse each
Selling Stockholder for the amounts provided for herein on demand after such
expenses are incurred but prior to final determination of any lawsuits or
other legal proceedings.

                  (b)   The Investor agrees to indemnify and hold harmless
the Company (and each person, if any, who controls the Company within the
meaning of Section 15 of the Securities Act, each officer of the Company who
signs the Registration Statement and each director of the Company) from and
against any losses, claims, damages or liabilities to which the Company (or
any such officer, director or controlling person) may become subject (under
the Securities Act or otherwise), insofar as such losses, claims, damages or
liabilities (or actions or proceedings in respect thereof) arise out of, or
are based upon, (i) any failure to comply with the covenants and agreements
contained in Section 7.2 hereof respecting sale of the Shares, or (ii) any
untrue statement of a material fact contained in the Registration Statement
if such untrue statement was made in reliance upon and in conformity with
written information furnished by or on behalf of the Investor specifically
for use in preparation of the Registration Statement, and the Investor will
reimburse the Company (or such officer, director or controlling person), as
the case may be, for any legal or other expenses reasonably incurred in
investigating, defending or preparing to defend any such action, proceeding
or claim; PROVIDED that the Investor's obligation to indemnify the Company
shall be limited to the net amount received by the Investor from the sale of
the Shares.

                  (c)   Promptly after receipt by any indemnified person of a
notice of a claim or the beginning of any action in respect of which
indemnity is to be sought against an indemnifying person pursuant to this
Section 7.3, such indemnified person shall notify the indemnifying person in
writing of such claim or of the commencement of such action, but the omission
to so notify the indemnifying party will not relieve it from any liability
which it may have to any indemnified party under this Section 7.3 (except to
the extent that such omission materially and adversely affects the
indemnifying party's ability to defend such action) or from any liability
otherwise than under this Section 7.3. Subject to the provisions hereinafter
stated, in case any such action shall be brought against an indemnified
person, the indemnifying person shall be entitled to participate therein,
and, to the extent that it shall elect by written notice delivered to the
indemnified party promptly after receiving the aforesaid notice from such
indemnified party, shall be entitled to assume the defense thereof, with
counsel reasonably satisfactory to such indemnified person.  After notice
from the indemnifying person to such indemnified person of its election to
assume the defense thereof, such indemnifying person shall not be liable to
such indemnified person for any legal expenses subsequently incurred by such
indemnified person in connection with the defense thereof, PROVIDED, HOWEVER,
that if there exists or shall exist a conflict of interest that would make it
inappropriate, in the opinion of counsel to the indemnified person, for the
same counsel to represent both the indemnified person and such indemnifying
person or any affiliate or associate thereof, the indemnified person shall be
entitled to retain its own counsel at the expense of such indemnifying
person; provided, however, that no indemnifying person shall be responsible
for the fees and expenses of more than one separate counsel (together with
appropriate local counsel) for all indemnified parties.  In no event shall
any indemnifying person be liable in respect of any amounts paid in
settlement of any action unless the indemnifying person shall have approved
the terms of such settlement; PROVIDED that such consent shall not be
unreasonably withheld.  No indemnifying person shall, without the prior
written consent of the indemnified person, effect any settlement of any
pending or threatened proceeding in respect of which any indemnified person
is or could have been a party and indemnification could have been sought
hereunder by such indemnified person, unless such settlement includes an
unconditional release of such indemnified person from all liability on claims
that are the subject matter of such proceeding.

                  (d)   If the indemnification provided for in this Section
7.3 is unavailable to or insufficient to hold harmless an indemnified party
under subsection (a) or (b) above in respect of any losses, claims, damages
or liabilities (or actions or proceedings in respect thereof) referred to
therein, then each indemnifying party shall contribute to the amount paid or
payable by such indemnified party as a result of such losses,

                                      9

<PAGE>

claims, damages or liabilities (or actions in respect thereof) in such
proportion as is appropriate to reflect the relative fault of the Company on
the one hand and the Investor, as well as any other Selling Stockholders
under such registration statement on the other in connection with the
statements or omissions or other matters which resulted in such losses,
claims, damages or liabilities (or actions in respect thereof), as well as
any other relevant equitable considerations.  The relative fault shall be
determined by reference to, among other things, in the case of an untrue
statement, whether the untrue statement relates to information supplied by
the Company on the one hand or an Investor or other Selling Stockholder on
the other and the parties' relative intent, knowledge, access to information
and opportunity to correct or prevent such untrue statement.  The Company and
the Investor agree that it would not be just and equitable if contribution
pursuant to this subsection (d) were determined by pro rata allocation (even
if the Investor and other Selling Stockholders were treated as one entity for
such purpose) or by any other method of allocation which does not take into
account the equitable considerations referred to above in this subsection
(d).  The amount paid or payable by an indemnified party as a result of the
losses, claims, damages or liabilities (or actions in respect thereof)
referred to above in this subsection (d) shall be deemed to include any legal
or other expenses reasonably incurred by such indemnified party in connection
with investigating or defending any such action or claim.  Notwithstanding
the provisions of this subsection (d), the Investor shall not be required to
contribute any amount in excess of the amount by which the net amount
received by the Investor from the sale of the Shares to which such loss
relates exceeds the amount of any damages which such Investor has otherwise
been required to pay by reason of such untrue statement.  No person guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the
Securities Act) shall be entitled to contribution from any person who was not
guilty of such fraudulent misrepresentation.  The Investor's obligations in
this subsection to contribute shall be in proportion to its Investor sale of
Shares to which such loss relates and shall not be joint with any other
Selling Stockholders.

                  (e)   The parties to this Agreement hereby acknowledge that
they are sophisticated business persons who were represented by counsel
during the negotiations regarding the provisions hereof including, without
limitation, the provisions of this Section 7.3, and are fully informed
regarding said provisions.  They further acknowledge that the provisions of
this Section 7.3 fairly allocate the risks in light of the ability of the
parties to investigate the Company and its business in order to assure that
adequate disclosure is made in the Registration Statement as required by the
Act and the Exchange Act.  The parties are advised that federal or state
public policy as interpreted by the courts in certain jurisdictions may be
contrary to certain of the provisions of this Section 7.3, and the parties
hereto hereby expressly waive and relinquish any right or ability to assert
such public policy as a defense to a claim under this Section 7.3 and further
agree not to attempt to assert any such defense.

            7.4   TERMINATION OF CONDITIONS AND OBLIGATIONS.  The conditions
precedent imposed by Section 5 or this Section 7 upon the transferability of
the Shares shall cease and terminate as to any particular number of the
Shares when such Shares shall have been effectively registered under the
Securities Act and sold or otherwise disposed of in accordance with the
intended method of disposition set forth in the Registration Statement
covering such Shares or at such time as an opinion of counsel satisfactory to
the Company shall have been rendered to the effect that such conditions are
not necessary in order to comply with the Securities Act.

            7.5   INFORMATION AVAILABLE.  So long as the Registration
Statement is effective covering the resale of Shares owned by the Investor,
the Company will furnish to the Investor:

                  (a)   as soon as practicable after it is available, one
copy of (i) its Annual Report to Stockholders (which Annual Report shall
contain financial statements audited in accordance with generally accepted
accounting principles by a national firm of certified public accountants),
(ii) its Annual Report on Form 10-K and (iii) its Quarterly Reports on Form
10-Q (the foregoing, in each case, excluding exhibits);

                  (b)   upon the request of the Investor, all exhibits
excluded by the parenthetical to subparagraph (a) of this Section 7.5 as
filed with the SEC and all other information that is made available to
stockholders; and

                  (c)   upon the reasonable request of the Investor, an
adequate number of copies of the Prospectuses to supply to any other party
requiring such Prospectuses; and the Company, upon the reasonable request of
the Investor, will meet with the Investor or a representative thereof at the
Company's headquarters to discuss all information relevant for disclosure in
the Registration Statement covering the Shares and will otherwise cooperate
with any Investor conducting an investigation for the purpose of reducing or
eliminating such Investor's exposure to liability under the Securities Act,
including the reasonable production of information at the Company's
headquarters; provided, that the Company shall not be required to disclose
any confidential information to or meet at its headquarters with any Investor
until and unless the Investor shall have entered into a confidentiality
agreement in

                                      10

<PAGE>

form and substance reasonably satisfactory to the Company with the Company
with respect thereto.

      8.    NOTICES.  All notices, requests, consents and other
communications hereunder shall be in writing, shall be mailed (A) if within
domestic United States by first-class registered or certified airmail, or
nationally recognized overnight express courier, postage prepaid, or by
facsimile, or (B) if delivered from outside the United States, by
International Federal Express or facsimile, and shall be deemed given (i) if
delivered by first-class registered or certified mail domestic, three
business days after so mailed, (ii) if delivered by nationally recognized
overnight carrier, one business day after so mailed, (iii) if delivered by
International Federal Express, two business days after so mailed, (iv) if
delivered by facsimile, upon electronic confirmation of receipt and shall be
delivered as addressed as follows:

            (a)   if to the Company, to:

                        Puma Technology, Inc.
                        2550 North First Street, Suite 500
                        San Jose, CA 95131
                        Attention:  Chief Financial Officer

            (b)   with a copy to:

                        General Counsel Associates LLP
                        1891 Landings Drive
                        Mountain View, CA 94043
                        Attention:  Susan J. Skaer, Esq.

                 (c)    if to the Investor, at its address on the signature
            page hereto, or at such other address or addresses as may have
            been furnished to the Company in writing.

      9.    CHANGES.  This Agreement may not be modified or amended except
pursuant to an instrument in writing signed by the Company and the Investor.

      10.   HEADINGS.  The headings of the various sections of this Agreement
have been inserted for convenience of reference only and shall not be deemed
to be part of this Agreement.

      11.   SEVERABILITY.  In case any provision contained in this Agreement
should be invalid, illegal or unenforceable in any respect, the validity,
legality and enforceability of the remaining provisions contained herein
shall not in any way be affected or impaired thereby.

      12.   GOVERNING LAW.  This Agreement shall be governed by, and
construed in accordance with, the internal laws of the State of Delaware,
without giving effect to the principles of conflicts of law.

      13.   COUNTERPARTS.  This Agreement may be executed in two or more
counterparts, each of which shall constitute an original, but all of which,
when taken together, shall constitute but one instrument, and shall become
effective when one or more counterparts have been signed by each party hereto
and delivered to the other parties.

      14.   RULE 144.  The Company covenants that it will file the reports
required to be filed by it under the Securities Act and the Exchange Act and
the rules and regulations adopted by the SEC thereunder (or, if the Company
is not required to file such reports, it will, upon the request of any
Investor holding Shares purchased hereunder made after the first anniversary
of the Closing Date, make publicly available such information as necessary to
permit sales pursuant to Rule 144 under the Securities Act), and it will take
such further action as any such Investor may reasonably request, all to the
extent required from time to time to enable such Investor to sell Shares
purchased hereunder without registration under the Securities Act within the
limitation of the exemptions provided by (a) Rule 144 under the Securities
Act, as such Rule may be amended from time to time, or (b) any similar rule
or regulation hereafter adopted by the SEC.  Upon the request of the
Investor, the Company will deliver to such holder a written statement as to
whether it has complied with such information and requirements.

                                      11<PAGE>

                                                                Exhibit 4.1

                    CONVERTIBLE DEBENTURE PURCHASE AGREEMENT

         CONVERTIBLE DEBENTURE PURCHASE AGREEMENT ("AGREEMENT") dated as of
February 23, 2000 between ADVANCED COMMUNICATIONS GROUP, INC. (whose name may
be changed to WorldPages.com, Inc.) a Delaware corporation (the "COMPANY"),
and each person or entity listed as an investor on SCHEDULE I attached to
this Agreement (each individually and "INVESTOR" and collectively the
"INVESTORS").

                              W I T N E S S E T H:

         WHEREAS, the Company desires to sell and issue to the Investors, and
the Investors wish to purchase from the Company, 5% Convertible Debentures
due February 23, 2006 (the "DEBENTURES"), in the aggregate principal amount
of $20,000,000 at an aggregate price of $20,000,000, having the rights and
privileges set forth in the Debentures in the form of EXHIBIT 1.1A attached
hereto (the "INITIAL ISSUANCE"), on the terms and conditions set forth
herein; and

         WHEREAS, the Debentures will be convertible into shares ("COMMON
SHARES") of common stock, par value $.0001 of the Company ("COMMON STOCK"),
pursuant to the terms of the Debentures, and the Investors will have
registration rights with respect to such Common Shares and the Warrant Shares
(as defined herein), pursuant to the terms of that certain Registration
Rights Agreement to be entered into between the Company and the Investors
substantially in the form of EXHIBIT 4.2(f) hereto ("REGISTRATION RIGHTS
AGREEMENT");

         WHEREAS, to induce the Investors to purchase the Debentures, the
Company has agreed to issue to the Investors warrants exercisable for 572,350
of Common Stock in the form attached as EXHIBIT 1.1B (the "WARRANTS"; and,
together with the Debentures, the "SECURITIES");

         WHEREAS, the Company may elect, and thereafter be required by the
Investors, to sell to the Investors additional Debentures (the "OPTION
DEBENTURES") in the aggregate principal amount of up to $5,000,000 and
$2,500,000, respectively, at an aggregate price of up to $5,000,000 and
$2,500,000, respectively, as further described herein;

         WHEREAS, upon the issuance of the Option Debentures, the Company has
agreed to issue additional Warrants exercisable for shares of Common Stock
(the "OPTION WARRANTS," and together with the Option Debentures, the "OPTION
SECURITIES") as further described herein;

         WHEREAS, in addition to the foregoing, the Investors may elect, in
each of their sole discretion, to purchase additional Debentures (the
"ADDITIONAL DEBENTURES" and, collectively with the Option Debentures, the
"SUBSEQUENT DEBENTURES" and, collectively with the Option Securities, the
"SUBSEQUENT SECURITIES") in the aggregate principal amount of $2,500,000 at
an aggregate price of $2,500,000, as further described herein.

<PAGE>

         NOW, THEREFORE, in consideration of the foregoing premises and the
covenants contained herein and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:

                                   ARTICLE 1

              PURCHASE AND SALE OF DEBENTURES AND WARRANTS, ETC.

         Section 1.1  INITIAL ISSUANCE OF DEBENTURES AND WARRANTS.

              (a) INITIAL ISSUANCE. Upon the following terms and conditions,
the Company shall issue and sell to each Investor severally, and each
Investor severally shall purchase from the Company, the outstanding principal
amount of Debentures and the number of Warrants indicated next to such
Investor's name on SCHEDULE I attached hereto.

              (b) PURCHASE PRICE. The purchase price for the Debentures to be
acquired by each Investor (the "PURCHASE PRICE") shall be the Purchase Price
set forth next to such Investor's name on SCHEDULE I.

              (c) THE CLOSING.

                        (i)    The closing of the purchase and sale of the
              Debentures and the Warrants (the "CLOSING") in the Initial
              Issuance, shall take place at the offices of Kleinberg, Kaplan,
              Wolff & Cohen, P.C. ("INVESTORS' COUNSEL") or at such other
              place as is mutually agreeable, at 10:00 am., local time on the
              later of the following: (x) the date on which the last to be
              fulfilled or waived of the conditions set forth in Article 4
              hereof and applicable to the Closing shall be fulfilled or
              waived in accordance herewith, or (y) such other time and place
              and/or on such other date as the Investors and the Company may
              agree. The date on which the Closing occurs is referred to
              herein as the "CLOSING DATE".

                        (ii)   On the Closing Date, the Company shall deliver
              to each Investor (x) certificates (with the number of and
              outstanding principal amount of such certificates requested by
              such Investor) representing the Debentures purchased hereunder
              by such Investor at the Closing registered in the name of such
              Investor or its nominee and (y) the Warrants registered in the
              name of Investor or its nominee in such denominations as
              reasonably requested by such Investor, and such Investor shall
              deliver to the Company the Purchase Price for the Debentures
              purchased by such Investor hereunder by wire transfer in
              immediately available funds to an account designated in writing
              by the Company. The delivery of payment by each Investor of the
              Purchase Price applicable to it as set forth in this paragraph
              shall constitute a payment delivered to the Company in

                                       2

<PAGE>

              satisfaction of such Investor's obligation to pay the Purchase
              Price hereunder. In addition, each party shall deliver all
              documents, instruments and writings required to be delivered by
              such party pursuant to this Agreement at or prior to the
              applicable Closing.

         Section 1.2  OPTION SECURITIES.

              (a) TERMS. Option Debentures and Option Warrants may be issued
pursuant to Sections 1.2(b) and 1.2(c) below. Once issued, the Option
Debentures and Option Warrants shall be subject to the same terms as the
Debentures and Warrants issued on the Closing Date and shall have the same
rights and privileges appurtenant thereto, except with respect to the
following: (i) the Closing Price applicable to the Option Debentures shall be
the average of the Market Price for Shares of Common Stock for the ten (10)
Trading Days prior to the Subsequent Closing Date (as defined herein) (the
"OPTION CLOSING PRICE"); (ii) the Conversion Price shall be equal to 110% of
the Option Closing Price; (iii) the Conversion Price shall Reset on the
6-month, 12-month, 18-month and 24-month anniversary of the Subsequent
Closing Date; (iv) the Purchase Price (as defined in the Warrants) of the
Option Warrants shall be equal to 130% of the Option Closing Price; (v) the
maturity date of the Option Debentures shall be the sixth anniversary of the
issuance of such Debentures; and (vi) the maturity date of the Option
Warrants shall be the fifth anniversary of the issuance of such Warrants. The
Option Securities issued pursuant to this Section 1.2 shall be issued
pursuant to documentation that is the same in all material respects to the
Debentures and Warrants other than changes necessary to conform the documents
to the distinctive terms of such Option Securities as set forth herein.
Except as otherwise indicated in this Section 1.2(a), undefined terms in this
Section 1.2 shall have the meaning set forth in the Debentures.

              (b)       THE COMPANY PUT OPTION.

                        (i)    The Company may compel the Investors to
              purchase (the "Company Put Option") Option Debentures up to a
              total aggregate principal amount of $5,000,000 at a total
              aggregate price of $5,000,000, upon written notice, for
              immediately available funds, in accordance with the procedures
              described below; provided that each Investor may only be
              compelled to purchase a percentage of the total Option
              Debentures subject to the Company Put Option equal to the
              percentage such Investor purchased of the total principal
              amount of the Debentures purchased pursuant to the Initial
              Issuance. Upon the issuance of Option Debentures pursuant to
              the exercise of the Company Put Option, the Company shall issue
              to the Investors (pro rata in accordance with the percentages
              of total Option Debentures each Investor shall have purchased)
              Option Warrants for the purchase of ($1,500,000 DIVIDED BY the
              Option Closing Price) plus 37,500 shares of Common Stock (such
              number of shares to be subject to adjustment in a manner
              consistent with the provisions adjusting the number of shares
              issuable under the Warrant upon the occurrence of certain
              events) per $5,000,000 principal amount of Option Debentures
              issued to the Investors.

                                       3

<PAGE>

                        (ii)   The Company may exercise the Company Put
              Option on only one occasion and only during the period
              beginning on the 30th day after the Closing Date and
              expiring on 120th day after the Closing Date (the "OPTION
              PERIOD") by providing each Investor with at least 15
              business days written notice (the "PUT OPTION NOTICE")
              indicating that the Company is exercising its Company Put
              Option, setting  forth the pro rata amount that such
              Investor is required  to  purchase (as determined in
              accordance with Section 1.2(b)(i) above) and specifying the
              date ("THE SUBSEQUENT CLOSING DATE") that the purchase is to
              occur (the "SUBSEQUENT CLOSING").  The obligations of the
              Investors to purchase Debentures hereunder shall be in all
              respects several and not joint.

                        (iii)  Notwithstanding anything herein to the
              contrary, the right of the Company to exercise the Company Put
              Option under this Section 1.2 shall be conditional upon the
              following (unless waived by the respective Investor):

                               A.   All the Company's representations and
                               warranties contained in this Agreement, the
                               Registration Rights Agreement, the Debentures
                               and the Warrants shall be true and correct in
                               all material respects as of the Closing Date,
                               the date of the Put Option Notice and the
                               Subsequent Closing Date (except for
                               representations and warranties as of an
                               earlier date, which shall be true and correct
                               in all material respects as of such date); and
                               all the Company's covenants contained in this
                               Agreement, the Registration Rights Agreement,
                               the Debentures and the Warrants shall have
                               been performed when and as required, all as
                               certified in writing by the chief financial
                               officer of the Company;

                               B.   A Material Adverse Effect (as defined in
                               Section 2.1(a)) shall not have occurred as of
                               the date of the Put Option Notice and as of
                               the relevant Subsequent Closing Date with
                               respect to the business, operations,
                               properties or financial condition of the
                               Company or its subsidiaries;

                               C.   No Event of Default (as defined in the
                               Debentures) shall have occurred, be likely to
                               occur or be threatened, as of the date of the
                               Put Option Notice and as of the relevant
                               Subsequent Closing Date;

                               D.   The Company is listed on the Principal
                               Market and the closing bid price of a share of
                               Common Stock on the Principal Market (as
                               defined herein) on the date of the Put Option
                               Notice and the Subsequent Closing Date shall
                               be above $12.

                                       4

<PAGE>

                               E.   There have been no breaches by the
                               Company as of the date of the Put Option
                               Notice and the Subsequent Closing Date that
                               have not been fully cured under this
                               Agreement, the Registration Rights Agreement,
                               the Debentures or the Warrants.

                               F.   The obligation hereunder of each Investor
                               to acquire and pay for the Option Debentures
                               at the Subsequent Closing (unless otherwise
                               specified) shall be subject to the
                               satisfaction at or before the relevant
                               Subsequent Closing Date, of each of the
                               applicable conditions set forth in Section
                               4.2, except that all references to the Closing
                               or the Closing Date shall be deemed to refer
                               to such Subsequent Closing Date.

                               G.   The Company has received the shareholder
                               approval required under Section 3.14.

              (c)       THE INVESTOR CALL OPTION.

                        (i)    Only upon the receipt of a Company Put Notice
              in accordance with Section 1.2(a) above, the Investors may
              compel the Company to sell (the "INVESTOR CALL OPTION")
              up to a total aggregate principal amount of $2,500,000 at
              a total aggregate price of $2,500,000, upon written
              notice, for immediately available funds, in accordance with
              the procedures described below; PROVIDED that each Investor
              shall only be entitled to purchase a percentage of the total
              Option Debentures subject to the Investor Call Option equal
              to the percentage such Investor purchased of the total
              principal amount of the Debentures purchased pursuant
              to the Initial Issuance. Notwithstanding the foregoing,
              each Investor may assign its right to purchase Option
              Debentures to any other Investor without the consent of
              the Company or any other Investor. Upon the issuance of
              Option Debentures pursuant to the exercise of the Investor
              Call Option, the Company shall issue to the Investors (pro
              rata in accordance with the percentages of total Option
              Debentures each Investor shall have purchased) Option

              Warrants for the purchase of (750,000 DIVIDED BY the Option
              Closing Price) plus 18,750 shares of Common Stock (such number
              of shares to be subject to adjustment in a manner consistent
              with the provisions adjusting the number of shares issuable
              under the Warrant upon the occurrence of certain events) per
              $2,500,000 principal amount of Option Debentures issued to such
              Investor.

                        (ii)   Each Investor may exercise the Investor Call
              Option on only one occasion and only during the period
              commencing upon the receipt of a Company Put Notice and
              expiring 30 days following the Option Period by providing the
              Company with at least 15 business days written notice (the
              "CALL OPTION NOTICE") indicating that such Investor is

                                       5

<PAGE>

              exercising its Investor Call Option, setting forth the amount
              that the Investor seeks to purchase (in accordance with Section
              2(b)(i) above) and specifying the Subsequent Closing Date.

                        (iii)  Notwithstanding anything herein to the
              contrary, the right of the Investors to exercise the Investors
              Call Option under this Section 1.2 shall be conditional upon
              the following (unless waived by the Company):

                               A.   All the Investors' representations and
                               warranties contained in this Agreement, the
                               Registration Rights Agreement, the Debentures
                               and the Warrants shall be true and correct in
                               all material respect as of the Closing Date,
                               the Call Option Notice date and the relevant
                               Subsequent Closing Date (except for
                               representations and warranties as of an
                               earlier date, which shall be true and correct
                               in all material respects as of such date); and
                               all the Investors' covenants contained in this
                               Agreement, the Registration Rights Agreement,
                               the Debentures and the Warrants shall have
                               been performed when and as required.

                               B.   The obligation hereunder of the Company
                               to issue and sell the Option Debentures on the
                               Subsequent Closing Date (unless otherwise
                               specified) is subject to the satisfaction at
                               or before the relevant Subsequent Closing Date
                               of each of the applicable conditions set forth
                               in Section 4.1, except that all references to
                               the Closing or the Closing Date shall be
                               deemed to refer to the relevant Subsequent
                               Closing Date.

         Section 1.3  ADDITIONAL DEBENTURES.

              (a)  TERMS. Additional Debentures may be issued pursuant to
Section 1.3(b) below. Once issued, the Additional Debentures shall be subject
to the same terms as the Debentures issued on the Closing Date and shall have
the same rights and privileges appurtenant thereto, except with respect to
the following: (i) the Conversion Price shall be equal to 110% of the initial
Closing Price as adjusted subsequent to the Closing Date other than pursuant
to a Reset pursuant to Section 5(c) of the Debentures; and (ii) the maturity
date of the Additional Debentures shall be the sixth anniversary of the
issuance of such Debentures. The Additional Debentures issued pursuant to
this Section 1.3 shall be issued pursuant to documentation that is the same
in all material respects to the Debentures other than changes necessary to
conform the documents to the distinctive terms of the Additional Debentures
as set forth herein.

              (b)  THE ADDITIONAL INVESTOR CALL OPTION. At any time prior to
the 270th day after the Closing Date, in addition to the Option Debentures
set forth in Section 1.2(b) above, the Investors, in each of their sole
discretion, may elect to purchase (the

                                       6

<PAGE>

"Additional Investor Call Option") additional Debentures ("Additional
Debentures") up to a total aggregate principal amount of $2,500,000 at a
total aggregate price of $2,500,000, otherwise in accordance with the
procedures set forth in Section 1.2(b)(i) - (iii) above.

         Section 1.4  REFERENCES. All references to Debentures, Warrants
and Securities in this Agreement and the Registration Rights Agreement shall
include the Initial Debentures, Option Debentures, the Additional Debentures,
the Subsequent Debentures, the Initial Warrants, Option Warrants, the Option
Securities and the Subsequent Securities to the extent that such securities
have been issued.

         Section 1.5  BOARD APPROVAL. As of the Closing Date, Sections 1.2,
1.3 and 1.4 above are subject to obtaining the requisite approval by the
Company's Board of Directors.

         Section 1.6  SUBORDINATION AGREEMENT. The rights of the Investors
under this Agreement are subject to the terms of the Subordination Agreement
dated February 23, 2000, among the Senior Lenders (as defined therein) and,
among others, the Investors (the "SUBORDINATION AGREEMENT").

                                  ARTICLE 2

                         REPRESENTATIONS AND WARRANTIES

         Section 2.1  REPRESENTATIONS AND WARRANTIES OF THE COMPANY. The
Company hereby makes the following representations and warranties to each of
the Investors as of the date hereof and on the Closing Date:

              (a)  ORGANIZATION AND QUALIFICATION; MATERIAL ADVERSE EFFECT.
The Company is a corporation duly incorporated and existing in good standing
under the laws of the State of Delaware and has the requisite corporate power
to own its properties and to carry on its business as now being conducted.
The Company does not have any direct or indirect subsidiaries (defined as any
entity of which the Company owns, directly or indirectly, 50% or more of the
equity or voting power) other than the subsidiaries listed on SCHEDULE 2.1(a)
attached hereto. Except where specifically indicated to the contrary, all
references in this Agreement to subsidiaries shall be deemed to refer to all
direct and indirect subsidiaries of the Company. 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 the nature of the business
conducted or property owned by it makes such qualification necessary other
than those in which the failure so to qualify would not have a Material
Adverse Effect. "MATERIAL ADVERSE EFFECT" means any adverse effect on the
business, operations, properties or financial condition of the entity with
respect to which such term is used and which is (either alone or together
with all other adverse effects) material to such entity and other entities
controlling or controlled by such entity taken as a whole, and any material
adverse effect on the transactions contemplated under

                                       7

<PAGE>

this Agreement, the Registration Rights Agreement or any other agreement or
document contemplated hereby or thereby.

              (b)  AUTHORIZATION; ENFORCEMENT. (i) The Company has all
requisite corporate power and authority to enter into and perform this
Agreement, the Warrants and the Registration Rights Agreement and to issue
the Debentures and Warrants in accordance with the terms hereof and thereof,
(ii) the execution and delivery of this Agreement, the Warrants and the
Registration Rights Agreement by the Company and the consummation by it of
the transactions contemplated hereby and thereby, including the issuance of
the Debentures, the Common Shares and the Warrant Shares, have been duly
authorized by all necessary corporate action, and no further consent or
authorization of the Company or its Board of Directors (or any committee or
subcommittee thereof) or stockholders is required, (iii) this Agreement, the
Warrants, the Debentures and the Registration Rights Agreement have been duly
executed and delivered by the Company, and (iv) this Agreement, the Warrants,
the Debentures and the Registration Rights Agreement constitute valid and
binding obligations of the Company enforceable against the Company in
accordance with their terms, except as such enforceability may be limited by
applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or
similar laws relating to, or affecting generally the enforcement of
creditors' rights and remedies or by other equitable principles of general
application.

              (c)  CAPITALIZATION. The authorized capital stock of the
Company consists of 180,000,000 shares of Common Stock and 20,000,000 shares
of preferred stock; as of December 31, 1999 there were 20,426,753 shares of
Common Stock and 0 shares of preferred stock issued and outstanding; and,
except as set forth on Schedule 2.1(c) and except for shares contemplated by
the YPtel Acquisition (as defined below), no shares of Common Stock and no
shares of preferred stock were reserved for issuance to persons other than
the Investors. All of the outstanding shares of the Company's Common Stock
and preferred stock have been validly issued and are fully paid and
nonassessable. No shares of capital stock are entitled to preemptive rights;
and there are as of December 31, 1999 outstanding options and outstanding
warrants for 3,806,523 shares of Common Stock (excluding the Warrants).
Except as set forth on Schedule 2.1(c), there are no other scrip, rights to
subscribe to, calls or commitments of any character whatsoever relating to,
or securities or rights exchangeable for or convertible into, any shares of
capital stock of the Company, or contracts, commitments, understandings, or
arrangements by which the Company is or may become bound to issue additional
shares of capital stock of the Company or options, warrants, scrip, rights to
subscribe to, or commitments to purchase or acquire, any shares, or
securities or rights convertible or exchangeable into shares, of capital
stock of the Company, except as may otherwise be set forth in the relevant
SEC Documents (as defined below) with respect to the Company's acquisition of
YPtel Corporation, Web YP, Inc. and Big Stuff, Inc. (the "YP COMPANIES") and
related transactions (collectively, the "YPtel Acquisition"). Attached hereto
as EXHIBIT 2.1(c)(i) is a true and correct copy of the Company's Certificate
of Incorporation (the "CHARTER"), as in effect on the date hereof, and
attached hereto as EXHIBIT 2.1(c)(ii) is a true and correct copy of the
Company's By-Laws, as in effect on the date hereof (the "BY-LAWS").

                                       8

<PAGE>

              (d)  ISSUANCE OF COMMON SHARES. The Common Shares and the
shares of Common Stock issuable upon the exercise of the Warrants (the
"WARRANT SHARES") are duly authorized and reserved for issuance and, upon
such conversion in accordance with the Debentures and/or exercise in
accordance with the Warrants such Common Shares and Warrant Shares will be
validly issued, fully paid and non-assessable, free and clear of any and all
liens, claims and encumbrances, and entitled to be traded on the ("NYSE") (or
the American Stock Exchange or the Nasdaq National Market System,
collectively with the NYSE, the "APPROVED MARKETS"), and the holders of such
Common Shares and Warrant Shares shall be entitled to all rights and
preferences accorded to a holder of Common Stock. The outstanding shares of
Common Stock are currently listed on the NYSE.

              (e)  NO CONFLICTS. The execution, delivery and performance of
this Agreement, the Registration Rights Agreement and the Warrants by the
Company and the consummation by the Company of the transactions contemplated
hereby and thereby and the issuance of the Debentures and the Warrants do not
and will not (i) result in a violation of the Company's Charter or By-Laws or
(ii) conflict with, or constitute a default (or an event which with notice or
lapse of time or both would become a default) under, or give to others any
rights of termination, amendment, acceleration or cancellation of, any
agreement, indenture, patent, patent license or instrument to which the
Company or any of its subsidiaries is a party (collectively, "COMPANY
AGREEMENTS"), or (iii) result in a violation of any federal, state, local or
foreign law, rule, regulation, order, judgment or decree (including Federal
and state securities laws and regulations) 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, except (other than in the case of
clause (i) above) where such violation would not reasonably be expected to
have a Material Adverse Effect. The business of the Company and its direct
and indirect subsidiaries is being conducted in material compliance with (i)
its Charter and By-Laws, (ii) all Company Agreements and (iii) all applicable
laws, ordinances or regulations of any governmental entity, except (other
than in the case of clause (i) above) where such violation would not
reasonably be expected to have a Material Adverse Effect. Except for filings,
consents and approvals required under applicable state and federal securities
laws or the rules and regulations of the Approved Markets and covered by the
Registration Rights Agreement, the Company is not required under Federal,
state, local or foreign law, rule or regulation to obtain any consent,
authorization or order of, or make any filing or registration with, any court
or governmental agency in order for it to execute, deliver or perform any of
its obligations under this Agreement, the Registration Rights Agreement, the
Debentures and the Warrants or issue and sell the Debentures in accordance
with the terms hereof and issue the Common Shares upon conversion thereof and
issue the Warrant Shares on exercise of the Warrants and for the registration
provisions provided in the Registration Rights Agreement.

              (f)  SEC DOCUMENTS; NO NON-PUBLIC INFORMATION; FINANCIAL
STATEMENTS. The Common Stock of the Company is registered pursuant to Section
12(b) of the Securities Exchange Act of 1934, as amended (the "EXCHANGE ACT")
and the Company and its subsidiaries have filed all reports, schedules,
forms, statements and other documents required to be filed by it with the
Securities and Exchange Commission

                                       9

<PAGE>

("SEC") pursuant to the reporting requirements of the Exchange Act, including
all such proxy information, solicitation statement and registration
statements, and any amendments thereto required to have been filed in
connection with the YPtel Acquisition (all of the foregoing including filings
incorporated by reference therein being referred to herein as the "SEC
DOCUMENTS"). The Company has delivered or made available to the Investors
true and complete copies of all SEC Documents filed with the SEC since
December 31, 1998. The Company has not directly or indirectly provided to the
Investors any material non-public information or any information which,
according to applicable law, rule or regulation, should have been disclosed
publicly by the Company but which has not been so disclosed. As of their
respective dates, the SEC Documents complied in all material respects with
the requirements of the Exchange Act and the rules and regulations of the SEC
promulgated thereunder and other federal, state and local laws, rules and
regulations applicable to such SEC Documents, and none of the SEC Documents
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. The SEC Documents contain all material information concerning
the Company and its subsidiaries, and no event or circumstance has occurred
which would require the Company to disclose such event or circumstance in
order to make the statements in the SEC Documents not misleading on the date
hereof or on the Closing Date but which has not been so disclosed.

              (g)  FINANCIAL STATEMENTS. The financial statements of the
Company and its subsidiaries and the YP Companies included in the SEC
Documents comply as to form and substance in all material respects with
applicable accounting requirements and the published rules and regulations of
the SEC or other applicable rules and regulations with respect thereto. Such
financial statements have been prepared in accordance with United States
generally accepted accounting principles applied on a consistent basis during
the periods involved (except (i) as may be otherwise indicated in such
financial statements or the notes thereto or (ii) in the case of unaudited
interim statements, to the extent they may not include footnotes or may be
condensed or summary statements) and fairly present in all material respects
the financial position of the Company and its subsidiaries as of the dates
thereof and the results of operations and cash flows for the periods then
ended (subject, in the case of unaudited statements, to normal year-end audit
adjustments). The audited financial statements of each of the Company and its
subsidiaries for the fiscal year ending December 31, 1999, the audited
financial statements of YPtel Corporation for the fiscal year ending October
31, 1999 and the unaudited financial statements of Big Stuff, Inc. for the
fiscal year ending December 31, 1999 have been prepared in accordance with
United States generally accepted accounting principles applied on a
consistent basis during the periods involved (except (i) as may be otherwise
indicated in such financial statements or the notes thereto or (ii) in the
case of unaudited interim statements, to the extent they may not include
footnotes or may be condensed or summary statements) and fairly present in
all material respects the financial position of the Company and its
subsidiaries, and each of the YP Companies, as the case may be, as of the
dates thereof and the results of operations and cash flows for the periods
then ended (subject, in the case of unaudited statements, to normal year-end
audit adjustments).

                                       10

<PAGE>

              (h)  PRINCIPAL EXCHANGE/MARKET. The principal market on which
the Common Stock is currently traded is the NYSE.

              (i)  NO MATERIAL ADVERSE CHANGE. Since December 31, 1999, no
Material Adverse Effect has occurred or exists, and no event or circumstance
has occurred that with notice or the passage of time or both is reasonably
likely to result in a Material Adverse Effect with respect to the Company or
its subsidiaries.

              (j)  NO UNDISCLOSED LIABILITIES. The Company and its
subsidiaries have no liabilities or obligations not disclosed in the
Pre-Agreement SEC Documents (as defined below), other than those liabilities
incurred in the ordinary course of the Company's or its subsidiaries'
respective businesses since December 31, 1999, which liabilities,
individually or in the aggregate, do not or would not have a Material Adverse
Effect on the Company or its direct or indirect subsidiaries.

              (k)  NO UNDISCLOSED EVENTS OR CIRCUMSTANCES. To the best
knowledge of the Company, no material event or circumstance has occurred or
exists with respect to the Company or its direct or indirect subsidiaries or
their respective businesses, properties, prospects, operations or financial
condition, which, under applicable law, rule or regulation, requires public
disclosure or announcement by the Company but which has not been so publicly
announced or disclosed.

              (l)  NO GENERAL SOLICITATION. Neither the Company, nor any of
its affiliates, or, to its knowledge, any person acting on its or their
behalf has engaged in any form of general solicitation or general advertising
(within the meaning of Regulation D under the Securities Act of 1933, as
amended (the "ACT")) in connection with the offer or sale of the Debentures
or Common Shares.

              (m)  NO INTEGRATED OFFERING. Neither the Company, nor any of
its affiliates, nor to its knowledge 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 the Debentures, the Warrants or the Common Shares or
Warrant Shares under the Act.

     The Issuance of the Debentures, Warrants, Common Shares, or Warrant
Shares to the Investors will not be integrated with any other issuance of the
Company's securities (past, current or future) which requires stockholder
approval under the rules of the NYSE.

              (n)  FORM S-3. The Company is eligible to file the Registration
Statement (as defined in the Registration Rights Agreement) on Form S-3 under
the Act and rules promulgated thereunder, and Form S-3 is permitted to be
used for the transactions contemplated hereby under the Act and rules
promulgated thereunder.

              (o)  INTELLECTUAL PROPERTY. The Company and/or its wholly-owned
subsidiaries owns or has licenses to use certain patents, copyrights and
trademarks ("INTELLECTUAL PROPERTY") associated with its business. The
Company and its subsidiaries have all intellectual property rights which are
needed to conduct the business

                                       11

<PAGE>

of the Company and its subsidiaries as it is now being conducted or as
proposed to be conducted as disclosed in the SEC Documents. The Company and
its subsidiaries have no reason to believe that the material intellectual
property rights which it owns are invalid or unenforceable or that the use of
such intellectual property by the Company or its subsidiaries infringes upon
or conflicts with any right of any third party, and neither the Company nor
any of its subsidiaries has received notice of any such infringement or
conflict, which individually or in the aggregate, would reasonably be
expected to have a Material Adverse Effect. The Company and its subsidiaries
have no knowledge of any infringement of its intellectual property by any
third party.

              (p)  POISON PILL PROVISIONS. Neither Company nor its
wholly-owned subsidiaries have a stockholder rights plan. None of the
acquisition of Debentures, Warrants, Common Shares or Warrant Shares nor the
deemed beneficial ownership of shares of Common Stock prior to, or the
acquisition of such shares pursuant to, the conversion of Debentures or the
exercise of the Warrants will in any event under any circumstance trigger the
poison pill provisions of any other or subsequently adopted plan or
agreement, or a substantially similar occurrence under any successor or
similar plan.

              (q)  NO LITIGATION. Except as set forth in the Pre-Agreement
SEC Documents (as defined in Section 2.2(c) (i) below), no litigation or
claim (including those for unpaid taxes) against the Company or any of its
subsidiaries is pending or, to the Company's knowledge, threatened, and no
other event has occurred, which if determined adversely could reasonably be
expected to have a Material Adverse Effect on the Company or could reasonably
be expected to materially and adversely effect the transactions contemplated
hereby. There is no legal proceeding described in the Pre-Agreement SEC
Documents that could reasonably be expected to have a Material Adverse Effect
on the Company.

              (r)  BROKERS. The Company has taken no action which would give
rise to any claim by any person for brokerage commissions, finder's fees or
similar payments by the Company or any Investor relating to this Agreement or
the transactions contemplated hereby, except for amounts owing to Granite
Financial Group, which amounts shall be paid by the Investors, pursuant to a
separate agreement.

              (s)  ACKNOWLEDGEMENT OF DILUTION. The number of shares of
Common Stock constituting Common Shares or Warrant Shares may increase
substantially in certain circumstances, including the circumstance where the
trading price of the Common Stock declines. The Company acknowledges that its
obligation to issue Common Shares upon conversion of Debentures and Warrant
Shares upon exercise of the Warrants is absolute and unconditional,
regardless of the dilution that such issuance may have on other shareholders
of the Company.

              (t)  OTHER INVESTORS. Except as set forth on Schedule 2.1(t),
there are no outstanding securities issued by the Company that are entitled
to registration rights under the Act. Except as set forth on Schedule 2.1(t),
there are no outstanding securities issued by the Company that are directly
or indirectly convertible into, exercisable into, or exchangeable for, shares
of Common Stock of the Company, or that have anti-dilution or

                                       12

<PAGE>

similar rights that would be affected by the issuance of the Debentures, the
Common Shares, the Warrants or the Warrant Shares.

              (u)  CERTAIN TRANSACTIONS. Except as disclosed in the
Pre-Agreement SEC Documents or as set forth on Schedule 2.1(u), none of the
officers, directors, or key 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.

              (v)  PERMITS; COMPLIANCE. The Company and each of its
subsidiaries is in possession of all franchises, grants, authorizations,
licenses, permits, easements, variances, exemptions, consents, certificates,
approvals and orders necessary to own, lease and operate its properties and
to carry on its business as it is now being conducted (collectively, the
"COMPANY PERMITS"), except where failure to possess such Company Permits
would not have a Material Adverse Effect on the Company and there is no
action pending or, to the knowledge of the Company, threatened regarding
suspension or cancellation of any of the Company Permits except for such
Company Permits the failure of which to possess, or the cancellation or
suspension of which, would not, individually or in the aggregate, have a
Material Adverse Effect on the Company. To the best of its knowledge, neither
the Company nor any of its subsidiaries is in material conflict with, or in
material default or material violation of, any of the Company Permits. Since
December 31, 1998, neither the Company nor any of its subsidiaries has
received any notification with respect to possible material conflicts,
material defaults or material violations of applicable laws.

              (w)  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
direct and indirect subsidiaries are engaged. Except as set forth in Schedule
2.1(w), neither the Company nor any such subsidiary has any reason to believe
that it will not be able to renew its existing insurance coverage as and when
such coverage expires or to obtain similar coverage from similar insurers as
may be necessary to continue its business without a significant increase in
cost.

              (x)  INTERNAL ACCOUNTING CONTROLS. The Company and each of its
subsidiaries maintain a system of internal accounting controls sufficient, in
the judgment of the Company's management, to provide reasonable assurance
that (i) transactions are executed in accordance with management's general or
specific authorizations, (ii) transactions are recorded as necessary to
permit preparation of financial statements in conformity with generally
accepted accounting principles and to maintain asset accountability, (iii)
access to assets is permitted only in accordance with management's general or
specific authorization and (iv) the recorded accountability for assets is

                                       13

<PAGE>c

compared with the existing assets at reasonable intervals and appropriate
action is taken with respect to any differences.

              (y)  ENVIRONMENTAL MATTERS. Except as otherwise disclosed in
the Pre-Agreement SEC Documents, the Company and each of its subsidiaries is
in compliance in all respects with all applicable state and federal
environmental laws except where any such non-compliance would not reasonably
be expected to have a Material Adverse Effect on the Company and no event or
condition has occurred that may interfere with the compliance by the Company
or any of its subsidiaries with any environmental law or that may give rise
to any liability under any environmental law that, individually or in the
aggregate, would have a Material Adverse Effect.

              (z)  SOLVENCY.

                        (i)    Based on the financial condition of the
              Company as of the Closing Date, the Company's fair saleable
              value of its assets exceeds the amount that will be required to
              be paid on or in respect of the Company's existing debts and
              other liabilities (including known contingent liabilities) as
              they mature.

                        (ii)   Based on the financial condition of the
              Company as of the Closing Date, the Company's assets do not
              constitute unreasonably small capital to carry out its business
              as now conducted and as proposed to be conducted including the
              Company's capital needs taking into account the particular
              capital requirements of the business conducted by the Company,
              and projected capital requirements and capital availability
              thereof.

                        (iii)  The Company does not intend to incur debts
              beyond its ability to pay such debts as they mature (taking
              into account the timing and amounts of cash to be payable on or
              in respect of its debt). Based on the financial condition of
              the Company as of the Closing Date, the current cash flow of
              the Company, together with the proceeds the Company would
              receive, were it to liquidate all of its assets, after taking
              into account all anticipated uses of the cash, would be
              sufficient to pay all amounts on or in respect of its debt when
              such amounts are required to be paid.

                        (iv)   Neither the Company nor any of its
              subsidiaries is subject to any bankruptcy, insolvency or
              similar proceeding.

              (aa)   TAXES. All federal, state, city and other tax returns,
reports and declarations required to be filed or extended by or on behalf of
the Company and each of its subsidiaries have been filed or extended and all
such filed returns are complete and accurate and disclose all taxes (whether
based upon income, operations, purchases, sales, payroll, licenses,
compensation, business, capital, properties or assets or otherwise) required
to be paid in the periods covered thereby. All taxes required to be withheld
by or on behalf of the Company or any such subsidiary in connection with
amounts paid or owing to any employees, independent contractor, creditor or
other party have been

                                       14

<PAGE>

withheld, and such withheld taxes have either been duly and timely paid to
the proper governmental authorities or set aside in accounts for such
purposes.

              (bb)   TITLE TO PROPERTIES; ENCUMBRANCES. SCHEDULE 2.1(bb)
contains a complete and accurate list of all material real property,
leaseholds, or other interests therein owned by the Company and its
subsidiaries. Each of the Company and its subsidiaries owns (with good and
marketable title in the case of real property) all the properties and assets
(whether real, personal, or mixed and whether tangible or intangible
("Company Property")) that it purports to own. All material Company Property
is free and clear of all encumbrances and are not, in the case of real
property, subject to any rights of way, building use restrictions,
exceptions, variances, reservations or limitations of any nature, except,
with respect to all such properties and assets, (a) mortgages, liens or
security interests shown on SCHEDULE 2.1(bb) as securing specified
liabilities or obligations, with respect to which no default (or event that,
with notice or lapse of time or both, would constitute a default) exists, (b)
liens for current taxes not yet due, and (c) with respect to real property,
(i) minor imperfections of title, if any, none of which is substantial in
amount, materially detracts from the value or impairs the use of the property
subject thereto, or impairs the operations of the Company or any of its
subsidiaries, and (ii) zoning laws and other land use restrictions
(including, but not limited to, easements of records) that do not impair the
present or anticipated use of the property subject thereto. All buildings,
plans, and structures owned by the Company or any of its subsidiaries lie
wholly within the boundaries of the real property owned by the Company or
such subsidiaries, and do not encroach upon the property of, or otherwise
conflict with the property rights of, any other person.

              (cc)   NO RELIANCE ON INVESTORS. The Company acknowledges and
agrees that each Investor is acting solely in the capacity of an arm's length
purchaser with respect to this Agreement and the Registration Rights
Agreement and the performance under the Debentures and the Warrants and the
transactions contemplated hereby and thereby. The Company further
acknowledges that no Investor is acting as a financial advisor or fiduciary
of the Company (or in any similar capacity) with respect to this Agreement
and the Registration Rights Agreement and the performance under the
Debentures and the Warrants and the transactions contemplated hereby and
thereby. The Company further represents to the Investor that the Company's
decision to enter into this Agreement and the Registration Rights Agreement
and the performance under the Debentures and the Warrants has been based
solely on the independent evaluation by the Company and its representatives.

              (dd)   INTENTIONALLY LEFT BLANK.

              (ee)   GUARANTIES OF SUBSIDIARIES. The subsidiaries listed on
Schedule 4.2(k) hereto represent all of the Company's subsidiaries which have
delivered a guaranty to the Senior Lenders in connection with the Senior Debt
(as defined in Section 3.12).

              (ff)   INTENTIONALLY LEFT BLANK.

         Section 2.2  REPRESENTATIONS AND WARRANTIES OF THE INVESTORS. Each
of the Investors, severally (as to itself) and not jointly hereby makes the
following

                                       15

<PAGE>

representations and warranties to the Company as of the date hereof
and on the Closing Date:

              (a)  ORGANIZATION AND QUALIFICATION. Each of the Investors is
duly organized, validly existing and in good standing under the laws of the
jurisdiction of its organization and is duly qualified to do business and in
good standing in each jurisdiction in which the nature of the business
conducted by it makes such qualification necessary except where the failure
to be so qualified or in good standing would not reasonably be expected to
have a Material Adverse Effect on such Investor.

              (b)  AUTHORIZATION; ENFORCEMENT. (i) Such Investor has the
requisite power and authority to enter into and perform this Agreement and
the Registration Rights Agreement and to purchase the Debentures and to
acquire the Warrants being sold to it hereunder, (ii) the execution and
delivery of this Agreement and the Registration Rights Agreement by such
Investor and the consummation by it of the transactions contemplated hereby
and thereby have been duly authorized by all necessary corporate or
partnership action, and (iii) this Agreement and the Registration Rights
Agreement constitute valid and binding obligations of such Investor
enforceable against such Investor in accordance with their terms, except as
such enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium, liquidation or similar laws relating to, or
affecting generally the enforcement of creditors' rights and remedies or by
other equitable principles of general application.

              (c)  NO CONFLICTS. The execution, delivery and performance of
this Agreement and the Registration Rights Agreement and the performance
under the Debentures and Warrants and the consummation by such Investor of
the transactions contemplated hereby and thereby do not and will not (i)
result in a violation of such Investor's organizational documents, or (ii)
conflict with any agreement, indenture or instrument to which such Investor
is a party, or (iii) result in a material violation of any law, rule, or
regulation, or any order, judgment or decree of any court or governmental
agency applicable to such Investor. Such Investor is not required to obtain
any consent or authorization of any governmental agency in order for it to
perform its obligations under this Agreement, the Registration Rights
Agreement, the Warrants or the Debentures.

              (d)  INVESTMENT REPRESENTATIONS.

                        (i)    INFORMATION. The Company has furnished such
              Investor with its Registration Statement on Form S-1 dated
              February 11, 2000, its Proxy Statement dated January 24, 2000,
              its annual report on Form 10-K for its fiscal year ended
              December 31, 1998 (the "FISCAL YEAR END"), its quarterly
              reports on Form 10-Q for the fiscal quarters ended March 31,
              1999, June 30, 1999 and September 30, 1999, and all other
              reports or documents filed by the Company pursuant to Section
              13(a) or 15(d) of the Exchange Act prior to the Closing Date
              (the "PRE-AGREEMENT SEC DOCUMENTS").

                                       16

<PAGE>

                        (ii)   ACCESS TO OTHER INFORMATION. Such Investor
              acknowledges that the Company has made available to such
              Investor the opportunity to examine such additional documents
              from the Company and to ask questions of, and receive full
              answers from, the Company concerning, among other things, the
              Company, its financial condition, its management, its prior
              activities and any other information which such Investor
              considers relevant or appropriate in connection with entering
              into this Agreement.

                        (iii)  RISKS OF INVESTMENT.  Such Investor
              acknowledges that the Securities and the Common Shares and
              Warrant Shares issuable upon conversion and/or exercise of
              the Securities have not been registered under the Act.  Such
              Investor is familiar with the provisions of Rule 144 and
              understands that in the event all of the applicable
              requirements of Rule 144 are not satisfied, registration
              under the Act or some other exemption from the registration
              requirements of the Act will be required in order to
              dispose of the Securities and the Common Shares and
              Warrant Shares issuable upon conversion and/or exercise of
              the Securities, and that such Investor may be required to
              hold its Securities and the Common Shares and Warrant
              Shares issuable upon conversion and/or exercise of the
              Securities received under this Agreement for a significant
              period of time prior to reselling them, subject to the
              Company successfully registering the Common Shares and
              Warrant Shares pursuant to the Registration Rights
              Agreement. Such Investor is capable of assessing the risks of
              an investment in the Securities and is fully aware of the
              economic risks thereof.  Such Investor acknowledges that the
              Company's operating results have in the past and may in the
              current period and in future periods not meet the
              expectations of securities analysts and that failure to
              meet such expectations would be likely to have a material
              adverse effect on the trading price and salability of the
              Common Shares and Warrant Shares.

                        (iv)   INVESTMENT REPRESENTATION. Such Investor is
              purchasing the Debentures and the Warrants for its own account
              and not with a view to distribution in violation of any
              securities laws. Such Investor has no present intention to sell
              the Debentures, Warrants, Common Shares, or Warrant Shares in
              violation of federal or state securities laws and such Investor
              has no present arrangement (whether or not legally binding) to
              sell the Debentures, Warrants, Common Shares or Warrant Shares
              to or through any person or entity; PROVIDED, however, that by
              making the representations herein, such Investor does not
              agree to hold the Debentures, Warrants, Common Shares or
              Warrant Shares for any minimum or other specific term and
              reserves the right to dispose of the Debentures, Warrants,
              Common Shares or Warrant Shares at any time in accordance with
              federal and state securities laws applicable to such
              disposition.

                        (v)    RESTRICTED SECURITIES. It acknowledges and
              understands that the terms of issuance have not been reviewed
              by the SEC or by any state

                                       17

<PAGE>

              securities authorities and that the Securities have been issued
              in reliance on the certain exemptions for non-public offerings
              under the Act, which exemptions depend upon, among other
              things, the representations made and information furnished by
              such Investor, including the bona fide nature of such
              Investor's investment intent as expressed above.

                        (vi)   ACCURACY OF INFORMATION. All information that
              such Investor provides to the Company hereunder is correct and
              complete as of the date set forth above.

                        (vii)  ABILITY TO BEAR ECONOMIC RISK. It is an
              "accredited" investor as defined in Rule 501 of Regulation D,
              as amended, under the Act, and that it (i) is able to bear the
              economic risk of its investment in the Debentures, (ii) is able
              to hold the Debentures for an indefinite period of time, (iii)
              can afford a complete loss of its investment in the Debentures
              and (iv) has adequate means of providing for its current needs.

                        (viii) NO PUBLIC SOLICITATION. At no time was such
              Investor presented with or solicited by any general mailing,
              leaflet, public promotional meeting, newspaper or magazine
              article, radio or television advertisement, or any other form
              of general advertising or general solicitation in connection
              with the issuance.

                        (ix)   RELIANCE BY THE COMPANY. Such Investor
              understands that the Debentures and Warrant are being offered
              and sold in reliance on a transactional exemptions from the
              registration requirements of federal and state securities laws
              and that the Company is relying upon the truth and accuracy of
              the representations, warranties, agreements, acknowledgments
              and understandings of such Investor set forth herein in order
              to determine the applicability of such exemptions and the
              suitability of such Investor to acquire the Debentures and
              Warrants.

                        (x)    INTENTIONALLY LEFT BLANK.

              (e)  BROKERS. Such Investor has taken no action which would give
rise to any claim by any person for brokerage commissions, finder's fees or
similar payments by the Company relating to this Agreement or the
transactions contemplated hereby, except for amounts owing to Granite
Financial Group, which amounts shall be paid by the Investors, pursuant to a
separate agreement.

              (f) NO HEDGING OR SHORT SELLING. Other than as set forth in the
following sentence, during the period sixty (60) days prior to the date of
this Agreement, the Investor has not engaged in any short sales or hedging of
any kind with respect to the Common Stock in anticipation of this Agreement.
However, the Company has been advised orally that an Investor has engaged in
short sales.

                                       18

<PAGE>

                                   ARTICLE 3

                                   COVENANTS

         Section 3.1  REGISTRATION AND LISTING; EFFECTIVE REGISTRATION. For
so long as the Debentures and Warrants are outstanding, the Company will
cause the Common Stock issuable upon the exercise of the Securities to
continue at all times to be registered under Section 12(b) or Section 12(g)
of the Exchange Act, will comply in all respects with its reporting and
filing obligations under the Exchange Act, and will not take any action or
file any document (whether or not permitted by the Exchange Act or the rules
thereunder) to terminate or suspend such reporting and filing obligations.
Until such time as no Debentures or Warrants are outstanding, the Company
shall continue the listing or trading of the Common Stock on the NYSE or one
of the other Approved Markets and comply in all respects with the Company's
reporting, filing and other obligations under the bylaws or rules of the
Approved Market on which the Common Stock is listed. The Company shall cause
the Common Stock to be listed on the NYSE no later than the registration of
the Common Stock under the Act, and at all times shall continue such
listing(s) on one of the Approved Markets. As used herein and in the
Registration Rights Agreement, the Debenture and the Warrants, the term
"EFFECTIVE REGISTRATION" shall mean that all registration obligations of the
Company pursuant to the Registration Rights Agreement and this Agreement have
been satisfied, such registration is not subject to any suspension or stop
order, the prospectus for the Common Stock issuable upon conversion and/or
exercise of the Securities is current and deliverable and such shares of
Common Stock are listed for trading on one of the Approved Markets and such
trading has not been suspended for any reason, none of the Company or any
direct or indirect subsidiary of the Company is subject to any bankruptcy,
insolvency or similar proceeding, and no Interfering Event (as defined in
Section 2(b) of the Registration Rights Agreement) exists.

         Section 3.2  DEBENTURES ON CONVERSION AND WARRANTS ON EXERCISE.

              (a)  Upon any conversion by an Investor (or then holder of
Debentures) of the Debentures pursuant to the terms thereof, the Company
shall issue and deliver to such Investor (or holder) within three (3) Trading
Days (as such term is defined in the Debenture) of the Conversion Date (as
defined in the Debenture), a new certificate or certificates for the
principal amount of Debentures which such Investor (or holder) has not yet
elected to convert but which is evidenced in part by the certificate(s)
submitted to the Company in connection with such conversion (with the number
of and denomination of such new certificate(s) designated by such Investor or
holder).

              (b)  Upon any partial exercise by an Investor (or then holder
of the Warrants) of the Warrants, the Company shall issue and deliver to such
Investor (or holder) within three (3) days of the date on which such Warrants
are exercised, a new Warrant or Warrants representing the number of adjusted
Warrant Shares, in accordance with the terms of Section 2 of the Warrants.

         Section 3.3  REPLACEMENT DEBENTURES AND WARRANTS.

                                       19

<PAGE>

              (a)  The certificate(s) representing the Debentures held by any
Investor (or then holder) may be exchanged by such Investor (or such holder)
at any time and from time to time for certificates with different
denominations representing an equal aggregate number of Debentures, as
requested by such Investor (or such holder) upon surrendering the same. No
service charge will be made for such registration or transfer or exchange.

              (b)  The Warrants will be exchangeable at the option of the
Investor (or then holder of the Warrants) at the office of the Company for
other Warrants of different denominations entitling the holder thereof to
purchase in the aggregate the same number of Warrant Shares as are
purchasable under such Warrants. No service charge will be made for such
transfer or exchange.

         Section 3.4  EXPENSES.  The Company shall pay in immediately
available funds, at the Closing and promptly upon receipt of any further
invoices relating to same, all reasonable due diligence fees and expenses and
reasonable attorneys' fees and expenses of the Investors' Counsel, incurred
by the Investors in connection with the preparation, negotiation, execution
and delivery of this Agreement, the Registration Rights Agreement, the
Debentures, the Warrants and the related agreements and documents and the
transactions contemplated hereunder and thereunder; provided, however, that
the Company shall not be obligated to pay fees and expenses in excess of
$100,000 unless the Investors have obtained the prior written approval of the
Company with respect to any such excess. At Closing, the Company shall pay
the amount estimated to be due for such fees and expenses (which may include
fees and expenses estimated to be incurred for completion of the transaction
including post-closing matters). In the event such amount is ultimately less
than the actual fees and expenses, the Company shall promptly pay such
deficiency upon receipt of an invoice regarding same. In the event such
amount is ultimately greater than the actual fees and expenses, such excess
shall promptly be returned to the Company. In the event that the Company
issues Subsequent Securities pursuant to the exercise of the Company Put
Option, the Investor Call Option or the Additional Investor Call Option, the
Company shall pay in immediately available funds all of the reasonable fees
and expenses of Investors' counsel related to such issuance in accordance
with all of the same terms and conditions in this paragraph relating to the
issuance of the Securities in the issuance; provided, however, that the
Company shall not be obligated to pay fees and expenses in excess of an
additional $25,000 per $5,000,000 principal amount of Subsequent Debentures
issued to the Investors unless the Investors have obtained prior written
approval of the Company with respect to any such excess.

         Section 3.5  SECURITIES COMPLIANCE. The Company shall notify the
SEC and the NYSE, in accordance with their requirements, of the transactions
contemplated by this Agreement, the Debenture, the Registration Rights
Agreement and the Warrants, and shall take all other necessary action and
proceedings as may be required and permitted by applicable law, rule and
regulation, for the legal and valid issuance of the Debentures hereunder, the
Common Shares issuable upon conversion thereof, the Warrants and the Warrant
Shares issuable upon exercise of the Warrants.

         Section 3.6  DIVIDENDS OR DISTRIBUTIONS; PURCHASES OF EQUITY
SECURITIES. Except as set forth in Schedule 3.6, so long as any Debentures or
Warrants remain outstanding, the

                                       20

<PAGE>

Company agrees that it shall not (a) declare or pay any dividends or make any
distributions to any holder or holders of Common Stock (other than dividends
payable in Common Stock), or (b) purchase or otherwise acquire for value,
directly or indirectly, any shares of Common Stock or other equity security
of the Company; provided that the Company may purchase or acquire shares of
Common Stock so long as the Company (i) purchases or acquires such shares on
the open market or pursuant to a tender offer directed to all of the
Company's shareholders and (ii) does not utilize the proceeds of the
issuances of the Debentures for such purpose.

         Section 3.7  NOTICES. The Company agrees to provide all holders of
Debentures and Warrants with copies of all notices and information, including
without limitation notices and proxy statements in connection with any
meetings, that are provided to the holders of shares of Common Stock,
contemporaneously with the delivery of such notices or information to such
Common Stock holders.

         Section 3.8  USE OF PROCEEDS. The Company agrees that the proceeds
received by the Company from the sale of the Debentures hereunder shall be
used for working capital purposes and repayment of Senior Indebtedness.

         Section 3.9  NOTIFICATION OF ADDITIONAL FINANCINGS; ADJUSTMENTS.

              (a)  Until the twelve (12) month anniversary of the Closing
Date the Company shall provide reasonable advance notice to the Investors of
its intentions to pursue any transaction, the purpose of which is to provide
capital to the Company, in consideration of which the Company will sell or
otherwise issue or deliver or dispose of any share of Common Stock or other
equity securities or any securities which are convertible into or
exchangeable for shares of its Common Stock or other equity securities or any
convertible or exchangeable security, or any warrants or other rights to
subscribe for or to purchase or any options for the purchase of share of
Common Stock or other equity securities (such transactions are referred to as
"Applicable Financing Transactions") the Company agrees to use reasonable
efforts to provide the Investors with the opportunity to provide the
financing in such Applicable Financing Transactions.

              (b)  If at any time prior to the close of business on the 180th
day after the Closing Date, the Company issues Common Stock (or securities or
rights exercisable or exchangeable for, or convertible into, Common Stock
("Derivative Securities") in a private placement at a discount from (or in an
Investor's sole judgment on terms more favorable to the purchaser thereof
than) the terms specified in Section 5(c) of the Debentures other than shares
issued (i) to any Investor or an affiliate thereof in any future transaction
or (ii) in connection with a strategic investment (including, but not limited
to, an acquisition) that was not essentially a capital raising transaction on
behalf of the Company or (iii) to retain or attract potential non-affiliated
employees, then the Debentures held by such Investor will automatically (at
such Investor's request) be adjusted to provide for such discount or lower or
more favorable Conversion Price, as applicable, provided, however, that the
Investor

                                       21

<PAGE>

agrees to promptly advise the Company in writing following receipt of written
notice from the Company of the terms and conditions of any proposed issuance
of Company Common Stock that the Investor considers such issuance either
would or would not be on terms more favorable to the purchaser thereof.

         Section 3.10  RESERVATION OF STOCK ISSUABLE UPON CONVERSION AND
UPON EXERCISE OF THE WARRANTS. The Company shall at all times reserve and
keep available out of its authorized but unissued shares of Common Stock,
solely for the purpose of effecting the conversion of the Debentures and the
exercise of the Warrants, such number of its shares of Common Stock as shall
from time to time be sufficient to effect the conversion of all outstanding
Debentures and the full exercise of the Warrants and if at any time the
number of authorized but unissued shares of Common Stock shall not be
sufficient to effect the conversion of all the then outstanding Debentures
and the full exercise of the Warrants, the Company will take such corporate
action as may, in the opinion of its counsel, be necessary to increase its
authorized but unissued shares of Common Stock to such number of shares as
shall be sufficient for such purpose, including without limitation engaging
in best efforts to obtain the requisite shareholder approval. Without in any
way limiting the foregoing, the Company agrees to reserve and at all times
keep available solely for purposes of conversion of Debentures and the
exercise of the Warrants such number of authorized but unissued shares of
Common Stock that is at least equal to 200% of the aggregate shares issuable
upon conversion of Debentures, and 200% of the aggregate shares issuable on
exercise of Warrants, which number may be reduced by the number of Common
Shares or Warrant Shares actually delivered pursuant to conversion of
Debentures or exercise of the Warrants and shall be appropriately adjusted
for any stock split, reverse split, stock dividend or reclassification of the
Common Stock. If the Company falls below the reserves specified in the
immediately preceding sentence and does not cure such non-compliance within
30 days of its start, then the Investors will be entitled to the discount
adjustments specified in Section 2(b)(i) of the Registration Rights
Agreement. If at any time the number of authorized but unissued shares of
Common Stock is not sufficient to effect the conversion of all the then
outstanding Debentures or the full exercise of the Warrants, the Investors
shall be entitled to, INTER ALIA, the premium price redemption rights
provided in the Registration Rights Agreement.

         Section 3.11  BEST EFFORTS. The parties shall use their best
efforts to satisfy timely each of the conditions described in Article 4 of
this Agreement.

         Section 3.12  NO SENIOR INDEBTEDNESS; LIMITATIONS ON ISSUANCE OF
EQUITY.

              (a)  So long as any Debentures remain outstanding, the Company
agrees that neither the Company nor any subsidiary of the Company shall
create, incur, assume, guarantee, secure or in any manner become liable in
respect of any indebtedness, unless subordinated to the Debentures in all
respects ("Subordinated Debt"), except for (i) trade payables incurred in the
ordinary course of business consistent with past practices (ii) capitalized
lease obligations (to the extent permitted in the Loan Agreement which, in
the aggregate at any point in time, shall not exceed $2 million dollars and
(iii) a senior credit facility with the Senior Lender (the "Senior Debt")
which, in the aggregate, shall not exceed $60 million dollars at any given
time (x) unless such excess does not result in the Senior Leverage Ratio (as
defined in the Loan Agreement) being greater than 5 to 1, and

                                       22

<PAGE>

(y) provided that, in no event, shall the Senior Debt exceed $120 million
dollars. If Senior Debt exceeds $60 million, then within ten (10) business
days of the close of any fiscal quarter, the Company shall provide the
Investors with a written statement of its CFO certifying that the Senior
Leverage Ratio of Senior Debt at the close of such quarter for such quarter
is less than 5 to 1. A failure to provide such certificate shall result in a
default under this Agreement and the Debentures.

              (b)  The Debentures shall be subordinate to the Senior Debt
pursuant to the Subordination Agreement. Any Subordinated Debt shall be
subordinate to the Debentures pursuant to a separate agreement to be entered
into between the potential holders of such Subordinated Debt and the
Investors in a form reasonably satisfactory to the Investors.

              (c)  The Company shall not contribute or transfer its assets to
any of its subsidiaries, other than a subsidiary that has delivered its
guarantee to the Investor in form and substance satisfactory to the Investors.

              (d)  Neither the Company nor any subsidiary shall encumber any
of its or their assets, except for Permitted Liens as described in Schedule
3.12(d).

         Section 3.13  FORM D; BLUE SKY LAWS. The Company agrees to file a
Form D with respect to the Debentures, Warrants, Common Shares and Warrant
Shares, as required under Regulation D and to provide a copy thereof to each
Investor promptly after such filing. The Company shall, on or before each
Closing Date, take such action as the Company shall have reasonably
determined is necessary to qualify the Debentures, Warrants, Common Shares
and Warrant Shares for sale to the Investors at the Closing pursuant to this
Agreement under applicable securities or "blue sky" laws of the states of the
United States (or to obtain an exemption from such qualification), and shall
provide evidence of any such action so taken to each Investor on or prior to
the Closing Date.

         Section 3.14  DELISTING; BEST EFFORTS. The Investors shall, in the
aggregate, be entitled to convert Debentures into a total of 8,785,351 Common
Shares (20% of the Common Stock issued and outstanding on the date hereof,
which number shall be subject to readjustment for any stock split, stock
dividend or reclassification of the Common Stock) (the "20% Cap"). Each
Investor shall be entitled to convert that amount of its Debentures into such
total number of Common Shares equal to such Investor's Pro Rata Share (as
defined below) of the 20% Cap. An Investor's "Pro Rata Share" shall mean that
total number of Common Shares equal to such Investor's Purchase Price divided
by the aggregate Purchase Price. Once an Investor has received its total Pro
Rata Share upon conversion of its Debentures, it may request that the Company
redeem its remaining Debentures at a price equal to the greater of (a) the
cash value that the Investor would receive upon conversion of the Debenture
at the Conversion Price and subsequent sale of the Common Shares received
thereupon at the Market Price for Shares of Common Stock in existence on such
date and (b) 130% of the Outstanding Principal Amount (as defined in the
Debentures) plus accrued but unpaid interest and default payments in effect
at that time. In the event that the Investor is prevented from exercising its
redemption rights hereunder by reason of the Subordination Agreement, then
the Investor shall have the

                                       23

<PAGE>

right to require the Company to pay a default payment at the Default Payment
Rate (as defined in the Debentures) on the Debenture Amount (as defined in
the Debentures) for the Debentures held by such Investor for each 30-day
period that the Investor is prevented from exercising such redemption rights
and that the Company fails to obtain the requisite shareholder approval set
forth below. If an Investor has converted all of its Debentures, but has not
depleted the total number of Pro Rata Shares allocated to it, its remaining
Pro Rata Shares shall be reallocated amongst the Investors still holding
Debentures on a pro rata basis. The restrictions set forth in this Section
3.14 shall cease to apply if (a) the Company obtains written shareholder
approval to issue Common Shares in excess of the 20% Cap pursuant to NYSE
Rule 312.03(c) or (b) the Company provides the Investors with irrevocable
written notice, based upon the advice of its counsel, that any such issuance
of Common Shares upon conversion of the Debentures is not subject to the 20%
Cap pursuant to NYSE Rule 312.03(c). The Company will use its best efforts
promptly to obtain either the shareholder approval or the irrevocable notice
described in the preceding sentence and to provide the Investors with a copy
of same: without limiting the foregoing, the Company shall call a
shareholders meeting by no later than May 31, 2000 in which the Company will
solicit the aforementioned shareholder approval, will solicit proxies in
favor of issuing Common Shares in excess of the 20% Cap and will use its best
efforts to have all affiliates of the Company which own or control shares of
Common Stock to vote their shares in favor of such resolution.

         Section 3.15  BOARD APPROVAL. The Company shall use its best efforts
to obtain the approval of the Company's Board of Directors referred to in
Section 1.5 above within 30 days of the Closing Date. The Company shall
notify the Investors immediately upon their receipt of such Board approval or
rejection.

         Section 3.16  PRESS RELEASE. Immediately following the Closing, the
Company shall issue a press release. Investors shall have the opportunity to
review such press release prior to its issuance. No press release shall name
the Investors except as shall be required by law. If the Company fails to
issue a press release within 1 business day of the Closing, the Investors may
issue a press release covering the Closing and complying with any legal
requirement applicable to the Investors.

         Section 3.17  TRADING. For so long as any of the Debentures or
Warrants are outstanding, such Investor shall not make any short sales or
hedges with respect to the Common Stock with the intention of reducing the
price of the Common Stock to such Investor's benefit. Notwithstanding the
foregoing the Company acknowledges that there is no presumption that sales
(including short sales) are with the intent of reducing the price of Common
Stock even if such price of Common Stock drops during the period that such
sales are taking place.

         Section 3.18  GUARANTIES OF SUBSIDIARIES. In the event that, in the
future, any Company subsidiary not listed on Schedule 4.2(k) delivers a
guaranty to the Senior Lender in connection with the Senior Debt, then all
such subsidiaries shall deliver a guarantee to the Investors in the form of
Exhibit 4.2(k) or, at the option of the Investors, such other form that is
used in connection with the Senior Debt.

                                       24

<PAGE>

         Section 3.19  ADDITIONAL COVENANTS. Notwithstanding anything to the
contrary in this Agreement, the Debentures, the Warrants or the Registration
Rights Agreement, none of the Company, ACG Holding Company, ACG Exchange
Company or any of the Yptel Shareholders listed on Schedule 3.19 shall be
precluded from performing their obligations or exercising their rights in
respect of: (a) at any time (including on the liquidation of the Company),
the exchanging of Class A Special Shares of ACG Exchange Company ("ACG Ex")
for Common Shares of the Company, (b) the making or receiving of
distributions (by way of dividends or otherwise, in cash, shares or
otherwise) on Class A Special Shares of ACG Ex owned by the Yptel
Shareholders in substance and like manner as those distributions made to
shareholders of Common Shares of the Company, on liquidation or otherwise,
(c) the reserving of sufficient shares of Common Stock of the Company to
enable the exchange of shares contemplated in sub-paragraph (a) above, and
(d) the ensuring that upon the occurrence of any stock splits, subdivisions,
combination of shares, conversions, exchanges, distributions or other such
event in respect of the shares of the Company which (based on an exchange of
one Class A Special Share of ACG Ex for one Common Share of the Company as at
the date hereof) would dilute or adversely affect the economic equivalence of
such an exchange, the corresponding adjustments are made to ensure there is
no such dilution or adverse effect upon the holders of Class A Special Shares
of ACG Ex. For the purposes of this Section 3.19, undefined terms shall have
the meaning set forth in the Support Agreement among the Company, ACG Holding
Company, ACG Exchange Company, Certain Shareholders listed in Schedule A
therein, and YPTel/ACG Pledge Corporation, dated February 14, 2000.

                                   ARTICLE 4

                             CONDITIONS TO CLOSINGS

         Section 4.1  CONDITIONS PRECEDENT TO THE OBLIGATION OF THE COMPANY
TO SELL THE DEBENTURES. The obligation hereunder of the Company to issue
and/or sell the Debentures to the Investors at the Closing (unless otherwise
specified) is subject to the satisfaction, at or before the Closing, of each
of the applicable conditions set forth below. These conditions are for the
Company's sole benefit and may be waived by the Company at any time in its
sole discretion.

              (a)  ACCURACY OF THE INVESTORS' REPRESENTATIONS AND WARRANTIES.
The representations and warranties of each Investor will 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 as of
an earlier date, which will be true and correct in all material respects as
of such date).

              (b)  PERFORMANCE BY THE INVESTORS. Each Investor shall have
performed all agreements and satisfied all conditions required to be
performed or satisfied by such Investor at or prior to the Closing.

                                       25

<PAGE>

              (c)  NO INJUNCTION. No statute, rule, regulation, executive
order, decree, ruling or injunction shall have been enacted, entered,
promulgated or endorsed by any court or governmental authority of competent
jurisdiction which prohibits the consummation of any of the transactions
contemplated by this Agreement or the Registration Rights Agreement or the
Debentures or the Warrants.

              (d)  PURCHASE PRICE. The Company shall have received the
aggregate Purchase Price from the Investors.

         Section 4.2  CONDITIONS PRECEDENT TO THE OBLIGATION OF THE INVESTORS
TO PURCHASE THE DEBENTURES. The obligation hereunder of each Investor to
acquire and pay for the Debentures at the Closing (unless otherwise
specified) is subject to the satisfaction, at or before the Closing, of each
of the applicable conditions set forth below. These conditions are for each
Investor's benefit and may be waived by each Investor at any time in its sole
discretion.

              (a)  ACCURACY OF THE COMPANY'S REPRESENTATIONS AND WARRANTIES.
The representations and warranties of the Company 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 as of
an earlier date, which shall be true and correct in all material respects as
of such date).

              (b)  PERFORMANCE BY THE COMPANY. The Company shall have
performed all agreements and satisfied all conditions required to be
performed or satisfied by the Company at or prior to the Closing.

              (c)  NO INJUNCTION. No statute, rule, regulation, executive,
judicial or administrative order, decree, ruling or injunction shall have
been enacted, entered, promulgated or endorsed by any court or governmental
authority of competent jurisdiction which prohibits the consummation of any
of the transactions contemplated by this Agreement or the Registration Rights
Agreement or the Debenture or the Warrants.

              (d)  YPTEL ACQUISITION. The shareholders of the Company shall
have approved the YPtel Acquisition and other resolutions presented to the
shareholders for their vote thereon at the meeting to be held on February 16,
2000 or any adjournment thereof and the YPtel Acquisition shall have closed
on terms substantially similar to those set forth in the SEC Documents. Each
of the YP Companies and Pacific Coast Publishing, Ltd. are wholly-owned,
indirect or direct, subsidiaries of the Company.

              (e)  OPINION OF COUNSEL. At the Closing, the Investors shall
have received an opinion of the independent counsel of the Company, Haynes
and Boone, LLP, in the form attached hereto as EXHIBIT 4.2(e) and such other
opinions, certificates and documents as the Investors or their counsel shall
reasonably require incident to the Closing.

              (f)  REGISTRATION RIGHTS AGREEMENT. The Company and the
Investors shall have executed and delivered the Registration Rights Agreement
in the form and substance of EXHIBIT 4.2(f) attached hereto.

                                       26

<PAGE>

              (g)  ADVERSE CHANGES. Except as otherwise disclosed in the
Pre-Agreement SEC Documents, since December 31, 1999, no event which had or
is likely to have, in the reasonable judgment of the Investors, a Material
Adverse Effect on the Company or any of its direct or indirect subsidiaries
shall have occurred.

              (h)  OFFICER'S CERTIFICATE. The Company shall have delivered to
the Investors a certificate in form and substance of EXHIBIT 4.2(h) attached
hereto, executed by an officer of the Company, certifying as to satisfaction
of closing conditions, incumbency of signing officers, and the true, correct
and complete nature of the Charter, By-Laws, good standing and authorizing
resolutions of the Company.

              (i)  DEBENTURES AND WARRANTS. The Investors shall have received
certificates representing the Debentures and Warrants in the form and
substance of EXHIBIT 1.1A and EXHIBIT 1.1B hereto.

              (j)  DUE DILIGENCE. Each Investor shall have completed its
financial, accounting, operational and legal due diligence in a manner
satisfactory to such Investor in its sole discretion.

              (k)  GUARANTIES OF SUBSIDIARIES. The Investors shall have
received a Guarantee in the form of EXHIBIT 4.2(k) by each of the Company's
subsidiaries listed on SCHEDULE 4.2(k), guaranteeing the Company's
obligations under the Debenture, the Registration Rights Agreement and the
Agreement.

                                   ARTICLE 5

                              LEGEND AND STOCK

         The Company will issue one or more certificates representing the
Debentures and the Warrants in the name of the Investor and in such
denominations to be specified by the Investor prior to (or from time to time
subsequent to) Closing. Each certificate representing the Debentures and the
Warrants and any shares of Common Stock issued upon conversion or exercise
thereof initially shall be stamped or otherwise imprinted with a legend
substantially in the following form:

         THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
         1933 OR ANY STATE SECURITIES LAWS. THEY MAY NOT BE TRANSFERRED,
         ASSIGNED, SOLD OR OFFERED FOR SALE EXCEPT PURSUANT TO AN EFFECTIVE
         REGISTRATION STATEMENT UNDER SAID ACT AND ANY APPLICABLE STATE
         SECURITIES LAW OR AN OPINION OF COUNSEL, IN FORM AND SUBSTANCE
         REASONABLY ACCEPTABLE TO THE COMPANY, THAT REGISTRATION IS NOT REQUIRED
         BECAUSE OF AN APPLICABLE EXEMPTION FROM SUCH REGISTRATION REQUIREMENTS.

         The Company agrees to reissue Debentures and Warrants without the
legend set forth above at such time as (i) the holder thereof is permitted to
dispose of such Debentures and/or Warrants and Common Stock issuable upon
conversion or exercise

                                       27

<PAGE>

thereof pursuant to Rule 144 under the Act, or (ii) such Debentures and/or
Warrants are sold to a purchaser or purchasers who (in the opinion of counsel
to the seller or such purchaser(s), in form and substance reasonably
satisfactory to the Company and its counsel) are able to dispose of such
shares publicly pursuant to an Effective Registration or exemption.

         Prior to the Registration Statement (as defined in the Registration
Rights Agreement) being declared effective, any Common Shares issued pursuant
to conversion of Debentures or Warrant Shares issued upon exercise of the
Warrants shall bear a legend in the same form as the legend indicated above.
Upon such Registration Statement becoming effective, the Company agrees to
promptly, but no later than three (3) business days thereafter, issue new
certificates representing such Common Shares and Warrant Shares without such
legend. Except as provided in Section 2(f) of the Registration Rights
Agreement, any Common Shares issued pursuant to conversion of Debentures or
Warrant Shares issued upon exercise of the Warrants after the Registration
Statement has become effective shall be free and clear of any legends,
transfer restrictions and stop orders. Notwithstanding the removal of such
legend, each Investor agrees to sell the Common Shares and Warrant Shares
represented by the new certificates in accordance with the applicable
prospectus delivery requirements (if copies of a current prospectus are
provided to such Investor by the Company) or in accordance with an exception
from the registration requirements of the Act.

         Nothing herein shall limit the right of any holder to pledge these
securities pursuant to a bona fide margin account or lending arrangement.

                                   ARTICLE 6

                                 MISCELLANEOUS

         Section 6.1  STAMP TAXES. The Company shall pay all stamp and other
taxes and duties levied in connection with the issuance of the Debentures and
Warrants pursuant hereto, the Common Shares issued upon conversion thereof,
and the Warrant Shares issued upon exercise of the Warrants.

         Section 6.2  SPECIFIC PERFORMANCE; CONSENT TO JURISDICTION; JURY
TRIAL.

              (a)  The Company and the Investors acknowledge and agree that
irreparable damage would occur in the event that any of the provisions of
this Agreement were not performed in accordance with their specific terms or
were otherwise breached. It is accordingly agreed that the parties shall be
entitled to an injunction or injunctions to prevent or cure breaches of the
provisions of this Agreement and to enforce specifically the terms and
provisions hereof, this being in addition to any other remedy to which any of
them may be entitled by law or equity.

              (b)  THE COMPANY AND EACH OF THE INVESTORS (I) HEREBY
IRREVOCABLY SUBMITS TO THE NON EXCLUSIVE JURISDICTION OF THE UNITED STATES
DISTRICT COURT, THE NEW YORK STATE COURTS AND OTHER COURTS OF THE UNITED
STATES SITTING IN NEW

                                       28

<PAGE>

YORK COUNTY, NEW YORK FOR THE PURPOSES OF ANY SUIT, ACTION OR PROCEEDING
ARISING OUT OF OR RELATING TO THIS AGREEMENT AND (II) HEREBY WAIVES, AND
AGREES NOT TO ASSERT IN ANY SUCH SUIT ACTION OR PROCEEDING, ANY CLAIM THAT IT
IS NOT PERSONALLY SUBJECT TO THE JURISDICTION OF SUCH COURT, THAT THE SUIT,
ACTION OR PROCEEDING IS BROUGHT IN AN INCONVENIENT FORUM OR THAT THE VENUE OF
THE SUIT, ACTION OR PROCEEDING IS IMPROPER. TO THE EXTENT PERMITTED BY
APPLICABLE LAW, THE COMPANY AND EACH OF THE INVESTORS CONSENTS TO PROCESS
BEING SERVED IN ANY SUCH SUIT, ACTION OR PROCEEDING BY MAILING A COPY THEREOF
TO SUCH PARTY AT THE ADDRESS IN EFFECT FOR NOTICES TO IT UNDER THIS AGREEMENT
AND AGREES THAT SUCH SERVICE SHALL CONSTITUTE GOOD AND SUFFICIENT SERVICE OF
PROCESS AND NOTICE THEREOF. NOTHING IN THIS PARAGRAPH SHALL AFFECT OR LIMIT
ANY RIGHT TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY APPLICABLE LAW.

              (c)  THE COMPANY AND EACH INVESTOR HEREBY WAIVES ALL RIGHTS TO
A TRIAL BY JURY.

         Section 6.3  ENTIRE AGREEMENT; AMENDMENT. This Agreement, together
with the Registration Rights Agreement, the Warrants, the Debentures and the
agreements and documents executed in connection herewith and therewith,
contains the entire understanding of the parties with respect to the matters
covered hereby and thereby and, except as specifically set forth herein or
therein, neither the Company nor any Investor makes any representation,
warranty, covenant or undertaking with respect to such matters. No provision
of this Agreement may be waived or amended other than by a written instrument
signed by the party against whom enforcement of any such amendment or waiver
is sought.

         Section 6.4  NOTICES.  Any notice or other communication required or
permitted to be given hereunder shall be in writing by mail, facsimile or
personal delivery and shall be effective upon actual receipt of such notice.
The addresses for such communications shall be:

                                       29

<PAGE>

                   to the Company:

                             Advanced Communications Group, Inc.
                             390 S. Woods Mill Road, Suite 150
                             St. Louis, MO  63017
                             Attention:  Michael A. Pruss
                             Facsimile:  (314) 469-3539

                   with copies to:

                             Haynes and Boone, LLP
                             901 Main Street
                             Suite 3100
                             Dallas, Texas  75202
                             Attention:  Paul H. Amiel, Esq.
                             Facsimile:  (214) 200-0555

                   to the Investors:

                             To each Investor at the address and/or fax
                             number set forth on SCHEDULE I of this
                             Agreement.

                   with copies to:

                             Kleinberg, Kaplan, Wolff & Cohen, P.C.
                             551 Fifth Avenue, 18th Floor
                             New York, New York 10176
                             Attention:   Stephen M. Schultz, Esq.
                             Facsimile:   (212) 986-8866

Any party hereto may from time to time change its address for notices by
giving at least 10 days' written notice of such changed address to the other
parties hereto.

         Section 6.5  INDEMNITY. Each party shall indemnify each other party
against any loss, cost or damages (including reasonable attorney's fees but
excluding consequential damages) incurred as a result of such parties' breach
of any representation, warranty, covenant or agreement in this Agreement; or
incurred as a result of the enforcement of this indemnity.

         Section 6.6  WAIVERS. No waiver by any party of any default with
respect to any provision, condition or requirement of this Agreement shall be
deemed to be a continuing waiver in the future or a waiver of any other
provision, condition or requirement hereof, nor shall any delay or omission
of any party to exercise any right hereunder in any manner impair the
exercise of any such right accruing to it thereafter.

                                       30

<PAGE>

         Section 6.7  HEADINGS. The headings herein are for convenience
only, do not constitute a part of this Agreement and shall not be deemed to
limit or affect any of the provisions hereof.

         Section 6.8  SUCCESSORS AND ASSIGNS. Except as otherwise provided
herein, this Agreement shall be binding upon and inure to the benefit of the
parties and their successors and permitted assigns. The parties hereto may
amend this Agreement without notice to or the consent of any third party. The
Company may not assign this Agreement or any rights or obligations hereunder
without the prior written consent of all Investors (which consent may be
withheld for any reason in their sole discretion), except that the Company
may assign this Agreement in connection with the sale of all or substantially
all of its assets provided that the Company is not released from any of its
obligations hereunder, such assignee assumes all obligations of the Company
hereunder, and appropriate adjustment of the provisions contained in this
Agreement, the Registration Rights Agreement, the Debentures and the Warrants
is made, in form and substance satisfactory to the Investors, to place the
Investors in the same position as they would have been but for such
assignment, in accordance with the terms of the Debentures and the Warrants.
No Investor may assign this Agreement (in whole or in part) or any rights or
obligations hereunder without the consent of the Company (which shall not be
unreasonably withheld), except that an Investor may assign its rights
hereunder in connection with an assignment of Securities.

         Section 6.9  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.

         Section 6.10  GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK
APPLICABLE TO AGREEMENTS EXECUTED AND TO BE PERFORMED ENTIRELY WITHIN SUCH
STATE.

         Section 6.11  SURVIVAL.  The  representations  and  warranties  and
the agreements and covenants of the Company and each Investor contained
herein shall survive the Closing.

         Section 6.12  EXECUTION. This Agreement may be executed in two or
more counterparts, all of which shall be considered one and the same
agreement, it being understood that all parties need not sign the same
counterpart.

         Section 6.13  PUBLICITY. The Company agrees that it will not
disclose, and will not include in any public announcement, the name of any
Investor without the express written agreement of such Investor, unless and
until such disclosure is required by law or applicable regulation, and then
only to the extent of such requirement. The Company agrees that it will
deliver a copy of any public announcement regarding the matters covered by
this Agreement or any agreement and document executed herewith to each
Investor and any public announcement including the name of an Investor to
such Investor, reasonably in advance of the release of such announcements.

                                       31

<PAGE>

         Section 6.14  SEVERABILITY. The parties acknowledge and agree that
the Investors are not agents, affiliates or partners of each other, that all
representations, warranties, covenants and agreements of the Investor
hereunder are several and not joint, that no Investor shall have any
responsibility or liability for the representations, warrants, agreements,
acts or omissions of any other Investor, and that any rights granted to
"Investors" hereunder shall be enforceable by each Investor hereunder.

         Section 6.15  LIKE TREATMENT OF HOLDERS; REDEMPTION. Neither the
Company nor any of its affiliates shall, directly or indirectly, pay or cause
to be paid any consideration (immediate or contingent), whether by way of
interest, fee, payment for the redemption or conversion of Debentures or
exercise of the Warrants, or otherwise, to any holder of Debentures or
Warrants, for or as an inducement to, or in connection with the solicitation
of, any consent, waiver or amendment of any terms or provisions of the
Debenture or this Agreement or the Registration Rights Agreement or the
Warrants, unless such consideration is required to be paid to all holders of
Debentures and Warrants bound by such consent, waiver or amendment whether or
not such holders so consent, waive or agree to amend and whether or not such
holders tender their Debentures or Warrants for redemption, conversion or
exercise. The Company shall not, directly or indirectly, redeem any
Debentures unless such offer of redemption is made pro rata to all holders of
Debentures on identical terms.

         Section 6.16  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.

                             SIGNATURE PAGE FOLLOWS

                                       32

<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be duly executed as of the date first above written.

                                            COMPANY:

                                            ADVANCED COMMUNICATIONS
                                            GROUP, INC.

                                            By:   /s/ Michael A. Pruss
                                                  --------------------------
                                                  Name:
                                                  Title:

                                            INVESTORS:

                                            HALIFAX FUND, L.P.
                                            By:   THE PALLADIN GROUP, L.P.
                                                  Attorney-in-Fact

                                            By:   /s/ Steven W. Weiner
                                                  --------------------------
                                                  Name: Steven W. Weiner
                                                  Title: Managing Director

                                            ELLIOTT ASSOCIATES, L.P.

                                            By:   /s/ Paul Singer
                                                  --------------------------
                                                  Name: Paul Singer
                                                  Title:

                                            WESTGATE INTERNATIONAL, L.P.
                                            By:   MARTLEY INTERNATIONAL, INC.
                                                  Attorney-in-Fact

                                            By:   /s/ Paul Singer
                                                  --------------------------
                                                  Name: Paul Singer
                                                  Title:

             SIGNATURE PAGE TO ADVANCED COMMUNICATIONS GROUP, INC.
                        DEBENTURE PURCHASE AGREEMENT

                                       33

<PAGE>

                             EXHIBITS AND SCHEDULES

Schedule I                         List of Investors
Exhibit 1.1A                       Form of Debenture
Exhibit 1.1B                       Form of Warrant
Schedule 2.1(a)                    List of Subsidiaries
Schedule 2.1(c)                    Capitalization
Schedule 2.1(c)                    Certain Transactions
Exhibit 2.1(c)(i)                  Certificate of Incorporation of the Company
Exhibit 2.1(c)(ii)                 By-Laws of the Company
Schedule 2.1(w)                    Insurance
Schedule 2.1(bb)                   Real Property
Schedule 3.6                       Dividends or Distributions
Schedule 3.12(d)                   Permitted Liens
Schedule 3.19                      Yptel Shareholders
Exhibit 4.2(e)                     Opinion of Company Counsel
Exhibit 4.2(f)                     Registration Rights Agreement
Schedule 4.2(h)                    Officer's Certificate
Schedule 4.2(k)                    Subsidiaries Providing Guaranties
Exhibit 4.2(k)                     Form of Guaranty

<PAGE>

                                    SCHEDULE I

<TABLE>
<CAPTION>

                                                   OUTSTANDING           NUMBER
                                                 PRINCIPAL AMOUNT          OF
INVESTOR                                                OF              WARRANTS            PURCHASE PRICE
                                                   DEBENTURES
                                                 ----------------       --------            --------------
<S>                                                <C>                   <C>                 <C>
HALIFAX FUND, LP                                   $15,000,000           429,262             $15,000,000
c/o The Palladin Group, L.P.
Investment Manager
195 Maplewood Avenue
Maplewood, New Jersey  07040
Attn:  Robert Chender

Tax  I.D. No.:
Facsimile: (973) 313-6491

ELLIOTT ASSOCIATES, L.P.                           $ 2,500,000            71,544             $ 2,500,000
712 Fifth Avenue - 36th Floor
New York, NY  10019

Attn:  Brett Cohen

Tax I.D. No. _______________
Facsimile: (212) 974-2092

WESTGATE INTERNATIONAL, L.P.                       $ 2,500,000            71,544             $ 2,500,000
c/o Stonington Management Corporation
712 Fifth Avenue - 36th Floor
New York, NY  10019

Attn:  Brett Cohen

Tax I.D. No. ________________
Facsimile: (212) 974-2092
</TABLE>

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